Why outsourcing may be the solution

If you have been in tax or accounting for any length of time, you have probably felt it. The growing difficulty in finding qualified staff, the increased workload, and the gnawing question of how to keep up without burning out. 

A crisis by the numbers

The staffing shortage in our profession isn’t only anecdotal; it’s well-documented. The AICPA’s 2021 Trends Report shows that first-time certified public accountant (CPA) exam candidates dropped 33% from 2016 to 2021 from 48,004 to 32,188.

Layer on the fact that about 75% of current Association of International Certified Professional Accountants (AICPA) members are nearing retirement, and you have a shrinking pool of qualified professionals. This shortage isn’t new. In 2013, a CPA Trendlines survey found that 42% of firms were already turning away work due to a lack of staff. Over a decade later, the problem has become even more acute. 

The human impact on firms

A staffing shortage doesn’t only mean delayed deadlines. It can lead to: 

• Turning away new clients (and new revenue)
• Overloading existing staff, risking burnout and turnover
• Spending too much time on lower-value, repetitive work rather than client strategy and planning
• Missing opportunities for firm growth

What is outsourcing?

Outsourcing refers to the practice of delegating specific tasks or services to an external provider, rather than performing them in-house. In daily life, we outsource all the time, such as for lawn maintenance, house cleaning, and food delivery. In our profession, outsourcing has been a mainstay for the Big 4 and large CPA firms, particularly offshore, for years. Thanks to technology and secure remote work tools, outsourcing is now accessible to firms of all sizes, not just the giants. 

Why tax professionals are turning to outsourcing

Outsourcing, especially virtual staffing, is viewed increasingly as a lifeline for firms struggling with capacity constraints. 

Key benefits include: 

• Cost savings – Reduce recruitment and operational costs while speeding up hiring.
• Time savings – Let experts handle staffing so you can focus on client work.
• Scalability – Scale your workforce up or down quickly in response to demand.
• Reduced hassles - Skip resume screenings, human resources (HR) compliance, information technology (IT) setup, and benefits management. 
• Global talent access – Tap into skilled professionals beyond your local area. 

What work can you outsource?

While some fear outsourcing means losing control, most firms start by offloading lower-level work: 

• Tax date entry 
• Bookkeeping
• Compilation tasks
• Routine reconciliations

Freeing internal staff from these tasks means more time for review, strategy, and client relationships.

Domestic vs. international outsourcing

When considering virtual staffing, one of the first decisions to make is whether to hire domestic or international talent. 

Domestic talent

• Closer time zones (typically within three hours)
• English speakers (though not always native speakers)
• Smaller talent pool makes hiring harder
• Staff may leave for higher-paying local opportunities

International talent

• Significant cost savings 
• Access to a larger, eager talent pool
• Proficient English (though not always a first language)
• Time zone differences can be an advantage for overnight work
• Cultural differences and varied holiday schedules
• IRS §7216 compliance considerations when sharing taxpayer data outside the United States 

There is no one-size-fits-all answer, the right choice depends on your needs, your client base, and your comfort with cross-border data compliance. 

Is outsourcing right for you?

If you are already over capacity, struggling to find reliable staff, or consider turning away work, it’s worth exploring. Start with a clear list of tasks you want to delegate, research reputable providers, and understand the compliance requirements (especially IRS §7216 rules). 

Outsourcing isn’t about replacing your in-house team; it’s about augmenting your capacity so that you can serve more clients and grow your business without burning out. 

Final thoughts

In a profession where the demand for services shows no signs of slowing, outsourcing can give you the breathing room to grow strategically, protect your team’s well-being, and maintain the quality your clients expect.