CFO Service Finance & Accounting

6 Top Benefits of Outsourcing Your Company’s Finance & Accounting

Has your company considered outsourcing its finance & accounting? These are important sectors of any company. They provide many benefits for businesses of all sizes including recording transactions, communicating internal/external info, comparison, and analysis. However, today many companies are deciding to outsource their finance & accounting for various reasons. Here are some of the top ones:

1. Access Special Accounting Expertise

Today customization and specialization are more important than ever to companies. They’re not looking for cookie cutter business solutions but instead, they want more flexibility by picking businesses that can provide customized expertise. This is one of the main reasons you should consider outsourcing your accounting work.

When you outsource work you have the ability for a company’s to assign a small group of experts to focus on your company’s work. This is a plus because you can make sure that accountants with the right know-how are dealing with your company’s financial tasks.

This provides several benefits for your business. One of the main ones is cost-effective. You don’t have to worry about hiring or training accountants to handle specialized work for your company. You can instead simply outsource the work then let the third-party company assign specialists to handle the work more efficiently. This helps to save resources you can use for other priorities in your company.

2. Focus on Generating Revenue

There’s no doubt that accounting and finance are critical matters for any company. It’s important to know where your company’s revenue is coming from and how it’s being spent. Failing to track such information can have a negative effect on your company and even affect issues like profits and margins. However, there’s no doubt that spending tons of time and effort and such issues can have a negative effect on your company’s ability to focus on revenue generation.

A wise choice is to consider outsourcing your company’s accounting/financial tasks. This is critical because it can help to free up resources for generating revenue. This includes ones like R&D, advertising/marketing, and even customer service. When your company is able to put those processes front and center it’s easier to grow the business and boost profits. The costs of outsourcing accounting tasks are definitely worth the ability to generate more income and stay competitive in your niche market.

3. Eliminates Need to Sub Contract

If you want to avoid F&A sub-contracting then you should consider the option to outsource the work. Companies have peaks and valleys in terms of their various F&A cycles, which often include end-of-the-year and mid-year reporting, for example. It can be a hassle to deal with the costs of adding full-time in-house staff during these periods in order to complete important finance & accounting work.

A better option is to outsource the work and it’s more cost-effective than subcontracting it. There are pros and cons of both options but when you’re contracting out work that then gets sub-contracted it includes another layer of logistics, which in turn boosts the costs. While F&A work is important you shouldn’t have to spend tons of money to complete it.

You can solve the problem by outsourcing the work instead of sub-contracting it. This will help to ensure it gets done while avoiding the extra expenses of subcontracting. That’s s a plus for your business.

4. Focus Resources on Outsourced Work

No company in the world has an unlimited amount of resources for tasks related to ones like accounting and finance. As a result, if they get bogged down with some of those tasks it can have a negative effect on the quality of service they provide their customers. That’s a bad thing. So in some situations, it’s more practical to outsource the work instead of doing it in-house.

Why is it better to outsource in this area? The outside company can focus 100% of its time and effort on tracking and processing all of your company’s money issues. This is critical since it can then free up your own company’s resources for other top priorities. It’s important to note that this sort of work is also very meticulous. So if your company doesn’t have the resources to do tasks like number crunching it can have a negative effect on its overall operations.

5. Spend Less on Finance & Accounting Software

Like other technology, the price tags of software continue to sky-rocketing. How can your company “keep up with the Joneses” without spending the latest accounting/finance software on the market? It’s important to have up-to-date software in order to stay competitive in your particular industry. However, it’s definitely a plus when you don’t have to spend tons of money to do that.

The solution is to outsource your accounting/finance tasks. The reason is you can “upgrade” software by picking a quality outsourcing company. Such a company will make sure it’s using the latest and greatest accounting software, which helps to ensure it’s also being used for your own company’s work.

This gives you the best of both worlds since your company can have access to high-quality accounting software while saving money at the same time. The key is to pick an accounting/finance outsourcing company that’s a quality one to make sure you have access to top-notch software.

6. Improves Risk Management

If your company outsources F&A work it can help to reduce risk. There are various ways this happens. One is that the risk is shared with the outsourcing company. In the case, there are any issues related to the F&A work your company doesn’t have to shoulder 100% of the costs. That’s definitely a plus since it reduces the overall risk involved.

Another benefit is there’s better compliance. That’s because the experts working on the F&A work will be experts who know all the latest rules and regulations that apply to your company. As a result, you’ll have less to worry about keeping up with all the changes in those areas.

There’s also a lower chance of errors. Dealing with so many facts and figures increases the chance for goof-ups. However, and outsourcing company will do several checks to find and fix major errors that are made in the process of F&A work.

Read our article:6 Key Factors That Affect Your Business’s Outsourcing of F&A