Properly evaluating finance and accounting outsourcing opportunities
Finance and accounting outsourcing is quickly becoming a common solution for middle market companies to enhance the finance and accounting function. The strategy has expanded due to its ability to optimize the mix of human capital, process innovation and technology to deliver services that support and enable your global and local business strategy.
Many companies have evolved their outsourcing strategies, from outsourcing highly transactional processes to higher-level strategic functions, leveraging skills and expertise as needed. Accounts receivable and bookkeeping were some of the initial processes to be outsourced, while companies are now expanding their vendor relationships for functions such as accounts payable, payroll, budgeting, forecasting and procurement.
Technology plays an important role in outsourcing, with comprehensive cloud platforms enhancing reporting and workflow, while implementing stronger controls. Cloud solutions also increase process efficiency, financial transparency, dashboard reporting capabilities and mobility, enabling employees to manage accounting processes from remote locations.
Organizations can gain several benefits through outsourcing, including cost savings, fractional use of finance and accounting professionals, enhanced processes and technologies, and stronger compliance measures. In addition, companies can more effectively scale resources up and down as needed with no obligation to pay salaries or benefits and are alleviated of the burden of hiring, training and maintaining accounting staff.
Outsourcing is a valuable strategy for many companies, allowing employees to focus on core proficiencies while shifting operational responsibilities to a service provider. Even if you choose not to outsource, it’s healthy to evaluate outsourcing opportunities to determine if you can benefit from the services providers offer.
Finance and accounting outsourcing is not an all-or-nothing proposition; your optimal solution may include some functions performed by an outsourced service provider while others remain in-house. To learn more about implementing the right outsourcing strategy for your organization, read our white paper, The value of finance and accounting outsourcing compared to insourcing.