Corporate accounting practices have always been under scrutiny, but in recent years, regulators have stepped up their efforts and looked a lot closer at enterprises regardless of size or vertical. In response, these enterprises have had to bring accountants onboard with the technical expertise to ensure compliance and establish internal governance.
As the Wall Street Journal reports, the demand for these accountants is far greater than the current supply. The unemployment rate for accountants was measured at just 2.5% in 2016, meaning that there is a small supply of available talent and a lot of competition in the labor market.
As enterprises adapt to new Financial Accounting Standards Board rules, this talent shortage is disrupting many enterprises and even spelling disaster for a few. Making things even more troubling, however, is that the solution seems to be a Catch-22 – operate without the right accountant or overpay for someone who is under-qualified.
BPaaS – The Third Option
Resolving an accounting talent gap does not have to create institutional stress. By relying on Managed Accounting Services (MAS), enterprises can access the accounting resources they require at a fraction of the cost and frustration.
The concept of Managed Accounting Services is sometimes also called Finance and Accounting Outsourcing (FAO) or Business Process Outsourcing (BPO) or Business-Process-as-a-Service (BPaaS). In essence, it is a diverse pool of accounting talent that enterprises can access as needed, coupled with the latest Software-as-a-Service accounting and ERP technology. Experts have specialties ranging from accounts payable, to cash management, to controllership and even CFO functions, and they work according to terms and timelines set by the BPaaS customer.
Turning Staffing into an Advantage
Managed Accounting Services is more than just an option to consider. It is a distinct asset that has more value than ever at a time of nationwide accounting shortages. By taking on a trusted outsourcing partner, companies are free to re-calibrate their staff for strategic gains:
- Cut Costs – An outsourced accountant can cost significantly less than a full-time employee, particularly when their skills are only needed on a fractional basis.
- Add Expertise – The difficulties of recruiting are irrelevant when outsourced accountants are available on demand.
- Gain Agility – If and when a specific need arises the necessary talent is immediately available.
- Stay Lean – Accounting staff who are not essential to an operation can be cut from the ranks.
- Support Talent – With more money in the accounting budget it’s possible to invest in or reward top staff to stay long term.
There are a lot of reasons to be intrigued by MAS, but its effect on staffing is right at the top of the list for enterprises facing accountant shortages. Instead of continuing in a vulnerable position, get your talent gap filled immediately. Contact AcctTwo to learn more about the potential of MAS.