Why Are 90% of Finance Executives Outsourcing Accounting?

Accountants are in short supply. Whether it’s the increased credit hour requirement to sit for the CPA exam, the struggle to maintain a healthy personal or family life in a demanding job or a shift towards working in other industries, being an accountant is not the sought-after job it once was.

It’s presenting problems for finance teams. There’s a struggle to find talent, and even once a position is filled, the new hire needs additional training. They may require a long onboarding process and the investment is time consuming.

Thankfully, there’s a solution. Outsourcing your accounting processes allows you to reduce the burden on your staff and quickly address backlogs in areas like bookkeeping, accounts receivable and payable or financial reporting.

Personiv ?recently conducted a survey that revealed some of the trends emerging in outsourced accounting. For instance, they found that accounts payable was the most common area that companies were outsourcing.

The survey also highlighted some of the most coveted talent. Staff accountants are in high demand. With the average time to hire hovering around 44 days, it’s easy to see the benefit of outsourcing to a ready team of bookkeepers, accountants and CFOs. It’s just one reason why 90% of respondents said that outsourcing accounting in some form is the way to go. The ease with which they can access qualified accountants makes it an attractive decision.

How to Find (the Right) Outsourced Accounting

Outsourcing can feel like a big step when it’s not a regular part of your company culture. And when it comes to finance and accounting, the stakes are particularly high. That’s why you will want to take some critical steps before you partner with a provider. Consider these factors:

• Determine what you need to outsource and make sure the provider you are considering has expertise and experience in this area.
• Compare prices and services.
• Talk with their references. Consider asking the references if they know additional past clients you should talk to.
• Check their credentials and verify them.

Think about the kind of partnership you want to have with an outsourced accounting provider. Are you looking to simply shift a task, or are you hoping to gain an advisor for business planning?

It’s also important to be sure that the company culture is a good fit. Talk about communication preferences, how you will receive any reports, and the level of client care you should expect.

We recommend that you begin your process with us, The Power CFO . We offer a fractional model of services, making it flexible to fit your exact needs and drive business growth. Whether you need short-term assistance, consultation for a project or ongoing financial reporting and accounting, The Power CFO is here to help.