Scaling Your CPA Firm with Offshore Back-Office Support#
An accounting firm's calendar is uneven. Reconciliations, cleanup and month-end work for many clients arrive in the same weeks, and the people who should be reviewing that work are also answering client questions. This article is the overview of how we work with accounting firms. It covers what back-office support includes, how the work is divided, how review works, how to plan for busy season, and which client files suit a first handover. Each topic links to a more detailed guide.
What back-office support covers#
We work inside your client's QuickBooks Online file. The ongoing work we take on is:
- Monthly bookkeeping and month-end close
- Accounts payable and accounts receivable
- Bank, credit card and loan reconciliations
- Financial statements and management reports
- Year-end close and tax-ready workpapers
- 1099 preparation support
- QuickBooks Online setup and migration
For files that have fallen behind, there is a separate cleanup scope:
- Bank, credit card and loan reconciliations for past periods
- Recategorization of transactions
- Duplicate entries
- Undeposited funds
- "Ask My Accountant" balances
- A written summary of every adjustment
The cleanup scope is covered in our guide to offshore bookkeeping cleanup. The close sequence is in the month-end close checklist.
What we do not do#
Some work is outside our scope, and it is better to say so early. We do not prepare or file tax returns, file sales tax returns, process payroll or prepare Form 990. We do not sign audits or hold US credentials. Those stay with your firm or with the people already engaged for them. We prepare the books and workpapers that feed that work.
How work is divided#
The simplest division is by judgement. Preparation work with a clear rule goes to us. Decisions that need your knowledge of the client stay with you.
| Work | Who does it |
|---|---|
| Reconciliations, coding, duplicate clearing | Offshore team |
| Preparing reports and schedules | Offshore team |
| Chartered Accountant review of the work | Our firm, before return |
| Choosing accounting basis and policies | Your firm |
| Judgement on old balances and unusual items | Your firm |
| Client communication and the final review | Your firm |
| Tax returns and tax advice | Your firm |
The client relationship stays with you. Client communication stays with you. Questions we cannot resolve from the records come to you on a written list.
How review works#
There are two layers of review, and they check different things.
The first is ours. Work is reviewed by a Chartered Accountant before it is returned to you. That review looks at the work itself: do reconciliations agree to statements, is the summary of adjustments complete, is every open item listed.
The second is yours. You review the output against your knowledge of the client. Below is a short set of checks we suggest a firm reviewer runs on a returned file.
| Check | What to look at |
|---|---|
| Reconciliations | Statement balances agree; reports are attached |
| Suspense balances | Undeposited funds and "Ask My Accountant" are zero or explained |
| Adjustments | The written summary matches the changes in the file |
| Open items | Every item has an owner and a next step |
| Variances | Large movements against prior periods have a note |
An illustrative arrangement#
This is an illustration, not a standard package. A firm has ten bookkeeping clients on QuickBooks Online. Three of them are behind by several months. The firm sends one of the three as a trial file. We review it and send an estimate within 48 hours, with a capped number of hours. We get access limited to the files needed, do the cleanup, and return it with a summary of adjustments. The firm reviews that one file. If the arrangement suits, the other two behind files go next, and the seven current clients move to a monthly cycle one at a time.
The point of the order is that the firm learns how our output looks on a file it knows well before it relies on it more widely.
Busy-season capacity planning#
Planning for busy season is mostly about timing and inputs.
- List the files and their state. Mark each client as current, behind or unknown. Unknown files are the ones to look at first.
- Hand over cleanup before the rush. A file that is behind needs cleanup before it can go into a monthly cycle. Cleanup done early means the monthly work later is lighter.
- Agree the calendar. Decide when statements will arrive, when we return work and when your reviewer has time to check it. A return date that falls when your reviewers are away does not help.
- Set the cut-off. Late documents go on an open list. They do not hold up everything else.
- Keep a question list. One shared list per client avoids the same question being asked three times.
The hours for any engagement are agreed in the estimate and capped. If a file turns out to need more than estimated, we say so before going over.
Which client files suit a first handover#
Some files are easier to start with because the work is clearly defined and the risk is low. When choosing, review these points:
- The file is in QuickBooks Online already, or the client is willing to move there.
- The scope is easy to describe, such as "reconcile and recategorize the last six months".
- Statements and reports can be sent without chasing the client.
- Your reviewer knows the client well enough to spot something odd.
Files with unusual structures, disputed balances or incomplete records can still be handed over, but they work better as a second step. Industry-specific files have their own guides, for example e-commerce payout reconciliation, restaurants and construction job costing. The full list is on our industries page.
What can be handed over, and what stays with you#
Can be handed over
- Reconciliations for current and past periods
- Transaction coding and recategorization
- Clearing duplicate entries and suspense-type balances
- Aging report preparation
- Financial statements and management reports
- Workpapers and schedules your reviewer asks for
- Setup and migration into QuickBooks Online
Stays with you
- Accounting policy and basis decisions
- Judgement on old balances, write-offs and unusual items
- Client communication
- Final review of the returned file
- Tax returns, tax advice, audit sign-off
What to send#
- An invited user, or access, to the client's QuickBooks Online file
- Statements for banks, cards and loans, unless feeds are connected
- Your written instructions: basis, naming rules, anything the client has asked for
- Prior workpapers or notes, if any
- A named person at your firm for questions
The guide to sending a client file to an offshore team lists this in more detail.
What comes back#
- The completed work in the client's QuickBooks Online file
- Reconciliation reports for each account
- Financial statements and reports for the period
- A written summary of adjustments
- An open-items list, with each item marked for you to decide or for the client to supply
Related guides#
- Audit support, workpapers and PBC schedules
- KPI dashboards and management reports
- Virtual CFO support: scope, budget and board reports
- Nonprofit fund accounting
Our page for accounting firms, back-office support for CPA firms, describes how a first file is sent over.
Frequently asked questions#
Do you contact our clients directly? The client relationship stays with your firm, and questions we cannot resolve from the records come to you on a written list.
What do we send first? One client file. We review it and send an estimate within 48 hours, with a capped number of hours. We sign an NDA before access if you want one.
Do you prepare tax returns from the books? No. We prepare books and workpapers. Tax returns and tax advice stay with your firm.
Can we start with cleanup and move to monthly work later? Yes. See the cleanup guide for how the transition works.
