Reducing the costs of hiring and training personnel, increasing processing capacity, and improving business profitability.

 

As the available pool of trained accounting professionals decreases, the increased pressure on technology will naturally generate an increase in the use of outsourcers. The small business market is the economic growth sector, and the number of opportunities being presented to smaller firms is increasing significantly. This, coupled with the decline in the production of trained professionals, only increases the value of outsourcing.

The 2001 edition of "The Supply of Accounting Graduates and the Demand for Public Accounting Recruits" clearly identifies the downward trend in the number of general accounting graduates, and the relatively high percentage of graduates becoming more specialized and seeking advanced degrees. Trends identified in earlier years have continued, with current reports citing similar (if not greater) movements in the same areas.

  • There was a 20% decrease in the number of accounting bachelor’s and master’s degrees awarded in 1998-1999, which represents a 20% decrease from the total number reported for 1995-96. The downward trend continued, with the 1999-2000 measurement demonstrating that, again, there was a decline in the number of bachelor’s degree recipients even as compared to the 98/99 numbers (another 10% relative decline).
  • The percentage of bachelor’s graduates finding jobs in business/industry has dropped relative to those entering public accounting, and the percentage of master’s graduates entering public accounting is triple the percentage going into industry.
  • Accounting enrollments in bachelor and master’s programs have dropped 22% from 1995-96, and continue to decline.
  • The number of candidates sitting for the CPA exam continued a downward trend that started in 1993.

The statistics indicate that there is a continuing downward trend in the number of credentialed professionals being produced annually. Those who are graduating and going into practice are focusing more on public exposure, rather than business and industry.

This trend is resulting in a general shortage of internal accounting resources for business, and is creating a greater demand for outsourced accounting services. The percentage of accounting versus non-accounting hires reported by accounting firms certainly indicates that administrative and technical support staff is being added at a much higher rate than professional staff.

The visibility of this issue is increasing. Marketing by accounting-industry application providers is hitting on this very target, as the potential "users" of the applications appear to be diminishing in numbers. The volume in purchased software licenses, it is expected, will ultimately come from the outsourcers, rather than the accountants directly. With the future holding potentially fewer license sales for application providers, they now seek involvement in the use of the application – the processing of the data – and probable participation in the generated revenue streams.

"MS Great Plains Business Process Outsourcing (BPO) providers offer the professional business skills and services necessary to run a company on the Microsoft Business Solutions platform. "

 

"With the downturn in new professionals entering the accounting industry, firms are challenged with effectively managing resource allocation and profitability, particularly during peak tax season. In response to this, CCH introduces ProSystem fx® Outsource™. "

Financial processes were the first applications of computing resources. It only makes sense that financial processes are outsourced. The market has matured, and the technology is available to facilitate such outsourcing at a broad level – safely.

Business Process Outsourcing runs on