Talent Crunch!? This Guy Has 500 Accounting Candidates Ready for Hire

Podcast

Summary

In this episode of the Growing Your Firm podcast, host David Cristello, founder and CEO of Jetpack Workflow, welcomes Laurence Whittam, the Managing Director at Impact Global Solutions. Laurence specializes in helping CPA firms build successful outsourced teams. 

The discussion delves into the evolving landscape of the industry, where the challenge is no longer about finding talent but selecting the right fit for each firm. 

They explore criteria, best practices, and the importance of building strong relationships with team members. Tune in to gain insights on how to effectively integrate outsourced teams and enhance your firm’s performance.

Key Takeaways:

• Importance of knowing and building relationships with your team members.
• How to assess and select the right outsourced team.
• Best practices for integrating outsourced teams into your firm.

Join David and Laurence for a deep dive into optimizing your firm’s approach to outsourcing and team management.

What you’ll learn

The listener will learn about the importance of building successful outsource teams for CPA firms, how to assess and select the right agency to work with, best practices for leveraging outsourcing in the industry, and modernizing firms using outsourced talent in client accounting and advisory services.

Guest Bio

Laurence Whittam is a seasoned professional in the field of outsourcing and talent management, with a wealth of experience and expertise in helping CPA firms build successful outsource teams. 

As the Managing Director at Impact Global Solutions, Laurence has dedicated his career to guiding firms in leveraging outsourcing to enhance their operations and achieve their goals faster.

With over a decade of experience in the industry, Laurence has honed his skills by working for a CPA firm and gaining a deep understanding of internal processes and best practices. 

Recognizing a gap in the market for firms seeking guidance in outsourcing, Laurence transitioned to a consultancy role, where he now assists a wide range of clients, from small solo practitioners to top 20 firms, in optimizing their outsourcing strategies.

Laurence’s approach to outsourcing is rooted in a deep understanding of the unique needs and preferences of each firm he works with. He emphasizes the importance of establishing sound processes, effective communication, and cultural integration when building outsource teams. 

By focusing on building relationships and understanding the specific requirements of each client, Laurence ensures that the outsourcing solutions he recommends are tailored to meet their individual needs.

One of Laurence’s key philosophies is the importance of trial periods and thorough assessment when engaging with outsourcing partners. He advocates for a strategic approach to talent acquisition, emphasizing the need for firms to test and evaluate potential hires before committing to long-term contracts. 

By prioritizing flexibility, communication, and skill development, Laurence helps firms navigate the complexities of outsourcing and maximize the potential of their external teams.

Laurence’s insights and expertise have positioned him as a trusted advisor in the industry, with a track record of helping firms overcome challenges and achieve success through strategic outsourcing. 

His commitment to excellence, dedication to client satisfaction, and passion for empowering firms to thrive in a rapidly evolving landscape make him a valuable resource for any organization looking to optimize their outsourcing strategies.

Detailed Synopsis

The Importance of Well-Documented Processes and Communication Strategies in Outsourcing

In this podcast episode, Laurence underscores the critical role of well-documented processes and robust communication strategies when working with outsourced teams. 

These elements are essential for ensuring smooth operations and clear expectations, which are pivotal for the success of any outsourcing initiative.

Well-Documented Processes

Standard Operating Procedures (SOPs):

• Laurence highlights the necessity of having detailed SOPs. These documents should outline step-by-step instructions on how to perform specific tasks, especially since outsourced team members are not physically present to observe and learn from their colleagues.
• SOPs help maintain consistency and quality of work by providing a clear reference point for the outsourced team.

Video Documentation:

• In addition to written SOPs, Laurence suggests using video recordings to demonstrate processes. Modern tools can break down these videos into step-by-step guides, making it easier for outsourced staff to follow along.
• Video documentation can bridge the gap created by the lack of physical proximity, offering a visual and auditory learning experience.

Importance of Initial Setup:

• Laurence stresses that the initial setup phase is crucial. Firms need to invest time in creating and sharing these documents before the outsourced team starts working. This preparation can prevent misunderstandings and errors down the line.

Communication Strategies

Clear and Frequent Communication:

• Effective communication is another cornerstone of successful outsourcing. Laurence points out that firms often struggle with communication when they first start outsourcing, especially if they are used to in-person interactions.
• Regular check-ins and updates are necessary to ensure that the outsourced team is aligned with the firm’s goals and expectations.

Cultural and Time Zone Considerations:

• Different outsourcing locations come with their own set of communication challenges. For instance, teams in India or the Philippines might work night shifts to overlap with U.S. business hours, which can lead to burnout and health issues.
• Understanding these nuances and planning communication accordingly can help maintain a healthy and productive relationship with the outsourced team.

Integration into the Firm’s Culture:

• Laurence mentions that smaller firms often prefer to integrate their outsourced team members fully into their culture. This includes involving them in team meetings and fostering personal relationships.
• Such integration can lead to better motivation and a stronger sense of belonging among outsourced staff, which can, in turn, improve their performance and commitment.

Management Styles:

• Different firms have different management styles. Some prefer a hands-off approach, where the outsourcing firm manages the team, while others want to be more involved.
• Laurence advises firms to choose an outsourcing partner that aligns with their management style to ensure a smoother collaboration.

Conclusion

In summary, well-documented processes and effective communication strategies are indispensable when working with outsourced teams. 

These practices not only ensure that the outsourced staff can perform their tasks efficiently but also help in setting clear expectations, thereby reducing the risk of misunderstandings and errors. 

By investing in these areas, firms can leverage the full potential of outsourcing, leading to increased productivity and better overall outcomes.

The Significance of Understanding the Different Variables and Criteria When Selecting an Outsourcing Firm

Selecting the right outsourcing firm is a critical decision for CPA firms looking to build successful outsourced teams. Here are some key variables and criteria highlighted in the discussion:

1. Location

The geographical location of the outsourcing firm plays a significant role in the decision-making process. The primary outsourcing destinations mentioned are India, the Philippines, South Africa, and South America. Each location has its own set of advantages and challenges:

• India : Known for being the most cost-effective option, India offers a large pool of skilled professionals, especially in tax preparation. However, the time zone difference can be a challenge for real-time communication.
• Philippines : Slightly more expensive than India, the Philippines is favored for virtual admin roles and basic accounting due to better communication skills and a more neutral accent.
• South Africa : Offers excellent accounting and auditing skills but is generally more expensive. The time zone is more favorable for firms in Europe and the U.S.
• South America : Emerging as a strong contender due to its time zone compatibility with the U.S. and bilingual capabilities, particularly beneficial for firms with Spanish-speaking clients.

2. Time Zone

Time zone differences can significantly impact the efficiency and effectiveness of communication and project management. 

For instance, while India and the Philippines often require night shifts to overlap with U.S. working hours, this can lead to burnout and health issues for the outsourced staff. South America and South Africa offer more favorable time zones, allowing for better real-time collaboration.

3. Communication Skills

Effective communication is crucial for the success of any outsourcing relationship. 

The Philippines is noted for its strong communication skills, making it a preferred choice for roles that require frequent client interaction. 

South Africa also offers good communication capabilities, while India, despite its technical prowess, may present challenges in this area due to accent and cultural differences.

4. Specific Expertise

Different regions offer varying levels of expertise in specific areas of accounting and finance:

• India : Strong in tax preparation and technical accounting skills.
• Philippines : Good for virtual admin roles and basic bookkeeping.
• South Africa : Excellent for accounting and auditing but less so for tax preparation.
• South America : Still developing in terms of specific expertise but offers great potential due to its time zone and bilingual capabilities.

5. Management Style and Integration

Firms need to decide whether they want their outsourced team to be fully integrated into their culture or to operate more independently. 

Smaller firms often prefer to know their outsourced staff personally and involve them in team meetings, fostering a sense of belonging and collaboration. Larger firms might opt for a more hands-off approach, focusing on deliverables and efficiency.

6. Cost Structure

Cost is always a significant factor. India remains the most cost-effective, followed by the Philippines, South America, and South Africa. However, firms need to balance cost with the quality of service and the specific needs of their business.

7. Contract Flexibility

It’s essential to have flexible contract terms, especially when starting with a new outsourcing firm. Laurence Whittam advises against long-term lock-in periods without a trial phase. A two to three-month trial period can help firms assess the quality of work and compatibility before committing to a longer-term contract.

Conclusion

Understanding these variables and criteria is crucial for CPA firms to make informed decisions when selecting an outsourcing partner. 

By considering factors such as location, time zone, communication skills, specific expertise, management style, cost structure, and contract flexibility, firms can find the right fit that aligns with their business goals and operational needs. This comprehensive approach ensures a successful and sustainable outsourcing relationship.

Leveraging Outsourced Talent to Address the Talent Crunch in the Accounting Industry

The accounting industry is currently facing a significant talent crunch, exacerbated by the retirement of baby boomers and a shortage of new talent entering the field. However, leveraging outsourced talent presents a viable solution to this challenge. 

This approach not only addresses the immediate need for skilled professionals but also offers opportunities for firms to integrate these talents effectively into their culture and operations.

Understanding the Talent Crunch

The talent crunch in the accounting industry is driven by several factors:

• Retirement of Baby Boomers : A large segment of the workforce is retiring, leaving a gap in experienced professionals.
• Shortage of New Talent : There is a lack of new talent entering the industry, which is not sufficient to replace the retiring workforce.
• Increased Demand for Services : The demand for accounting services continues to grow, further straining the available talent pool.

The Role of Outsourced Talent

Outsourcing offers a strategic way to mitigate the talent crunch by tapping into a global pool of skilled professionals. According to Whittam, there are numerous qualified accountants, tax preparers, and auditors available internationally who can be placed almost immediately.

Key Considerations for Outsourcing

When considering outsourcing, firms need to evaluate several factors to ensure a successful integration:

• Location : Different regions offer varying benefits. For instance, India and the Philippines are known for cost-effective solutions, while South Africa and South America offer better time zone overlaps and communication skills.
• Skill Sets : Different regions specialize in different areas. For example, India has a strong background in tax preparation, while South Africa excels in accounting and auditing.
• Cost Structure : The cost of outsourcing varies by region, with India being the most cost-effective, followed by the Philippines, South America, and South Africa.

Effective Integration into Firm Culture and Operations

Integrating outsourced talent into a firm’s culture and operations requires careful planning and execution. Here are some best practices:

Clear Documentation and Training:

• Develop standard operating procedures (SOPs) and video tutorials to ensure that outsourced staff understand the firm’s processes.
• Use tools that break down tasks into step-by-step guides to facilitate learning.

Communication and Relationship Building:

• Foster strong communication channels to bridge the gap between in-house and outsourced teams.
• Encourage regular check-ins and team meetings to build interpersonal relationships, even if the outsourced staff are located internationally.

Trial Periods and Flexibility:

• Implement trial periods to assess the fit and capabilities of outsourced staff before committing to long-term contracts.
• Allow for flexibility in contracts to ensure that firms are not locked into agreements with underperforming staff.

Cultural Integration:

• Include outsourced staff in team meetings and company events to make them feel part of the team.
• Understand and respect cultural differences to build a cohesive working environment.

Performance Monitoring and Feedback:

• Establish clear metrics for performance and provide regular feedback to outsourced staff.
• Use project management tools to track progress and ensure accountability.

Conclusion

The talent crunch in the accounting industry presents significant challenges, but leveraging outsourced talent offers a promising solution. 

By carefully selecting and integrating outsourced professionals into their culture and operations, firms can not only address their immediate staffing needs but also position themselves for long-term success. 

The key lies in clear documentation, effective communication, flexible contracts, cultural integration, and continuous performance monitoring. With these strategies, firms can harness the full potential of outsourced talent and navigate the evolving landscape of the accounting industry.

Timestamps

[00:02:00] Range of CPA firms served.

[00:03:27] Outsourcing and client needs.

[00:08:36] Location variables in outsourcing.

[00:11:00] Integrating outsourced talent into teams.

[00:15:31] Buying out talent contracts.

[00:19:16] Talent in a competitive global market.

[00:22:00] Leveraging available talent.

[00:24:22] Opportunities in the accounting industry.

[00:27:22] Outsourcing talent for firm modernization.