The finance and accounting industry is facing a severe talent shortage, with U.S.-based accountants leaving the profession at unprecedented rates. As a result, many businesses now turn to outsource accounting to sustain their financial operations. By leveraging skilled professionals in Latin America (LATAM), companies can address this talent gap while gaining cost and operational benefits.

The rising trend of accounting outsourcing

According to a 2024 survey, 90% of CFOs outsource accounting functions like accounts payable and accounts receivable due to unresolved talent shortages. The growing workload in finance, combined with a lack of qualified candidates, has made outsourcing a necessary solution. Outsourcing provides access to staff accountants, tax professionals, and other key roles without sacrificing financial accuracy or efficiency.

Many businesses are also expanding their outsourcing efforts to include functions like billing and expense reporting. This move reduces overhead, improves scalability, and helps maintain financial stability, even amid ongoing talent shortages.

Why latin America is a prime outsourcing destination

LATAM has become a strategic region for outsource accounting due to its growing talent pool, cost advantages, and proximity to the U.S. and Canada. Bilingual professionals with expertise in U.S. financial regulations are abundant in countries like Mexico, Colombia, and Argentina. Additionally, time zone alignment with the U.S. allows for seamless cross-border collaboration and communication.

The outsourcing of accounting services to LATAM has surged, driven by competitive salaries and access to highly educated professionals. Companies looking to outsource accounting can tap into LATAM’s talent for bookkeeping, tax preparation, accounts payable, and financial reporting—often at a fraction of domestic costs.

Key areas to outsource accounting

• Accounts payable: Managing vendor payments and processing invoices is vital for financial stability. Outsource accounting in this area helps 65% of companies reduce manual errors and accelerate payment cycles, improving vendor relationships.

• Accounts receivable: Healthy cash flow is crucial, and 48% of companies now outsource accounts receivable. LATAM professionals handle collections, invoicing, and account maintenance, easing the burden on internal teams.

• Cash application: This is another critical function where 31% of businesses outsource accounting to ensure accurate payment application. Outsourcing helps maintain a clean balance sheet and reduces financial bottlenecks.

Even companies that haven’t yet embraced outsource accounting are exploring it for functions like accounts payable, billing, and expense reporting. The flexibility outsourcing offers allows businesses to stay competitive while focusing on core activities.

Benefits of outsourcing accounting to LATAM

• Cost savings: Outsource accounting to LATAM offers significant cost advantages. Salaries in the region are considerably lower than in the U.S., allowing companies to reduce expenses without compromising quality. This makes outsourcing accessible to businesses of all sizes.

• Access to skilled talent: LATAM has a highly educated, bilingual workforce familiar with U.S. accounting standards and tax regulations. This talent pool is ideal for companies seeking seamless integration with their teams and systems.

• Operational efficiency: Outsourcing non-core tasks like accounts payable and receivable allows companies to focus on growth while leaving financial operations to experts. LATAM outsourcing firms leverage technology and best practices to boost efficiency, resulting in faster turnaround times and higher accuracy.

• Scalability: As businesses grow, their accounting needs evolve. Outsourcing to LATAM provides the flexibility to scale operations based on demand without the complexities of hiring full-time staff. This adaptability is invaluable for companies experiencing rapid growth or seasonal fluctuations.

Final thoughts

As the U.S. accounting talent shortage continues, outsourcing has become essential for businesses seeking to maintain financial stability and efficiency. By partnering with skilled LATAM professionals, companies can fill critical roles like accounts payable, accounts receivable, and cash application, while benefiting from cost savings, improved efficiency, and access to a vast talent pool.

Outsource accounting to LATAM not only solves the immediate talent crisis but also helps build a scalable and sustainable financial infrastructure. Whether you’re looking to outsource billing, accounts payable, or tax preparation, LATAM offers the expertise and affordability to keep your financial operations running smoothly.

Are you looking to hire Latin American talent? Schedule a commitment-free meeting today with us to discuss your hiring needs.