The current pandemic situation has made a shift to working paradigms, automation of processes, and acceleration of digital transformation. A lot of businesses and accounting practices have adapted to this paperless practice while remotely working from home.This advancement in accounting technologies has made processes more systematic and transparent.
More and more companies are looking for cost-efficient ways to manage certain business processes externally. This gives the rise to accounting outsourcing companies. By outsourcing, businesses can free up their time to focus on core competencies of the business that will eventually help them run their business efficiently. Outsourced bookkeeping is a great source to reduce overhead costs for your business.
Accounting Outsourcing trends- Some facts and figures
- 29% of businesses with 50 or fewer employees are less likely to outsource compared to 66% of businesses with more than 50 employees.
- The top challenge faced by small businesses when outsourcing is lack of cash flow or capital followed by difficulty in marketing and advertising.
- Around 78% of businesses are feeling positive about their outsourcing relationships.
- The use of advanced technologies to automate tedious business processes.
- Use of cloud computing software to access secure, real-time information.
- Acquisition to new skill sets to complement existing ones.
Accounting Outsourcing trends:
Here are three trends that are shaping the world of Outsourcing:
Accounting practices will be regulated and monitored to ensure adequate protection of clients’ data. Accounting organisations will be required to take preemptive measures to safeguard against data thefts, hacks, and violations of data privacy. Data security laws are set to be tightened, and organisations should take strict action against sources that breach valuable data.
The main task for most accountants is to prioritise data security while dealing with clients. Accountants will need to take more important steps, such as becoming Australian privacy Principles Compliant and achieving Cyber Essentials accreditation, to preserve and protect clients’ data. Accountants will need to ensure compliance with the Privacy Act 1988, which is Australia’s principal law to protect the personally identifiable information (PII) of individuals.
Cloud accounting has integrated itself into most of the commonly used accounting practices. Cloud enhances the user experience in the accounting world. It will not only encourage mobility and simplify remote work, but also offer a wide range of benefits, including enhanced security and advanced data recovery options.
The simplicity of use and ready accessibility make it even more enticing for accountants and firms. It will help establish smooth relations with clients by enabling collaborations and facilitating transparent operations.
With the help of cloud accounting, there is a significant rise in outsourcing accounting services at a low cost. Cloud accounting provides an easy way to access financial records in real-time and provides bookkeeping services at a cheaper rate.
Automation has replaced a majority of manual processes in the accounting industry. It is a very efficient method but elevates the need for better compliance mechanisms. Accountants using this new method must ensure that they conform to the regulations prescribed by the Australian Accounting Standards Board (AASB).
Top reasons for outsourced accounting services:
- More than 50% cut costs
- 47% solve capacity issues
- 28% gain access to talent capital
- 57% focus on core functions
- 31% enhance the quality of services
- 28% answer a critical business need
- 17% manage the business environment
- 17% expand and speed up organizational transformation
Choose high-value accounting services:
Outsourcing is not just about using an external service provider to complete repetitive, time-intensive duties such as payroll and bookkeeping. The new breed of outsourced accounting services- access to more advanced specialist skill sets. This makes practices stand out from the competition and accentuate their core services.
Businesses and practices choose outsourced bookkeeping services for tons of benefits. But the major benefit is cost-efficiency.