Outsourcing vs Remote Alternatives? Relieving The Shortage

In my previous post I discussed AI and how it is helping to reduce the workload for many accountants who already struggle in this shortage. An alternative solution that I came across was outsourcing the work to foreign entities. This can help in short term while Businesses asses the situation. An alternative that could help the practice would be offering remote work benefits.

The Benefits of Remote:

Flexibility

Remote Work peaked during the pandemic and as the job labor returned to offices many decided to adapt and continued remote positions. The flexibility of remote work was helpful to many who valued a better work like balance. The system allowed many accountants to continue work while also spending time with their loved ones and this is important especially during busy season.

While it may seem like remote is the way to go, there are concerns to be weary of. An article from Thomas Reuters discusses the problems that can come from remote such as tax jurisdiction complications, and state to state law implications.

Every state follows different tax laws, and if the workforce is spread out it can become very tricky to maneuver the different state tax laws for individuals. This can also affect the workforce with states placing different labor laws, and time off ruling that can complicate the system.

The Benefits of Outsourcing:

Cost Savings

Outsourcing comes with many benefits such as lower labor cost, access to specialists in the field, and scalability. CPACharge Discusses the pros and cons of outsourcing in a very informative way.

While it may seem like Outsourcing can be the solution there are setback that can change the perspective. Loss of control, communication issues, and risk of confidentiality can be viewed as some of the disadvantages.

Hybrid: The Alternative

Hybrid work can be the solution that can benefit and optimize work flow efficiencies. This format can provide the benefits of remote work, while avoiding the tax complications, and laws that can muddy remote work.

While it may not provide the same cost benefits that outsourcing does, it does reduce the loss of control and communication issues that come with outsourcing. The risk of information leak will also be reduced since there is an expectation from employees and an increase in moral.

Final Thoughts

Figuring out the best solution can be difficult but taking into account the business and how it operates can help to find the perfect solution for your business. Every business is different, so there is no correct choice, but rather an alternative to make every specified business.

Let me know your thoughts on what is the best option for your business?