- While they were traditionally in-house functions, an increasing number of businesses today outsource their finance and accounting operations to third-party services providers. And for good reason. Accounting outsourcing offers multiple long-term benefits, such as cost-effectiveness and better flexibility.
This article contains :
- What is Finance and Accounting Outsourcing (FAO)?
- 5 Ways FAO Can Benefit Your Business
- 4 Actionable Tips to Effectively Outsource Finance and Accounting Tasks
- Where Should You Outsource Accounting Processes?
As Per the report by Time Doctor
Credits: This full report is published by Time Doctor
What is finance and accounting outsourcing (FAO)?
Finance and accounting outsourcing is an arrangement where an external firm handles some or all of your finance and accounting functions.
Some of the standard finance and accounting processes that you can outsource include:
- Bookkeeping
- Transaction management
- Financial planning and analysis
- Financial reporting
- Accounting and financial compliance
But how does outsourcing these functions help the business?
Let’s find out.
As Per the report by Time Doctor
Credits: This full report is published by Time Doctor
5 ways FAO can benefit your business
FAO operations are crucial as they help you manage cash flow, cut down unnecessary expenditures, and point out areas needing more funds. These operations directly impact your company’s long-term growth and sustainability.
Here are five ways in which outsourcing an accounting and finance function to external providers could benefit your business in the long run.
- Cost-effectiveness
- Access to global talent pool
- Increased freedom and flexibility
- Business continuity
- Enhanced data security
As Per the report by Time Doctor
Credits: This full report is published by Time Doctor
4 actionable tips to effectively outsource finance and accounting tasks
If you’re planning to outsource F&A services, here are some essential tips that will ensure a smooth and profitable transition:
- Identify your needs and plan ahead
- Focus on technology
- Choose your outsourcing partner wisely
- Set realistic deadlines for the vendor
- Enhanced data security
As Per the report by Time Doctor
Credits: This full report is published by Time Doctor
Where should you outsource accounting processes?
An increasing number of companies are outsourcing their accounting and finance processes to overseas firms to combat high labor costs and skill shortages at home.
Let’s check out two highly preferred FAO destinations globally:
INDIA
- India is undoubtedly a global outsourcing powerhouse, catering to various domains, including accounting and finance.
- Indian firms that offer services to global clients have highly skilled accountants with CPA (Certified Public Accountant) certification. Moreover, these accounting professionals usually have good English proficiency, making it easier for international clients to collaborate.
BULGARIA
- Bulgaria is a cost-effective choice for European businesses looking to nearshore or outsource their finance and accounting work.
- The country has plenty of top-notch accounting service providers compliant with International Financial Reporting Standards (IFRS). These accounting firms provide bookkeeping services, payroll processing, financial reporting, and consulting services to their clients.
- Some of the top Bulgarian companies offering outsourced accounting services include NOVACON, KPMG Bulgaria, and B&Si Services.
As Per the report by Time Doctor
Credits: This full report is published by Time Doctor
Final thoughts
- Outsourcing accounting and finance operations can bring peace of mind and a great deal of freedom for business owners. Besides saving a ton of time and resources, they can get valuable financial insights to boost the business.
- But financial accounting requires the utmost accuracy, and you should only outsource to expert professionals after careful planning.
- Use the information and tips shared in this guide to effectively outsource F&A functions and get the maximum benefit out of it.