Boosted Accounting Performance through Comprehensive Outsourcing Strategies
In today's fast-paced business environment, companies are grappling with the demands of complex accounting functions and the need to grow without expanding headcount. This is where co-sourcing comes into play, offering a hybrid approach that blends in-house teams with external support to create a more resilient and cost-effective structure.
Co-sourcing provides companies with the advantage of growing without the burden of expanding headcount and shortens the ramp-up time for new capabilities. However, it works best when there's alignment around shared ownership. The co-sourcing provider brings process, structure, and expertise, but the client remains engaged and accountable.
The accounting function is more complex than ever, with leaders expected to deliver strategic insight, keep up with compliance, push digital initiatives forward, and manage risk, all while contending with a shrinking talent pool. Today's accounting leaders are expected to do more than just report numbers; they are being pulled into strategic planning, forecasting, and decision support.
The accounting industry is facing a talent pipeline problem, with fewer students entering accounting programs and a decline of 340,000 accountants and auditors in recent years. Co-sourcing offers a practical way to address these complexities by combining internal strengths with outside support, providing the flexibility, expertise, and resilience needed to support the business.
Seamless collaboration in a co-sourcing model requires shared systems, clear handoffs, and agreed-upon workflows. PwC's 2025 Pulse Survey found that 58% of CFOs are investing in AI and analytics to adjust planning and improve decision making and forecasting. A strong co-sourcing model should scale with the business, whether rolling out a new system or building out new reporting.
For companies with a well-staffed, high-performing internal finance team and mature systems in place, targeted project-based support or strategic advisory may be a better fit than an ongoing co-sourcing arrangement. On the other hand, co-sourcing relationships where the client expects the provider to fully replicate the responsibilities of a full-time controller or CFO may not work well, especially if the business lacks clarity on what it needs.
Co-sourcing is not ideal when a client expects a full-time, on-premise resource. Instead, it offers a flexible solution that can adapt as the business evolves. Co-sourcing reinforces the internal team, bringing in outside help to fill in gaps or bring in specialized skills not available in-house.
Paul Peterson, the CEO & Managing Partner of Portfolio Advisors, LLC, and previously of Wiss, is a strong advocate for co-sourcing as a solution to modern accounting challenges. He emphasizes that the co-sourcing model is most effective when it's aimed at solving specific pain points within the business, not just plugging generic staffing gaps.
For businesses looking to navigate the complexities of modern accounting, co-sourcing presents a viable solution. By combining internal strengths with outside support, companies can create a structure that supports their team and adapts as the business evolves.
