Why More CFOs Are Outsourcing Accounting Functions
In today’s rapidly changing business landscape, CFOs are facing immense pressure to manage their accounting functions efficiently while dealing with a range of staffing challenges. A recent survey reveals that 90% of CFOs are outsourcing some of their accounting functions, highlighting a growing trend among finance leaders seeking alternatives to traditional in-house teams.
A Response to Talent Shortages
The talent shortage is a major driving factor behind this shift. Many CFOs have struggled to fill critical positions on their internal teams, often facing long delays in recruitment or the inability to find qualified candidates at all. As a result, outsourcing has emerged as a practical solution, providing immediate access to experienced accountants when needed without the constraints of a lengthy hiring process.
Outsourcing vs. Automation
Particularly in areas where technology has attempted to ease the burden—such as invoicing and making payments—outsourcing is becoming increasingly popular. Although automation can provide some labor relief, it isn’t a one-size-fits-all solution. For finance leaders who are not ready or able to fully automate these functions, outsourcing can offer the same operational benefits without the need for heavy investments in tech infrastructure.
Entry-Level Talent Gaps
Interestingly, CFOs are more likely to seek staff accountants rather than senior accountants through outsourcing. This is likely due to a scarcity of quality entry-level talent in the accounting field, making it difficult to build a strong team from within. By outsourcing, CFOs can ensure that their accounting needs are met without compromising on quality or facing the challenges of a tight labor market.
As companies continue to navigate these workforce challenges, outsourcing provides CFOs with a flexible, scalable solution that supports both short-term needs and long-term goals. Whether through automation or outsourced accounting services, finance leaders are finding new ways to keep their departments running smoothly in an increasingly complex environment.
