Reducing the cost of operations and acquiring better talent at the same time is the aim of every company. Outsourcing has garnered fame precisely for this reason. It gives companies access to cheaper but more talented workforce. However, the accounting outsourcing market has become increasingly competitive and companies need to be constantly aware of the latest trends to stay relevant in this industry.
Here are the top accounting outsourcing trends to look out for in 2018:
1. Improving Security
Accounting outsourcing services deal with personal and sensitive information. We live under the constant threat of someone hacking the system and stealing this information. This is why in 2018, an increased focus will be on improving the security systems and ensuring that your security complies with the information security laws around the world.
2. Cloud Computing and Automation
Cloud computing started gaining popularity in 2016-17 and this trend will definitely continue in 2018 as well. Cloud computing services have cheaper license fees. They also reduce the delivery cost significantly. The shift from paper to paperless will help automate and speed up the financial processes.
3. Outsourcing Complex Functions
Until recently, companies have only been outsourcing basic functions like accounts receivable and payable, etc. However, companies are slowly realizing that outsourcing more complex functions like management reporting, financial planning, analysis, etc. are also feasible and profitable to the companies.
4. New Working Models
There will be an increase in adoption of newer working models which are aimed at improving the quality of work of the service providers. Models like those that encourage gain-sharing will see an increase in adoption.
In this model, if the service providers deliver exceptional quality of work, they can share the gains made by the client. This encourages the service providers to improve their efficiency while reducing the cost. Gainsharing model benefits everyone involved in the long run and this is the reason it is becoming increasingly popular.
5. Compliance with Regulations
Many countries around the world are tightening their financial regulations. Any service provider that wants to have a good relationship with their customer should be aware of these regulations and should ensure that they comply with them completely. The MiFID II law in the EU will be in effect starting from the beginning of 2018 and the compliance with these laws will be a trend in 2018.
6. Increased Adoption of BPUs
Business Process Utility or BPU will become popular in 2018. BPU model provides a packaged solution for common processes used by the companies by utilizing the best technologies and people. BPU can significantly reduce cost and improve efficiency in processes that are driven by volume and have a standard method of operation across different companies. Invoice and expense claim processing are some examples that can benefit from BPU.
In 2018, companies continue to find that it is cheaper and better to outsource accounting and other financial services. Every service provider should continue to adapt themselves according to the latest trends to stay in the game.