Outsourcing Bookkeeping: the Future for MNCs Amid Talent Shortages

Since the aftermath of the pandemic, CPAs and accountants have been steadily steering away from the profession, in search of better work-life balance or to escape the extraordinary pressure of an accounting firm. In fact, about 91% of senior management reported challenges in finding skilled accounting and bookkeeping staff, according to a Robert Half survey.

This shift has led to a talent shortage and continues to pose a threat, making it more challenging for firms to find and retain in-house staff.  
 
In comparison, the bookkeeping-related tasks don’t seem to be going anywhere. Every business needs bookkeeping and with digitalization, advancement in technology and increasing business complexities, the task gets tougher.

As the saying goes, “Necessity is the mother of all inventions.” The necessity for thorough and consistent bookkeeping, despite the talent shortage, leads to much more acceptance of outsourcing.  

Offshoring vs. in-house resources 

Accounting firms, especially MNCs, have to decide where they can get their accounting support—is it offshoring or in-house teams?  
 
The accounting industry is constantly changing—in its laws, the way it operates, upgradation to new software and so much more. MNCs may face some hindrances in keeping up. Despite having a team, bigger firms often get stuck in the operational loop. While they may be better aware of the internal culture and policies, they lack the means to focus on what is important.  
 
When you outsource, you get access to a global pool of talent at a reduced cost. You can then use this time and the surplus of capital to invest in infrastructure, technology, skill development, etc. MNCs usually aim to scale quickly and in the right way,

Outsourcing makes it possible without the added overhead of hiring, training and maintaining in-house staff. In-house resources offer greater control, direct oversight, and alignment with the company’s culture. Outsourcing helps shift the focus of resources to more strategic tasks by handling repetitive and regular tasks.  

Why is outsourcing bookkeeping the future for MNCs? 

Helps streamline global operations 

One of the key challenges that MNCs face is operating in multiple jurisdictions. Each of these geographies has unique regulatory and compliance needs.

Bookkeeping helps record transactions accurately, ensuring compliance across borders. Having a centralized bookkeeping procedure through outsourcing provides a cumulative view of the global finances, allowing MNCs to manage their financial performances in different regions in real-time. It helps in better decision-making and financial transparency.  

Improves focus on strategic financial planning 

Outsourcing bookkeeping can free up a lot of internal time and resources. It helps the finance team to focus on more strategic areas such as financial analysis, forecasting and planning.

Bookkeeping professionals can offer valuable insights into cost-saving opportunities, and revenue trends by tracking expenses and income. It also helps the firms make better, informed decisions.  

Aids in data-driven financial insights

Data is king in the modern business landscape. MNCs that do not use analytics often struggle to stay relevant. Having accurate, and up-to-date financial data requires better forecasting, budgeting and long-term planning, and all of these are backed by bookkeeping.

Outsourcing partners use advanced software and AI-driven insights. They spend more time carving out insights that will be more relevant to the MNCs, helping them drive growth, profitability and efficiency on a global scale.

Reduces cost and improves scalability

No matter the size of the business, cost optimization is always a key variable. Maintaining an in-house team comes with several challenges—hiring, training, skill development, etc. If, for some reason, the attrition rate is higher, the challenge grows in many folds.

Outsourcing is a cost-effective solution that helps the MNCs get a team of experts at a lower cost. Outsourced bookkeeping can scale easily with the needs of MNCs, allowing them to expand or reduce resources as needed. This reduces the hassle of recruiting, training, and retaining.  

Easy access to technology and automation 

There is huge competition in the outsourcing industry as well. To keep up, they are constantly upgrading their tools and technology. Tech and automation are taking the industry by storm, but they require a significant amount of investment.

MNCs can get access to these technologies by partnering with the firm, which helps in reducing errors, improving efficiency, and providing real-time access to financial data. In the fast-paced environment, it is important to stay agile and this partnership can aid in that.  

Helps ensure confidentiality and data security

The bigger the business, the higher the chance of financial fraud. With the rise in financial fraud and cyber threats, MNCS should maintain data security in financial records.

Outsourcing partners with bookkeeping services prioritize data protection with secure, compliant technology, and processes. For MNCs, outsourcing to a trusted provider adds a layer of security and governance.

As laws and controls continue to grow stricter, updated security measures will protect against potential breaches.  

Make the optimum use of your outsourcing partner  

• Choose an outsourcing partner that understands your business and is experienced. 

• Check for the latest technology that the outsourcing partner uses. 

• Outsource tasks that are complex and/or time-consuming. 

• Communicate and lay out the scope of work clearly. 

• Set KPIs and constantly monitor the performance.  

• Stay connected with your outsourcing partner. 

• Leverage technology to your advantage. 

Find the right partner and outsource your bookkeeping today! 

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