Accounting outsourcing trends 2023 through the Ukrainian war lens

Accounting outsourcing trends 2023 through the Ukrainian war lens

The Advanter Group research results were recently published. In this analysis was noted that "the share of staff who have been reducted for the time being decreased in November 2022 to 25% (in September it was 28%), but this is more than June indexes (20%). In total, as of November, 1,155,000 workers were reducted, and this is less than in September. Another 14% is hidden unemployment, but there is a downward trend compared to June. Over half of the enterprises did not hire new employees in the last eight months."

This means that the business has chosen the course of optimization, so it is actively starting to cooperate with external providers, who, in turn, are 100% focused on a specific function and know how to apply the scale effect to provide high level services.

Cooperation with an external provider allows the company to concentrate on managing and optimizing the main functions of its business. In addition to increasing the focus on in-house specialization, outsourcing can provide services at a lower cost than a company would spend maintaining an in-house team, a significant argument in wartime. But cost savings and focus on core business functions are only some of the advantages of cooperation with external consultants.

An interesting study by the resource Moneyzine, which, among other things, highlights the following reasons in favor of outsourcing:

  • 90% of accountants believe that there have been cultural changes in the industry;
  • more than half of accountants consider providing financial advice as part of their work;
  • 57% of accountants improve their technological literacy;
  • 43% of accounting firms increase the scope of remote work.

The primary consumer of accounting outsourcing is small and medium-sized businesses, which resonates with the tendency to enter international markets. As noted by the above-mentioned Advanter Group research: "One of the strategies for overcoming the negative impact of the war on Ukrainian business is the development of exports. As of November, 27% of surveyed entrepreneurs are already exporters; another 17% said they plan to develop this direction." And here, cooperation with consultants can be beneficial, as they know the specifics of accounting and tax reporting in other countries. And this will allow overcoming one of the obstacles noted by entrepreneurs - the need for knowledge, experience, and staff.

For example, our company Accounting HUB followed the path of global expansion in its development. We have registered a subsidiary company in the UAE and provide a full range of legal, tax consulting, and accounting services for Ukrainian and international businesses entering the Middle East market.

In conclusion, it is safe to say that the next crisis faced by the business is not only a challenge but also new opportunities that can be realized with the help of accounting outsourcing consultants to not only stay afloat but also scale in these difficult times.