The persistent talent shortage in finance and accounting has led 90% of Chief Financial Officers (CFOs) to outsource various accounting functions, according to Personiv's 2024 Finance and Accounting Talent Market Outlook survey. Despite efforts to fill positions, challenges such as the 150-hour requirement, low pay, and poor work-life balance continue to plague the industry. CFOs primarily outsource accounts payable (65%), accounts receivable (48%), and cash application (31%) tasks. While many finance leaders still aim to hire, particularly staff accountants, the lengthy hiring process and the need for immediate productivity often make outsourcing a more viable option. Attracting talent may hinge more on positive company culture, work-life balance, and recognition rather than competitive salaries. Finance leaders are advised to consider these factors to avoid the costs associated with specialized services and competitive pricing.
Consider the Following Actions to Take:
- Expand Outsourcing Services:
- Action: Broaden the scope of outsourcing services to include more complex accounting tasks like tax accounting and financial analysis.
- Rationale: This can help mitigate the talent shortage and allow internal teams to focus on strategic functions.
- Invest in Automation Technology:
- Action: Invest in automation solutions for repetitive and lower-level accounting tasks.
- Rationale: This will reduce reliance on manual processes, improve efficiency, and lower the risk of errors.
- Enhance Recruitment Strategies:
- Action: Focus on building a positive company culture, offering work-life balance, and providing career development opportunities.
- Rationale: These factors are more attractive to potential hires than competitive salaries, helping to attract and retain talent.
- Improve Vendor Management:
- Action: Develop robust vendor management practices to ensure compliance with legal standards and alignment with company culture.
- Rationale: This will help maintain quality and reduce risks associated with outsourcing.
- Strengthen Onboarding Processes:
- Action: Implement comprehensive onboarding programs to ensure new hires are well-integrated and productive more quickly.
- Rationale: This will reduce the time and cost associated with bringing new employees up to speed.
Good luck with these efforts. Always happy to discuss the options facing our CFOs as they navigate managing ...People, People, People...
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