Any company would want to find ways to improve its operations and boost growth. Part of it involves looking for new strategies and methods, which includes being aware of the latest developments in the field. By keeping up with trends, a company can learn about new tools that can help improve organisational efficiency and discover new ways to do things, allowing it to fine-tune existing processes.
Businesses unaware of the trends and updates can fall behind, negatively affecting their productivity and, ultimately, revenue.
This article will discuss some of the latest offshore accounting trends business owners like you should know. Let the information guide you in assessing your current methods and processes, adjusting them accordingly to meet the demands.
6 Offshore Accounting Trends You Should Know
Increased use of big data to gain business insights
There is no doubt that technology has dramatically changed society, and one of the most prominent ways is how companies operate. It has innovated traditional methods, making the market more competitive than ever.
One of the significant trends today is the use of big data to gain business insights. Big data refers to large complex data sets processed using software. Several accounting firms have now leaned towards data-driven audits to derive better insights for their clients.
The concept of big data is making the most impact on almost every aspect of the field. Its primary features include real-time access to accounting data, data analytics, audit analysis, and risk identification.
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Greater focus on cloud accounting
The beauty of cloud-based solutions is their accessibility and convenience, enabling organisations to access their digitally hosted system easily anytime, anywhere.
Cloud accounting has become a popular option among offshore accounting companies. The system has the same functionality as desktop accounting but moves the whole process to the “cloud” or the internet. You simply have to log in to an up-to-date online network since all the data are safely stored on a cloud server.
With cloud accounting, organisations can track their expenses, sales, and inventory faster and more seamlessly. The automated nature of the system also speeds up tasks, helping them cover more ground and process more data.
Increased preference for remote accounting work
The COVID-19 pandemic has led to the adoption of a flexible, remote work setup. Predictions show that this trend is likely to continue in the following years.
According to the 2021 State of Remote Work Report, 69% of employees worked remotely during the pandemic. This number is expected to rise across industries through 2023 as remote work opportunities are likely to continually increase.
Greater emphasis on automated accounting processes
While automation has been around for quite some time now, it remains a significant trend because of its role in streamlining and optimising business processes. Besides providing a more efficient and time-saving method of accomplishing tasks, it also helps reduce errors and improve data security.
This 2022, there is an increased demand for accounting tools and software. According to a recent survey, accounting automation is recognised as potentially having the most significant impact on the future of the industry.
Increased interest in outsourcing accounting functions
More companies are progressively embracing offshoring accounting as part of their business’s strategy particularly small firms that find it challenging to hire an in-house accountant. This allows them to work on other business functions without worrying about managing their finances.
According to a survey, 82% of small businesses have increased their outsourced functions since the beginning of the COVID-19 pandemic. Accounting is one of the top three business processes these companies mostly outsource.
Outsourced accountants can handle various financial functions, such as bookkeeping, accounts payable and receivable, payroll, financial reports, and taxes.
Here are some of the reasons you should start outsourcing your accounting functions:
- Work with accounting experts – Gain access to accounting professionals who are trained, experienced, and knowledgeable in finance and accounting
- Streamline your process – Outsourcing accounting enables you to streamline your accounting process to produce higher quality results and better reporting
- Scale your business – Your outsource team will take care of your accounting tasks while you focus on core business functions to scale your business
- Increase capacity quickly – Resolve capacity issues and delegate tasks to a dedicated offshore team that has the expertise needed
- Save enormous time – Free up your time to focus on the key areas and day-to-day running of your business
- Lower cost – Save around 70 to 80 percent on direct salary costs for a comparable skillset
Introduction of blockchain into accounting processes
Blockchain technology has already begun making progressive leaps in different industries, accounting included. Its benefits include data security and traceability, increased trust between users, and reduced operational costs.
Blockchain has plenty of potential. For accountants, using this system boosts transparency regarding the ownership of assets. It can also help them gain clarity over available business resources, allowing them to derive more accurate insights.
Some companies have already integrated blockchain into their operations, helping them manage their financial assets while freeing up significant resources.
An Opportunity Worth Grabbing
Keeping abreast of the latest trends in the outsourcing industry can help you modify your business strategies to properly address the changing market needs. In turn, you stay competitive and effectively grow your business.
If you need an outsourced team for your accounting functions, consider working with optiBPO, one of the most trusted offshoring companies in the Philippines. We can help you build and manage a dedicated offshore accounting team to serve as an extension of your organisation. Contact us today to learn more about our services!