Accounting services in the midst of the accountant shortage

Finding ways to mitigate the implications of the ongoing shortage of accountants is vital. That’s why outsourcing accounting services has become a key strategy for many businesses.

There are many advantages of outsourcing accounting services, beginning with repetitive, rule-based accounting tasks like accounts payable (AP) and accounts receivable (AR). This approach alleviates immediate staffing issues while also streamlining operations, allowing companies to focus on more strategic activities.

By outsourcing these routine functions, businesses can take advantage of specialised accounting services, including access to broader teams and skilled accountants who are well-versed in handling large volumes of transactions efficiently and accurately. This shift ensures continuity and reliability in financial reporting and enhances overall financial management.

Shuzhen highlights flexibility as one of the key advantages of outsourcing accounting services. “In accounting, there’s a real ability to either fully outsource everything or just select specific tasks that are inefficient for the client to handle in-house,” she says.

Many businesses have traditionally viewed their financial operations as a single, indivisible block, adhering to an all-or-nothing approach. However, realising that these tasks can be managed independently reveals new opportunities for enhanced efficiency and specialised management.

“Clients often struggle to imagine the impact of removing a segment from their finance department, fearing that removing just one part could cause the entire system to collapse,” Shuzhen explains. “When outsourcing, there are typically specific challenges the client needs addressed, and our approach at BoardRoom isn’t to overhaul everything at once but to suggest incremental changes that enhance the overall function without disrupting the core processes.”

Another reason why outsourcing accounting services is compelling for companies is the insight into best practices and innovations that dedicated professionals can bring. By applying recommended improvements, organisations can benefit from enhanced productivity, reduced operational costs, and a more strategic approach to financial management, ultimately leading to better financial outcomes.

Outsourcing accounting functions, especially when facing internal resource limitations, also ensures that businesses remain compliant with regulatory requirements. Outsourcing firms specialise in compliance and are adept at keeping up-to-date with the latest changes in accounting standards and regulations. This is crucial for businesses operating in multiple jurisdictions or in complex regulatory environments. By leveraging the expertise of these providers, companies can avoid the pitfalls of non-compliance, such as fines, penalties and reputational damage.

In tackling the challenges posed by the shortage of accountants, leveraging technology, professional development and education for staff is essential.

Using advanced technology can streamline tedious, manual processes, thereby reducing the workload on existing staff and allowing them to focus on more strategic, high-value activities. Technologies such as AI and automated data processing can enhance efficiency and accuracy in accounting tasks.

At BoardRoom, we are actively addressing the traditional perceptions of accounting as a labour-intensive field by integrating advanced technologies such as Optical Character Recognition (OCR) and AI into our operations. In doing so, the BoardRoom team also ensures that the adoption of these technologies does not compromise stringent internal controls. Our expert staff review the outputs from automated processes to maintain high standards of financial reporting.

Ongoing professional development ensures staff remain current with the latest accounting standards and practices while growing their skills in new technologies and methodologies. This kind of training boosts morale by showing investment in employees’ career growth and enhances adaptability to changing business environments.

Shuzhen underscores the importance of such initiatives, saying: “Investing in our staff’s growth not only prepares us for the future but also helps in retaining talent by involving them more deeply in the business and organisational culture.”

BoardRoom demonstrates its commitment to enhancing the skills and knowledge of its workforce through several partnerships and recognitions:

• Recognised employer partner of CPA Australia: BoardRoom is committed to the professional growth of its employees, providing them with continuous learning and development opportunities.
• ACCA Approved Employer: BoardRoom has achieved this prestigious status in two categories – Professional Development and Trainee Development, Gold. This highlights the management team’s dedication to nurturing their workforce.
• Memorandum of Understanding with the Association of International Certified Professional Accountants (AICPA) and Chartered Institute of Management Accountants (CIMA): This partnership allows BoardRoom accounting staff to access industry best practices, engage with subject matter experts, explore thought leadership content and pursue top-tier professional qualifications.
• Chartered Accountant Accredited Training Organisation (ATO): As an ATO, BoardRoom offers early employment opportunities to Chartered Accountant (CA) candidates. By hiring, training, and developing Singapore CA Qualification candidates, BoardRoom provides them with the necessary resources and support to fulfill the three-year practical experience required to qualify as a Chartered Accountant of Singapore.