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The Complete Guide to Finance and Accounting Services

by virtuallistinguk

Proper management of finances is critical for every successful business. So, outsourcing finance and accounting services are necessary to take your business to the next level. However, outsourcing accounting and finance can make you feel jittery initially.

After all, these are the numbers that define your business and the purpose of its existence. So, for greater clarity, we have compiled this guide. This guide will try to cover all your queries regarding outsourcing. It will also talk about outsourcing benefits and assist you in deciding whether or not to outsource finance services. Most importantly, it will show you the process to select the ideal outsourcing partner.

So, let us get going by discussing the benefits of outsourcing finance and accounting services.

Top Benefits of Outsourcing Your Finance Operations

Recently, many businesses have started outsourcing their finance and accounting services. One of the reasons for doing so is cost savings. Outsourcing helps companies get the work done from top talents at a fraction of the cost of doing it in-house.

It also frees up resources for further developing core competencies. But, this is not all. Listed here are the top benefits you can get by outsourcing finance services.

  1. Increases internal efficiency

Outsourcing can help boost your in-house personnel efficiency. This efficiency increase can happen owing to-.

  1. Optimizes your current expenses: The outsourced finance and accounting service provider will help you identify cost-saving opportunities by optimizing processes and eliminating redundancies.
  2. Better managerial responsibilities delegation: Outsourcing the finance operations gives you more energy and time to focus on core processes.
  • Reduces hiring and infrastructural costs– Having an in-house finance team can be expensive. You will have to spend thousands of dollars on hiring, training, purchasing office equipment, paying salaries, etc. But, by outsourcing the function, you have to pay a reduced fee and not cover several costs.

You don’t have to invest in searching for the right talent and hiring them when you outsource. You also do not have to care for team members’ medical, payroll, HR, and other sundry expenses. You have to search for the perfect outsourcing partner and hire it.

Your selected partner offering financial and tax preparation services already have an experienced and trained team capable of handling your requirements. The team also has access to the latest software and tools ready for the job. So, instead of a long gestation period, you can hit the ground running from day one.

Additionally, you don’t have to worry about the team’s seating area as they are not your in-house employees. This helps you save on infrastructural costs as well. Thus, by outsourcing, you can work with the best in the industry at a fraction of the cost.

  1. Opens the Gates to a Global Talent Pool

When building a finance team, you tend to hire from your vicinity. That is, you are restricted to your surrounding talent pool. But, what if the best-fit resource is not from your area/ city/ country? In such a scenario, you have to hire the best from the available pool of resources.

But while, outsourcing geographical boundaries do not restrict your search. So, you can access the best industry talents, and that too at a fraction of the cost of hiring them in-house. You can also take benefit of time zone differences and work more hours a day if the outsourced team is working from a different time zone.

Is Outsourcing Right for Your Business?

Have the benefits of outsourcing finance and accounting services sparked your interest? But are you still jittery and unsure whether it is the right move for your business? If we have correctly read your thoughts, the answer lies in the following points-

Staff: – Hiring full-time staff for finance department work can be costly. But it is nonetheless essential to have an overview of your business. In such a situation, the right move is to go for outsourcing.

By outsourcing, you will have access to top resources that can generate accurate reports on time and offer you better business visibility. Outsourcing also helps you avoid disruptions like sick leave, team member medical emergencies, etc.

Technology: – By outsourcing finance department jobs, you can access the latest technology that the industry uses. Purchasing a standalone version of the latest software might not be feasible for the budget constraint.

But outsourcing the work to a team that uses a cloud version of the software can help address the issue and give you a competitive advantage in the market. The latest software can use AR, AI, and cloud computing to offer real-time accounting reports. Such reports can provide greater business visibility -helping you stay ahead.

Work quality: Quality of work and team members are essential while outsourcing. If you can’t find quality people in your area, outsourcing is the only option you have. Most companies decide to outsource to access better quality resources.

Want of Numbers: It is time to outsource if you lack the numbers to make the right decision. Yes, it can be tough to decide when your finances are in limbo. But outsourcing can be the first step to setting your finances in order. An outsourced financial backup will help you better understand the numbers. With the newfound insights, you will be able to determine whether you are heading in the right direction or not.

Data errors: If errors keep frequently surfacing in your books of accounts, the person in charge of the task is not competent enough. Therefore, you can terminate the person and opt for another. But, if repeated trials with different personnel fail, it is best to outsource.

The partner offering outsourcing finance and accounting services takes enough care to prevent these errors from surfacing. Multiple layers of review help in the early detection and redressal of these errors. This ensures that you get a clear statement of accounts free from issues.

Why Outsource Finance and Accounting Services from India?

After you decide in favor of outsourcing, the first question that crosses your mind is where should you outsource from? In this context, India can be your ideal destination for choice owing to the following advantages it offers-

  1. Highly skilled workforce: India has the 2nd most significant number of qualified accounting professionals after the USA. A vast number of talented accounting professionals at affordable rates makes India an attractive destination.
  1. Friendly Policies: India has policies that support outsourcing. These policies promote the growth of organizations offering outsourcing finance services to developed country businesses. You can outsource various accounting and finance services to the nation.
  2. Data security: You can be assured about your financial data security while outsourcing to India. For protecting data privacy, companies in the country use e-mail encryption and secured FTP servers while uploading and downloading documents.
  3. Quality technology: Indian businesses use the latest technology to offer customized and quality solutions to their clients.

How to Choose the Right Outsourcing Partner?

After selecting India as the outsourcing destination, you have to choose the outsourcing partner next. But selecting the ideal outsourcing partner is not easy when you have so many options. But to simplify matters, you can follow the below-mentioned steps-

Step 1: Understand Your Business Needs

Are you looking to outsource some finance department functions or the entire finance operations? Also, consider the importance of privacy and security and whether you are outsourcing standard or CFO-level functions. You should keep the business needs in mind while outsourcing. Also, having clarity over the roles you can outsource is necessary.

Step 2: Consider Your Budget

It might be impossible for you to predict your outsourcing cost at this moment accurately. But it is essential to have an estimate to resist overspending. While estimating consider-

  1. Your organization’s affordability
  2. The services you are considering to outsource
  • The value that outsourcing will offer
  1. Cost of doing it in-house

Step 3: Filter the list of Outsourcing service providers

After determining your needs and affordability, it is time to shortlist service providers. You can consider the following steps while shortlisting-

  1. Software and infrastructure offered by the partner
  2. Security compliance
  • Internal control measures

Step 4: Consider Outsourcing Partner’s Reputation

Consider client reviews and online ratings to gauge the reputation of your outsourcing partner. Especially, take into account the reviews of clients who have outsourced similar services as you. Based on these factors, filter the list to 2-3 companies.

Step 5: Culture Fit

Cultural compatibility is essential to have a sustainable relationship with your outsourcing partner. It is best to work with providers who align with your mission and vision.

Step 6: Start with a Trial

After following these steps about the right partner, go for a trial project if you are unsure. The trial project will help you evaluate a company’s performance. It will also help ascertain whether or not a partner aligns with your requirement and mode of working.

During the trial project, evaluate a partner based on compatibility, communication, performance, value, and efficiency.

Final words

Finance is one of the most vital departments in your organization as it helps you keep an eye on your business. But, it can be an extra burden on you to manage funds for maintaining the department. As such, the best solution is outsourcing finance and accounting services.

In the above pages, we have offered you a comprehensive guide covering all the nuances of the topic. Want to know more? Connect now!

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