How can outsourced accounting address the skills shortage?

As we can see nowadays how businesses are growing, including online and offline with new markets, more SKUs, international clients, but at the same time a new problem is arising - the accounting sector is grappling with a pressing and persistent issue whose one of the major reason is a growing shortage of skilled professionals.

Irrespective of what is the size of the enterprises, most are getting overwhelmed with their in-house accountant team as it requires hiring and retaining qualified accountants with the right mix of technical expertise, regulatory knowledge, and digital proficiency.

Day by day it is getting tougher and tougher to find skilled accounting talent, and at the same time, the competition for top-tier candidates is fiercer than ever, thus this type of imbalance in the market is causing delays in financial reporting, compliance challenges, and increased operational stress—ultimately impacting strategic decision-making and growth.

Faced with this talent crunch, upcoming and new startups/businesses are re-evaluating traditional staffing models and exploring smarter, more agile alternatives. One solution gaining significant traction is outsourced accounting.

By partnering with external or outsourced accounting experts, companies can bypass recruitment struggles, access specialised skills on demand, and maintain financial accuracy without the overhead of in-house hiring. Even as per the recent Clutch report, 37% of small businesses are already outsourcing accounting or IT services, with nearly a quarter revealing they outsource to boost efficiency, along with other key reasons.

To know more, let's move further to see how exactly outsourced accounting helps bridge the skills gap—and why more businesses are turning to it now than ever before?

What is Outsourced Accounting?

Have you ever in your life time handed off or thinking to handing off your financial headaches to a team of pros (third-party service provider to handle some or all of a business’s accounting functions), who are specialize in range of services like bookkeeping, payroll, tax preparation, accounts payable/receivable, and financial reporting and these specialized accounting firms often located off-site or even offshore - then this is termed as outsourced accounting.

These types of accounting firms allow other businesses with the flexibility to access expert accounting support, advanced technology, and scalable services without the cost and complexity of building an internal finance team. Outsourced accounting is especially popular among small to mid-sized companies looking to streamline operations, reduce overhead, and focus on growth.

What is the Job of an Outsourced Accountant?

An outsourcing accountant performs many of the same tasks as an in-house accountant but operates remotely as part of an external accounting service. Their role may vary depending on the client’s needs, but typically includes:

●      Bookkeeping: Recording and organising financial transactions on a regular basis of a company.

●      Payroll Processing: Ensuring accurate and timely salary payments of employees, including wages, salaries, bonuses, deductions, and tax filings as per compliance with relevant regulations.

●      Accounts Payable & Receivable Management: Managing invoices, payments, and collections a company owes to suppliers for goods or services, and managing money owed to the company by its customers.

●      Tax Preparation & Compliance: Preparing and filing tax returns on time, maintaining accurate records as per tax compliance of the country, staying up-to-date with tax regulations, and ensuring compliance with local tax regulations.

●      Financial Reporting: Involves tracking a business’s income, cash flow, profitability, and overall viability in the long run by creating monthly, quarterly, and annual reports like balance sheets and income statements.

●      Budgeting & Forecasting: Assisting in planning the financial strategy of what a company wants to achieve for a particular period, usually one year, including estimates of revenue and expenses, expected cash flows, expected debt reduction, and estimating a company's future financial outcomes by examining financial forecasts and actual performance.

●      Audit Support: Preparing documentation and reports for internal or external audits to examine and verify the accuracy and reliability of financial information as per the established accounting standards and regulations.

In short, an outsourcing accountant serves as a virtual extension of your finance department, offering expert-level support tailored to your business needs.

How Can Outsourcing Help Overcome the Accounting Skills Shortage?

There is no one country or city who aren’t facing the shortage of accounting professionals, as it has become a global issue, plus it is considered as no longer just a talent issue—it’s a full-blown crisis.

From CFOs to startups, everyone’s feeling the pinch as finance teams struggle to find skilled professionals who can keep pace with the increasing complexity of today’s accounting demands especially when we are seeing complex nature of business nowadays with transactions, accounting standards, taxes, cost, risk of errors, estimates, and biases.

Even Vipul Sheth (Managing Director of AdvanceTrack, one of the UK’s fastest-growing outsourcing accountancy firms) predicts that by 2034, over 50% of companies will outsource some or all of their accounting tasks.

Here's how outsourcing isn't just helping businesses cope with the skills gap—it's helping them crush it.

1. Access to the Best Brains in Accounting

Forget struggling through endless interviews, hoping to find one good hire. With outsourcing, you’re not fishing in a shallow talent pool—you’re diving into an ocean of global accounting brilliance.

Could you imagine an entire team of veterans with decades of experience ready to take all your headaches within minutes, this is one of the biggest benefit of outsourced accounting is these firms bring together hyper-specialized experts who aren’t just your average accountants—they’re internationally trained, laser-focused professionals who are masters in niche areas like forensic accounting, international tax compliance, or GAAP vs. IFRS reporting.

Whether you need full-service bookkeeping or expert guidance through a high-stakes audit, you’ll have VIP access to a dream team of accounting superheroes, on call 24/7, no matter where you are in the world.

2. Big Cost Savings That Go Far Beyond Salaries

Hiring an in-house accountant is like buying a luxury car—it’s a shiny idea until the maintenance bills come rolling in. Salaries, benefits, onboarding, retention programs, training, office space, management—it adds up faster than you think. And during a skills shortage? Those costs skyrocket even more.

Outsourcing, on the other hand, gives you premium-grade financial services at economy-class prices. You pay only for what you need, when you need it. No wasted budget. No underutilized staff. No surprise costs. And because these providers run at scale, they pass massive efficiency savings on to you. Plus, they help avoid financial disasters—from missed filings to compliance penalties—that could cost you far more than their monthly retainer.

It’s not just affordable. It’s absurdly cost-effective.

3. Time Back in Your Hands With Outsourced Accounting

Imagine reclaiming hundreds of hours every year. That’s the kind of time businesses get back when they outsource. No more weeks spent posting job ads, screening resumes, onboarding recruits, and managing performance reviews. Instead, a fully functional team shows up ready to go, already trained, certified, and battle-tested.

Outsourced professionals are laser-focused on delivery, not office politics. They’re faster, more efficient, and more accurate—delivering reports, reconciliations, and filings in record time. Your monthly close happens in days, not weeks. Financial insights arrive before you even ask for them. And with so much time freed up, your internal team can finally focus on high-impact initiatives like strategy, growth, and customer experience.

It’s not just about saving time—it’s about supercharging your business momentum.

4. World-Class Advance Tech Without the Tech Headaches

Why spend thousands on accounting software, security upgrades, and staff training when you can inherit an entire digital ecosystem by outsourcing? Leading accounting providers are powered by top-tier platforms like QuickBooks, Xero, Sage, and NetSuite—along with custom tech stacks built to deliver real-time data, predictive analytics, and financial dashboards with CEO-level clarity.

These aren’t just tools—they’re technology arsenals. You get bank-level security, AI-enhanced automation, and machine learning for fraud detection, all seamlessly integrated into your financial processes. Better yet, the outsourcing service provider handles all the updates, compliance changes, and system maintenance. You get the benefit of advanced tech without lifting a finger—or spending a dime on licenses.

It’s like upgrading your entire finance department to a Ferrari—while paying for a scooter.

5. On-Demand Scalability & Flexibility

Need to double your accounting capacity overnight? Shrinking your team during the off-season? Expanding into a new country with complex tax regulations? No problem. Another benefit of outsourced accounting is it gives you god-tier flexibility. You can scale up, scale down, pivot, or expand your accounting functions in real-time, without touching a single hiring portal or worrying about contracts, severance packages, or talent shortages.

Your outsourcing provider becomes a fluid extension of your business, adjusting instantly to your needs. Whether you’re launching a new venture, acquiring another company, or simply dealing with quarterly fluctuations, your accounting operation stays smooth, reliable, and fully staffed—no matter what curveballs come your way.

It’s agility on steroids—giving you the freedom to grow without boundaries.

Choosing the Right Outsourcing Firm (Don’t Just Outsource—Choose a Growth Partner)

Outsourcing your accounting or financial activities of your firm isn’t just any mere task of your enterprise; it defines business growth, financial stability, business credit, and helps attract investors, and partners, therefore a very pivotal decision that can shape the future of your firm. The right provider doesn’t just crunch numbers; they get your business. They blend into your team seamlessly, understand your challenges, and bring the kind of insight and innovation that turns accounting from a back-office function into a strategic powerhouse.

That’s why you should always think like you're not hiring a service; you're choosing a partner who will walk alongside your firm as it evolves. Moreover, these outsourced accounting firms always offer more than just expertise as they need to bring powerful tech tools, industry know-how, and the flexibility to grow with you.

Plus, you have to check that they should speak your language, match your pace, and respect your firm's vision, as these outsourcing relationships must be built on clear expectations, understanding, and constant communication while keeping in mind robust service-level agreements, strong quality controls, and transparency.

It’s about finding someone who can help you work smarter, scale faster, and plan further ahead. When you choose the right outsourcing partner, you’re not just solving a staffing problem—you’re unlocking a strategic advantage.

So, don’t settle. Choose a partner who sees your potential—and helps you exceed it.

Final Thoughts

We can’t deny upon the fact that there is lot of skill shortage in the accounting industry, also it isn't going to eliminate in the upcoming years anytime soon, but it doesn’t mean that your business has to suffer with financial burden, especially when there are options available like outsourced accounting so you can keep your focus on other important or core matters of your business.

With the right and properly chosen outsourced accounting firm by your side, you're not just outsourcing tasks; you're gaining a partner who understands your goals, aligns with your vision, and equips you with tools to navigate complex financial landscapes with confidence.