7 Reasons Why Businesses Should Outsource Finance and Accounting Services

7 Reasons Why Businesses Should Outsource Finance and Accounting Services

Call centres, digital marketing, content are some services that many firms look to outsource to individual Virtual assistants or Business Process Outsourcing Units globally. With the distinct advantage of working with Asian countries where the workforce has great communication skills and is still affordable, the companies globally are seeking to cut down their operational costs while maintaining high standards. Keeping in line with this trend, outsourcing finance and accounting services is seeing a popular trend. Small, medium and large businesses are quickly coming to facts with the fact that outsourcing this non-core activity allows them more freedom and cost savings while keeping in line with local regulations. A Finance and Accounting BPO virtually acts on your behalf providing you distinct advantages. F&A BPO firms had passed revenues of $25 Billion globally as more and more firms looked to outsource their non-core activity of F&A services, thus enabling them to devote more time and resources to their core activities and expanding operations to newer levels. With the industry of F&A outsourcing seeing an ever growing trend even in 2018, it is an interesting read to understand why you need to consider Finance and accounting Outsourcing as a viable and profitable option. Let us look at 7 reasons why Businesses Should Outsource Finance and Accounting Services.

1. It is cost effectiveto outsource F&A services

There are options for business models to choose from. Most companies offer 2 prominent models as a solution for F&A services. The first one is an FTE model. FTE is an acronym for a Full-Time Employee model and is reliant on assets and time engagement by the BPO as a service provider. This fixes the price based on the resources being used and it clearly places the outsourcing firm in a distinct advantage as it pays way lesser compared to in-house resources. The second model named as the Transaction price model places the cost based on the number of transactions that are processed, thus saving time and money and also providing an elastic approach for requirements that may vary from time to time. If you are confused between the two and are considering which would be an effective yet cost-effective model for you, then you should consider doing a mix of the two models. In fact, most firms go for a combination of both models. Also, another variable comes in as an added factor to these models and this is a Gains model where you share a certain percentage of any gains, you may have had, owing to this arrangement with the service provider, thus making it a win-win arrangement for all stake-holders.Irrespective of the model you choose, outsourcing F&A services ensures a better flow of business and saves you appreciable costs and efforts.

2.    Process improvement is a distinct advantage

When you outsource, you may consider the advantage of improving the processes as a direct benefit. Irrespective of the model you choose to go with, this decision enlightens you on a range of subjects, including changes in regulations and improvement in certain areas of F&A services. You may also consider only a part of F&A outsourcing based on your strengths and areas of weaknesses, providing you help where you need it most.

3. Subject Matter Expertise

The Finance and Accounting BPO has the strength of employees on the payroll who cater to various industries globally and would have the expertise and experience you seek, without having to pay a large sum which could be the case with in-house hired experts. This expertise means better efficiency and know-how of processes and regulations and provides you a great benefit.

4. Bespoke F&A solutions available

F&A BPOs provide the distinct advantage of custom solutions. While a blanket solution may not work to your overall advantage, having a custom service plan fits the bill just right. Your needs, including compliance and regulations you follow or processes you undertake, are different from others, hence it pays to have a bespoke solution in place.

5. Flexibility and Elasticity of F&A operations

The service provider, in this case, the F&A outsourcing BPO would have the resources to expand operations and provide manpower in vital times and also lowering the asset usage in case you so desire. This helps you avoid unnecessary costs and also provides a distinct advantage of focusing on your core needs and expansion when needed, and not having to hire, train and worry about attrition of resources in times of need.

6. Security of data and information ensures peace of mind

The multiple levels of security and domain expertise to handle F&A services helps you safeguard against data loss, leakages, hacks and pilferages of vital information. Multiple layers of security are oftenincluded in processes by F&A BPO units as they work with the reputed global firms. The right firewalls and checks beyond multiple layers of external and internal audit allow you the access you need.

7.    Returns via expert solutions weigh far more than the investments

The gains achieved through the Gains model or otherwise when outsourcing the Finance and Accounting processes do come in with a great value proposition. With the intent to retain, the F&A BPOs try harder than regular employees to ensure value is achieved for the firms outsourcing the process.

Looking at the above elements, it would be a wise decision to go in for a Finance and Accounting Outsourcing solution and enjoy the advantages while you focus on your core tasks of managing and growing your business.