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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

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