Skip to main content

Accounting Outsourcing Predictions for 2018 and Beyond


Accounting outsourcing is a trend that is on the verge of seeing a great transition. With available resources and advancement in technology, this sector will experience high demand in coming years. The outsourcing industry has seen a rise from 76.9 billion USD in 2017 to 88.9 billion USD in 2018.

In the following years, this is only expected to increase, as earlier, only basic accounting, payables, taxes and calculation tasks were outsourced. But now things will evolve and businesses will involve outsourcing partners in more complex tasks.
Considering the change that the accounting outsourcing industry is observing, here are a few predictions that will dominate the rest of 2018.

1. High Demand for Accounting Outsourcing

The high demand for accounting outsourcing is due to many factors. As organizations get engrossed in more important business processes, outsourcing will help with efficient handling of accounting and financing tasks. Moreover, outsourcing accounts will overall turn out to be cost-effective. In the long run, it will prove beneficial for the finances of the business.

2. Automation and Cloud-Based Solutions

Today, there is a need of being able to access your accounts anytime anywhere, and this functionality is easily achievable with cloud-based solutions. Also, cloud-based accounting offers access to high-end infrastructure at cost-effective prices, which would otherwise cost huge money.
Other than the flexibility of using Cloud, automation is another big advantage for accounting outsourcing services. Businesses devote a lot of time on accounting tasks, which can be greatly reduced with the automation of many bookkeeping activities.

3. Outsourcing Complex Financing Tasks

The most significant change will come in form of the tasks that are being outsourced. Previously, only basic tasks such as payables, receivables, reconciliations, and tax compliance were outsourced. Now, complex financial reports, financial planning, closure, management, and analysis, everything will be outsourced.

4. Changing Pricing Models

As the structure of outsourcing is increasingly evolving, so is the pricing model. Instead of offering a fixed income or fixed cost to the accounting outsourcing partner, companies are now looking to offer variable costs. This will help in cost savings and decreasing costs whenever there is reduction in business volume.

5. Increasing Need for Cyber Security

More than anything, accounting and financing tasks are vulnerable to security attacks. Hence, ensuring cyber security and still being able to access data anytime anywhere is the need of the hour. For this, outsourcing partners need to make sure of the security of their systems and safeguard all the important information relevant to a business.

6. Need for a Single Platform

Accounting professionals, as well as professionals from outside accounting, now know that it is not possible to evaluate data separately. In order to achieve higher reporting and productivity, they need to utilize finance and accounts information with marketing, sales, distribution, and information from other such departments. This obviously raises the need for a single platform which can effortlessly integrate all the data.

7. Shift to Mobile Accounting

If we are using smartphones for nearly everything, then, why not accounting? Accounting professionals have started adding this to their list, as they want to be able to receive real-time updates, analyze data online, share screens, achieve instant messaging, and do video conferring from their phone. This will make it easier for them to perform their job tasks in a better way.

Conclusion

Professionals and businesses struggle to accomplish important business processes related to development, trending activities, and new opportunities. This is because they are often stuck with routine tasks, which may or may not be as complex, but these are still time-consuming and takes up a lot of energy. However, looking at the above trends it is now easier to outsource accounting tasks and make way for new opportunities.
Source: https://www.outsourcinghubindia.com/accounting-outsourcing-predictions-2018-beyond/



Comments

Post a Comment

Popular posts from this blog

Common Accounts Payable Issues and How to Solve Them

Accounts Payable (AP) is the amount of money which a firm is supposed to give a person or a company that provides them with goods or services. Therefore, it is quite significant to manage these accounts smoothly and efficiently, which can be provided by Accounts Payable Outsourcing which is a service provided by Offshore Accounting and Taxation Service Providers. Accounts payable activities include vendor contract management, invoice entry and payments, issues statutory services and creditors reconciliation. The issues in payment account can cause a hefty amount of financial as well as reputation damage to a company. The following are the errors caused in payments account and the solutions to them: 1. Manual Data Entry Error A simple human error in data collection for accounts payable may cause losses and also spoil relations of the company with suppliers. Since the amount of error is 88% in the total manually handled accounts, it can be concluded that it can occur mor...
Post a Comment
Read more

Importance of Bookkeeping

Bookkeeping is coined by two words ‘Book’ and ‘Keeping’ where ‘Book’ means the set of financial transaction and ‘Keeping’ means preservation.  So bookkeeping means the process of maintaining financial transaction.  Sales, purchase, earnings and payments are all carefully documented so that all the inflow and outflow of money is accounted for. Hence it is an integral part of any companies accounting division. A business can flourish or diminish without proper bookkeeping Importance of maintaining a proper set of books The Financial health of the company  – Right bookkeeping helps you to track if the business is making a profit.  It also helps in better understanding of how much progress has the business done. Financial situation and performance of the business is accessible anytime. Better Cash Flow  – It is important for any business to track its spending, which is only possible with appropriate financial records. It is often noticed that a well kn...
Post a Comment
Read more

Hiring a Property Management Company

Owners with numerous properties and rental units are often stumped with the burden of managing incomes from them. It becomes a time-consuming and a daunting task to handle the various aspects of property management like handling rental incomes, owner’s funds and filing tax returns to name a few. Hiring a competent  Property Management Company  ensures an effective way to manage incomes from various let-outs, security deposits, reserve funds and even writing checks on owner’s behalf. Property managers exercise extensive skill and care into marketing rentals, retaining tenancy, maintenance and repairs thus saving your time and efforts! How an efficient Property Management Company handles your funds? An expert property management firm can become one of your greatest assets, if chosen wisely! So before you hire one, here are some features a management company should inherently possess to handle tenant and owner funds proficiently. 1. On-time Payment to Owners Proper...
Post a Comment
Read more