The Labour Shortage Crisis: A Key Driver

Struggling to Find Talent? You’re Not Alone

If you have been scrambling to hire qualified finance staff lately, you are in good company.  According to analysts, there could be a shortage of 3.5 million finance and accounting professionals by the end of 2025. Also 51% of key decision makers in the UK think that hiring new employees is a significant challenge.  This is a dilemma that is raising labour costs and exposing businesses, not a passing trend.  The problem is much more severe for SMEs: when money is short, it is impossible to compete with large corporations for talent.

Many accounting outsourcing companied will strongly argue that outsourcing can undoubtedly help in this situation.  Businesses might completely avoid the hiring hassle by utilising a pool of outside talent. Research from QBSS shows that labour shortages are one of the main reason why 40% of CFOs planned to outsource more in 2024 – a trend that’s only gaining momentum this year. Instead of pouring resources into recruitment, firms are turning to providers who can deliver skilled professionals on demand. It’s a practical fix for a very real problem.

The CFO Perspective: Why 40% Are Doubling Down

What’s Driving CFOs to Outsource in 2025?

CFOs aren’t jumping on the outsourcing bandwagon for fun—they’re doing it because it works. That 40% figure, highlighted by QBSS, reflects a shift in priorities. With economic uncertainty lingering—think rising National Insurance Contributions and a net 58% of CFOs expecting cuts in discretionary spending – cost control is king. Hiring a full-time CFO can set you back £225,000 to £300,000 a year, but outsourcing offers the same strategic nous for a fraction of the price. Part-time CFOs, for instance, can save over 60%, with average salaries starting at £52,000 annually.

Flexibility is another draw. Many outsourcing models now blend internal staff with external specialists, including fractional CFOs who parachute in for high-level planning without the full-time commitment. It’s like having a financial SWAT team on call—ready to swoop in when you need strategy sorted, then step back once the job’s done. This hybrid approach lets you mix your in-house know-how with outside expertise, tailoring the setup to your exact needs. Say you’re scaling up for a big push or just need a sharp eye on cash flow during a lean patch—outsourcing bends to fit. Firms like WrightCFO and FD Recruit are banging the drum for this, offering networks of part-timers who slot in fast and deliver big. For SMEs juggling tight budgets and big ambitions, it’s a game-changer that keeps you nimble without breaking the bank.

Benefits for UK Businesses: Cost, Flexibility, and Expertise

What’s in It for Your Business?

So, why should you care? To begin with, outsourcing reduces expenses.  A part-time or outsourced option can provide excellent financial leadership at a fraction of the cost of a full-time CFO’s high compensation.  However, outsourcing offers flexibility that is difficult to match, so it’s not just about the bottom line.  Have a one-time project that requires a finance team?  Completed.  Do you want specialised knowledge in a field like retail or healthcare?  For that, there is a provider.  It’s similar to having a dedicated finance department at your fingertips.

Consider hybrid models, including the use of part time CFO services, as an example.  You can scale up or down according to your needs by combining your internal team with outside experts, such as fractional CFOs.  For SMEs dealing with erratic cash flows or seasonal spikes, this is invaluable.  Additionally, you’re getting knowledge that might not normally be available in addition to bodies.

With 52% of CFOs prioritising cost-cutting in 2025, according to Deloitte, outsourcing aligns perfectly with the need to do more with less. It’s a no-brainer—why sink cash into bloated in-house teams when you can tap into expert support on a leaner budget? The numbers don’t lie: businesses are saving over 60% compared to full-time CFO costs. And it’s not just about savings—it’s about staying nimble in a shaky economy. Isn’t it time you took a closer look at your own finance setup? A quick review could reveal gaps outsourcing could fill, fast.

Conclusion: Time to Embrace the Trend

Labour shortages and economic pressures are pushing UK businesses to rethink how they handle finance—and outsourcing is leading the charge. With 40% of CFOs planning to outsource more in 2025, the message is clear: this isn’t a passing fad, it’s a strategic move. From dodging the recruitment trap to unlocking cost savings and flexibility, outsourcing offers a lifeline for firms of all sizes.

But here’s the rub—not all outsourcing firms are created equal. Picking the right partner is crucial. A shoddy provider could leave you with sloppy books or missed deadlines, undoing all the benefits. Look for a company with a solid track record, sector-specific know-how, and a knack for seamless integration. Check their references, grill them on cybersecurity, and ensure they’re as invested in your success as you are. In 2025, it’s not just about outsourcing—it’s about outsourcing smartly.

In 2025, it’s not just an option—it’s the smart play for UK businesses looking to thrive. Ready to join the 40%?

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