Outsourcing is Essential to Survival

CPA Technology Advisor reports that outsourcing companies provide a range of accounting services including write-up, bank reconciliations, depreciation schedules, and financial statements.

Outsourcing eliminates few, if any, jobs. Instead it causes shifts of jobs to more interesting and valuable work.

Outsourcing companies also offer professional staff either by the week or by the project.  Sarbanes-Oxley and compliance needs are reasons for the demand. Quality control is an issue.

The article says that “while workflow tools…are more basic than robust (though continuing to evolve rapidly), all incorporate document management functionality and speed up and simplify the tracking process.”

The next phase is likely to see accountants controlling the work with clients having a predetermined level of input. Dr. Chandra Bhansali, CEO of Accountants World, is quoted as saying “outsourcing is a temporary fix that will be replaced with innovative technology.”

One practitioner says that outsourcing can permit a small firm to compete effectively with much larger firms.

For more, see The CPA Technology Advisor, January 2005, http://www.cpatechadvisor.com/articles/2005/jan/survival2.shtm