Why Traditional Outsourced Accounting Isn’t Enough for 2022

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The local industry revenue pre-pandemic in Australia was already increasing by 1.2% each year for accounting outsourcing. But now, two years after COVID-19 changed the world and sped up digitisation and hybrid working across almost all industries, businesses have been forced to re-evaluate the functions they keep ‘in-house’.

The ‘new normal’ has meant many businesses have started to embrace the global talent pool as well as all the benefits talent management and financial outsourcing brings. So much so that the accounting outsourcing industry is now projected to reach US $53.4 billion by 2026, and it shows no signs of slowing down.

Moving Past The Traditional Accounting Outsourcing Model

Outsourcing is important for many businesses’ recovery, and our talent-as-a-service model specifically allows businesses to focus on what they do best while they adapt to the new reality in 2022.

While traditional financial outsourcing to a freelancer, contractor, or agency has its perks, in 2022 businesses deserve benefits that go beyond the financial saving or the dollar value. Here is the added value our talent-as-a-service model brings that makes it the future of accounting outsourcing.

Top 5 Outsourcing Objectives, Outsourced Accounting for Businesses

Increased Efficiency  

According to a report by IBM, 92% of Australian executives will be prioritising cash flow and liquidity management in the next 2 years. At a time when many businesses have been forced to shut down or reduce operations just to survive, efficiency in both time and money is essential. 

Traditional outsourcing allows you to offload tasks but with minimal control and oversight on how the tasks get done. This tends to increase management and admin to connect the dots between your in-house team and your outsourced one. With talent-as-a-service, talent management and recruitment are handled for you to improve efficiency and reduce the need for you to find the expert talent you need. Plus, you can set your own processes, allowing for a seamless transition between local and overseas talent.

Facilitating Revenue Generation And Increased Business Capacity  

Outsourcing is about savings, whereas talent-as-a-service also brings revenue generation to the table. By managing talent, your business is able to focus on improved productivity and profitability with a leaner organisation. On top of this, using overseas talent like our highly trained and experienced accountants means you can extend your working hours after your local team hands off and goes home.

Hiring the right staff and lowering team turnover also helps to reduce costs and facilitate long-term strategies for revenue generation when you’re safe in the knowledge you have a happy and productive workforce.

Improved Flexibility And Continuity

The pivot to digital has been accelerated, organisations have had to rethink strategies, and being prepared for another pandemic-like scenario has become part of the decision-making standard.

Traditional accounting outsourcing can be inflexible, particularly as you have very little control over processes, and this makes you slow to adapt to local or global challenges like the current skills shortage in Australia.

Talent-as-a-service gives you the adaptability to meet new demands and because talent works as an extension of your team, they’re able to adapt with you during times when fast decisions are needed. This also facilitates business continuity that works best for your company, rather than a contractor or agency’s own business.

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Scalability Supported By Expertise

Research has shown that Australian businesses plan to move forward in a post-pandemic world with partnerships. 69% of Australian Executives are looking within their industry while 60% are looking externally. Talent-as-a-service is a prime example of an external partnership that can lead to recovery and success.

Being able to scale up and down easily with talent-as-a-service means you have the exact support you need, when you need it. This allows you to safely grow and scale in optimum markets, and easily scale back in other financial areas if you need to. So, no matter how big or small operations become, you’ll always have the experts doing what they do best.

Immediate Growth With Mergers And Acquisitions

Operations aren’t the only thing to be scaled down to survive the pandemic, mergers and acquisitions have done the same. But scaling down for too long can stunt growth and derail the financials you need to bounce back.

Deloitte consultants indicate the critical role mergers and acquisitions will play in the recovery phase post-pandemic. M&As happen because companies need to safeguard their future or transform the business to meet new demands and opportunities. Regardless of if it’s defensively or offensively driven this move can immediately scale up operations. 

This kind of growth needs finance and accounting talent capable of handling the increase in operations immediately. A talent-as-a-service partner can cater to an organisation’s growth without hindering delivery. Expertise remains streamlined, and processes won’t be disrupted, especially during the important transition phase.

Talent Formula outsourced accounting talent recruitment team

It’s About the Right Talent, Not the Cheapest

While cost-cutting can be a large motivator right now, it’s not about hiring the cheapest talent, it’s about hiring the most cost-effective. That means the right skills, and the right talent for the role. Bringing skilled, highly educated experts into the fold gives you a competitive business advantage alongside all the other benefits we’ve mentioned.

Of course, it’s possible to recruit experts on your own, or build your own team in-house but this can be costly, and mistakes can be a lot more harmful than many realise. That’s why talent recruitment and management is a key value proposition in talent-as-a-service versus outsourced accounting.

With our fine-tuned 6-stage recruitment and talent management process we’re able to find you the perfect candidates to help you run and scale your business.

The future of accounting outsourcing in 2022 means a synergy between internal and external team members that can only be found in the talent-as-a-service model. If you want these benefits for your business, get in touch with us today and we can help you find the next members of your team.

Ryan Morris - Talent Formula

Ryan Morris

Ryan Morris is Head of Sales, North America at Talent Formula. He works with accounting and CPA firms across Canada and North America to improve capacity and efficiency through offshore accounting talent and TFX, Talent Formula’s AI accounting platform built specifically for accountants. He helps firms use AI to automate accounting workflows, reduce manual tasks and build a more scalable approach to service delivery.

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