10 Surprising Benefits of Accounting Staff Augmentation.
Accounting staff augmentation could be the key to success for your business. As an entrepreneur, you might understand how high-performing resources can add (immensely) to the company’s overall financial stability.
According to Statista, 5% of startups failed, in 2022, due to not having the right team. Having the right team at the right time can save a company from failing. In 2024 when the world is a global network, accounting staff augmentation can act as a catalyst fueling your firm’s growth and avoiding it from potential pitfalls. You get access to incredible talent from around the world.
From cost savings to having access to experts specialized in hard-to-find niche, staff augmentation is going to get more common as it continues to assist companies. This article aims to clarify the role of accounting staff augmentation and its benefits.
10 Key Benefits of Accounting Staff Augmentation
1- Access to the Global Talent Pool
With accounting staff augmentation you are not limited to the skill set of your in-house employees. You have access to a global talent pool that has experts that are specialists in their fields. You can let them handle your projects with the peace of mind that your project is in the right hands. For example, Expertise Accelerated has a range of generalized to specialized in-house skills, including hard-to-find niche expertise such as Trade Spend Management.
2- Less Training Requirements
Accounting staff augmentation teams have experience of working with multiple companies in your niche so they do not require much training from you. In contrast in-house employees have to be trained and updated over time. They require ongoing training from companies to stay current with best practices and new developments.
Due to the evolving use of AI, accountants are expected to be more updated in their roles to bring more efficiency to their clients’ processes. But this requires ongoing training. For example, accountants today have to be aware of how to interpret AI-based insights among many other aspects.
Due to their vast experience working with multiple companies, augmented accounting personnel are usually trained and updated with the latest industry trends.
3- Save Payroll Costs
According to the Society for Human Resource Management (SHRM), the average cost per hire in the US was nearly $4,700 in 2022. Hiring an on-site accountant comes with significant costs that companies must carefully need to consider and budget. Here’s a brief breakdown of such costs:
Before onboarding, there are expenses associated with finding and hiring the right candidate. This includes advertising the job vacancy on job boards, conducting pre-employment assessments, and possibly hiring a recruitment agency to assist in the process. These costs can vary depending on the recruitment methods used and the competitiveness of the job market.
Once a candidate is selected, there are expenses related to onboarding the new hire. This includes the time and resources spent on orientation sessions, training programs, and setting up the new employee with the necessary equipment, such as a computer, software licenses, and access to company systems.
The most significant ongoing cost of hiring an on-site accountant is their salary and benefits package. This includes their base salary, and any bonuses, incentives, or commission structures that may be part of their compensation package. In addition to salary, companies also incur expenses related to employee benefits such as health insurance, retirement plans, paid time off, and other perks or allowances.
Employers also need to consider overhead costs associated with having an on-site accountant. These costs include office space, utilities, office supplies, equipment maintenance, and other facilities-related expenses.
SMEs and startups are usually tight on budget. While a full-time working team may increase the productivity of the company’s operations it may take a toll on its finances. In such scenarios, utilizing accounting staff augmentation services can provide a win-win situation. Firms can benefit from expert skills without paying full-time salary and operational costs. You only pay for the time and cost that your company actually needs.
If the on-site accountant decides to leave the company, there are costs associated with turnover. This includes the time and resources spent on recruiting and hiring a replacement, and any potential disruption to workflow or productivity during the transition period.
It's important to have a partner like TalentCross, where our goal is to support and advise on the best solution for each client, demonstrating professionalism, empathy, humility, and flexibility to adapt and meet any need, exceeding expectations.
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4- Enhanced Flexibility and Scalability
Accounting staff augmentation allows companies to flexibly scale their accounting team according to their current needs. Whether it's a short-term project, seasonal fluctuations, or sudden workload increases, companies can quickly augment their existing staff with temporary accounting professionals. This flexibility ensures that the company can adapt to changing business demands without the long-term commitment of hiring full-time employees.
5- Greater Access to Specialized Skills and Expertise
Certain projects require specific skills and expertise that might not be accessible within your current on-site resources. To scale you have to hire a specialist to do the work. Accounting staff augmentation can prove to be a viable option to hire talent with specialist skills.
For example, Expertise Accelerated provides US CPG industry expertise and high-quality offshore accounting, finance and supply chain talent that can add significant value to the client, especially in the CPG industry.
Another example would be if a company transitions from manual accounting processes to an automated Enterprise Resource Planning (ERP) system, they may need temporary accounting professionals with ERP implementation and configuration expertise.
6- Maintaining Control Over Business
Many SME leaders across the US worry that temporary accounting staffing may cause them to lose control of their business. However, in practice the augmented accounting personnel are similar to the company’s full-time employees. HR or any other hiring personnel can define the role and projects the augmented employees have to carry out. They also can address any issues and retain or find another candidate better suited to the role.
7- Specialized Project Expertise
When a company faces an increased workload or requires specialized expertise for a particular project, it can seek assistance from accounting staff augmentation services. For instance, EA has various generalized to specialized in-house skills, including hard-to-find niche expertise such as Trade Promotions Management.
Or let’s say a company is acquiring another company and needs to conduct a thorough financial analysis to assess the target company's financial health and identify potential risks or liabilities. In this case, they may hire temporary accounting personnel with expertise in audit and due diligence processes to assist with tasks such as reviewing financial statements, analyzing revenue and expenses, examining contracts and agreements, and identifying any discrepancies or areas of concern.
8- Faster Response to Demands
With staff augmentation, firms can swiftly adapt to any project changes, whether they need to scale up or down. They have access to a team that is adaptable to any project challenge.
9- Access Industry Insight
Accounting staff augmentation provides the unique benefit of offering access to industry perspectives. Firms can leverage the expertise of professionals who bring diverse experiences from working with various clients and industries with them.
10- Scalability
Have you thought about how to manage your firm’s accounting needs as it grows? With accounting staff augmentation, you can adjust your resources as needed. You have the flexibility to handle growth spurts or complex projects without hassle.
If you need expert services during peak times, you can easily expand your engagements with the staffing provider. A smart way to stay agile as your business grows, isn’t it?