CPA_TriFold.pdf Accountants.pdf.   In my role as CEO of a bookkeeping business, one thing I keep hearing from accountants is that it is often difficult finding the right balance of when to keep the work in house and when to outsource. As much as I would like to sit here and say “outsourcing is always better” that is simply not always going to be the case; so when should CPA’s keep things in house and when should they outsource?

Pricing

Often times, if you are engaging a client for year round services such as payroll, bookkeeping, tax planning, consulting, and Tax Prep, the monthly pricing is either too steep for clients or the firms end up reducing the price to a point where the ROI is minimal. In that case, the firm is better off outsourcing the smaller functions and maximizing their ROI.

On the other hand, if the client likes just sticking with one firm, and doesn’t mind paying a premium then I would recommend keeping that in house.

Clients

It might be politically incorrect to say this but certain clients are more difficult than others; whether they demand more of your time, or it’s hard to keep them happy- the best solution might be to divide the duties up. Sometimes the relationship works better if it’s only once a year.

However, certain businesses are complex and much of the complexity can be reduced by keeping the client in house.

Relationships

Everyone knows that positive relationships drive more business. If we want people to refer us businesses then we have to initiate the connection by sending out a client we might have potentially been able to keep in house in the hopes that this firm will send us their valued clients when they need an accountant. It’s just good business.

 In short,

There is no one right answer to the question of when to outsource, but by following these guidelines you can achieve a healthy balance.

-Philippe Lerner,Founder & CEO PL Consulting

info@plcfo.com Tel # 410-7643731

Origionally posted by Philippe Lerner on May 12, 2015 at 5:30pm