I sat down, under the guidance of our marketing department, to write a piece on “The Trend Toward Outsourced Accounting Services.” It just didn’t feel right, though. Several years ago that title would have been accurate. But U.S. businesses have been moving “toward” outsourced accounting for a while. Now we’re there.
I’d even hesitate to call outsourced accounting a “trend,” because that word implies a sharp incline and eventual fade into oblivion. On the other hand, outsourced accounting is here to stay. As I turned to trusted industry sources and analysts, I found the figures to back me up.
The information we’re about to share shows that outsourced accounting is not a trend, at all, but a zeitgeist, driven by the growth of cloud-based accounting solutions, greater cost-consciousness on the part of business owners, and a growing comfort with outsourcing business processes in general.
1. Outsourced accounting shows steady market growth.
The global multi-process finance and accounting outsourcing (FAO) market grew by 10% to reach $4.3 billion (Annualized Contract Value) in 2012, according to a report by the Everest Research Group. (http://www.everestgrp.com/wp-content/uploads/2013/05/FAO-Annual-Report-Executive-Summary-May-2013.pdf) Ten percent growth may not sound like a lot and, in fact, it’s not an exceptionally high number. However, this rate of growth is indicative of steady and gradual growth that shows true staying power, not a flash-in-the-pan trend.
2. Businesses are happy with outsourced accounting value and results, year after year.
A substantial portion of that 10 percent growth (65%) came from clients who started using outsourced accounting in previous year and have continued, extending their contracts with their service providers.
This, more than anything, shows that outsourced accounting is not just a trend. It’s a way of life for many business owners today.
3. Business owners evaluate cost plus value proposition when choosing outsourced accounting services.
Business owners originally turned to virtual bookkeeping and outsourced accounting because of lower costs. But as the industry evolved, and virtual accounting firms began providing greater value than in-house bookkeepers could, business owners began evaluating their choices in virtual accounting based on much more than just cost. This is an indication of a mature marketplace.
Outsourced accounting may save business owners money, http://www.accountingdepartment.com/blog/bid/348887/Traditional-Vs-Virtual-Accounting-All-The-Expertise-At-Half-The-Cost especially when you look at the overhead saved by not hiring in-house employees. But the true benefit in an outsourced accounting firm is the value the company provides, offering bookkeeping, accounting and financial controllership services, all with the convenience and security of cloud-based accounting.
The latest Everest Group report shows we’re not the only ones who understand these important benefits. Are you ready to join the “trend” of businesses that outsource bookkeeping services through a virtual accounting firm?