Key Outsourced Accounting Trends in 2024

Driven by advancements in technology, evolving regulations, and the global shift toward remote work, the outsourced accounting industry continues to transform and provide businesses with cost-efficient solutions.

This has also given rise to key outsourced accounting trends that point to the best strategies when seeking outsourced expertise for financial management and maintaining compliance with changing regulatory environments.

This article explores the latest trends in outsourced accounting, the industries where businesses choose this strategy, the most commonly outsourced accounting functions, today’s top companies for outsourced accounting services, and what to expect in the future of accounting outsourcing.

Key Drivers of Change in Outsourced Accounting

Between the rise of artificial intelligence, changes to compliance regulations, and a growing demand for specialized services, the field of outsourcing accounting is evolving rapidly in 2024. Here are the key trends driving this change:

Integration of automation and AI

A survey of almost 600 accounting professionals found that 71% believe AI will have a substantial impact on the accounting industry. Automation and AI are already starting to revolutionize how financial data is processed and analyzed. 

Automation tools reduce manual tasks like data entry, while AI provides predictive analytics and real-time insights, enabling businesses to make more informed decisions quickly.

Rise of cloud-based accounting systems

Cloud-based accounting systems like QuickBooks Online, Xero, and NetSuite ERP have become essential, offering real-time data access, collaboration, and enhanced security. These platforms allow businesses to manage finances from anywhere, facilitating the shift toward remote work and global operations.

Increased focus on data security and privacy

Data breach costs are reaching record highs, and almost all data breaches are motivated by financial gain.

In response to these threats, outsourced accounting firms are investing in advanced cybersecurity measures to protect sensitive financial information and ensure compliance with stringent data protection regulations.

Regulatory compliance changes

Accounting regulations like the Generally Accepted Accounting Principles (GAAP) are updated regularly alongside changing practices and financial reporting requirements.

Outsourced accounting providers are increasingly focused on helping companies navigate evolving financial reporting and tax compliance standards by offering specialized services that ensure adherence to constantly evolving local and international regulations.

Emphasis on real-time financial reporting

More accounting outsourcing providers are equipped with advanced technology like business intelligence and big data analytics tools to provide real-time insight in response to the rising demand for up-to-date financial data used in decision-making and financial management.

Globalization of business operations

A growing number of outsourced accounting providers and recruitment companies are offering cross-border expertise, ensuring compliance with international standards while helping their clients optimize their financial operations for global businesses.

Demand for specialized accounting services

Outsourcing firms are now offering specialized expertise in areas such as tax planning, bookkeeping tasks, and cash flow management, allowing firms to outsource services tailored to their specific needs while focusing on their core business activities.

Sustainability and ESG reporting requirements

Environmental, social, and governance (ESG) reporting has become a priority for businesses aiming to demonstrate their commitment to sustainability, with 71% of business leaders anticipating its growing importance in corporate performance. 

More outsourced accounting providers are integrating ESG factors into their services, helping companies meet these requirements and enhance their corporate social responsibility profiles.

What Industries Are Outsourcing Accounting?

Here is a list of industries where the demand for outsourced accounting services is growing the most.

Tech and engineering

The fast-paced nature of the tech and engineering sectors demands precise financial management to support rapid growth and innovation. Outsourced accounting in the tech sector provides access to comprehensive accounting solutions and expertise to capitalize on global operations.

Outsourced engineering accounting services assist companies with handling complex financial tasks, such as managing R&D expenses, capital expenditures, and global revenue streams.

Real estate

Outsourced real estate accounting services help manage real estate transactions efficiently, ensuring accurate financial reporting and tax compliance.

Additionally, specialized accounting services support the financial aspects of property management, such as rent collection, maintenance costs, and investment analysis.

Manufacturing

More companies in the manufacturing industry rely on outsourced accounting to manage cost accounting, inventory control, and financial forecasting. 

Accurate financial management for manufacturers remains critical for maintaining profitability while dealing with fluctuating material costs and labor expenses. This makes outsourced accounting a cost-effective approach to handle finances and meet business objectives.

Oil and gas

The oil and gas industry is known for its complex financial landscape, involving large-scale investments, volatile market conditions, and strict regulatory requirements. 

Outsourced accounting for oil and gas companies helps manage cost tracking, compliance with environmental regulations, and financial reporting.

Nonprofits

Nonprofit organizations face unique challenges in financial management, including restricted funds, grant management, and donor reporting. Outsourced accounting for nonprofits helps them ensure compliance with regulations while regaining focus on their mission-driven activities. 

Specialized services help manage contributions, expenses, and financial reporting, enabling nonprofits to demonstrate transparency and accountability to stakeholders.

Retail

Retail companies operate in a dynamic business environment with fluctuating demand, seasonal variations, and inventory management challenges. Outsourced accounting services for retail assist with inventory management, sales tax compliance, and financial planning.

E-commerce

E-commerce companies experience high transaction volumes and often operate in multiple regions, making financial management complex. 

Outsourcing accounting helps manage these challenges by providing expertise in international sales, tax compliance, and payment processing.

Marketing

Marketing agencies often handle multiple client accounts, each with its own financial requirements. 

Outsourced accounting for marketing agencies helps in the management of client billing, project budgets, and financial forecasting, enabling agencies to focus on creativity and client engagement.

Healthcare

The healthcare industry requires meticulous financial management due to its complex billing processes, regulatory requirements, and cost structures.

Outsourced healthcare accounting helps healthcare providers manage finances efficiently by providing expertise in medical billing, payroll, and financial compliance.

Professional services

Firms offering legal, consulting, and other professional services often face challenges in time tracking, billing, and revenue recognition.

Outsourced accounting for professional firms involves the efficient management of financial operations, ensuring accurate billing and compliance with industry standards. By placing their accounting functions in the hands of external service providers, these firms can focus on their core activities, enhancing client satisfaction and business growth.

Accounting

Interestingly, even accounting firms are outsourcing non-core functions like bookkeeping, payroll, and tax preparation. This allows them to focus on high-value financial services, such as advisory, audit, and strategic financial planning.

Most Popular Accounting Outsourcing Locations in 2024

Here are the top locations for sourcing offshore accounting talent across the globe.

India

India remains a global leader in outsourcing, offering a vast pool of skilled professionals with expertise in international accounting standards. 

The country’s strong educational system and emphasis on technical training make it a preferred destination for businesses looking for overhead cost savings and reliable accounting services.

Mexico

Nearshoring to Mexico is becoming increasingly popular for US businesses due to its skilled workforce, geographical proximity, time zone alignments, and cultural similarities. 

The country’s growing emphasis on business process outsourcing (BPO) has also led to the development of strong infrastructure and support services, making it an attractive option for companies looking to outsource accounting functions.

The Philippines

The Philippines offers cost-effective accounting services with a focus on quality and accuracy. With a well-established BPO industry, the Philippines continues to attract businesses looking for reliable and efficient accounting outsourcing solutions.

Poland

Poland has emerged as a key player in the European outsourcing market, offering a highly educated workforce with strong expertise in accounting and finance. 

The country’s EU membership ensures compliance with European regulations, making it an attractive destination for businesses looking to outsource accounting functions within the region. 

Costa Rica

Costa Rica is gaining recognition as a nearshore outsourcing destination, particularly for US businesses. The country offers a highly educated workforce and a strong focus on customer service.

Costa Rica’s emphasis on bilingual education also makes it an attractive option for companies looking for accounting services in both English and Spanish.

Colombia

Colombia is rapidly emerging as a top nearshore outsourcing location in Latin America (LatAm), known for its large pool of accounting professionals and competitive pricing.

The government’s investments in infrastructure and finance education have made Colombia a preferred destination for companies seeking accounting professionals with cultural alignment and time zone proximity.

Malaysia

Malaysia is making strides in the outsourcing industry, offering a skilled workforce, strong infrastructure, and a strategic location in Southeast Asia. 

The country’s focus on higher education and technical training has produced a pool of accounting professionals well versed in global accounting standards.

Most Common Accounting Functions To Outsource

Of the numerous types of outsourced accounting services available today, here are the most common functions delegated to offshore accountants today.

Bookkeeping

Bookkeeping is often the first accounting function businesses choose to outsource. It involves recording daily financial transactions, managing ledgers, and reconciling accounts. 

Outsourcing this task frees up internal resources and ensures accuracy, allowing businesses to focus on more strategic financial activities.

Tax preparation and compliance

Tax laws and regulations are constantly changing, making tax preparation and compliance a complex and time-consuming accounting task. Many businesses outsource this function to ensure they stay compliant with the latest tax laws and minimize the potential risk of costly penalties.

Accounts payable and receivable

Managing accounts payable and receivable is crucial for maintaining cash flow, but it can be labor-intensive. 

Outsourcing these functions can help you streamline your payment processes, improve accuracy, and ensure timely payments. This also enhances supplier relationships and optimizes cash flow management.

Financial reporting

Outsourcing financial reporting tasks ensures that reports are prepared according to industry standards and regulatory requirements. This provides you with reliable financial data, allowing you to assess your financial health and plan for the future effectively.

Payroll

Payroll management is another common function to outsource, particularly for businesses with a growing workforce or operations in multiple locations. 

Payroll outsourcing ensures that employees are paid accurately and on time while maintaining compliance with local labor laws.

CFO services

Some businesses outsource CFO services to access high-level financial expertise without the expenses associated with a full-time executive. 

Outsourced CFOs provide strategic financial guidance, assist with financial planning and analysis, and support fundraising efforts. This allows you to make data-driven decisions and achieve your long-term financial goals.

Top 5 Companies For Outsourcing Accounting Services in 2024

In no particular order, here is a list of the best companies that can help you benefit from outsourced accounting talent for better financial management and industry-specific expertise.

1. Near

That’s us! We put ourselves at the top of this list because we love helping businesses find the specialized accounting expertise they need to grow and scale at speed. We can help fill a wide range of accounting roles, from bookkeepers and payroll specialists to finance directors.

Partnering with Near means getting a tailored and comprehensive solution for hiring the top accounting talent from LatAm, helping your business leverage accounting expertise at lower costs than when hiring locally.

2. inDinero

inDinero offers a full suite of accounting and tax services paired with a specialized platform designed to deliver financial insights that help businesses grow. 

Its flexible pricing and customized solutions make it a popular choice for companies looking to outsource accounting functions.

3. Bench

Bench specializes in combining accounting services with an intuitive platform, providing real-time access to financial data and making it easy for businesses to track their financial performance. 

Known for its user-friendly interface and dedicated support teams, Bench is an ideal solution for entrepreneurs and small business owners.

4. PwC

As one of the Big Four accounting firms, PwC offers comprehensive outsourcing solutions for businesses of all sizes. PwC’s global presence and reputation for excellence make it a trusted partner for businesses seeking outsourced accounting services.

5. EY

Another one of the Big Four firms, EY (Ernst & Young) offers an array of outsourced accounting services, including tax, audit, and advisory services. Its expertise and technology-driven solutions help businesses navigate the complexities of global accounting standards.

How To Prepare for the Future of Outsourced Accounting

As the accounting industry continues to evolve, businesses must prepare for the future by understanding key factors that drive the demand for accounting outsourcing services.

Anticipate technology innovations

Embracing and anticipating technological innovations for financial reporting and management will help you gain a competitive edge by improving accuracy and operational efficiency in your accounting processes.

As mentioned above, future innovations in accounting are predicted to be heavily influenced by automation, AI, and machine learning. Prioritizing expertise in tech-savvy accounting will make it easier to adopt newer, more efficient innovations in the future.

Adapt to policy changes

Staying compliant with ever-shifting regulatory environments requires a lot of expertise, so prioritize hiring agile accounting professionals who can focus on navigating the adoption of new policies.

Outsourced providers who keep up to date with these policies will play a crucial role in helping you stay informed and compliant with future changes.

Final Thoughts

Staying ahead of the curve when it comes to ever-evolving accounting practices is crucial for effective financial management and maintaining compliance. Leveraging outsourced accounting services can provide you with a cost-effective solution that will keep your financial processes up to date.

As accounting outsourcing trends continue to evolve, having experts focused on helping your business navigate the complexities of today’s accounting landscape will be a strong strategic advantage.

To explore how outsourced accounting can enhance your financial management, book a free consultation call with Near. Discover how we can help you find the best financial expert from LatAm and ensure you get the most out of outsourced accounting.