Why are several U.S. businesses reconsidering the way they handle finance and accounting talent?
The traditional in-house model fails to keep up with current realities in the labor market.
According to recent industry research, 91% of top executives reported facing ongoing challenges in finding and retaining qualified accounting professionals, which is creating operational bottlenecks within finance teams.
The scarcity of talent no longer affects only niche positions; it now spans core business functions, including bookkeeping, financial reporting, compliance, and analysis. Consequently, financial leaders are being compelled to seek outside-the-box approaches to hiring to maintain efficient operations.
Meanwhile, the market data indicate a distinct change in companies’ responses. The global accounting outsourcing market is expected to grow at an average annual rate of more than 9% through the end of the decade, indicating long-term demand rather than a temporary response. Companies are no longer viewing outsourced finance and accounting as a temporary solution but as an instrument for scale, cost management, and specialized experience.
This is hastening the change due to increases in labor expenses, stricter compliance standards, and heightened demands for real-time financial information. The services of outsourced accounting teams are now playing a vital role in ensuring that the organization keeps its financial records intact, closes its books much faster, and adapts to the times without incurring the risks and delays that may come with in-house employment.
As the outsourcing of finance and accounting has clearly become part of the American business system, it is vital to know where the market is headed. The following are some accounting outsourcing trends defining the current landscape and how progressive businesses are aligning to stay abreast.
Massive Demand for AI-savy Accounting Professionals
The most obvious trend we expect to continue is the growing integration of AI into the accounting function. Earlier this month, we discussed AI in accounting and finance and the 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 that cuts 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 in favor of 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, in the wake of AI, data security remains a primary concern for businesses in 2024. Especially businesses leveraging outsourced bookkeeping and accounting services through remote cloud-based accounting. With AI and automation also open to malicious actors, you can be sure that these parties will spare no effort to try to infiltrate your systems. According to Gartner, the spending on data security and risk management will rise by a staggering 14%.
As far as accounting outsourcing trends are concerned, we believe every entrepreneur should be aware of them. Malicious actors will severely test our data security measures, and it is paramount that outsourcing firms and businesses themselves ensure that they have all available precautions in place 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.
Major Outsourcing Trends and Strategic Changes in Accounting
Why are finance heads becoming increasingly comfortable with delegating portions of their most important financial processes to external partners? The solution lies in a structural change in how business works, grows, and competes. Perennial talent shortages, rising operational expenses, and increasingly complex regulations have made traditional in-house accounting models hard to maintain.
The senior management teams of the industries have been disclosing persistent challenges in filling accounting and finance roles, and outsourcing providers are gradually swallowing an increasing share of transactional and analytical tasks.
Simultaneously, accounting is no longer considered a need only for the back office. It has developed into a strategic operation with direct effects on cash flows, compliance, investor trust, and long-term growth. The business world has become fast, precise, flexible, and insightful in its financial operations, and many internal groups are unable to respond appropriately to these demands due to staffing and budget limitations.
Outsourcing accounting is thus no longer a cost-saving strategy but rather a strategic mode of operating, whereby the design of finance operations at the organizational level has been fundamentally transformed.
Shifting to Strategic Value Creation
Accounting outsourcing is not sought only to cut the payroll costs. Companies are now demanding that outsourced partners add analytical value, process efficiency, and business resilience. The finance leaders are also adopting outsourced teams to assist with their forecasting, reporting, and performance monitoring activities, changing the nature of outsourcing relationships into long-term strategic alliances rather than transactional ones.
Unresolved Talent Shortages Promoting Structural Change
The failure to recruit and retain qualified accounting personnel in large numbers has forced businesses to explore outsourcing as a long-term solution. Rather than vying against each other in tight labor markets, the companies have access to sustained talent pools of outsourcing providers and can guarantee continuity of operations and curb the risk of workflow disruption due to turnover or prolonged vacancies.
Growth Out of Bookkeeping to Sophisticated Finance Services
Outsourcing has long since gone past rudimentary bookkeeping and data entry. Businesses now outsource accounts payable, accounts receivable, payroll processing, month-end closing, financial reporting, and compliance services. Outsourced teams in most organizations are considered extensions of the internal finance departments, both in terms of volume and in their large-scale sophistication.
Heightened Focus on Real-Time Financial Transparency
The contemporary business world needs access to financial information in a timely manner to make quick decisions. There is an increasing demand for real-time or near-real-time reporting by outsourced accounting providers using cloud-based services. The shift also allows leadership teams to track cash flow, expenses, and profitability in real time, rather than receiving monthly summaries.
Process Discipline and Standardization
The adoption of standardized accounting has been improved through outsourcing. The external providers introduce formal workflows, written controls, and repetitiveness, which minimize inconsistencies and errors. This is an audit readiness process that improves internal controls and establishes visibility among the finance operations that cannot be sustained by many internally constructed teams.
More Integration with Cloud Accounting Solutions
Cloud-based accounting ecosystems are becoming more and more connected to accounting outsourcing. Companies are today demanding outsourced partners to work directly into their accounting systems to ensure continuity of operation, transparency, and integrity of data. It eliminates the need to do this manually, enhances accuracy and also enables the leadership teams to have full control over their financial systems.
Increased Concentration on Compliance and Risk Management
The complexity of regulation is ever growing in all the fields of business and business owners are becoming more concerned about adhering to it. Outsourced accounting teams are also important in ensuring that correct records are kept, filing is done in time and that standards of accounting are followed. This proactive compliance assistance is useful in assisting organizations to mitigate the financial risk and prevent expensive fines.
Scalability As a Core Requirement.
Scalability is one of the most important benefits of accounting outsourcing. Companies will be able to grow and shrink accounting support without reorganizing the internal teams. Such flexibility enables organizations to adapt to growth, seasonal variations, purchases or economic instability without any financial precision or operational soundness.
Move to Outcome-based Engagement Models
Instead of paying per hours worked, companies are moving towards compensation of out-source companies on the basis of results achieved. The performance indicators now include accuracy, turnaround time, reporting quality and responsiveness. This realignment harmonizes the incentives of outsourcing with the business objectives and increases accountability in the finance operations.
Better Co-operation Between The Internal And External Teams
The contemporary accounting outsourcing models are based on partnership as opposed to substitution. Leaders of internal finance still have strategic control and processes are carried out efficiently by outsourced teams. This ambivalent form enables organizations to retain institutional knowledge and, at the same time, to enjoy the advantages of specialized external knowledge, resulting in a balanced and strong finance department.
Conclusion
What originally emerged as a reaction to cost and staffing pressures has evolved into a strategic operating model that has provided scalability, accuracy, and insight. Companies in all sectors are relying on outsourced accounting departments to preserve financial soundness, enhance expansion, and navigate the growing sophistication with assurance.
And with that, our compilation of expected accounting outsourcing trends is complete. This is all, of course, an informed projection based on existing data. Knowledge is your greatest weapon in 2026. So, stay tuned to the accounting outsourcing world and keep your feelers out for any potential shifts in trends. Stay informed, stay ahead!
