firms still are working out their options and business models.
by 卡塔尔世界杯常规比赛时间 research
the 2024 rosenberg national survey of cpa firm statistics has found something that everybody knew. it has also found that there’s more of it than anybody knew.
and that there’s more coming.
more: is this the last year of accounting’s golden age?
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this swelling tsunami sweeping over the accounting industry is the use of outsourced staff, outsourced tax returns, and the ultimate in remote work, offshoring assignments and functions to foreign lands.
this is only the second time the survey has thought to ask about outsourcing and offshoring. just a few years ago, it was a rarity. since 2022, however, it has become a commonplace solution to the severe shortage of american-born cpas.
generally speaking, the larger the firm, the more likely it outsources staff and tax returns, and regardless of size, the survey finds, few firms have intentions of decreasing their dependence on outside workers.
expect expansion
in 2023, when the survey gathered data, 55 percent of the largest firms – those with more than $20 million in billings – were outsourcing staff positions. that’s about the same as the previous year, but 69 percent of those that outsource plan to expand even more. only 2 percent plan to retract some of that extramural function.
sixty-eight percent of those large firms are already outsourcing tax returns.
the number of firms in the $5-20 million range that outsource actually dropped quite a bit between 2022 and 2023, but those that still outsource have little intention of decreasing the practice.
outsourcing of staff at $10-20 million firms decreased substantially, from 49 percent in 2022 to 36 percent in 2023. but at the same time, the outsourcing of tax returns jumped up by even more, from 31 percent to 52 percent.
the $5-10 million firms moved in the same two directions.
it’s the small firms that are still keeping their work in-house. only 12 percent outsource staff rolls, and only 13 outsource tax returns. only 10 percent plan to start outsourcing next year. of those already outsourcing, 60 percent intend to increase doing so next year, and none plan to decrease.
gale crosley, of crosley company, says that not only is offshoring to significantly increase, but “firms will have a plethora of options and business models” to chose from. presumably, some of the individuals and organizations who benefit from outsourcing are already working on the models and options.
art kuesel, of kuesel consulting, says 80 percent of his clients are onshoring or offshoring tax, advisory services and/or audit work.
“many of these efforts are in their first or second year of implementation,” he notes, “and the processes are still being dialed in.”
new opportunities
creating those new options, models and processes involves a lot of challenges, but each is an opportunity for new business or new service offering.
think about it:
- somebody has to initially and continuously train those offshore accountants. they need to know u.s. taxes, generally accepted accounting principles and international accounting standards.
- somebody needs to market those overseas firms to connect them with u.s. firms.
- somebody needs to devise policy and procedure systems for u.s. and overseas partners to work together efficiently.
- somebody has to oversee quality control.
- somebody can help the offshore company devise new services.
- somebody needs to devise and maintain the it system that links firms and overseas service providers.
- somebody needs to provide specialized transnational legal counsel.
- somebody needs to keep a sharp eye on data security, privacy risks and fraud risks.
- somebody should consult on cultural and communication barriers.
- somebody should be monitoring and advising on a) political and economic stability, b) internal and external employee morale and retention, c) client concerns and trust issues, d) changes in overseas laws, e) traffic control and f) other aspects of transnational and transcultural interactions between people who may never actually meet or even talk with each other.
the pipeline from student to professional is not likely to gush anytime soon. for the foreseeable future, the pipeline feeds toward outsourcing and offshoring.