Outsourced companies have gone from service to solutions providers, focused on improving the businesses of their clients. An Ovum study on 150 big companies in the UK, US, and Canada reports “driving efficiency” as the main priority of CFOs. They want to know how the resources of outsourcing companies—such as technology and F&A processes—can help in running more efficient businesses.
Simplifying your company’s F&A processes is key to an efficient business, as it enables positive results such as a higher benchmark and baseline for financial processes, increased services, higher cash flow, and a reduced cycle for book closing. Thus, both backend tasks such as payroll and accounts payable and strategic responsibilities such as auditing and forecasts will be delegated to outsourcing companies.
There are more benefits to outsourcing multiple F&A functions, as opposed to limiting services to only one or two tasks. According to Jag Dalal of the International Association of Outsourcing Professionals, outsourcing multiple functions gives companies “value beyond improving the transactional component because the outsourcer can see when cash comes in and goes out.” There is an opportunity to take advantage of the cash-on-hand and “optimize internal processes,” he describes.
So how exactly do outsourcing companies simplify your F&A tasks? Here are some tools and methods utilized for increased efficiency.
1. Data Management For Decision Making
Expert outsourcing companies can go through your financial data and provide valuable insights for major decisions such as capital analytics and revenue assurance. Other insights may be used to increase your cash flow, enable more strategic initiatives, and improve one’s Accounts Receivable Portfolio.
2. Collaborative Processing via Cloud Accounting Services
An advanced outsourcing company includes cloud accounting services, which hosts your financial data on a cloud for a fast and easy exchange between two parties. Your business will not have to worry about installing a particular software on your desktop computers or laptops. This means not having to renew your software license for your accounting tools. Financial information is updated in real time, which reduces the likelihood of errors. All you need is internet access to get on the cloud, enabling multiple departments and remote workers to exchange and view the uploaded data. This technological integration immediately simplifies the back and forth exchange between your company and the outsourcing team. You also save on costs by using only this service for the data access. No need to worry about a security breach either. Regardless of the computer used, the cloud will not leave any information after the user is off the system.
3. Remove Workflow Blockages
Process simplification also entails eliminating workflow bottlenecks. Since some tasks have already been delegated to another company, your business enjoys increased efficiency from in-house staff. Quality is not sacrificed and your team can focus on delivering products and/or services, while another company focuses on tasks under their expertise.You also avoid any potential penalties from late document filing with a separate team in charge of your payroll and other tax-related tasks.
4. Improve Overall Spending and Other Processes
Data insights aren’t limited to major decisions. A capable outsourcing company can take a look at your pay-to-procure process or analyze the whole supply chain for improved budget control. Standardized procedures are another beneficial result of this analysis, giving you a long-term view of your future F&A strategies.
Outsourced finance and accounting support is no longer limited to backend processing. Big and small companies can utilize the strategic services available for improved profit, budget control, and progressive business growth. Technological tools such as cloud accounting enable a stronger partnership between the companies working together. Outsourcing veteran Infinit-O offers a wide range of accounting services, from bookkeeping, forensic and fund accounting, to accounts payable/receivable, and tax accounting. Look no further for your next partner and start discussing the best strategies for your business with Infinit-O today.
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