The accounting profession is on the cusp of a revolution. Once an obvious job choice for anyone with a good head for numbers and a fancy calculator, factors such as new technology and ever-increasing red tape mean the days of being able to easily recruit in-house accountants and bookkeepers are fast coming to an end. While the need for skilled accountants is greater than ever, the number of companies and small businesses able to afford the high salaries demanded by experienced practitioners is shrinking by the day.
Fortunately, accounting outsourcing providers are stepping up to fill the void. The practice of engaging third-party organizations to perform tasks traditionally done in-house has exploded in recent years and it is no different in the accounting and bookkeeping sector. With the financial services market expected to reach $28.5 trillion by 2025, studies have shown that accounting is the most outsourced industry with 37% of small businesses turning to external providers to manage their accounting and finance needs.
The reason so many organizations are opting to outsource accounting services is simple – it works. One of the most attractive benefits is it reduces costs without reducing quality. With offshore labor costs often a fraction of those in-country, outsourcing providers can offer their services at lower cost rates, not to mention eliminate the time and expense of drawn-out hiring processes. Outsourcing also means businesses can easily scale their accounting needs up and down depending on demand (e.g. tax season) and dedicate more time, energy and resources to growing their operations rather than focusing on tedious administrative tasks like bookkeeping and accounting.
As one of the fastest and most effective ways to drive profits and accelerate growth, it is little wonder businesses are turning to outsourcing providers to fill roles such as:
Befitting a profession that prides itself on evolution, the accounting sector is continually adapting to the ever-changing landscape, with current trends to watch including:
From humble beginnings, the global outsourcing market has grown at a rapid rate as governments realize the economic benefits of providing services for other nations. This is particularly so in the accounting and bookkeeping sector, with several countries particularly invested in nurturing such talent.
Those benefits include labor cost savings of up to 70%, an increase in efficiency and quality, and the chance for in-house teams to swap tedious and repetitive accounting tasks for higher-value advisory activities that boost their businesses’ bottom lines. As one of the most dynamic economies in the East Asia region, The Philippines also operates in a fiscal and financial system almost identical to conditions in Western nations.
For businesses yet to explore outsourcing accounting tasks, it is no longer a matter of debating whether the concept works but why they are yet to take advantage of it. The ability to access professional accountants and bookkeepers to tackle the complex and often time-consuming activities at a fraction of the onshore cost is a one-way ticket to growing one’s business at a time when doing so has never been more important.
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