Recruiting and retaining the right people for financial reporting positions has always been challenging for businesses. HR consulting firm Robert Half’s 2022 Benchmarking Survey reveals that 91% of senior managers faced challenges finding skilled talent for their finance and accounting teams.
Additionally, the 2022 AICPA study suggests that the number of accounting graduates has decreased since its peak in 2012. Currently, 47% of AICPA members, predominantly baby boomers, are retiring in record numbers.
These factors contribute to talent scarcity and higher salaries for finance professionals. And with the Great Resignation still on, finding qualified candidates has become challenging in the competitive market.
For small businesses, outsourcing financial operations provides the ideal solution and offers multiple advantages.
1. Access to specialized talent
Financial reporting and processes are complicated, but compliance becomes a more significant challenge with constantly changing rules. Outsourcing alleviates the unnecessary pressure on your internal finance team. It also gives you access to dedicated experts with in-depth technical knowledge and resources to handle financial reporting and control complexities. Besides, an experienced team with established skills ensures accurate and timely reporting and compliance.
2. Boosts efficiency and decision-making
Delegating financial functions to external providers can free your internal team to look beyond transactional activities. They can instead focus on mitigating risks, exploring opportunities, and engaging in value-added tasks. As a result, it promotes dynamic decision-making and sustainability in the long run.
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3. Reduces turnover costs
According to Robert Half’s Benchmarking Report, the finance sector experienced a 10% turnover between July 2021 and June 2022. In addition, 87% of employers in the US worry about losing employees to new opportunities.
Outsourcing finance operations helps eliminate the need to navigate the job market for qualified candidates. Additionally, it provides an escape from high attrition and its adverse impacts on your business.
4. Facilitates better analyses
Outsourced teams also analyze your company’s financial health while organizing your books and reconciling your accounts.
For instance, they employ state-of-the-art technology to generate financial reports for monthly budgets, forecast cash flow, and gauge KPIs. Additionally, they leverage analytics software to identify growth opportunities and suggest pivoting options well before the market truly shifts.
5. Improves finance data quality
Access to clean and error-free data is vital to crucial financial decisions. However, doing that manually is tedious and time-consuming.
External service providers utilize advanced AI tools and technology to cross-reference and validate data, which minimizes errors and the time spent. Their seasoned finance professionals can also provide richer insights based on these robust datasets.
The final word
Outsourcing finance can be a game-changing practice that empowers company-wide initiatives and sets the organization up for long-term success. It helps save money while freeing up your internal teams’ time to focus on more critical tasks. Remember, outsourcing finance is no longer an optional solution; it’s necessary and a core part of any business strategy.
Want to know more about finance and accounting? Since 2006, Escalon has helped thousands of startups get off the ground with our back-office solutions for accounting, bookkeeping, taxes, HR, payroll, insurance, and recruiting — and we can help yours, too. Talk to an expert today.
This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.
