In a recent webinar hosted by Dan Hood, the Editor-in-Chief at Accounting Today, industry experts Rizza De Guzman, the Lead Director for Firm Client Services at Scrubbed, and Jack Reagan, Partner at UHY Advisors, explored the recent shift in the industry and shared their thoughts on how firms can adjust to these challenges. They offered their expertise and strategies to help firms stay competitive and move forward with confidence.
Why Firms Are Struggling With the Current Staffing Model
One of the biggest challenges accounting firms face today is the growing gap between the demand for skilled professionals and the number of people available to do the work.Rizza highlighted several factors that could be causing this shortage, such as the retirement of experienced professionals, the lack of new professionals entering the field, and other industries attracting potential talent with competitive pay and more appealing career paths. As a result, many firms are finding their teams stretched thin. They’ve done all they can with the staff they have, and it’s becoming clear that relying solely on traditional hiring methods isn’t sustainable.
Another challenge that Jack mentioned is how client needs have evolved. Work that used to be predictable and ongoing is now more project-based and specialized. So, the skills that you may need now might be different from the skills you need tomorrow. This unpredictability means that firms need to be able to quickly scale their teams up or down, and that kind of agility is hard to achieve with the current staffing model. For Jack, “having that flexibility to match not only the cycle but then the skill set that the project demands is critical.”
Building Flexible Teams Through Hybrid and Outsourced Staffing
Once the challenges around talent became clear, the conversation shifted to what firms can do about it. One of the key solutions Rizza discussed was to explore other models, like outsourcing, to create a more agile and scalable workforce. She defines outsourcing as a situation when a company ”fully or partially delegates work to an external partner who becomes an extension of your team.”This kind of model helps firms stay agile and allows them to tap into specialized skills when needed, manage costs more effectively, and adjust quickly as workloads shift. Instead of trying to overload internal teams with work or hire full-time staff for short-term needs, firms can bring in the right expertise at the right time.
How to Make Outsourcing Work for Your Firm
One of the most effective ways for firms to stay competitive is by bringing in outside expertise. But making that work takes more than just hiring a third party and hoping for the best. Successful outsourcing starts with clearly defined roles and expectations. Open communication is key, and the relationship needs ongoing attention, not just a one-time setup. Regular check-ins and performance reviews help keep everything on track.Rizza highlights that one of the first steps for companies to start exploring outsourcing or hybrid workforces is by taking a good look at where their team stands today. What skills are missing? What kind of work is piling up? From there, firms can start small. Try a hybrid model, see what works, and adjust as you go.
Jack agreed, but noted that for these partnerships to work, firms need to treat outsourced professionals like true team members. According to him, it’s important that firms “…have a say on who is gonna be part of the team,” rather than just being assigned an employee, as this helps set the culture in the workplace.
And while working remotely is nothing new, as necessitated by the recent pandemic, trust is another big piece of the puzzle. Beyond scheduled meetings, informal chats and the occasional in-person visit can go a long way in strengthening the connection between the firm and its external team and making the collaboration more effective.
One example of this is leveraging fractional CFO services, which allows firms to access high-level financial expertise without the commitment of a full-time hire.
Remember, there’s no single formula for success here. Every firm is different. The best approach is one that reflects your client’s needs, internal strengths, and long-term goals.
Take Action Today
One thing became clear throughout the discussion: doing nothing is not an option. For Rizza and Jack, the long-term sustainability, growth, and agility offered by outsourcing talent is the way to go.Competitors are already changing how they staff their teams, and firms that don’t adapt risk falling behind, both in terms of competitiveness and their ability to attract and retain top talent. It’s time for firms to rethink their workforce strategy, focusing on flexibility, building strong partnerships, and using technology along with specialized SaaS accounting expertise to their advantage.
How can firms maintain quality control when outsourcing talent?
- This comes down to choosing the right partner from the start. Be sure to take the time to check their credentials and look into businesses that really understand the industry. Don’t be afraid to ask for references to make sure you find the right fit. Once you’re already working together, regular check-ins and clear communication go a long way in making sure everything stays up to your expectations.
Can outsourcing help with seasonal workload spikes?
- One of the biggest advantages of outsourcing is the flexibility to scale up or scale down depending on your business needs. In fact, a lot of firms may bring in outsourced talent during peak times to help manage the extra workload and avoid overwhelming the internal team.
Are outsourcing and hybrid models the same?
- While outsourcing and hybrid work environments both involve remote work, they are fundamentally different work models. Outsourcing involves bringing in external talent into the team while a hybrid set up has more to do with the location of the internal team. Hybrid can also include external talent, making it a mix of both internal and external resources.
How can smaller firms start integrating an outsourced team without overextending the budget?
- The best thing to do is to start small; you don’t have to hire several people at once. Consider outsourcing time-consuming tasks first, like bookkeeping, to determine whether this staffing model works well for your organization. Over time, you can scale based on performance and necessity.
How do I choose the right outsourced accounting provider for my biotech company?
- Start by identifying your company's accounting needs, such as bookkeeping, financial reporting, ASC 606 compliance, or managing R&D tax credits. Then, evaluate your potential providers based on how much experience they have in the biotech industry and with the unique challenges and regulatory requirements your business faces. Review client testimonials and references from similar biotech companies to get a sense of their track record and expertise. Finally, confirm that their services are scalable to support your business as it grows, and that budgets and service levels are in line with your goals.
Connect With Experts
The landscape for CPA firms is shifting quickly; with fewer professionals entering the field and client needs becoming more complex, the traditional staffing model is becoming harder to sustain. Firms need more flexibility and access to high-level talent without overloading their internal teams.However, finding the right fit in a sea of talent can be difficult and overwhelming. That’s where Scrubbed comes in. We partner with CPA firms and provide outsourced accounting, finance, and audit services to help clients scale their organization smarter and more efficiently. Ready to explore alternative staffing solutions? Schedule a consultation with our team today and discover how smart outsourced accounting team can benefit you.
If you missed the webinar, you can watch it here.
