Outsourcing your Finance and Accounting | Osource Blog

How Outsourcing Your Finance and Accounting (FAO) Will Save Your Time and Money.

Sound financial planning is essential to any business, including timely recording of all transactions, collecting receivables from customers, and paying vendors on the due date.

When a finance department controls the accounting function in-house, issues of computational volume arise.

With the increase in volume and competition in the market, this function assumes great importance for the business's survival. Many business entities invest time and money on technology and people to suit their requirements.

Over time, managing people and technology became herculean tasks, leaving little time to focus on core issues.

Outsourcing to external agencies with technology and people delivers results as per the requirement of the business.

These outsourced agencies have invested their time and technology in bringing speed, accuracy, automation, and timely reporting of financial operations for decision making and running the business to achieve desired goals.

Besides, choosing the right technology has become essential for every business as everyone needs more analytical data to understand more about their business.

Since investment & maintenance on hardware in-house for handling the financial operation has become costly on account of the technology revolution, the need for cloud-based outsourcing services became an alternative that has helped reduce post-one-time and recurring costs.

The Challenges of In-House Accounting.

According to a survey conducted by Northwest Staffing Resources, an employee can cost approximately 57% more than the stated wage due to the cost of benefits and the amount of time they are focused and on task.

Businesses often go for in-house accounting departments to maintain the confidentiality of financial data. However, the increased investments in procuring technology, training employees, renting space, and managing inventory have become an impediment as the business grows.

Such a department can also cause scaling and transparency challenges. Much of the analytical information needed for running a business becomes impossible with in-house accounting. A small-scale company can collapse due to a lack of knowledge about its own business.

Though in-house operations are confidential, over time, some cases compromise confidentiality and nexus with the outside world and prove detrimental to the interest of the business.

Why Outsourcing Works?

Trusting an FAO service eliminates the need for hiring, training, and retaining talents for the organization, which involves money and human resources on infra and costs associated with utilities.

Outsourcing reduces the cost of utilities, healthcare benefits, unemployment taxes, and infrastructure considerably.

An outsourced Finance and Accounting department facilitates an adequate & robust account payable process.

Outsourcing helps its clients achieve cost optimization and focus more on core issues besides basing its decision more on analytical reports from the system.

Outsourcing has also helped the organizations have historical data to notice the trend and base its decision. Thus, outsourcing has helped many companies to plan their cash flow.

Another advantage of outsourcing is having an audit trail of each transaction required by internal and external auditors, which proved tricky in manual processes.

Apart from AR, AP & GL, outsourcing even fixed asset assessment & management will assist a business in meeting external and internal audit obligations and bring to light the active and dead inventories to plan its capital investment.

Reliability as a driving factor

Reliability is one of the driving factors of opting for an external service provider. Businesses require error-free accounting data to establish their financial health.

Inaccurate balance sheets lead to poor decision-making. Outsourcing finance and accounting enhance reliable financial analysis, following expert advice from executive-level team members. A farsighted model helps visualize and minimize risk by employing a mitigation mechanism as soon as inconsistencies are spotted.

The most competent FAO process combines intelligent processes, superior analytics, and lean-edge technology to run the business efficiently. The process ensures a single source for budgetary data and shortens the order to cash cycle. It unlocks working capital and effective operations across the enterprise.

Time is of the essence

Outsourcing Accounts Receivable & Payable Services directly reduces in-house process times by 25%. An automated billing method increases time allocation for vital responsibilities. Most outsourcing services employ the best talent pool from across the world to ensure the timely delivery of analytical reports.

Partnering with a general ledger accounting service organization helps in the efficient management of the business by setting up a timely reporting system.

Outsourcing facilitates timely revenue recognition and enhances productivity using global harmonization of processes and reconciliation frameworks. Partnering with a financial accounting service consolidates and harmonizes recording -to-reporting processes.

Each business may expect the system to be dynamic, addressing the unique nature as it evolves, which can be envisaged only by experts who have domain knowledge of various companies and their nuances.

Osource Global works as a trusted partner for many organizations that we have retained for many years, valuing our contribution to the business. Would you like to join them and avail of our expertise?

Please allow us to showcase our capability and work as a trusted partner in your growth.

Call us today on +91 8369995205 for outsourcing your finance and accounting processes to us. We have our presence in Mumbai and NCR.

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