In today’s fast-paced business environment, tech and accounting firms are facing increasing pressure to streamline their operations and improve their bottom line. 86% of the respondents in a survey by Intuit QuickBooks are willing to spend an average sum of $15,800 to introduce technological advancements in their firms to improve their efficiency.
With new technologies emerging constantly, it can be difficult for firms to keep up and stay ahead of the curve. At the same time, clients are becoming more demanding, expecting faster turnaround times, and higher-quality service. These pressures can place a significant strain on the resources of tech and accounting firms, leaving them struggling to keep up with the demands of their clients and the market.
Whether it be tech firms or accounting firms, both rely on high-precision work for optimum results. Accounts and finance can pose complicated challenges for both tech and accounting business firms for various reasons. Let’s take a turn-by-turn look at the challenges faced by them.
Tech firms’ poor cashflow management is a major stumbling block, and can cause startup failures too. They face challenges due to revenue fluctuations, R&D investment needs, high overhead costs, and more focus on revenue growth instead of cash flow management.
Tech firms face difficulty in acquiring and retaining top talent in accounting and finance, which requires high precision and skill. As the industry evolves, they are in constant competition to stay ahead, making it challenging to manage talent effectively.
Tech firms must adapt quickly to changes in tech industry regulations to remain compliant. Struggles to keep pace with these changes can result in compliance risks, increased costs, and penalties for non-compliance.
Smaller or startup tech firms with limited financial resources may find it challenging to bear the significant cost of accounting software required to manage their financial operations and data, especially as they grow and expand.
Accounting firms face challenges during seasonal high demand with overwhelming workloads, tight deadlines, and pressure to maintain accuracy and quality. Other challenges include managing workflow effectively, maintaining quality standards, meeting client expectations, and communicating with clients.
Accounting firms can face a sudden surge in work that puts a strain on their employees and systems, leading to decreased productivity and work quality. In addition, it is crucial for the firm to ensure that its employees have the required training and skills to manage the extra workload effectively.
Hiring talent on short notice can be challenging and resource-intensive for firms. Training new employees and ensuring they are efficient can take cost, time, and resources. Furthermore, retaining talented employees can also be difficult due to increasing competition and evolving job expectations.
Hidden costs and high risks can negatively impact the financial performance and reputation of accounting firms. Hidden costs may stem from inefficiencies, inadequate training, overhead costs, or regulatory changes. High risk can arise from errors in financial statements, inaccurate tax reporting, or non-compliance with ethical and legal standards. These risks can lead to legal liabilities, reputational damage, and financial losses for both the firm and its clients.
Although the challenges faced by tech firms and accounting firms may differ, offshoring accounting and back-office support services can offer a common solution to their problems. By outsourcing these essential services, both industries can benefit from improved support, bridging the gap that exists between them and enabling better functions overall.
An offshore team can take charge of the accounting and back-office support needs of a firm, thereby cutting down on resources, and other hidden expenses, saving up to 50% on labour, equipment, technology, onboarding, training, etc.
Offshore team hiring can alleviate the burden of excessive workload on employees, enabling the in-house staff to concentrate more effectively on the strategic aspects of the business. This can enhance their productivity, and elevate the overall quality of their work-life balance.
With offshoring, firms can have a team of highly skilled professionals with specialised knowledge in accounting, finance, and other related areas. These experts can provide valuable insights and recommendations to help improve financial processes, optimise cash flow, and mitigate risk.
Offshore firms are familiar with local regulations, ensuring that financial operations comply with applicable laws. They also offer ongoing monitoring to reduce the risk of compliance issues and associated penalties. Moreover, offshoring can provide an additional layer of security for sensitive financial data, with advanced cybersecurity measures and data protection protocols, reducing the risk of data breaches or security incidents.
Firms need to be flexible and scalable to meet business demands. Cloud-based financial software and offshoring can help achieve this. Offshoring offers flexibility to add or reduce seats, saving money during slow seasons. It also allows seamless integration with other software for smooth operations.
Offshoring operations allows firms to dedicate their focus entirely to their core business functions, such as strategising and expansion. By relying on cost-effective and expert solutions, firms can increase their efficiency and productivity, while achieving peace of mind. By offloading financial and accounting tasks to experts, firms can trust that their financial operations are in capable hands.
Offshore accounting and back-office support service experts like IMS Decimal can help bridge the gap between the high demands of tech and accounting firms, allowing them to invest their time and resources as needed. You can focus on your core business activities, while IMS Decimal takes care of your non-core processes.
Get to know more about it with IMS Decimal at Europe’s best Accountancy and Finance Conference and Expo - Accountex - on May 10-11, 2023 at ExCel, London.