|Mon, July 25, 2016 at 3:57 AM|Send Blog · Share on Facebook · Bookmark on Delicious
Why Finance & Accounting outsourcing Is The First Choice Of CFOs ?
In the current global situation where all the companies are vying for attention and a hold over the economy, the twin functions of finance and accounting can only be achieved by a company which has these two fundamentals in the right place. Finance and accounting outsourcing ensures that the companies exercise compliance and control, reach a balance between expense and growth, reduce cash cycle and maximise ROI. The strategy of outsourcing finance is being taken up by many companies because they want to rationalize IT, optimise resources and with a delivery model which has innovation, the companies are channelizing finance function.
The new models of finance outsourcing help the companies to reduce costs and increase regulatory compliance and the operating models of the companies can be changed when outsourcing is adopted as a strategy by the chief financial officers (CFOs). The goal of any CFO is to create effective and efficient organization.With this, your company or business can grow by leaps and bounds. Outsourcing finance is one way to optimize the performance of your business.
Globalization can also be praised for the current shift in the financial scenario all over the world. It is the responsibility of the CFOs to use this option and this entails a continuous process of improvement. Finance outsourcing depends on factors such as the role globalization plays in the strategy of the enterprise, the capital cost and the finance processes which have to be considered. The practice of finance and accounting outsourcing is booming because the markets are maturing and the companies which have been contracted for outcomes have been exploring ideas and finding new answers aimed at streamlining the finance and accounting processes.
This is the common practice adopted by CFOs to drive efficiency. The accounts department as such can also be the benefactor of this efficiency or the entire company itself can also stand to benefit. The CFOs are chiefly interested in outsourcing because costs can be reduced and they are also on the lookout of other options that will make the process and technology function more smoothly. They are more interested to outsource services, like accounts payable, and receivable and payroll accounting. The finance and accounting processes should be simplified and standardized. This becomes the characteristic of a well operated company and such a company can enjoy positive outcomes like more cash, more information and more service.
Other than the basic functions of payroll accounting, accounts payable, accounts receivable etc. companies can also undertake functions like internal audits, budgets and forecasts. Industry stalwarts have opined that outsourcing only one aspect or function, for example, in case of accounts payable and receivables, outsourcing only accounts payable limits the benefits that the company can earn. But in the case of outsourcing both the processes you stand to win or benefit more since the outsourcer can use this knowledge to give you the best advantage of cash in hand and help you to optimize the internal processe