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Master accounting surges: a strategic recruitment support guide

As the demand for skilled professionals continues to outweigh supply, finding and retaining top-tier talent has become increasingly daunting for accounting firms worldwide. The competition is fierce, the pool of qualified candidates is shrinking and the stakes are higher than ever.

Enter offshoring: a strategic resourcing solution poised to revolutionize how accounting f irms tackle their recruitment. Offshoring offers a strategic approach to augmenting teams with skilled professionals from across the globe, providing a cost-effective and efficient solution to talent acquisition challenges.

In this comprehensive guide, we delve deep into the intricacies of mastering accounting surges through strategic recruitment support. From understanding the pressing challenges faced by accounting firms to exploring the potential of offshoring as a game-changing solution, this guide will equip you with the knowledge and insights necessary to navigate the evolving landscape of talent acquisition in the accounting industry.

Navigating a crisis: accounting’s talent drought

The big question for every accounting professional and executive: how do you meet your financial obligations, ensure compliance and drive growth when the expertise you need is in short supply?

On the first day of 2024, Financial Executives International (FEI) delivered a sobering revelation to its members: over the past two years; a staggering 300,000 accountants and auditors had vacated their positions. Chartered Accountants Australia & New Zealand (CA ANZ) and CPA Australia warned back in October 2022 that there was a threefold surge in job openings for accountants since 2020. Since 2019, there has been a stark 18% decline in employed accountants and auditors. The exodus included retiring baby boomers, mid-career professionals aged 45 to 54 and even those relatively new to the field, aged 25 to 34.

So how are accounting firms dealing with talent shortages? Unfortunately, 42.2% are turning away work and 24% are experiencing burnout. However, 24% have turned to outsourcing. And that number is predicted to grow…

Compounding these challenges, around 75% of the CPA workforce reached retirement age in 2020. What’s more, the number of CPA exam candidates has drifted steadily downward over the past ten years. While there were almost 50,000 exam candidates in 2010, that number dropped to just a little over 32,000 in 2021.

According to the 2024 NAB Accounting & Financial Planning Report, 77% of accounting firms expect revenue growth over the next 12 months to be good or very good. What would help them keep up? 41% stated strategies for hiring and retaining employees.

Navigating a crisis: accounting’s talent drought

Traditional recruitment strategies, whether conducted internally or through external recruitment agencies, pose several significant hurdles for accounting f irms.

This growth can be attributed to the Philippines literacy rate ranking of ‘High’ according to the annual EF English Proficiency Index. Placing 2nd out of 24 Asian countries, English is a way of verbal and written instructions across the country’s educational systems and institutions.

Outsourcing is also heavily favored by the Philippine government. It is recognized as an avenue for economic growth and as a result the government supports outsourcing providers with additional infrastructure to successfully run their operations.

Businesses can also tap into a global talent pool by outsourcing to the Philippines, accessing skills necessary for roles that may not be locally available.

MicroSourcing employs over 9,000 staff across 500+ clients operating within 11 purpose-built, class-A facilities strategically located for access to Manila’s most talented people. We’re backed by our Australian parent company, Probe Group, and we’re also ISO certified.

Benefits of outsourcing

Business process outsourcing companies (BPOs) generally operate from within developing economies. This provides several benefits to businesses looking to outsource their repetitive, time-consuming and transactional business processes. These include:

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A limited talent pool:
Traditional methods often tap into local talent pools, which may prove inadequate for sourcing specialized accounting roles or addressing talent gaps.

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Higher recruitment costs:
Internal recruitment, while potentially reducing external agency fees, still incurs substantial expenses in terms of sourcing time, advertising and onboarding resources. External agencies often charge steep fees, further driving up costs.

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Constraints to scalability needs:
Both internal HR departments and external agencies may struggle to swiftly adjust workforce capacity to match fluctuating demand levels. This lack of agility leads to inefficiencies and missed opportunities.

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Talent quality inconsistencies:
Internal recruiters may better understand the firm’s culture and requirements, but they may lack the extensive networks and resources of external, local agencies. Conversely, these agencies might offer access to a broader local talent pool but may need help to maintain consistency in candidate quality and fit.

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The risk of burnout:
Internal recruiters may better understand the firm’s culture and requirements, but they may lack the extensive networks and resources of external, local agencies. Conversely, these agencies might offer access to a broader local talent pool but may need help to maintain consistency in candidate quality and fit.

As accounting firms evaluate their recruitment strategies, there is a growing recognition of the need for alternative solutions that offer greater flexibility, scalability and efficiency in managing accounting talent demands. Enter offshoring.

The case for offshoring

In the realm of accounting, offshoring emerges as a strategic talent acquisition beacon.

Offshoring is a type of outsourcing. When a company outsources, it hires certain job roles or teams from outside the organization through a third-party provider. Offshoring simply means doing the same thing, but instead of hiring locally, the company hires from a different country.

The main benefits accounting firms report after engaging with offshoring providers versus traditional recruitment strategies or even outsourcing locally are:

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Access to a wider talent pool:
Offshore providers offer access to a vast and diverse talent pool, often located in countries like the Philippines, known for their highly educated, CPA-qualified and skilled accounting workforce. These professionals are not only proficient in international accounting standards but also possess specialized expertise in various accounting functions, ensuring that accounting firms can find the right talent to meet their specific needs, even in niche areas.

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Lower recruitment costs:
Offshoring significantly reduces recruitment costs by offering competitive employment packages compared to high-cost regions; with employment savings of up to 70%. This is largely due to their handling of the entire recruitment process, from sourcing and screening candidates to onboarding, relieving accounting firms of the time and resources associated with traditional recruitment methods. Moreover, offshore providers typically operate in countries with lower living costs, allowing them to offer competitive salaries while still achieving substantial cost savings for accounting firms.

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The ability to scale support up and down quickly:
Offshore providers excel in scalability, offering flexible staffing solutions that can quickly adapt to changing demand levels. They maintain a pool of skilled professionals ready to be deployed on short notice, ensuring that accounting firms can scale their workforce up or down as needed without the delays or inefficiencies commonly associated with traditional recruitment processes. This agility enables firms to seize opportunities during job openings or peak periods without being hindered by staffing constraints.

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Quality accounting talent:
Offshore providers uphold rigorous standards in talent acquisition, employing robust screening processes to ensure the quality and suitability of candidates. They often have access to extensive talent networks and utilize advanced assessment tools to identify candidates who not only possess the requisite skills and qualifications but also align with the culture and values of the accounting firm. Additionally, offshore providers invest in ongoing training and development programs to continuously enhance the skills and competencies of their workforce, further ensuring consistent talent quality.

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Burnout isn’t a factor:
Offshore providers alleviate the risk of burnout by lightening the workload of internal HR teams and local staff. By outsourcing routine and time-consuming tasks to offshore teams, accounting f irms can free up valuable time and resources, allowing their employees to focus on highervalue activities that contribute to strategic objectives and client satisfaction. Offshore teams can also support outside regular business hours, thereby reducing the burden on local staff and promoting a healthier work-life balance. Additionally, offshore providers prioritize employee wellbeing and engagement, fostering a positive and supportive work environment that minimizes the risk of burnout and turnover.

Real accounting offshore success stories

CLIENT HIGHLIGHT

MicroSourcing and Connective: offshore excellence

“What really stood out for us with MicroSourcing was the amount of control we got over staff selection, the IT setup, cybersecurity measures, data protection and the level of support, both in Manila and locally in Australia. “

DANIEL OH

Group Legal Counsel, Connective

The long-term strategic value of offshoring

It’s important to highlight that offshoring is more than just a way to combat accounting surges or peak periods of demand as a short-term solution. Here’s how it provides enduring advantages:

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Continuous support throughout the year:
Accounting firms face unique challenges with longer tax periods, requiring consistent support beyond just peak seasons. Offshoring ensures uninterrupted assistance, providing continuous support throughout the year to meet the demands of extended tax periods and other ongoing accounting needs.

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Timely and accurate service delivery:
Offshoring allows firms to ramp up support during peak seasons, ensuring timely and accurate delivery of services to clients. With offshore teams bolstering capacity during high-demand periods, accounting firms can maintain service excellence and meet client expectations without compromising on quality.

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Enhanced efficiency during off-season:
Offshoring isn’t just about peak periods; it’s about leveraging offshore teams year-round to enhance overall efficiency and productivity within the firm. During the off-season, offshore teams contribute to administrative tasks, organization, and process optimization, freeing up onshore staff to focus on higher-value activities.

Offshoring is a holistic recruitment strategy, it serves as a sustainable solution that addresses short-term surges while also enhancing the firm’s capabilities and performance over the long term. Offshoring isn’t just a quick fix; it’s a strategic investment in a firm’s future success.

Best practices for implementing offshore accounting teams

Successful implementation of offshoring requires careful planning and execution. Here are some best practices to consider:

  • Define clear objectives: clearly define the goals and objectives of offshoring, such as cost savings, scalability or access to specialized skills, to guide decision-making and measure success.
  • Select the right offshore partner: choose a reputable offshore provider with a track record of success in the accounting industry and a demonstrated commitment to quality, compliance and data security.
  • Establish effective communication channels: establish regular communication channels and protocols to ensure seamless collaboration between onshore and offshore teams, leveraging technology such as video conferencing, project management tools and cloud-based platforms.
  • Provide comprehensive training and onboarding: invest in comprehensive training and onboarding programs to familiarize offshore teams with the firm’s processes, systems and expectations, promoting alignment and consistency in service delivery.
  • Implement robust performance monitoring and management: implement robust performance monitoring and management systems to track key performance indicators (KPIs), identify areas for improvement and ensure accountability and transparency in offshore operations.
  • Foster a culture of collaboration and integration: foster a culture of collaboration and integration between onshore and offshore teams, promoting knowledge sharing, teamwork and mutual respect to maximize the collective expertise and capabilities of the entire organization.

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