Increase In Outsourcing At Accounting Firms Yields Greater Client Satisfaction
Some accountants are outsourcing basic accounting tasks such as payroll accounting, accounts payable and accounts receivable, to allow their employees to focus on higher value activities such as becoming vertical experts in their customer’s markets and analyzing their clients’ business data. This extra attention and analysis is transforming the role of a traditional accountant into a business advisor, and takes customer service to the next level by developing strong counsel-focused relationships. QX Accounting Services (QXAS) Ltd provides outsourced accounting, finance and other services to accountants and accountancy firms in the UK.
In 2018, the Client Accounting Services (CAS) Survey was conducted by Bill.com- a US based business payments network- on more than 1,700 companies. According to the survey, firms using an accounting firm’s client advisory services (CAS) reported greater financial insights and higher profits. Additionally, 80% of the clients had more time to focus on their business, roughly 30% of companies that outsourced their accounting to firms received advice that helped them increase their profits, 79% of companies that outsourced accounting referred their accountants, and 68% reported that accounting is easier and more efficient.
Accounting services are the processes of summarizing business transactions and reporting the analysis to regulators, and government entities. Accounting services involve summarizing, analyzing, auditing and reporting of financial transactions to tax collection agencies and entities. It also involves auditing and preparing financial statements, designing accounting systems, developing budgets and accounting advisory. Accounting services undertake processes where human capital is the major input. They make available the knowledge and skills of their employees, often on an assignment basis, where an individual or team is responsible for the delivery of services to the client.
The global accounting services market is expected to grow from around $574 billion in 2019 to more than $734.5 billion in 2023 at a compound annual growth rate (CAGR) of 6.3%.
Accounting services are also often outsourced by small businesses. According to a survey conducted by Clutch- a company that provides a platform to find various business services- on 529 small businesses in the USA, it was found that commonly outsourced services are finance and accounting (37%), IT services (37%) and digital marketing (34%). The business owners believe accounting requires specific skills such as understanding the operation of accounting software, which is a major hindrance for their business, and the survey suggests that around 30% of the owners believe that they overpaid their taxes and 61% did not create a formally documented budget in 2018. 24% of the business owners surveyed believed that outsourcing increases efficiency and 18% responded that outsourcing helps to gain assistance from an expert.