Will the caliber of the accounting team make or break a company? Yes, it will.
Imagine that one of the greatest threats to the financial stability of your company is not the conditions in the market, but the lack of accounting skills at the appropriate moment.
They have to be able to hire good accounting professionals in a world where competition, compliance demand, and financial complexity are growing in the same direction. Having access to skilled accounting professionals is no longer a luxury but a necessity.
Team capability is also listed as a make-or-bust factor of long-term success in small businesses and startups. Research conducted by Statista has identified the lack of an appropriate team as one of the reasons startups fail, highlighting the importance of talent gaps to the existence of organizations.
However, it is not only startups that are facing difficulties; established companies are also facing an escalating skills gap in accounting and finance. Recent workforce survey results indicate that, based on data analytics and advanced reporting, almost 75% of accounting firms anticipate the same or more employees with niche skills to meet changing business requirements.
That is, there is an increasing demand for specialized financial skills, whereas conventional hiring is failing to meet it.
It is at this point that the accounting staff augmentation becomes a strategic solution, rather than a band-aid. Rather than take months to hire full-time workers, a process that postpones important decisions and increases expenses.
Businesses can bring on board niche experts who have already been vetted within hours to fill specific vacancies or ensure capacity to meet peak business demand. Staff augmentation provides the flexibility of expanding your accounting needs without the high cost of permanent employees.
Think about being able to access talent proficient in QuickBooks, Power BI, financial forecasting, or compliance reporting instantly and when you need it, not just during audit season, when you are preparing your taxes, or during performance analysis. This is not only time-saving but also helps save money, improve quality, and make financial choices more wisely.
With cost-efficiency in accessing global talent and scalability, staff augmentation for accounting services is transforming how companies operate their finance functions in a more complex and competitive environment.
10 Key Benefits of Accounting Staff Augmentation
1.Access to the Global Talent Pool
With accounting staff augmentation, you are not limited to the skill set of your in-house employees. You have access to a global talent pool of experts in their fields. You can let them handle your projects with the peace of mind knowing your projects are in the right hands. For example, Expertise Accelerated offers a range of generalized-to-specialized in-house skills, including hard-to-find niche expertise such as Trade Spend Management.
Read here to learn more about managing global talent the right way from Andy Molinsky. Andy is also the author of Global Dexterity: How to Adapt Your Behavior Across Cultures Without Losing Yourself in the Process.
2.Less Training Requirements
Accounting staff augmentation teams have experience working with multiple companies in your niche, so they do not require much training from you. In contrast, in-house employees have to be trained and updated over time. They require ongoing training from companies to stay current with best practices and new developments.
Due to the evolving use of AI, accountants are expected to be more up to date in their roles to improve efficiency in their clients’ processes. But this requires ongoing training. For example, accountants today must be aware of how to interpret AI-based insights among many other aspects.
Due to their extensive experience working with multiple companies, augmented accounting personnel are usually trained and kept up to date on the latest industry trends.
3.Save Payroll Costs
According to the Society for Human Resource Management (SHRM), the average cost per hire in the US was nearly $4,700 in 2022. Hiring an on-site accountant comes with high costs that companies must carefully consider and budget. Here’s a brief breakdown of such costs:
Recruitment Costs
Before onboarding, there are expenses associated with finding and hiring the right candidate. This includes advertising the job vacancy on job boards, conducting pre-employment assessments, and possibly hiring a recruitment agency to assist in the process. These costs can vary depending on the recruitment methods used and the competitiveness of the job market.
Onboarding Costs
Once a candidate is selected, there are expenses related to onboarding the new hire. This includes the time and resources spent on orientation sessions, training programs, and setting up the new employee with the necessary equipment, such as a computer, software licenses, and access to company systems.
Additionally, there may be costs associated with providing employee handbooks, training materials, and other onboarding documentation.
Salary and Benefits
The highest ongoing cost of hiring an on-site accountant is their salary and benefits package. This includes their base salary and any bonuses, incentives, or commission structures that may be part of their compensation package. In addition to salary, companies also incur expenses related to employee benefits such as health insurance, retirement plans, paid time off, and other perks or allowances.
Overhead Costs
Employers also need to consider the overhead costs of having an on-site accountant. These costs include office space, utilities, office supplies, equipment maintenance, and other facilities-related expenses.
SMEs and startups are usually tight on budget. While a full-time team may increase productivity in the company’s operations, it may take a toll on its finances. In such scenarios, utilizing accounting staff augmentation services can be a win-win. Firms can benefit from expert skills without paying full-time salary and operational costs. You only pay for the time and expense that your company actually needs.
Turnover Costs
If the on-site accountant decides to leave the company, there are associated costs of turnover. These include the time and resources spent on recruiting and hiring a replacement, as well as any potential disruption to workflow or productivity during the transition period.
4.Enhanced Flexibility and Scalability
Accounting staff augmentation allows companies to scale their accounting teams to meet current needs flexibly. Whether it’s a short-term project, seasonal fluctuations, or sudden workload increases, companies can quickly augment their staff with temporary accounting professionals.
This flexibility ensures that the company can adapt to changing business demands without the long-term commitment of hiring full-time employees.
5.Greater Access to Specialized Skills and Expertise
Certain projects require specific skills and expertise that might not be accessible within your current on-site resources. To scale, you have to hire a specialist to do the work. Accounting staff augmentation is a viable option to hire talent with specialist skills.
For example, Expertise Accelerated provides US CPG industry expertise and high-quality offshore accounting, finance, and supply chain talent that can add significant value to the client, especially in the CPG industry.
Another example would be if a company transitions from manual accounting processes to an automated Enterprise Resource Planning (ERP) system, they may need temporary accounting professionals with ERP implementation and configuration expertise.
6.Maintaining Control Over Business
Many SME leaders across the US worry that temporary accounting staffing may cause them to lose control of their business. However, in practice, the augmented accounting personnel are similar to the company’s full-time employees.
HR or other hiring personnel can define the role and projects that augmented employees must carry out. They can also address any issues and either retain the current candidate or find another candidate better suited to the role.
7.Specialized Project Expertise
When a company faces an increased workload or requires specialized expertise for a particular project, it can seek assistance from accounting staff augmentation services. For instance, EA has specialized in in-house skills, including hard-to-find niche expertise such as Trade Promotions Management.
Or let’s say a company is acquiring another company and needs to conduct a thorough financial analysis to assess the target’s economic health and identify potential risks or liabilities. In this case, they may hire temporary accounting personnel with expertise in audit and due diligence processes to assist with tasks such as reviewing financial statements, analyzing revenue and expenses, examining contracts and agreements, and identifying any discrepancies or areas of concern.
8.Faster Response to Demands
With staff augmentation, firms can swiftly adapt to any project changes, whether they need to scale up or down. They have access to a team that is adaptable to any project challenge.
9.Access Industry Insight
Accounting staff augmentation provides the unique benefit of offering access to industry perspectives. Firms can leverage the expertise of professionals who bring diverse experience across various clients and industries.
For instance, I am Haroon Jafree, the CEO of EA. I am a Connecticut-based CPG expert specializing in Trade Promotion Optimization. Having served over 25 years in the US CPG industry, including over 10 years in a C-suite role, I bring fresh ideas and approaches to my clients.
10.Scalability
Have you thought about how to manage your firm’s accounting needs as it grows? With accounting staff augmentation, you can adjust your resources as needed. You have the flexibility to handle growth spurts or complex projects without hassle.
If you need expert services during peak times, you can easily expand your engagements with the staffing provider. A smart way to stay agile as your business grows, isn’t it?
Reasons for Staff Augmentation
Companies may require additional staff for various reasons, such as:
To Fill Skill Gaps:
For instance, due to the evolution of automation and AI, companies increasingly require more up-to-date staff with current accounting automation practices.
Manage Workload Fluctuations:
Many companies do not require full-time accountants because their workload is heavier at certain times of the year. That’s why it is common for companies to have augmented accounting resources during year-end.
Meet Specific Project Needs
Companies face new challenges or opportunities and require specialist services. For example, companies entering new markets may seek guidance from a fractional CFO. In other instances, firms that may want to consider various investing options may seek advice from a staff augmentation firm to produce cash flow projections.
How Staff Augmentation Works?
Staff augmentation works by temporarily supplementing a company’s existing workforce with external talent to meet specific project needs or address skill gaps.
Identifying Skills and Experience
After the companies have identified their requirement for additional expertise or staffing, they will outline the specific skills and experience they need. If they are uncertain, they can seek consultation from staff augmentation firms about their situation and needs.
Conduct Interviews
After finalizing the specific roles, budget firms can find the right candidate/team. This process is similar to hiring permanent employees. Companies conduct interviews, skill assessments, and background checks to ensure candidates meet the needs and standards.
Blending Augmented Staff with the Existing Team
After you have selected the augmented staff members, it’s time to integrate them into the company’s existing teams and procedures. (Read this guide to learn more about managing this type of “blended workforce” that includes permanent and temporary staff.)
Performance Evaluation
The company maintains oversight and management of the augmented staff members throughout the engagement.
Conducting a performance evaluation of the staff augmentation team involves setting clear performance metrics in line with project objectives. Regular communication and feedback sessions help monitor progress and address any issues promptly.
Periodic reviews to assess both individual and team performance, utilizing performance management tools to track metrics efficiently, and evaluating the team’s performance also help. Constructive feedback can support continuous improvement, while recognition of achievements can motivate the team.
Strategy and resource allocation flexibility based on evaluation outcomes ensures optimal team performance throughout the project lifecycle. This may involve providing necessary resources, training, and support to ensure they can effectively contribute to the project or task.
Once the project is completed or the temporary need subsides, the augmented staff members may transition out of the company. Alternatively, if the arrangement is successful and ongoing support is required, the company may extend the engagement or consider offering the augmented staff members permanent positions.
Conclusion
Entrepreneurship is all about harnessing the best resources. The global staff augmentation is projected to grow by 2027. It’s high time companies start utilizing accounting staff augmentation services because if they don’t, their competitors will.
From reducing costs to gaining access to specialist expertise, accounting staff augmentation can help get your work done faster and smarter. Contact us today for more information. Let us help you rewrite your business’s financial success story.