Better control over F & A (finance and accounting) processes, reduced management costs and more importantly access to the best technology and accountant talent pool are some of the benefits that come to mind, but there are smaller ones too and they are as important as the big ones. We will take a look at a few reasons, 4 to be precise why CFOs around the world are outsourcing their F & A operations.
Leverage Vast Experience in Handling Latest Accounting Technology
Technology is one of those aspects of running a business that presents a universal challenge to the aging administrative population worldwide. Instead of investing in younger workforce with knowledge of the latest software, CFOs prefer outsourcing accounting and bookkeeping services to companies that staff professionals with access to advanced accounting software and the acumen to handle accounts and transactional records. Doing that saves costs and leverages expert accounting knowledge without investing in creating the necessary talent pool in-house. An advanced knowledge-base, a well-versed workforce are some of the evident benefits you get by leveraging the knowledge of an expert team.
More Time to Concentrate on Pressing Issues
The day to day handling of business processes needs undivided attention of the administrative staff and with accounts and finances totally out of the way, there are very less distractions to worry about. Your core competencies will not suffer any longer due to financial operations. Outsourcing begins with laying down the terms and conditions of your agreement with the accountancy firm. This enforces deadlines and fast turnaround times. Basically, you can forget about about time-wasting issues and work more closely on issues that demand your undivided attention.
Big Cost Savings
Outsourcing gives you access to an entire team of accountants and experts that have been trained and well placed to carry out fault-free financial operations for you. To replicate a talented workforce in-house entailing hiring, training and staffing a lot of new people – something that may not make much sense for you. You may choose to maintain a small team at your office and partly outsource some operations. Even this will cut costs by a big margin.
Scalability of Operations
Depending on the size of your operations, you can scale your work up or down at the drop of a hat. This kind of flexibility in upscaling your F & A operations in-house is simply not possible to carry out. If at any point in time you wish to cut back on the scope of your outsourced operations it will be much easier than having to lay off employees at your office. Likewise expanding your scope of operations is also a matter of redrawing your contract.
There are however a few concerns associated with outsourcing accounting and bookkeeping services. For instances, an outsourced team will most likely be present in an offshore location or at least a significant geographical distance. If you are okay with occasional assignments in your questions being answered then outsourcing is in fact a wonderful alternative to staffing and maintaining a team of accountants at your office.