TEXAS, UNITED STATES – A staggering 90% of chief financial officers (CFOs) in the United States are turning to outsourcing for their accounting functions, according to a recent report by Personiv, a business process outsourcing (BPO) firm.
This trend is largely fueled by a persistent talent shortage in the accounting sector.
The 2024 Finance & Accounting Talent Market Outlook report highlights that while the talent shortage in accounting has not worsened, it shows no signs of improvement either. The report reveals that 83% of senior finance leaders are facing challenges in finding qualified talent, a sharp rise from 70% in 2022 and 63% in 2020.
Outsourcing key accounting factions
The survey, which gathered insights from 278 finance and accounting leaders across more than 20 industries, sheds light on the specific accounting areas most impacted by outsourcing.
Accounts payable (65%), accounts receivable (48%), and cash application (31%) are the top functions being outsourced. These roles, often bogged down by manual processes, are increasingly being managed by external specialists to maintain operational efficiency.
Despite the reliance on outsourcing, many CFOs remain committed to filling open positions. The report indicates that 67% of CFOs are actively seeking to hire staff accountants, with senior accountant positions (43%) and tax accounting roles (24%) also in demand.
However, the average time to hire in the United States is currently 44 days, during which existing staff face increased workloads and potential burnout.
Factors influencing talent attraction
The survey also explored what makes a role attractive to potential candidates. Surprisingly, competitive salary and benefits ranked lower on the list of priorities. Instead, elements like positive company culture (17%), work-life balance (16%), and recognition and appreciation (15%) were identified as key factors in attracting talent.
Matt Wood, Personiv’s global head of finance and accounting, emphasized the importance of considering these factors in recruitment strategies.
“Roles that remain unfilled due to a lack of qualified talent can lead to significant additional costs, including recruitment expenses and the risk of burnout among existing employees,” said Wood. “However, hiring under-qualified candidates can be equally costly, as it often requires more training and supervision.”
