peekpublishersThe accounting shortage has left businesses of all sizes and industries grappling with how to meet financial obligations, ensure compliance, and drive growth when the expertise they need is in short supply. As of May 2023, over 300,000 accountants and auditors have left their positions in the past two years, constituting a 17% decline in employed accountants and auditors compared to 2019. This talent gap is placing immense pressure on organizations to find innovative ways to manage their financial functions efficiently.
One strategic solution that businesses are increasingly turning to is outsourcing. By outsourcing accounting functions, businesses can open the door to a variety of benefits beyond alleviating the immediate staffing shortage. Outsourcing firms offer a team of experienced professionals who are well-versed in the latest accounting standards and technologies, as well as savings on salaries, benefits, and overhead costs, significantly impacting the bottom line. It also allows for flexibility in adjusting accounting support to match evolving needs.
Some key advantages of outsourcing accounting functions include:
- Increased cost-savings: Outsourcing accounting can often be more cost-effective than hiring and maintaining in-house accounting staff. Companies can expect average savings of at least 20% when they outsource their accounting needs.
- Access to expert advisors: By outsourcing accounting services, businesses have the ability to work with experienced and skilled accountants who specialize in various aspects of financial management. This can lead to improved accuracy in financial reporting, compliance with regulations, and better financial decision-making.
- Greater flexibility: Outsourcing allows businesses to flexibly adjust their accounting support to match evolving needs. Whether expanding teams during busy periods or scaling down during slower times, outsourcing provides this flexibility without the challenges of hiring, training, or laying off in-house staff.
- Ability to prioritize core functions: By outsourcing accounting functions, businesses can free up valuable time and resources that can be redirected towards core business activities, allowing companies to concentrate on their primary goals without navigating the intricacies of accounting.
- Access to advanced technology and tools: Outsourcing firms often invest in state-of-the-art accounting software and technologies to improve efficiency and accuracy. When outsourcing, businesses can benefit from access to these advanced tools without upfront costs and ongoing maintenance expenses.
While outsourcing accounting functions can offer significant advantages, it’s important to assess whether it’s the right fit for each specific business. Factors to consider include the scale and complexity of accounting needs, how outsourcing fits into overall business strategy, and ensuring compliance with industry regulations. By carefully considering these factors, businesses can make informed decisions that contribute to growth and financial success.
Amidst the talent shortage, businesses also have the opportunity for strategic growth by embracing outsourcing, automation and AI, or supporting their current accounting team. Being flexible and forward-thinking allows businesses to handle the shortage and prepare for a future of sustainable growth, cost-effectiveness, and financial strength.
