Leroy Stallworth

  • Driving Efficiency and Streamlining Finance with Outsourcing Finance and Accounting 12 May 2016

    A process like finance and accounting is the lifeblood of any company or business, and when the CFO of the company decides to outsource that process, there are lots of factors that he/she needs to undertake before he/she can take the necessary steps. Outsourcing finance and accounting is becoming a craze nowadays because of the pros or the benefits it offers. To start with, outsourcing finance and accounting is a sure means of reducing overhead costs of the business, that is, your company or business becomes an effective vehicle of cost cutting. When everywhere in the world, people are businesses are thriving on the concept of outsourcing, giving it some serious thought is the prerogative of any CFO. Since most people have a reprehensible notion with regard to outsourcing, it is only natural that the companies and the CFOs should understand and take informed decisions with regard to the cost and benefits ratio, SLAs or service level agreements and the risks involved if they indeed want to make a smooth transition. Most CFOs and company heads would agree that outsourcing is a step ahead today because most offshore finance companies are known to deliver within deadlines and also have an understanding of the culture, language and time zone of the outsource company. When it comes to finance accounting outsourcing, most companies are taking this step because they need to concentrate on the core processes of the business, which are the revenue earners for the company. Most of the times, CFOs analyse the situation and see that maintaining a separate accounting and finance department entails a lot of cost and manpower, which could have been used in rejuvenating other core processes like advertising, marketing or customer satisfaction. Hence, after a thorough cost/benefit study, they decide it to be feasible to opt for finance accounting outsourcing. This gives them a clearer picture as to the exact cost that the company would have to entail on accounts and finance. The cost that the company saves on outsourcing can be ploughed back into the business and used to reap more profits. The ultimate end of the company is the customer, and if the outsourcing company can save its efforts, time and money on back office processes like finance and accounting, it can concentrate more on the customers. The company to which you have outsourced your finance and accounting processes should possess two important qualities. Firstly, that company should only engage in white hat tactics and secondly, the team that should be allocated to you, must be experts in the field of accounting and finance. The better the team that hands your work, the more accurate will be the result of the work. It is a simple math, truly. Finance outsourcing companies are based on the principle that guides a streamlined finance and accounting process. Hence, with the maturing markets companies too are looking for such fresh initiatives. Along with cost cutting and other benefits, achieving efficiency is also becoming a priority of the CFOs. With such glorious things to look forward to, outsourcing a process like finance and accounting seems to be the need of the hour.