The profession of accounting is poised for revolution. The profession was once an obvious choice for those with a knack to numbers, and perhaps a sophisticated calculator, the impact of technological advancements, ever-increasing bureaucracy and an increase in cyber-security threats to data means that the days of being able to quickly recruit accountants in-house and bookkeepers are rapidly ending. Although the demand for experienced accountants is more than ever, the amount of small and medium-sized firms that can pay the high salaries required by skilled professionals is decreasing every day.
Thankfully, accounting outsourcing companies are rising up to fill in the gaps. The practice of enlisting companies from outside to complete the tasks that are traditionally handled internally has grown exponentially in recent times and this is the same in the bookkeeping and accounting sector. With the market for financial services predicted to grow to $28.5 trillion in 2025 research has found that the field of accounting has become among the most outsourced business, with 37 percent of small companies using external service providers to handle their accounting and financial requirements.
The reason that so many businesses are choosing to outsource their accounting services is because it’s effective. One of the greatest advantages is that it lowers expenses without compromising quality. Since the costs of offshore labor are often just a fraction of the costs in the country, outsourcing companies are able to offer services at less expensive prices, and reduce the time and cost of long-winded hiring procedures. Outsourcing allows businesses to quickly scale their accounting requirements to a higher or lower level based on the demand (e.g. taxes season) and can devote more energy, time and resources to advancing their business instead of doing tedious administrative tasks such as bookkeeping and accounting.
Being one of the most effective methods to increase profit and increase growth, it’s no surprise that companies are turning to outsource service providers to fulfill roles like:
As a profession that is known for its growth, the accounting profession constantly adapts to the ever-changing world and is constantly adjusting to the latest trends to keep an eye on for example:
From humble beginnings in the outsourcing industry, the market for global outsourcing has grown at an exponential pace as governments recognize the benefits of offering services to other countries. This is particularly true for the accounting and bookkeeping industry which has seen several countries investing in fostering the development of such talents.
These benefits include cost reductions of up to 70 percent and an improvement in quality and efficiency, and the opportunity for teams in-house to swap the tedious and repetitive accounting work to more lucrative advisory tasks that improve their business their bottom line. As one of the more active countries within the East Asia region, The Philippines is also a part of an economic and fiscal system similar to the one in Western countries.
If you are a business owner who has not yet considered outsourcing accounting now it’s not an issue of arguing whether this concept is viable, however, they must consider why they aren’t not yet able to benefit from the benefits. Access to professional accountants and bookkeepers to take on the complicated and time-consuming tasks at less than the costs of onshore is a single opportunity to expand your business in a period when it has never been more vital.
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