Just like most other industries, the accounting industry has also been heavily influenced by new-age tools and technologies. As more and more accounting firms continue to readily accept offshoring as a part of their business strategy, there is no doubt in the fact that these offshore partners are also becoming tech-savvy.
When we talk about outsourcing partners, what exactly do we mean by them becoming technology-driven? There are a few aspects to it – the teams have adopted the new-age software for communications, operations, etc; it also means that they have advanced enough to learn and adapt to their clients’ tools. They are leveraging technology to make the lives of accounting firm leaders easy. When firm leaders embrace offshoring, this also acts as their way to get access to these tools without actually investing in them or training their teams to do so. Accounting firms become fast and can reduce their errors manual labor, and costs.
As modern outsourcing teams continue to integrate seamlessly with the clients, the need to be tech-driven increases too.
How does tech help modern offshoring firms?
- Streamlines Financial Processes: The rise of technology in accounting is primarily driven by its ability to enhance efficiency. Automated data entry and cloud-based collaboration have eliminated the traditional need for office spaces, allowing teams to work remotely without sacrificing accuracy. By automating routine, repetitive tasks and reducing duplication—which accounts for nearly 40% of reporting errors—technology has transformed financial management. Tools like QuickBooks and Xero simplify end-to-end accounting, making financial reporting easier and more reliable while ensuring that books remain accurate and teams stay connected, regardless of location.
- Enables Real-Time Data Sharing and Analytics: One of the primary reasons accounting firms are increasingly turning to offshoring is the ability to access real-time data and analytics. In today’s fast-paced environment, having up-to-date information is crucial for making accurate decisions. With cloud computing, teams can instantly access data from anywhere, eliminating the need for manual data transfers and ensuring information is always at their fingertips. Advanced platforms can analyze large data sets, generating actionable insights to support offshoring teams in delivering reports and making informed, data-driven decisions. These tools use algorithms to automate data processing, detect patterns, and predict trends, empowering businesses to stay informed and make precise decisions for the future.
- Aids in remote training and upskilling: When you outsource your accounting practice, you hire a team of experts who operate remotely. To make the coordination seamless, new-age technology has played a huge role. Training teams no longer require extensive travel. It’s a matter of just a few clicks. Accounting firms have been developing their own processes and choosing internal platforms to train their remote teams in the standard operating procedures. For firms, that are more inclined to make it more interesting, there are ways to gamify them and adapt VR training. The bottom line is that the advancement in tools and technology has helped in keeping teams connected and more engaged.The ease and flexibility of hiring and training remote teams are encouraging more and more firms to hire a highly skilled workforce from around the world.
- Helps improve data security: One of the most common concerns that accounting firms have when outsourcing their practices is data security. And outsourcing firms deal with a lot of critical, financial data which opens up avenues for data theft, phishing, malware attacks, and other forms of fraud. About 422.1 million people were impacted by data breaches in 2022, according to Forbes. The problem is that the fraudsters are getting smarter and continue to break the walls of data security. It is now a necessity and not a luxury.
Data security continues to be the top priority of the accounting outsourcing partners because of the sheer volume of sensitive information they handle. They use secure encryption algorithms, access control systems, and other security measures. Choosing cloud-based solutions, multi-factor authentication and other forms of technology has been a constant help in the war against data security threats.
The Rise of Tech and AI in the modern accounting space
AI predominantly runs on data and that is what makes it more convincing for accounting firms and their outsourcing partners to adapt to it. As offshoring continues to become the need of the hour, technology will continue to be readily adopted within the business. The trend will include:
- Use of AI and Robotics: The integration of AI and Robotics in the offshoring space will expand as they can help in improving efficiency and reduce long-term costs.
- Decentralized offshoring models: As Blockchain technology continues to be embraced, decentralized models will become the norm where contracts, payments, and intellectual property are managed securely across borders without the need for middlemen.
- Data visualization will take the center stage: As advanced data visualization will continue to rise, it will make presenting financial reports to all stakeholders easier.
While technology has become the norm across the accounting industry, it is also important for firm leaders to be curious and constantly question what is being implemented and what can be done better. While technology is widely becoming accepted, it is important to not let go of the personal human touch. After all, that continues to remain the essence of a successful accounting-outsourcing partnership.
To integrate technology in your business, while maintaining the personal human touch, write to us at connect@finsmartaccounting.com.
Maanoj is Co-founder & Director of Growth Strategy & Alliance at Finsmart Accounting. He is an Outsourcing Expert, a People Champion, and a Dynamic Leader with strong Business Strategy and Scaling-up experience. He has incubated businesses, sold & exited ventures; helped build strong enterprises in very diversified verticals like Fintech, HR & Consulting spaces in various CXO capacities over the last 20 years.
