The accounting profession is at a turning point. CPA firms are under increasing pressure from talent shortages and rising payroll costs to expanding compliance requirements and growing client expectations. At the same time, firms are expected to scale faster, deliver more value, and protect margins.
Hiring more full-time staff was once the default solution for growth. Today, it has become one of the biggest bottlenecks slow, expensive, and increasingly unsustainable. A proven solution that about half of the top CPA firms choose, according to a survey from Journey of Accounting, is leveraging CPA Outsourcing Services to access skilled professionals, improve operational efficiency, and scale without hiring constraints.
Here we will explore how CPA outsourcing works, why it’s gaining traction across the US, the benefits it delivers, the different outsourcing models available, and real-world use cases that show how firms scale smarter with outsourcing.
The Scaling Challenge Facing CPA Firms Today
Before exploring the solutions that CPA outsourcing can provide, it’s important to understand the reality many CPA firms in the US are facing. Growth opportunities are increasing, client expectations are rising, and regulatory demands continue to evolve but the traditional model of scaling through in-house accounting services and hiring is no longer keeping pace. Operational constraints, workforce limitations, and cost pressures are forcing CPA firms to rethink how they build capacity and sustain growth. Below challenges highlight why expanding headcount alone has become an inefficient and often unsustainable strategy for many CPA firms.
1. Severe Talent Shortage
According to AICPA statistics, nearly 75% of CPA firms report ongoing staffing challenges, highlighting a widespread talent shortage across the US accounting industry. With fewer graduates entering the profession and experienced CPAs retiring at an accelerated pace, firms are struggling to maintain adequate staffing levels. As a result, recruiting qualified accountants now takes several months, and retaining skilled professionals has become just as challenging.
2. Rising Cost of Hiring
Salaries, benefits, training, office infrastructure, and compliance costs have significantly increased. For many CPA firms, each new hire represents a major financial commitment that directly impacts profitability.
3. Seasonal Workload Peaks
Tax season, audits, and year-end close create sharp workload spikes. Hiring full-time staff to manage seasonal demand often leads to underutilization during slower periods.
4. Pressure to Do More Than Compliance
Clients now expect more than just accounting, bookkeeping and tax filings they demand advisory insights, faster turnaround times, and tech-enabled services such as Client Accounting and Advisory Services (CAAS). Delivering these higher-value services requires significant time, strategic focus, and operational flexibility, which many CPA firms struggle to achieve under traditional staffing models.
This combination of challenges has made traditional hiring an inefficient growth strategy for many firms.
What Are CPA Outsourcing Services?
CPA Outsourcing Services involve partnering with an external accounting provider that supports CPA firms with skilled professionals who work as an extension of their internal team.
Unlike generic outsourcing, CPA outsourcing is designed specifically for accounting firms and aligns with US accounting standards, workflows, and compliance requirements. Providers like AcoBloom specialize in delivering tailored CPA outsourcing solutions, combining experienced accounting talent with secure, process-driven support to help US CPA firms scale efficiently without expanding in-house headcount.
Outsourced teams typically handle:
- Bookkeeping and accounting
- Accounts payable and receivable
- Payroll processing
- Tax preparation support
- Audit and assurance support
- Month-end and year-end close
- Financial reporting and reconciliations
The CPA firm retains client ownership, review authority, and strategic control, while the outsourced team executes defined tasks efficiently and cost-effectively.
Why CPA Firms Are Choosing CPA Outsourcing Over Hiring
Long recruitment cycles, rising hiring costs, and limited access to skilled talent have made headcount expansion both risky and restrictive. CPA outsourcing offers a more agile, scalable alternative, enabling firms to add capacity, improve efficiency, and maintain service quality without the long-term commitments of in-house hiring. Key Benefits of CPA Outsourcing Services
1. Flexibility and Scalability
Through CPA Outsourcing Services, businesses have a level of flexibility that is not offered by traditional staffing strategies. An example of this flexibility would be the high-volume of work that is associated with tax season or year-end closing periods when volumes typically increase dramatically. If a business experiences increased demand because of this, it can quickly increase the number of external resources it uses and reduce those same external resources once the peak has been met without having to navigate through the difficulty and compliance issues surrounding hiring or terminating employees. The agile nature of CPA Outsourcing means that businesses can expand the number of clients they service and/or take on larger projects without being limited by in-house staff.
2. Access to Skilled Accounting Talent
When CPA Firms are experiencing a growth period, there is an immediate demand for the CPA Quality Workforce to keep up with the volume of work. An outsourced CPA Firm provides CPA Firms with access to a Global, High-Skilled Talent Pool of Certified Professionals with no time wasted on a lengthy Hiring Process. This outsourced talent typically has been to school to learn about International Standards for Accounting, GAAP, etc. So, an outsourced staff member can help you produce a higher-quality product. It is especially useful for Small to Mid-Sized CPA Firms to be able to offer their clients these types of niches, complicated, specialized services without investing in the costly and time-consuming employment of an in-house Employee who requires specialized training.
3. Cost-Effectiveness and Lower Overhead
CPA Outsourcing Services is an excellent way for accounting services to save large amounts of money. Many companies save 30%-60% of their operating expenses by outsourcing accounting services. Because companies do not have to maintain a full-time employee’s staff to perform these functions, they do not incur the costs associated with compensation. The costs can be related to employees’ time, health insurance, workers’ compensation, payroll, and office space. Further, companies will only be charged for the services they receive based on usage. Most firms will charge hourly rates or fixed monthly rates depending on the type of service requested. This allows accountants to better manage budgets and increase profitability.
4. Improved Turnaround Times and Productivity
Outsourced teams are process-driven and focused solely on execution. This allows CPA firms to:
- Close books faster
- Process higher transaction volumes
- Meet tight tax and audit deadlines
- Reduce backlogs during peak periods
With operational tasks handled externally, internal teams can focus on high-value work.
5. Enhanced Focus on Advisory and Client Relationships
When routine accounting and bookkeeping tasks are outsourced, CPA partners and senior staff gain time to:
- Deliver advisory services
- Strengthen client relationships
- Expand service offerings
- Drive firm growth and strategy
6. Process Standardization and Quality Control
Professional CPA outsourcing providers operate with documented workflows, internal quality checks, and performance metrics.
This leads to:
- Consistent output quality
- Reduced errors and rework
- Better compliance and documentation
- Easier scaling across multiple clients
What Are the Different Accounting Outsourcing Models?
One of the main advantages of outsourcing account services is the flexibility it provides to CPA firms, allowing them to choose the outsourcing model that best fits their needs. Many outsourced accounting firms also offer customized models for their clients based on what works best for them.
1. Task-Based CPA Outsourcing or Pay As You Go
In this model, CPA firms outsource specific tasks or processes. This can also be termed as the hourly model, which is a flexible pricing approach that is used by most companies and service providers. Under this model, companies pay only for the actual hours utilized on a specific project or activity, rather than paying for a fixed amount in advance. This process allows for more accurate cost control since the cost is directly proportional to the amount of work done.
It is particularly popular in consulting, freelance services, and technical support services, where project scope may change or be hard to pinpoint at the start. Clients appreciate openness and being able to modify the scope of work without having to redo the whole contract.
Common examples:
- Bookkeeping and reconciliations
- AP and AR processing
- Payroll support
- Data entry and cleanup
2. Full-Time Equivalent (FTE)
Here, companies team up with an outsourcing company to utilize dedicated offshore professionals who perform discrete tasks such as staff accounting, tax returns, or audit. These professionals work exclusively for hiring companies, just like in-house employees, to deliver steady and specialist service.
However, unlike traditional in-house staff, these offshore employees remain on the outsourcing provider’s payroll, which can bring benefits like cost savings, flexibility, and worldwide talent availability. This FTE model outsourcing allows companies to continue benefiting from high-quality financial and compliance services while potentially reducing overhead and operational complexity.
3. Team-Based Outsourcing Model
This model provides an entire offshore or nearshore accounting team managed by the outsourcing partner.
Includes:
- Accountants
- Senior reviewers
- Team leads or managers
4. Seasonal or On-Demand Outsourcing or Return-Based
Designed specifically for peak periods such as tax season or year-end close. Under this model, businesses pay either a fixed fee for filing or a fee for each specific task ordered. The work may include some other bookkeeping and financial tasks, such as preparing bookkeeping, creating an audit schedule, or other tasks of the same kind.
The hallmark of this fee structure is that there is no change in the fee depending on the size or complexity of the task. This approach gives firms definite and transparent costs, which make planning and budgeting easy. It reduces uncertainty and enhances financial decision-making by being transparent and simple.
Benefits:
- Rapid scaling during high demand
- No long-term commitment
- Cost control during off-peak months
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Start early with a free tax prep trial ↗Key Considerations When Choosing a CPA Outsourcing Partner
To fully realize the benefits of CPA outsourcing, choosing the right partner is critical. Not every provider is equipped to meet the regulatory, operational, and service delivery expectations of US CPA firms. An effective outsourcing partner should demonstrate experience working with US CPA firms, a strong understanding of US GAAP, tax workflows, and compliance requirements, along with robust data security and confidentiality controls. Clear communication, structured reporting, scalable engagement models, and transparent pricing are equally essential. As outlined in What US CPA Firms Need to Know, selecting the right CPA outsourcing partner ensures your outsourced team functions as a seamless extension of your firm not just a third-party vendor.
Is CPA Outsourcing Right for Your Firm?
CPA outsourcing is not about replacing your internal team it’s about enabling them to do their best work.
It’s ideal if your firm:
- Is struggling to hire or retain talent
- Wants to scale without increasing fixed costs
- Faces seasonal workload spikes
- Aims to grow advisory services
- Needs operational efficiency and flexibility
Final Thoughts
The future of accounting firms is not defined by headcount it’s defined by agility, efficiency, and value delivery.
CPA Outsourcing Services allow firms to scale smarter, reduce operational strain, and stay competitive in a rapidly evolving industry. By leveraging CPA outsourcing, US CPA firms can grow without hiring constraints, protect margins, and refocus on what truly matters clients, strategy, and long-term success.
For firms ready to move beyond the limitations of traditional hiring, CPA outsourcing is no longer optional it’s a strategic advantage.
