Finance and accounting outsourced trends have been consistent over the past few years. They have become a foundational part of the US business landscape. The biggest reason for this prosperity in finance and accounting outsourcing is clear to everyone after the recent Robert Half survey, which reported that 91% of senior management report difficulties finding in-house accounting staff.
On the other hand, Grand View Research has projected the accounting outsourcing market to grow at a CAGR of 9.1% by 2030. With so many businesses struggling to find the right accounting help, it is natural that the industry would trend toward such steady growth. Overall, things look bright for the future of outsourced accounting.
With finance and accounting outsourcing so pervasive and growing exponentially, we thought it only fitting to start the year with some predictions regarding this year’s accounting outsourcing trends.
Well, ask, and you shall receive it, as they say. We present to you Expertise Accelerated expectations of accounting outsourcing trends in 2024.
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Massive Demand for AI-savvy Accounting Professionals
Perhaps the easiest trend that we expect to continue in 2024 is the growing integration of AI into the accounting function. Earlier this month, we talked about AI in accounting and finance and what insights we could offer for the future. Jumping off from that in-depth overview, it’s only natural that AI tops our accounting outsourcing trends expectations.
Outsourcing is a solution meant to cut costs while maintaining quality. AI and automation are the keys to achieving higher-quality accounting services. Every business seriously pushes for growth in the coming years, investing in AI. Hence, accounting professionals must be savvy with these new tools.
With that said, accounting outsourcing trends are set to tilt favorably to professionals who can demonstrate proficiency in mainstream accounting automation and AI-driven data management systems. On top of that, there is a bit of doom and gloom as a side-effect of the tilt towards AI and automation.
More rudimentary roles like bookkeepers will undoubtedly be forced to delve into more advanced accounting services to guarantee a steady stream of work. This isn’t to say that outsourced data entry and bookkeeping are going extinct. It is just that automation is changing how things are done, and accountants must build up their value as professionals beyond basic accounting abilities.
Surge in Demand for Financial Planning and Analysis (FP&A) Services
The previously referenced Robert Half report also mentions that the biggest professional shortage is in financial planning and analysis (FP&A). On top of this shortage of onsite FP&A professionals, entrepreneurs are likely to search for professionals who can help with the non-automatable work.
Thus, these roles are in a position to experience massive demand from the outsourced accounting consumer base. Financial planning, budgeting, and analysis are central to business growth. Accounting professionals looking to guarantee steady employment will find FP&A to be full of opportunities in the coming years.
Surge in Demand for Specialized Accounting Services
Accounting outsourcing trends will shift towards highly specialized accounting services in high demand. Industry experience will likely be the key deciding factor. Businesses will start investing the money saved with automation to hire more specialized, industry-experienced accountants.
For example, the CPG industry will tilt towards accountants and specialists in audit, tax, budgeting, forecasting, etc. Professionals or firms that specialize in dealing with the industry’s unique demands will get priority in hiring. This is the time for accounting professionals to start branching out into different sectors to soak up as much experience as possible.
For business owners, now is the time to start looking for the next level of accounting power. Budgeting, planning, and all the rest of the advanced accounting tasks will need relevant industry experience for further development and optimization.
Growth and change lie in the same path, so embrace the change and introduce industry veterans into your team. Educating yourself and your team on how best to leverage the accounting tools at your disposal will be a key advantage in this year’s competitive battlefield.
Increased Focus on Data Security
Once more, stemming from the advent of AI, data security in 2024 is a primary concern for businesses. Especially businesses leveraging outsourced bookkeeping and accounting services through remote cloud accounting services. With AI and automation also open to malicious actors, you can be sure that these parties will spare no effort to try and infiltrate your systems. According to Gartner, the spending on data security and risk management will rise by a staggering 14% in 2024.
As far as accounting outsourcing trends are concerned, we believe every entrepreneur should be aware of them. Malicious actors will severely try our data security measures, and it is paramount that outsourcing firms and businesses themselves make sure that they have all the precautions available to them being leveraged to fight off cyber threats.
Outsourced accounting firms will likely be expected to demonstrate their remote accounting infrastructure. They can be held strictly liable for any mishaps on their watch. Accounting professionals who are cyber-literate and can keep businesses safe from cyber threats will be in high demand. Training all accounting professionals in cyber-literacy will be a key push by the finance industry toward a safer business landscape.
Push Towards a Sustainable Accounting Workplace
With the environment in as much peril as it is, the business world expects everyone to go green.
Sustainability is no longer expected of the manufacturing sector. Even accounting and finance are scrutinized. Businesses are expected to choose outsourcing partners that align with the eco-friendly message. Less paper usage and a general focus on helping the environment are expected in this year’s accounting outsourcing trends.
Bringing the Global Talent Pool Onshore
Businesses will likely be bringing offshore accounting resources onshore to support the business. Thus, the now onshore CFO can help the business directly. This will lessen the communication gap. while the less vital accounting staff can keep working remotely. This hybrid between offshore and onshore outsourcing is in the cards for 2024.
Finance and Accounting Outsourcing in 2024
And with that, our expected accounting outsourcing trends compilation is complete. This is all, of course, an informed projection based on existing data. Knowledge is your greatest weapon in 2024. So, stay tuned to the accounting outsourcing world and keep your feelers out for any potential shifts in trends. Stay informed, stay ahead!