The business landscape is ever evolving, and as such business owners must continuously evaluate ways to improve the efficiency of their operations. With the advent of remote work software, one relatively new resource gaining popularity is virtual Certified Public Accountants (CPAs). Most business owners agree that outsourcing accounting allows their business to focus on its core objectives. That is why approximately 71% of businesses outsource some to all of their accounting to an outside firm. However, many businesses find that the traditional model of hiring a local CPA has limited their ability to find the resources they need. A 2023 survey found that 64% of business owners were struggling to find an accounting firm that met their needs. In this article, we will explore some of the many benefits businesses gain when they hire a virtual CPA and how this resource might help resolve the accounting shortfall.
Many smaller CPA firms work with local businesses in a wide variety of industries. They offer a range of services including tax preparation, financial statement audits, and bookkeeping services. As a result, these local firms tend to be generalists. They often do not have the customer base to necessitate services tailored to any specific industry. If, for example, you owned a business that sells medical equipment, you’d likely have a hard time finding a local CPA with expertise in this industry. Virtual CPA firms, on the other hand, can tap into large client bases within any given industry. They have the flexibility to hire personnel with specific expertise and offer their services to clients all over the world.
Businesses in certain geographical areas may not find any local accounting firms that can handle nuanced financial situations as well. Accounting and finance are complex fields requiring ongoing education and knowledge of regulatory changes. Virtual CPAs break down geographical barriers by allowing businesses anywhere to access top-tier accounting professionals. The collective knowledge of a remote CPA firm can be a valuable asset to clients in any industry or facing any complex financial situation.
Running a brick-and-mortar firm comes with a lot of overhead costs, including the cost of office space and operational costs. These firms must cover such costs through the hourly rates they charge their clients. Hiring an in-house CPA for your business can be equally or more expensive, particularly for smaller businesses who may not have the workload to require full-time accounting services. Virtual CPA firms often utilize a team that works remotely, allowing such firms to offer their financial expertise without having to pass on the cost of running a physical office. They scale their services to their client’s needs, whether its bookkeeping, tax preparation, audit services, or financial analysis and consulting.
Greater Technological Capabilities
By necessity, virtual CPAs are well-versed in technology. They leverage the latest digital platforms to make collaboration and communication with clients as seamless as possible. Their business model requires that they become very familiar with online tools and software to streamline workflows. Clients, in turn, benefit from the convenience of virtual meetings and cloud data management that allows them to share their documents virtually and securely. Remote CPAs also often employ the latest tools for financial analysis, reporting, and data management. This can include advanced data analytics that provide clients with real time financial insights. However, while these technologies may streamline processes, remote CPAs continue to offer personalized services to their clients.
Hire a Virtual CPA for Enhanced Security
Virtual CPAs often utilize robust security measures to safeguard their client’s sensitive financial information. These firms invest in cybersecurity to reduce the risk of any data breaches. This commitment to security can provide businesses with peace of mind that their financial data is safe.
Is a Virtual CPA Right for You?
Working with a virtual CPA won’t be right for every business. You may prefer a local CPA firm because you’ve worked with them for years or you may need a local advisor for a variety of reasons. It is important to weigh the pros and cons of a remote CPA for your business. Advances in remote work technology now allow businesses to work more closely with their remote CPAs, allowing the trusted business advisor relationship to grow. The shift towards remote CPAs reflects a broader trend toward businesses hiring digitally led advisory firms with greater specialized expertise. If you’d like to hire a virtual CPA, contact My CPA to set up a consultation and find out more.