There are several headwinds faced by Accounting Firms such as
✓ Shortage of Talent
✓ Training New Hires on latest Software’s and Applications
✓ Downward pricing pressure
✓ Commoditization of Services
✓ Automation and Artificial Intelligence
✓ Competition from unqualified Accountants
One of the Solutions for all the above problem is Outsourcing your Back-Office work such as Bookkeeping, Accounts Preparation, Payroll, VAT and Management Account to a specialized and reputed outsourcing service provider. Below are the benefits of outsourcing.
✓ Availability of Talent: Outsourcing firms resolve one of the biggest problems of talent shortage. Ample talent is available with outsourcing firms. Most of the Outsourcing Firms have dedicated Human Resource Team who are continuously scouting for Talent. Further, the current education system also keeps churning out thousands of graduates and qualified accounts every year
✓ Training: Outsourcing Firms have dedicated training team which is responsible for providing training to new staff as well as ongoing training to their existing team members. Further, since most of the outsourcing firms work with several accounting firms, their staff is generally trained on most of the accounting applications, apps, and APIs.
✓ Cost Reduction: With outsourcing, an Accounting firm can reduce costs in excess of 50%. There are several factors which need to be considered while comparing costs is Basic Salary, National Insurance, Training Hours, Holidays, Desk Costs, etc.
✓ Variable Pricing: With outsourcing, you do not need to worry about fixed staff costs. You can always scale up/ scale down your relationship with an outsourcing service provider based on your practice requirements.
✓ Development of Additional Capabilities: Outsourcing Service Provider get exposed to different types of clients by industry and software’s through various accountants and hence are able to develop capabilities across industries and software. You can also get support on various types of Management Reporting, Analytics, KPI reporting, and Application developments. All these services will help you to differentiate from the competitors.
With several headwinds, Outsourcing can be used as a great strategy to grow your practice and taken on these headwinds straight away.