The Staffing Shortage Is Forcing Firms to Outsource Work They Swore They’d Never Touch

Knowing when to outsource bookkeeping starts with understanding your firm’s workload. If recurring bookkeeping tasks are delaying client deliverables, consuming senior accountants’ time, or preventing you from accepting suitable new clients, external processing support may be worth evaluating. Before making that decision, review your team’s capacity, the work you can delegate, and the supervision needed to maintain accuracy and client confidentiality.

An unfilled position doesn’t automatically mean you need to outsource. Sometimes the better answer is adjusting workloads, improving software, or hiring another employee.

But what happens when your team is already working at capacity and another hiring round won’t solve the immediate problem?

That’s when outsourcing becomes an operational decision rather than simply a comparison of salaries.

At New Clients, Inc. (NCI), we connect accounting professionals with outsourced processing resources through our partnership with GKM. We encourage firms to evaluate whether outside support fits their existing workflow before committing to a new arrangement.

Why are staffing pressures making outsourcing worth considering?

Accounting firms need qualified people to handle recurring client work, meet deadlines, and maintain service quality.

According to the U.S. Bureau of Labor Statistics, approximately 115,300 accountant and auditor job openings are projected annually, on average, from 2025 through 2035.

That projection reflects both employment growth and the need to replace workers who leave the occupation. It doesn’t mean every accounting firm faces the same hiring difficulties.

For an individual practice, the more useful question is whether current staffing can handle the workload without creating recurring delays or excessive overtime.

A firm with sufficient staff may have no immediate need to outsource. Another may need additional processing capacity even when its existing employees are performing well.

When should an accounting firm consider outsourcing bookkeeping?

The clearest warning sign is a recurring gap between the work your firm has committed to deliver and the hours available to complete it.

Review these situations:

• Repeated missed internal deadlines: Monthly reconciliations or financial reports are consistently completed later than planned.
• Senior accountants handling routine processing: Experienced staff spend substantial time entering transactions or preparing standard schedules instead of reviewing work that requires their expertise.
• Persistent overtime: Employees regularly need extra hours to complete normal client assignments.
• Delayed onboarding: New clients must wait because the team cannot absorb additional recurring work.
• Unfilled positions affecting delivery: Hiring delays are preventing the firm from meeting existing commitments.

One difficult month may not justify a permanent change. Look for patterns across several reporting cycles.

If these issues continue despite reasonable workload adjustments, it’s worth evaluating whether outside processing support could help.

How can you measure whether your team has enough capacity?

Start with the work your team must complete each month.

Estimate the hours required for recurring bookkeeping, reconciliations, reporting, and review. Then compare that workload with the hours employees can realistically dedicate to those tasks.

For example, consider a hypothetical firm:

Monthly workload	Hours
Transaction processing	90
Bank and credit card reconciliations	55
Routine reporting preparation	35
Total processing workload	180
Available staff processing capacity	145
Capacity gap	35

In this example, the firm has a recurring shortfall of 35 hours.

That doesn’t automatically mean outsourcing is the answer. First, determine whether the gap results from inefficient processes, temporary demand, missing information, or insufficient staffing.

If the shortfall continues, the firm can compare hiring, process improvements, and external support using the same workload estimate.

Which bookkeeping tasks can be outsourced?

Routine, repeatable work with clear instructions is often easier to delegate than work requiring substantial client-specific judgment.

Potential assignments include transaction categorization, data entry, bank reconciliations, and preparation of routine bookkeeping reports.

Before transferring a task, confirm that the provider has the required skills, system access, documentation, and review procedures.

Keep responsibility for client communication, final review, and professional decisions clearly assigned within your firm.

A practical starting point is to outsource a limited, well-documented set of recurring tasks rather than transferring an entire client workload immediately.

This allows your team to assess turnaround time, communication, and accuracy before expanding the arrangement.

How do you compare outsourcing with hiring another employee?

Compare the complete cost of each option, not just an employee’s salary against a provider’s quoted fee.

For an internal hire, consider compensation, benefits, recruiting, training, software, and supervision.

For outsourced processing, consider service fees, onboarding, system access, internal review time, and any additional charges.

Also compare the capacity each option provides.

A full-time employee may be appropriate when the firm needs ongoing client interaction, local availability, or responsibilities extending beyond processing.

Outsourcing may be more suitable when the workload is clearly defined and the firm needs additional production capacity without adding a permanent position.

The lower-cost option isn’t necessarily the better choice if it creates more review work, delays, or service problems.

What should you check before outsourcing client work?

Before selecting a provider, establish how the work will move between your firm and the external team.

Confirm:

1. Scope: Which tasks will be completed externally, and which remain with your employees?
2. Access: How will the provider securely receive documents and use accounting systems?
3. Review: Who checks completed work and resolves discrepancies?
4. Deadlines: When must information be submitted, and when should completed work be returned?
5. Communication: Who handles questions, missing records, and corrections?
6. Confidentiality: What contractual, privacy, professional, and client-consent requirements apply?

Tax preparation and certain other services may involve additional disclosure or consent requirements. Firms should confirm their obligations before sharing client information with an external provider, particularly when work is performed outside the United States.

NCI previously interviewed a CPA about his experience with outsourced bookkeeping. In our Jay Steer client interview, he describes how adjusting document handling and communication procedures was part of making the arrangement work.

Although the interview reflects an earlier period, the operational lesson remains useful: outsourcing requires a defined process, not simply sending work to another team.

Should you outsource everything at once?

Usually, a limited trial is a more manageable starting point.

Choose a recurring assignment with clear documentation and measurable deadlines.

For the first few cycles, monitor whether the work is completed accurately, returned on time, and reviewed without excessive corrections.

Record any additional time your employees spend answering questions or resolving issues.

If the arrangement performs well, consider expanding the scope gradually.

If it creates more work than it removes, review the instructions, task suitability, and provider performance before committing additional assignments.

How can NCI help firms explore outsourcing?

Deciding when to outsource bookkeeping should come down to your firm’s actual workload, available staff, and ability to maintain service quality.

At New Clients, Inc., we work with GKM to provide accounting professionals access to outsourced bookkeeping and tax preparation resources.

Our accounting outsourcing services page explains the available support and provides information about our outsourcing partner.

If recurring processing work is limiting your firm’s capacity, contact us to discuss the available options and whether the arrangement may suit your practice.

FAQs

When should an accounting firm start outsourcing bookkeeping?

Consider outsourcing when recurring work consistently exceeds available staff capacity, causes delays, or prevents your firm from accepting suitable new assignments. Review internal process improvements and hiring options before deciding.

Is outsourcing bookkeeping always cheaper than hiring?

No. Costs depend on the provider, workload, employee compensation, training, supervision, and required internal review. Compare the total cost of each arrangement.

What bookkeeping tasks are suitable for outsourcing?

Transaction processing, reconciliations, and routine report preparation may be suitable when instructions are clear and the firm maintains appropriate review and oversight.

Can a small CPA firm outsource only part of its workload?

Yes. A firm can evaluate a limited set of recurring tasks rather than transferring all bookkeeping work. The scope depends on the provider’s services and the firm’s needs.

Who is responsible for the accuracy of outsourced bookkeeping?

The accounting firm must maintain appropriate oversight of the services it provides to clients. Responsibilities for preparation, review, corrections, and final approval should be clearly documented before work begins.