5 Common Outsourced Accounting Services Myths That Have Been Disturbing Small CPA Firms
                     Are you a new CPA firm with high hopes and ambitions? Are you trying to establish your account 
business in the cut-throat competition of the US economy? Do you want to serve your clients with 
perfection?
Then, you have to surf the boat of outsourcing for accounting firms. That’s because by accounting 
outsourcing in the US market, you will be able to – hire talented employees at lower rates, can reduce 
your overhead cost, improve your productivity, expand the client base of your small accounting business 
and so much more.
However, if you are not sure about outsourced accounting services yet, and you are wondering about the
land of outsourcing accounting myths – then you need to pull yourself out of the misconception world and
try to accept the reality.
Outsourced Accounting Services Myths – Hindrance in your Success
For small CPA firms, it is economically not possible to hire full-time experienced professionals in various
areas like taxation, bookkeeping, or management. Plus, they can’t afford to update accounting technology
every other month. So, outsourcing for accounting firms here is a great solution that can empower small 
CPA firms.
But, still, there are some myths regarding the outsourced accounting industry lurking in the market that 
have been disturbing small CPA firms to invest in outsourcing services. So, today we are going to discuss
a few common outsourcing accounting myths that you need to wipe out today from your mind.
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Myth #1. Outsourcing services is beneficial for large companies only.
Reality – It is a misconception going on in the minds of lots of CapActix clients that only big accounting 
firms in the US can benefit from our services. But, that’s a sheer myth – large firms can indeed increase 
their productivity and efficiency by outsourced accounting services, but it doesn’t mean that small or 
mid-sized accounting companies can’t gain benefits as well.
With the help of outsourced services, small accounting firms can provide a variety of services to their 
clients at affordable rates. For instance, if any of your clients want you to perform taxation as well as 
bookkeeping tasks, but you only have bookkeepers in the house. Then, you can outsource tax 
preparation services and use your in-house staff for bookkeeping services. This way small accounting 
companies will be able to offer all kinds of services to their clients without hiring full-time professionals.
Myth #2. My company’s safety and privacy will be compromised.
Reality – This is a myth that has been stopping numerous companies from accounting outsourcing in 
the USA. People assume that once they share confidential information with strangers and welcome 
outsourcers into their business, then their companies’ safety and privacy will affect.
Well, this is somehow true – now, if you hand over confidential clients’ files to strangers without any 
verification, then you are indeed compromising your company’s safety. But, if you hire well-trusted 
outsourced accounting firms with good client reviews and reputations, then you won’t lose anything.
Moreover, all trustworthy accounting outsourcing firms foremost sign agreements with their clients so 
that all the terms and conditions will be legalized in the written to avoid any future conflicts. So, if you 
are using the services of a trustworthy and reputed offshore accounting firm, then your company’s safety
and privacy will remain well intact.
Myth #3. There is no difference between offshoring and outsourcing.
Reality – Accounting business holders often get confused between offshore and outsourced accounting 
services. Both these terms are completely opposite from one another. Outsourcing accounting services is 
an agreement between you and a third-party company that will provide particular services to you. 
However, offshoring means hiring an accounting team from a different country where professionals will 
be available at cheaper rates, but the employees remain part of the company.
Offshoring is adopted by US accounting firms because some countries have low wage rates and tax rates 
as per the US. So, if you are wondering why you have to manage your outsourced accounting team, then 
you are mistaken as outsourcers aren’t part of your team.  They will be managed and trained by 
the offshore accounting company. Apart from assigning the work and making the payment – CPA firms 
have nothing to worry about.
Myth #4. Long-term partnerships can’t be established with outsourced accounting companies.
Reality – Most accounting firms consider outsourced accounting services as a short-term activity only. 
They think that outsourced services can offer them a one-time solution only. Now, of course, it is a myth 
because CPA firms can establish long-term relationships with outsourced service providers.
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You can entirely outsource certain accounting services from the outsourced company. Such as if you 
don’t have tax expertise in your team, and then you can still effectively provide tax services to your 
clients by outsourcing the service. Moreover, tax services are required during a specific period so you can
easily make long-term contracts with outsourced accounting firms.
Myth #5. High-level IT infrastructure is required for outsourcing accounting services.
Reality – a large number of firms hesitate to use outsourced accounting services because they don’t find
themselves sufficient enough to deal with the large IT database required to establish a connection with 
outsourced service providers. Well, that was an old story, because communication tools and numerous 
other IT applications are now available at very cheaper rates.
Small accounting firms can easily acquire the tools and applications to establish a connection with their 
outsourcing accounting service providers. Moreover, due to intensive competition in the technology 
sector – some IT tools are available for free. So, if you are not using the services of outsourced 
accounting companies because you don’t want to increase your IT expenses, then no need to worry as 
hiring an outsourced team won’t affect your budget much.
Are you an accounting firm and facing issues in tax preparation? Here you can read 8 Methods to 
Overcome Tax Glitches While Tax Preparation
Myths Are Useless
Myths are just created out of a few bad experiences. You can’t judge the full book from the cover page – 
similarly, if you want to experience the outsourced accounting services benefits, then you have to try it 
yourself. You can’t believe in some baseless myths – you have first to try, and then believe. So, if you 
believe in any of the above-discussed five accounting myths, then immediately clear your thoughts.
If you looking for accounting outsourcing in the USA, then you can contact CapActix and outsource our 
accounting services today. Contact us at – email – [email protected]. or can call on +201-778-
 0509  without any hesitation.
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