The end of the fiscal year always comes with numerous activities for finance teams worldwide. As accounting firms prepare to close the books for the year, they must compile year-end accounts, statements, and financial reports. This procedure is difficult and necessitates a high concentration level, precision, and a large commitment of time and effort, especially when a staffing crisis occurs.
The pressure to meet deadlines, manage rising workloads, and maintain compliance can overwhelm even large accounting firms. In this article, we’ll dive deep into the staffing challenges accounting firms face towards the end of the fiscal year.
Financial Year-End Challenges for Accounting Firms
From Crushing Deadlines to Overworked Teams: The Year-End Struggle Is Real
Compliance and Human Errors Challenges:
Handling year-end accounts requires much work because every financial statement must be closely examined for errors and omissions. For a potential tax audit, all amounts must be tracked down and supporting paperwork must be made accessible.
During the year’s end, if you go through a staffing struggle, there are chances of errors and compliance struggles, leading to financial discrepancies and potential audit issues.
Missing Expertise:
Specific year-end duties may necessitate unique expertise that your in-house staff lacks. This lack of knowledge can lead to mistakes, delays, and even financial penalties.
Ineffective Communication:
Keeping everyone informed during the year-end close process is essential but difficult. Communication breakdowns are more frequent when the team is understaffed and unable to devote enough time to effective coordination.
Ineffective communication frequently leads to back-and-forth-filled, time-consuming, and ineffective information chains, further lengthening the end-of-year accounting process.
Manual Data Entry:
Entering data by hand takes a lot of time, and it can be especially difficult when accounting teams deal with a lot of data at the end of the year. A rise in the volume of manual invoice processing may necessitate hiring more staff members and resources.
Missing Invoices and Receipts:
Keeping track of supplier invoices and paper receipts throughout the fiscal year can be a pain. A staff shortage might interrupt the year-end plan’s execution, emphasising the importance of effective workforce management and contingency planning.
Closing the fiscal year can be seriously delayed by missing invoices and receipts, resulting in erroneous financial statements that could raise legal issues.
Outsourcing Bridging the Gap for Year-End Challenges
Outsourcing can really be really helpful for accounting firms to overcome the year-end struggles:
Reduced Cost by 50%
Outsourcing accounting services often cost 50% less than in-house services. An outsourced solution eliminates the requirement for a big in-house accounting team.
Ensure Accuracy and Expertise
With an outsourced partner focused on delivering the duties and processes required by an accounting practice, the quality and accuracy of year-end accounts improve, as does the level of services provided to your clients.
Customised Services Tailored To Clients’ Needs
Using an outsourced solution enables an accounting practice to grow and confidently deliver accounting services to satisfy the needs of its clients. Choose outsourcing services and deliver customised services as per your clients’ needs.
Greater Scalability
Relying on a small number of experienced accountants increases the risk of service failure if individuals quit a practice on short notice and you cannot find a suitable, qualified, or experienced substitute. Accounting Practice can benefit from an outsourced solution by having access to a large staff of competent accountants who can provide the necessary continuity of service.
Watch What Our Accountant Says About Us:
Check out what our clients have to say about how Outbooks helped them conquer their year-end challenges.
Summing Up
We understand your concern about the year-end challenges during the staffing crisis. Managing the closer to year-end while having fewer staff can be more painful. Embracing outsourcing and leveraging technology can ease your burden and create good year-end strategies for your accounting firm.
Outbooks is your one-stop shop for overcoming financial stress, so what are you waiting for? We are experts providing year-end outsourcing services where you don’t need to understand the real staffing struggles. Interested in cost-effective year-end outsourcing services for your accounting firm?
Contact us today to transform your year-end struggle story into a success saga!
Request a quote now and learn more about how Outbooks can save you time and money!