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Benefits of Outsourcing

Organizations are increasingly looking at finance not just as a back office operation, but rather as a function that provides value added services to any business. Businesses/CFOs are looking for financial insights from their data, but manual processes are still seen as the biggest bottleneck in financial close and accounting operations; when teams are buried in spreadsheets and tightly bound to manually intensive reporting processes, there is little time for value-add activities like forecasting, data analytics, and business advice.

Focus on Outsourced Task

A specialist finance and accounting outsourcing company will have a large team for their accounting processes. Such an organization will allocate its trained professionals to work on this data, which proves to be a win-win situation for everyone.

A specialist finance and accounting services company would give utmost priority to manage the business of their customers well. If this function is executed in-house, it would be of secondary importance to the business, and revenue generating processes would be given the priority. Hence, outsourcing the finance and accounting process would ensure that the tasks are safe hands and are given the importance they deserve.

Focus on Revenue Generation

Outsourcing F&A would allow the business to focus on revenue generation instead of worrying about issues emanating from accounting processes and systems.

Lowers Costs of Keeping up with Trends

Outsourcing helps keep pace with advanced technology solutions at lesser costs. A proficient finance and accounting outsourcing company may be able to provide the improved technology for less than the cost of the firmís old technology. The costs could be even lesser than the upgrade costs that the business would have to invest in. Also, the cost of training staff on systems and technology continuously can be avoided.

Capitalize on Special Expertise

The business can take advantage of the fact that the outsourcer is likely to have a much larger and more specialized staff than you do. The provider can ensure that there is a small group of expert outsourced accountants working on its projects at crucial times or for complex rules and regulations. This would probably never be cost effective if done in-house.

Takes Away Hassles of Sub-Contracting

There might be peaks and valleys in the monthly, quarterly, and annual F&A cycles. During peak workloads, these businesses need to manage the costs of outsourced staff and budget for their in-house baselines. They need to handle staffing for finance and accounting regularly and ensure that the activity remains cost-effective. In contrast to this, outsourcing can help firms to make minimum cost commitments for such staff. An experienced finance and accounting outsourcing provider will perform resource management planning and ensure the delivery of lower per-unit resource cost. Scalability will be accounted for in the project scope.

Minimizes Risks

By freeing up intellectual and financial capital, outsourcing F&A can help minimize risks by:

Shifting the Burden of Risk

When you shift functions to an outsourcer, you also shift the associated risks, to them. This is because, it is the responsibility of the outsourcer to deliver the functions without errors and on time. The client business need not handle risks such as expert employees falling sick before important deadlines or systems crashing at inappropriate times.

Minimal Errors

Errors in F&A could be anything ranging from wrong calculations to faulty accounting. It might be time-consuming and expensive for a firm to hire in-house staff to check possible errors in the processes. An outsourcing specialist will generally have multiple levels of review built into the F&A process. This means that they would be more likely to catch errors on time.

Improved Compliance

An F&A outsourcing company will have experts with more detailed or up-to-date knowledge of accounting principles and complex tax regulations, which is more of a necessity today rather than an option. Regulatory compliance will improve as a result.

Fraud Prevention

An effective system of Internal Control and to enforce a system of checks and balances without making the employees feel distrusted is absolutely essential which makes it all the more pertinent to outsource accounting services. because you will have experts handle your finances, save time, money, and stress, but youíll also have a third party review your money trail. With an impartial standard of checks and balances, you will decrease the risk of internal fraud and improve compliance.

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