Trends And Innovations Used By Outsourced Accounting Firms

Everyone within the accounting industry knows only too well that there is an ongoing shortage of professionals; companies are struggling to fill positions, and workloads are expanding as a result.

Outsourcing some of the more basic, but time consuming and labor intensive tasks to qualified professionals in countries like India, has helped many CPA firms better cope with their workloads (particularly during busy periods such as tax season), and expand upon the breadth and level of services they offer their clients. While once considered a temporary fix to the problem, outsourcing for CPA firms is now a permanent solution to the ongoing crisis within the profession.

Due to its increasing popularity, providers of outsourced services are constantly looking for new ways to satisfy their clients and offer accountants exactly what they need in order to succeed, which has resulted in the reshaping of the accounting landscape as a whole.

Here are some of the latest trends and innovations used by outsourced accounting firms:

Integration of technology

With artificial intelligence and automation both tools that are used with growing frequency in countries like India, technology is truly changing the accounting industry. Helping to streamline business operations and reduce the occurrence of errors (some of which can prove costly for businesses and individuals alike), AI and automation can be used effectively along with cloud accounting, which offers real-time access to all financial data, and fosters more effective collaboration between accountants and their clients.

Enhanced data security

With data breaches on the rise throughout the world, keeping sensitive data secure at all times, has become a focus for all accounting professionals. Fortunately, the outsourcing world has also taken the threat extremely seriously, and with measures such as multi-factor authentication, end-to-end encryption, and regular security audits, financial information has never been so well protected.

Blockchain technology

Providing accounting professionals with enhanced security and transparent financial transactions, blockchain technology offers records that are time-stamped and tamper-proof, to significantly reduce the risk of fraud or error, and make all financial data easily auditable.

Machine learning and artificial intelligence (ML and AI)

With advanced data analysis and predictive analytics, both ML and AI have truly taken the accounting industry by storm; helping enhance the services they offer, along with reducing their workload. With the help of these tools, CPA firms can check huge swathes of data to help identify patterns, trends, and anomalies, which ultimately, offer them the kind of insights they need to make sound decisions on their clients behalf.

Virtual CFO services

Having a full-time CFO onboard, without the cost and hassle of having to hire one, is a tempting prospect for many accounting firms, and one they’re now able to take advantage of thanks to virtual CFO services. Providing strategic financial services tailored to a business’s specific needs, this outsourced service helps accountants budget, forecast, and effectively manage risks.

ESG reporting

Offering stakeholders increased transparency and accountability, environmental, social, and governance reporting helps companies measure their ESG performance and report on it; ensuring regulatory compliance and offering expertise related to sustainability within the accounting industry.

Helping accounting firms in a whole host of different ways, bookkeeping outsourcing services are becoming increasingly important, and are relied upon by more and more accountants seeking to improve their services and better manage their workloads. As a result, outsourcing service providers are upping their game in terms of technology and trends, making sure they’ll remain a viable solution for busy CPAs, for many years to come.