In today’s hyper-competitive and cutthroat business environment, sustaining a consistent growth and staying profitable is more difficult than ever. Entrepreneurs and economists believe that the key to continuous growth is innovation, providing extraordinary customer experience, and outsourcing critical business functions. So, whether you are an established company or a startup, finance and accounting outsourcing is key to sustained and profitable growth.
Do you want to relieve your business the burden of distractions and errors caused by routine accounting and finance tasks? Finance and accounting outsourcing is the key!
With so many moving pieces of running a business such as marketing, recruitment, customer service, revenue generation – entrepreneurs would rather not think about the hassles of managing their financials. Instead, business owners would want to have professional guidance for streamlining their finance and accounting tasks. Sure, some CFOs and finance directors may choose to rely on online tools to ease the burden, but even those tools need data input, expertise, and not to mention the continuous version updates of automated tools. So, whether you are a large enterprise looking to gain more time to focus on core activities or a small company looking to gain a competitive edge, outsourcing your accounting and finance function is crucial.
As per the Finance & Accounting Outsourcing (FAO) Annual Report of the Everest Group, the Global Finance & Accounting Outsourcing (FAO) market witnessed robust growth of 8 to 10 percent in 2016. This information tells us that an increasing number of entrepreneurs are turning to outsource for the effective management of their finance function. In fact, your competitors too might be dipping their toe into outsourcing. And, if your competitors are joining the “outsourced finance department” bandwagon, they will outpace you sooner than you think.
Gain the competitive edge
Outsourcing can give businesses a greater competitive advantage by freeing up their valuable resources and enabling them to focus on core competencies. Even if you are capable of managing all of your finance and accounting in-house, shouldn’t you consider outsourcing them in order to focus more on areas where you see a higher return on investment? By reinvesting resources into your core competencies, you can spend more time on customer service and innovation, and become better equipped to respond to new opportunities.
Outsourcing also allows you to keep pace with advanced accounting tools at lesser costs, thus giving you an edge over the competitors both in terms of upgraded technology and reduced costs. If you already have a reliable accounting infrastructure in place, you might not need to outsource the entire finance department. An experienced vendor would know the best accounting tools and solutions to supplement your existing processes. In addition, the outsourcing firm will have experts with in-depth and up-to-date knowledge of accounting standards and tax regulations, which will also give you a competitive edge.
Reduce costs and increase profitability
Outsourcing your finance and accounting functions can help you save costs. Managing a business does not come cheap, and you have the option to cut down on costs and employees’ salaries through outsourcing. After all, the rate of an outsourced finance department is significantly cheaper than hiring your in-house team.
Another survey has found that outsourcing accounting can lead to more significant benefits for businesses in the form of greater financial insights and higher profits. The clients of these firms are more satisfied with their accounting processes. According to the same survey, nearly 30 percent of businesses outsourcing finance and accounting have received advice from their firms that have helped them increase profit. Outsourcing allows companies to enhance their image as credible brands while gaining the tools they need to be successful in addition to more time and expert guidance to achieve their goals.
The Last Thought
Outsourced finance will continue to see strong growth and might become more of a standard practice for most businesses in the years to come. No wonder even startups and small and mid-sized businesses (SMBs) are finding it profitable to outsource their finance and accounting functions. It is high time you consider outsourcing your finance and accounting processes as well.
By hiring a professionally managed outsourcing firm, businesses can gain access to markets that would otherwise be uneconomical. However, there is no “one size fits all” solution to outsourcing. The decision to outsource your finance and accounting functions should be in line with your business strategy and enable you to get closer to your business goals.