Outsourcing Accounting and Finance
Business leaders frequently search for methods to manage their companies using a fee-effective business plan. Furthermore, entrepreneurs and small business start-ups often find cheap and extra creative ways to accomplish their business goals due to their, sometimes, limited resources. However, implementation of a plan or strategy poses questions that can determine the future use of these resources: “Who will work on it?” and “How much of X should we allocate?”.
Outsourcing can be defined as a business practice used by companies to reduce costs or improve efficiency by shifting tasks, operations, jobs or processes to an externally contracted third party. If this option is a consideration, an executive should analyse and question all the underlying factors that lead the business to this choice.
A recent Forbes article on outsourcing had this to state:
Knowing how and when to outsource can be complicated, even describing it can be complicated. Companies generally outsource in two ways: they outsource a single component of their daily operations, or they establish outsourcing as a strategic part of their business.
It’s not an easy decision, and whilst it can be an effective strategy, it doesn’t necessarily guarantee organisational success.
Finance and accounting is a vital organisational department for a business. It acts as a numerical demonstration of all the businesses transactions; from its day-to-day operating costs to its revenue growth. Tax consultations, managing payroll and auditing. These are just some of the responsibilities held in this area and results in a considerable amount of workload, information, bureaucracy and use of resources.
If your business has come to the decision that outsourcing its finance and accounting is a possible choice, then you need to consider the following points regarding whether you are ready to work with a third-party organisation:
- Systemised Work – Technology can influence quality control and reduce human errors. A third-party organisation may wish to make finance and accounting transactions fully automated. Is your business ready and willing to make this change?
- Routine – Finance processes with definitive output and income figures adds a level of predictability in terms of service quality. The quantitative results are either right or wrong, there’s no room for numerical error. Therefore, ensure a reliable and credible organisation tops your list of potential choices.
- Time and tools – Cloud technology and hard machine promote flexibility and more data storage. Does the third-party organisation have the correct systems, capacity and capability to deal with the workload your business is looking to outsource?
- Experience and expertise – The workforce of the third-party organisation needs to be relied upon. Educational qualifications, service experience, work attitude and availability need to be characteristics of their staff. The organisation is an extension of your business and their performance is heavily linked to yours.
- Training – This is a continual process; your business must be ready to allocate time to training the chosen representatives of your company. It must consistently provide all the details that will aid as their guide in terms of representation.
A survey conducted by PWC, innovation was tagged as being ‘The Red World’ that encompasses new products and business models. It said that organisations will look to the new digital platforms to encourage modernisations of their business in serving clients that have become accustomed to faster and more flexible transactions.
Finance and accounting is a constantly developing industry with a great deal of competition. Long established competitors and newly emerging ones must undergo huge operational decisions that lie between maintaining its traditional method of service or venturing into a digital platform that third-party organisations are beginning to offer. The latter appears to be the future, they are making use of their specialised services to improve the attributes of the company in question; however, it is not without risks.
The Buxton Partnership Chartered Accountants has a hugely developed range of services that can aid in business growth on a local and national scale. With a fantastic team and business culture, we can ensure accurate and timely accounting reports that keep your finances in the best state possible. If you believe a change of plan will positively impact your business, then The Buxton Partnership is the best choice for you.
Find out more by contacting The Buxton Partnership today.