Accounting Outsourcing Services: Is it still Relevant?
Through the years we have seen accounting outsourcing services gain traction and establish a strong reputation. Given that this approach works for corporations, is accounting outsourcing today still relevant?
The precariousness of the new normal days makes you as CFO focus on the more important facets of the business, particularly the core operations since it rakes in the revenue. In this arrangement, it is an ideal move to entrust your numbers to the professionals.
What is finance and accounting outsourcing (FAO)?
When organizing your numbers becomes too heavy to handle, finance and accounting outsourcing is your partner.
FAO is an approach you use to guarantee that your finances are nowhere near loss or bankruptcy. This way, you have transparent records, accurate books and tax compliance without any troubles. Sounds promising? It’s because it is, and FAO can offer more depending on your business needs.
What does FAO have to offer?
There is myriad of accounting outsourcing benefits you can get once you decide to hire third-party services. But let’s look beyond the facade of these advantages.
Long term sustainability
There has long been a debate on whether outsourcing is a sustainable approach in doing business. Critics say FAO is not a long-term strategy for companies since it has a lower threshold for innovation, project management control and lack of quality control.
But despite all the negative opinions towards it, FAO continues to prosper. In fact, FAO’s benefits are geared towards achieving long term sustainability. This rings true especially if you’re handling a growing business. A developing entity needs a reliable partner in handling their finances and that’s what FAO is for: providing tailor-fit accounting solutions no matter how complex the numbers become.
Adaptation of AI
Opposite of what most say, outsourcing is an open table when it comes to innovation. Technology has been an important part of FAO as it bridges business and digital solutions. As it further evolved, artificial intelligence (AI) was introduced in the industry which then transformed the current accounting approach.
Your team can channel time and efforts to advisory work when AI is maximized in your company. Aside from reducing manual tasks, AI is used to mitigate possible risks and reduce errors in your numbers. It may need a little human intervention but leveraging this technology boosts your team’s productivity when used right.
Changing of roles
When you outsource accounting services, your working environment changes. Technology is integrated into the process, taking over more important responsibilities.
The collaboration of cloud-based technology, AI and business intelligence paved the way in creating new roles and functions for the team which you can find useful as you operate over time.
How to outsource finance and accounting services the right way?
If you’re looking for an FAO partner, it is important to follow a series of steps to find the right accounting outsourcing service provide. Below are some of the things you need to know:
Rule 1: Understand Your Needs
Before anything else, establish what you hope to gain from outsourcing. Be it freeing up time to focus on core business activities or increasing operational efficiency, a clear sense of your objectives can inform the best way to delegate tasks.
Rule 2: Research Potential Outsourcing Firms
Cast your network wide and take time in seeking a reliable partner. Consider factors such as experience in the industry, capacity to handle your scale of work, and cultural compatibility. Careful selection can help secure a trusted relationship that supports your own firm's growth and stability.
Rule 3: Ensure Seamless Communication
Maintaining regular and clear communication with your outsourcing partner can pave the way towards successful collaboration. The methods and frequency of communication, along with the points of contact, should be defined from the outset.
Rule 4: Regular Reporting and Reviews
Track and assess the performance of your outsourcing partner regularly. This helps to identify any scope for improvement or change, and also ensures that you're getting the quality of service that you're paying for.
Is Accounting Outsourcing Services still relevant today?
If handled correctly, the decision to outsource could spearhead remarkable growth and efficiency within your firm. The right approach can also curtail costs and allow businesses to tap into a pool of expertise without the need for in-house hiring. In today’s business landscape, we have seen an increasing number of accounting firms adapting to this model
THE BOTTOM LINE
Hiring accounting outsourcing services is an important step to take in achieving your company’s growth as this is an investment you make for the firm’s future. Regardless of your business vertical, you can count on FAO to push your finances towards the green.
Considering hiring an outsourcing partner? Look no further than D&V Philippines. Our bespoke outsourcing solutions are guaranteed to bring you the best technology and experts in the industry. Schedule a free consultation today!
You can also download our whitepaper Outsourcing: How to Make it Work to know how we can be your ideal partner here in the Philippines.
This post was first published on 10 December 2020 and edited on 14 December 2023 by Angelica Garcia