How to Resolve the Major Challenges Faced by Accounting Firms in 2023

Compared to other firms, accounting firms that utilise technology can manage challenges better and adapt to changes easily. Yet, this year, some accounting challenges seem more difficult to manage. This year, some of the most difficult accounting firm challenges include managing cash flow, hiring new talent, adapting to new tax norms, etc. Let’s take an in-depth look into some of these challenges and their solutions.

Tax Changes

Changing tax regulations and complying with them is a continuous challenge faced by small accounting firms. Ideally, all accounting firms and CPAs should be aware of the latest changes in tax norms and be able to comply with them. They should also be capable of using accounting technology and tax management systems to manage taxes online and be familiar with the latest accounting technology and strategies.

However, smaller accounting firms may not have adequate resources to do so and may not always be aware of the latest tax norms. Therefore, collaborating with an outsourced accounting firm is an excellent way to tackle these problems. They have a team of highly experienced accounting professionals who stay up to date about the latest tax regulations. Plus, they have access to the latest accounting technology, which automates several processes, enabling you to save time and comply with government norms.

Financial Reporting

Managing financial disclosures is a key challenge for public and large private companies affected by diverse APAC reporting standards. This is also one of the major accounting firm challenges faced by accounting firms, along with the need to handle huge amounts of data while creating financial reports. They must abide by the continually changing government regulations and accounting standards to avoid non-compliance and penalties.

However, outsourced accounting can track and incorporate these altering norms accordingly, ensuring that you remain compliant with the latest accounting standards. An expert outsourced firm can also understand your requirements and streamline the financial reporting process. Outsourced accounting firms use modern accounting and financial software to automate the process of financial reporting. This can help to make the process more efficient and accurate.

Payroll Management

Whether you’re a small accounting firm or a medium-sized business, in-house payroll management is highly time-consuming. Your in-house payroll team will need to monitor business deductions, wage garnishment, salaries of new and old employees, final settlements on resignations and terminations, and paid vacations. Plus, you’ll also have to comply with government regulations, ensure accurate data entries are made, and double-check for keying errors.

Here’s where outsourcing your payroll activities can help. You’ll not only have accounting experts with access to the latest accounting and financial software managing your payroll process, but you’ll also save time and money. Professional accounting firms ensure maximum compliance with the government payroll norms and ensure that your payroll-related data entries are accurate. This will also give your team time to focus on your core business activities.

Managing Cybersecurity

Small accounting firms are privy to substantial degrees of confidential data. However, they may not always have access to top-notch security measures, making them highly vulnerable to cyberattacks. For example, the WannaCry ransomware hit several accounting firms worldwide in 2017. Plus, approximately 38% of Australian firms experienced a cyber breach in 2021.

By outsourcing your accounting processes to a more experienced firm, you can access the latest data security software to protect your firm, your data, and your client’s data and allow only authorised personnel to access it. They can also monitor your systems regularly to check for any breaches. Plus, you can collaborate with them to train your employees on vital cybersecurity measures.

Managing Competition

Smaller accounting firms are finding it increasingly difficult to survive due to a highly competitive market. With new accounting firms coming up every day, changing technology, and continuously changing accounting norms, your accounting firm can only survive and thrive if it can differentiate itself from your competitors. Collaborating with a larger, experienced accounting firm can resolve this challenge.

They can help your firm access and use the most advanced accounting technology and automation solutions to remain ahead of the competition. Your firm can differentiate itself from others by using cloud computing technology, automated account processes, offering higher-value services, etc. Plus, you’ll also gain from the expertise of highly experienced accounting professionals.

That’s Where an Outsourcing Partner Comes into the Play

Are you running a business and finding it difficult to manage your accounting needs? Or do you want to update your accounting firm but don’t have the strategy or resources? Whether you are a small business, a large organisation, or an accounting firm, our accounting experts at Fourfold Global have a solution to any accounting challenges you face. Contact our team at Fourfold Global today to get the best accounting and financial solutions!