Finance and Accounting Outsourcing
Finance departments face problems such as over- or understaffing, slow turnover and month-end close, and problems in finding high-quality professionals. These factors directly affect your business growth, audit readiness, and financial management.
The benefits of outsourcing finance and accounts
Outsourcing finance and accounts make your business efficient and cost-effective to boost business growth.
Better in-house efficiency
- Optimise the current expenditure by cutting unnecessary fund leakages without compromising quality.
- Offload the day-to-day finance and accounting functions so that the management can focus on core business aspects.
- Free your in-house staff for effective performance.
- Reduce the expenditure of hiring in-house finance and accounting staff and associated infrastructure and employee benefits.
In addition to the salaries, benefits, and infrastructure, in-house teams have hiring, onboarding, and training costs, which can add up to thousands of dollars. By outsourcing finance and accounting, you do not have to manage so many moving parts.
Access to a global talent pool
Hiring an in-house team gives you access to only the local talent pool. Outsourcing allows you to hire the best talent from another city or country. With remote work gaining pace, collaboration and data protection are becoming easier than ever before. Outsourcing can also give you access to tax and wealth management advisors to manage the funds better. You can also manage business continuity, risks, and disasters more effectively.
Which finance and accounts processes should you outsource?
Accounts payable (AP) and accounts receivable (AR) are common tasks that companies outsource. Other tasks to outsource are:
- Tax reporting and filing
- Expense reporting
- Accounts reconciliation
- Fixed asset reporting
- Month-end closing
- Inter-company accounting
- Debt management
- Process oversight
- Data extraction and analysis
- Budgeting and forecasting
- Treasury and risk management auditing and audit reporting
Choosing the right finance and accounts outsourcing partner
- Determine your business goals: Know if you want to fully or partially outsource or need consulting services. Make a list of the roles you plan to outsource, such as accounting, bookkeeping, payroll processing, and data analysis.
- Know your budget: Make a rough estimate of how much you want to spend based on your budget, types of services, and the value it will bring to the organisation compared with hiring an in-house team.
- Take presentations from and shortlist outsourcing partners: Consult multiple suppliers and shortlist them based on the security compliances, reporting practices, advanced processes and controls, and the technology and expertise they bring to the table.
- Culture fit: It is easy to overlook this, but cultural fit is an important factor. Your vision and mission for growth should match those of the partner that provides Finance as a Service (FaaS) since the working culture is intertwined with your financial success.
Once you have done this, run a trial project with the partner to gauge their efficiency and expertise.