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Topics: bookkeeping, Industry, Outsourcing

10 MIN READ

Addressing Talent Shortage in Accounting Industry with Outsourced Bookkeeping

Written By Indrajeet Pradhan

Accounting is a highly demanding profession and calls for focused expertise. Trained professionals with the appropriate skill sets and the ability to handle the demands of an ever-evolving financial domain do everything necessary to get their clients’ financials in order.

U.S. employers ranked accounting and finance roles seventh out of 10 for jobs that are the hardest to fill. This evidence shows that accounting firms have always had a hard time finding the right talent.

There is a demand and supply problem. Accounting firms see a lot of churn, which means a lot of firms are looking for people throughout the year to fill the shoes of employees that have left.

Let’s take a look at what else is driving this talent shortage in the accounting industry:

1. A rise in technology:

Until recently, finance jobs required a solid ability to crunch numbers, and they still do, but things are changing with the advent of technology. In these days of apps, big data and automation, firms look for candidates with the ability to understand, analyze, and apply data trends and patterns to a broader business context. We’re talking about data science and analytics skills that accounting professionals may not have had access to.

Think of talent as a huge umbrella term that encompasses a host of skill sets. The range of skill sets has evolved, keeping in step with client demands. Not every accounting professional brings a considerable knowledge profile to the table. A modern accountant must have tech-knowhow, client management skillsets, and more, along with drill-down accounting knowledge.

Those that have the necessary know-how are in great demand and in short supply.

2. Demands of accounting talent:

Job seekers know what they are looking for in a job. In addition to a meaningful compensation, they also want a favorable working environment. They are aware they are in great demand and don’t hold back when it comes to expectations. They seek higher salaries and more attractive benefits packages. Therefore, the job seekers decide which firm to work for and not the other way round.

Smaller and mid-sized firms, who might not be able to afford these demands, find it challenging to find the right talent. This might mean they cannot address the attrition rates, resulting in a loss of productivity.

But don’t think of this as a problem limited to the smaller accounting firms alone. This concern permeates throughout firms, irrespective of size.

According to research underlining the top challenges faced by accounting firms, recruiting the right talent tops the list. The inability to source the required talent will hamper current client delivery deadlines and the organization’s growth. As everyone strives for growth, attracting and retaining skilled employees is the main priority.

What can you do to overcome this challenge?

As an accounting firm owner, there are many solutions that you can leverage to get over the staffing problem. The most practical option is to outsource bookkeeping services.

What does outsourced bookkeeping cover?

An outsourced bookkeeping company provides access to a full-service accounting team, so you do not have to hire one independently. In an outsourced bookkeeping service, daily transactions are coded, accounts payable and receivable are processed, payroll is handled, management financial reports are drafted, and many other duties are performed as per client needs.

With an outsourced bookkeeping company, you don’t have to worry about over-burdening your existing accounting department.

Outsourced bookkeeping has already been embraced by CPAs, who have been happy to outsource their time-consuming, high-volume work to offshore CPAs, accountants, and bookkeepers.

Yet, for others, it is an unnecessary step. Concerns about losing control and risks of data breaches are one of the major factors behind such hesitation.

But, here’s a question for you – Isn’t everything we do in life accompanied by a risk? Moreover, by partnering with the right outsourcing partner, one can hedge such outsourcing risks.

Here’s why outsourcing your bookkeeping will solve all your talent shortage problems.

  • You don’t have to worry about finding qualified accounting and technology staff with outsourced bookkeeping services.
  • With bookkeeping outsourcing in India, you have access to business professionals trained in using the latest tools to integrate data from financial systems across an organization.

Another critical benefit of outsourced accounting experts is keeping up with the latest technologies. The team puts effort into ongoing research, training, and technology upgrades while keeping your business in mind.

Moreover, through outsourcing, businesses can eliminate the time and expenses associated with recruiting, training, and managing additional accounting staff.

Managers already have enough to worry about when it comes to human resources. More emphasis can be laid on managing the core functions of the accounting firm rather than losing focus on such routine tasks.

At QX Accounting Services, we offer immediate scalability to accounting firms, helping them access highly qualified accounting professionals with knowledge of U.S. accounting standards and tax legislation.

How to Choose your Outsourced Bookkeeping Service?

It’s a big step to outsource, but you can maximize the potential of this step by verifying the firm’s credentials.

It would help if you examined the following to find your right match:

  • The company should check the qualifications and certifications for outsourced bookkeeping
  • Determine whether the firm you’re planning to engage has experience in bookkeeping and drafting financial statements for the kind of clients your firm is working with.
  • In the face of challenging circumstances, a professional must think logically and quickly to save the business. Thus, while hiring an outsourced bookkeeping service provider for your business, make sure you hire a team with proven problem-solving abilities.
  • As an accounting firm owner, you are aware of clients’ data privacy requirements. Therefore, while hiring your virtual accounting staff, you should look at the security protocols implemented by the outsourcing provider.
  • The quality control process established by the virtual accounting staff also plays a key role. If the quality check is not performed, it may result in unwanted errors and non-compliance costs.

The future of bookkeeping is in outsourced firms

Instead of just offering specific services, clients expect their firms to provide them with a range of services. The focus of accounting firms these days is on becoming advisors rather than operating as traditional accounting firms. Since firms primarily earn revenue from compliance-related accounting tasks, they are hard-pressed to find time to offer business advisory services.

There’s one more aspect to consider other than talent shortage (or, let’s say, related to staff shortage). Business owners feel the impact of the pandemic, and clients expect accounting firms to reduce their fees or provide more value for the same price.

As a result, firms need to create capacity quickly, control costs, and hire the right accountants. Accounting firms must keep an eye on the bottom line without getting caught up in a time-consuming recruitment process.

Outsourcing bookkeeping is a better option, as outsourced professionals are familiar with U.S. accounting standards and can be hired at affordable rates. As long as you need them, you can add, increase, or decrease the number as required.

If you outsource bookkeeping services to India, you have access to an extensive network of experienced accountants who can work as your very own extended team or as individual contributors. You won’t have to deal with training or managing the outsourced bookkeepers.

You can focus on growing your business while your commoditized tasks are handled by a committed team of offshore accounting professionals.

ABOUT Indrajeet Pradhan

My name is Indrajeet Pradhan and I am the Marketing Manager for QX Accounting Services – North America, and wordsmith behind the QXAS blog. Hope you enjoyed reading this piece. My job is to help accountants access the knowledge they seek through blogs, guides, and other content assets that are meaningful and actionable. More Posts(22)  

Originally published Oct 07, 2021 01:10:00, updated October 07 2021

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