5 Reasons It Is Time to Outsource Your Finance Function

15-05-2020

This is the right time to outsource your finance function in these times when you are busy focusing on your business let us focus there

When your financial department is executed in-house, it often receives less attention than other departments. After all, creating revenue must be the primary focus of any business. When you outsource your financial department, however, your finances are handled by a finance and accounting services company that gives it an utmost priority to managing the financial departments of its customers. Therefore, your financial department receives the same kind of focus as the rest of your business.

1. To save time

Accounting and bookkeeping tasks can consume a lot of time. Furthermore, pending accounting and bookkeeping tasks can pile up and suck the life out of a business. Outsourcing these tasks can result in the saving of time and other precious resources.

2. To reduce errors and frauds

It is essential to reconcile financial statements every month to detect frauds and errors. Reconciliation of financial statements is a complex task but is important all the same. As a rule, financial statements can be sent to an outsourcing firm to establish credibility and detect frauds.

3. Scalability at a Lower Cost Point and in Less Time

Outsourcing your F&A work reduces costs. Many companies have jumped on the bandwagon to outsource basic tasks and take advantage of superior technology and a lower cost global labour pool.  F&A tasks are no exception. Through a provider who offers a combination of local high-level resources that liaise with and support the business along with a global back office team, customers are able to get the best of both worlds — local business context and domain expertise at a lower cost.  Through established software platforms with workflow automation, companies also receive greater efficiency and scalability without the time and effort of building out their own infrastructure. Access to the latest technology

Particularly, your small and medium enterprise (SME) may lack the latest technology for accounting. You can overcome such a problem by outsourcing that task to another firm which has that technology. As compared to the cost of upgrading the technology, the task can be easily outsourced at a much affordable price.

4. Access to Special Expertise

Outsourced financial service providers usually have more experienced staff than you can afford to keep on payroll, and they are specialists in different areas. Therefore, you have access to experts in a variety of different fields such as accounting, regulations and taxation.

5. Fewer Staffing Hassles

Finance and accounting departments have several peaks and valleys throughout the year in order to meet quarterly and annual reporting deadlines and tax filings. This makes staff scalability difficult when you handle your financial department in-house. When you outsource, however, you can take advantage of minimum cost commitments for temporary staff.