Finance and accounting are more important than ever thanks to globalization and the raft of regulatory authorities than demand total compliance. Companies that outsource finance and accounting activities to a competent outsourcing partner face less risks and exposure in regulatory terms. It also helps to cut operational costs, enhance efficiency and bring about financial discipline and standardization.
Companies can minutely track their financials and add value to all the stakeholders while at the same time adhering to the global financial and regulatory best practices. It is possible to have an immaculate enterprise resource planning and bring about a transition by moving activities related to financial transaction to a more economical setup.
Businesses today have offices and clients straddling different continents which means it pays to stay on top of financial transactions and also multiple regulatory compliances. Resources need to be planned which could be for a whole raft of departments like supply chain management, human resources, vendor selection, customer acquisition, IT, back-end and so on. This is where the company that you have outsourced your processes to plays a vital role.
Due diligence is another aspect why you need to have a strong financial and accounting partner. Today due diligence is mandatory for everything from getting requisite funding for your company to assisting in mergers and acquisitions. Outsourcing can help you understand where your money is going and where it is coming from. You can get a detailed and comprehensive report which can come in handy for the decision makers providing them the big picture.
Finance and accounting personnel in any company are faced with the twin challenges of achieving more while at the same time spending less. There is immense pressure to attain the global standard of keeping the finance and accounting costs to below one percent of the total revenues. This needs a radical shift in the way companies handle financial accounting. Outsourcing the manpower intensive and time consuming processes related to transactions and bookkeeping is rightly the way forward.
This way enterprises can pay closer attention and spend more resources on priorities like analytics and how to improve the general business prospect. Leave the number crunching to the experts while you focus on your core competency. Also regulatory authorities demand that you have quality checks and balances in place. This makes companies without an outsourcer particularly vulnerable when it comes to having requisite internal controls, reporting methodologies and general financial operational efficiencies.
One of the most important departments that is worth outsourcing are accounts payable, receivable and payroll management. But that does not mean there aren’t any other benefits of outsourcing finance and accounting. Outsourcer can help in conducting quality financial audits internally, predicting what would be the cash flow at a future date and setting up budget estimates too. The time to close the books is greatly reduced and also the financial processes can be better streamlined with the help of a partner.
The company taking up the outsourcing contract will bring with it the best practices and also technical know-how in order to improve the efficiency. This lets companies have a continuous improvement of processes as the outsourcer brings in standard metrics to gauge your performance and achievements at a granular level.