Running a successful, profitable and compliant business is impossible to do without a bookkeeper and accountant. They are critical in making sure invoices are being paid, receivables are being collected, and payroll are being run on the books, remaining compliant with tax regulations and so much more. But a growing trend is making it increasingly challenging to find and retain these professionals.
The Changing Landscape of Bookkeeping
In the last few years the accounting and bookkeeping profession has been facing a crisis. A significant number of these professionals have been leaving the field or considering leaving the field in the next five years, and this trend is particularly apparent among younger accountants. According to recent statistics, 36% of accountants are contemplating leaving the profession, with a staggering 30% of those under the age of 25 considering the same path. With less and less experienced bookkeepers and accountants available to work, losing a bookkeeper can potentially be devastating to a business owner.
Reasons for Departure
There have been several contributing factors to this new trend, below are a few notable trends that have been causing this decline in qualified bookkeepers:
Lack of Healthy Work/Life Balance
It is not uncommon for accountants and bookkeepers to find themselves overworked and unable to maintain a satisfactory work/life balance. The demanding nature of the profession often leads to a faster burnout and creates a stronger desire among these individuals to seek more flexible career options.
Time Consuming Manual Tasks
Accountants and bookkeepers spend a significant amount of time on manual and repetitive tasks that do not necessarily require their specialized skills to complete. This can both feel extremely tedious, frustrating and inefficient. Their desire for more strategic, value-added work drives many for these professionals to explore alternative career paths that better use their skills.
Retirement and Lack of New Talent
The aging workforce of accountants means that a significant number of them are coming up to retirement, leaving a gap in the industry. This further exacerbates the shortage of skilled professionals. Additionally, attracting new talent to the accounting field has become increasingly more challenging, especially because of the perception that the profession is laboursome and less dynamic. Younger individuals seem to be more inclined to pursue careers that appear more dynamic and innovative.
Transitioning to Other Industries
Surprisingly, one-third of bookkeeping and accounting professionals surveyed have stated that they plan to leave the accounting sector entirely to pursue opportunities in different industries. This mass migration leaves businesses with even fewer options for in-house talent.
Rising Costs of Hiring In-House
With the noticeable decline in available professional bookkeepers and accountants, the cost of hiring one on to your staff has also significantly increased. Businesses are faced with the challenge of not being able to find qualified candidates for their positions but also competing in a competitive market to attract and retain them. This new challenge has put a strain on budgets for many companies, especially for small and medium-sized businesses who may not have the available resources to compete.
The LedgersOnline Solution
There is a cost effective solution that more and more companies are beginning to explore amid this evolving landscape. Outsourcing bookkeeping to a virtual team of accountants, such as LedgersOnline, provides a reliable alternative. Here’s how:
Outsourcing bookkeeping can significantly reduce the overhead costs associated with hiring an in-house bookkeeping team. It also allows you to scale your financial team up or down as needed, while still saving money on salaries, benefits, and office space.
Access to Expertise
LedgersOnline provides you access to a team of skilled professionals who are well-versed in accounting and bookkeeping best practices and software. They can handle a wide range of financial tasks efficiently and help keep your payroll, accounts payable and receivable and running smoothly so that you can focus on other aspects of your business. They will keep your books accurate, up to date and compliant with any tax regulations.
Reliability and Scalability
Virtual accountants offer a dependable solution that can adapt to your business’s changing needs. You won’t have to worry about turnover, vacations, or sick days affecting your financial management. You can always depend on your accountant completing tasks on time no matter the external environment.
Focus on Strategic Activities
By outsourcing routine and tedious financial tasks, you free up your in-house team to focus on more strategic activities that drive your business forward and contribute to giving them better work/life balance and creating a more dynamic working environment.
The difficulties in hiring and retaining bookkeepers and accountants are a growing concern for businesses in various industries. The changing dynamics in the profession, coupled with increased costs, calls for an innovative solution. Outsourcing your bookkeeping to a virtual bookkeeping service like LedgersOnline provides a cost-effective, reliable, and scalable approach to managing your finances. Don’t get left behind, as the accounting landscape evolves, adapting to these changes will be crucial for long-term success.