Improving Offshoring Experience for a Mid-Scale CPA Firm 

Introduction 

A mid-scale CPA firm with four partners was facing increasing challenges in managing their year-end financials and tax services. Despite having a team of 25 professionals based in the Philippines, the firm struggled with high service costs, delayed communication, and the inability to handle more complex and analytical tasks.

Seeking a more cost-effective and efficient solution, the firm decided to explore outsourcing options, ultimately choosing VJC as their partner to help streamline and improve their operations. 

Challenges Faced by the CPA Firm 

The CPA firm encountered several critical issues with their previous outsourcing model, which led them to reassess their strategy: 

• High service costs – Managing a large team in the Philippines was proving expensive, defeating the idea behind outsourcing.
• Delayed communication – Coordinating with the outsourced team led to bottlenecks, especially during peak tax season. 
• Inability to handle complex tasks – The team struggled to manage more intricate, analytical aspects of financial reporting. 
• Operational inefficiencies – There was a lack of clarity and organization in workflow, leading to delays and errors. 

In light of these challenges, the CPA firm recognized the need for a more responsive, organized, and cost-effective solution that would align with their operational needs. 

VJC’s Strategic Approach 

VJC developed a tailored offshore solution to address the CPA firm’s unique challenges. The proposed strategy involved: 

• Assigning full-time executives (FTEs) to handle year-end financials and tax work, with a dedicated manager overseeing the entire process. 
• Establishing clear communication channels with a single point of contact to ensure timely and efficient collaboration.  
• Streamlining workflows by organizing tasks around key practice areas, including year-end financials, tax, and complex analytical tasks. 
• Providing cost-effective solutions by significantly reducing the need for a large in-house team. 

The firm initially engaged VJC for one seat dedicated to year-end financials and tax, with a two-week free trial for assessment. After the trial period, they opted for VJC’s comprehensive solution, transitioning their entire accounting operations to VJC. 

Implementation and Transition

The implementation of VJC’s strategy was structured and seamless, ensuring minimal disruption: 

• Initial Onboarding – VJC conducted a thorough analysis of the CPA firm’s existing workflows to identify inefficiencies. 
• Team Integration – VJC’s offshore team was quickly trained to align with the firm’s accounting processes, financial reporting requirements, and compliance standards. 
• Process Optimization – The team streamlined year-end financials and tax services, improving efficiency and reducing errors. 
• Ongoing Support – VJC provided continuous communication and regular updates, ensuring transparency and alignment with the firm’s goals. 

Immediate and Long-Term Impact 

The partnership with VJC had a transformative impact on the CPA firm’s operations, leading to substantial improvements in both the short and long term. 

Short-Term Benefits: 

• 30% reduction in operational costs by eliminating the need for a large offshore team. 
• Faster turnaround times for year-end financials and tax filing. 
• Improved communication with direct access to a dedicated manager, reducing delays. 

Long-Term Impact: 

• Scalable solutions that enabled the firm to grow without increasing internal headcount or overhead. 
• Improved accuracy in complex financial reporting and tax compliance, ensuring timely filings. 
• Increased focus on core business functions, as the firm’s partners and internal team could focus more on client-facing tasks and business growth. 

Client Satisfaction and Future Outlook 

After four months of engagement, the CPA firm reported high satisfaction with the improvements in operational efficiency, cost savings, and streamlined processes. The firm has already committed to expanding the team with VJC, projecting a growth in seats from 4 to 10 over the next 6-8 months. This expansion will further strengthen the partnership and allow the firm to handle an increased workload without the need for additional in-house resources. 

The firm is now more confident in its ability to scale efficiently while maintaining high-quality service to clients. VJC’s tailored solutions have not only provided immediate relief but have also laid the groundwork for long-term growth and success.