Posted by Cedric Joshua Martinez
Oct 30, 2018
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Outsourcing is a big step, especially if it's you're first time to try this business model. If you have made the decision to outsource CFO support solutions, the next logical step is to find the right outsourcing partner.
In order to be successful in your search, you must find out the right qualities you need in an outsourcing partner.
How to Choose the Right Outsourcing Partner
Here are a few suggestions to keep in mind when looking for the right outsourcing partner:
1. Diverse finance and accounting solutions
A good indicator of the right outsourcing partner is when they show commitment to growing alongside your business. As you face new frontiers, complex and advanced solutions will be needed to sustain and support your company’s growth.
An ideal CFO support solutions provider must offer a wide range of solutions—from essential services like bookkeeping and general accounting to high-end solutions such as data analytics, process automation, and other complex reports that will help you utilize your resources to the full potential.
Read: A Comprehensive Guide to Outsourcing CFO Support Services
2. State-of-the-art IT infrastructure
Outsourcing relies heavily on internet connectivity and a reliable IT infrastructure. Processes are mostly, if not exclusively, accomplished through cloud servers and remote access applications.
Hence, your chosen outsourcing partner firm should employ state-of-the-art IT infrastructure to ensure fast, secure, and uninterrupted service delivery.
3. Competitive talents
Another reason why companies outsource is to gain access to more talents from another talent pool. However, this strategic move can backfire if your selected outsourcing partner lacks a proven track record, or the quality of their talents failed to match or exceed the capabilities of your existing in-house team.
A finance and accounting (F&A) outsourcing partner with globally competitive talents can help you produce meaningful results and address your F&A concerns.
To know more about the difference between in house and outsource accounting, you may check out this article.
4. Tailor-made solutions delivery
Different organizations have different needs, and so do different CFOs. The right outsourced CFO services provider acknowledges this fact and knows that it is important to formulate solutions depending on their client’s needs.
Before starting your outsourcing partnership, the provider should conduct a proper assessment to identify your requirements and know more about your company’s processes. This will help them formulate solutions that are well-suited with how your business operates.
5. Mastery of business tools and software
Businesses also use different tools for different purposes. While the process of conducting finance and accounting tasks remain similar in nature, modifications are necessary to provide businesses with more insights into their F&A status.
Your CFO solutions provider must have a deep sense of understanding of how F&A tools and software work, their basic capabilities, and how they help in F&A execution. This advanced understanding can help them adapt to the use of another software or tool with ease.
6. Clear communication and transparency
Like any other relationship, effective communication is the key to making the partnership thrive. Without it, projects may result in delays, errors, frustration, and costly mistakes, which can hamper your organization's growth. Hence, you need to make sure that your chosen outsourcing partner excels in both verbal and written communication. They should:
- Offer regular status updates
- Be available for discussions as needed
- Be adept at collaborating with your internal teams
- Regular meetings, transparent reporting, and a commitment to prompt responses are essential qualities of a competent CFO outsourcing partner.
Read Next: The Importance of a Reliable Back-Office Accounting Support
7. Availability to work in different time zones
Your outsourcing partner should also be capable of operating across different time zones, especially if you plan to work with an offshore provider.
By having a partner that offers flexible scheduling or has dedicated teams to cater to your specific time zone needs, you can ensure that your business operations are supported 24/7 and in real-time, no matter where you are located.
This reduces delays, improves communication, and ensures that essential tasks are handled promptly, keeping your F&A operations smooth and efficient.
How Much Does Accounting Outsourcing Cost?
The cost of outsourcing accounting services depends on the specific services required, as discussed in our comprehensive guide to accounting outsourcing services.
The location also matters. For example, outsourcing to offshore locations like the Philippines costs lower compared to Western nations.
According to the US Bureau of Labor Statistics, accountants and auditors in the United States earn a median annual salary of $79,880, which equates to approximately $6,650 per month.
In comparison, full-time accountants in the Philippines earn a median annual income of $5,982.90, equating to approximately $498.58 per month.
Note: This figure is based on the converted salary amount. The original data shows that the average annual salary for accountants in the Philippines is Php335,880. As of September 1, 2024, $1 is equivalent to Php56.14.
The Bottom Line
Finding a CFO solutions provider with these characteristics is no easy task. However, once you have them on board, you can expect improvements and more growth opportunities for your company.
Outsourced Accounting Solutions for CFOs
Are you looking to build a reliable support team for your expanding accounting needs? Consider D&V Philippines for your outsourced CFO support. Our team of accountants is highly experienced in assisting CFOs and other top-level executives. Armed with regular training and powerful accounting software, they can help make your accounting processes more accurate and efficient. Contact us today for a free consultation.
You may also visit our website to find out what our clients say about us and download our Premier CFO Solutions today to learn how our globally-competitive finance and accounting professionals can help you achieve faster, smarter, and more accurate business insights.
This post was first published on 30 October 2018 and edited on 24 September 2024. Edited by: Angelica Garcia
