As companies continue to strive for increased efficiency and profitability, outsourcing finance and accounting functions have become a popular solution. Outsourcing these tasks to a shared service center or finance shared services center can allow companies to focus on their core business while reducing costs and improving financial reporting. However, outsourcing is not without its challenges. In this article, we will explore 5 tips to help companies say “yes” to finance and accounts outsourcing.
Tip 1: Determine what is crucial for your business
The first step in outsourcing finance and accounting functions is to define what is core to your business. This includes identifying your company’s core competencies and determining which tasks are essential to your product or service. For example, a company that sells software may decide that software development is core to their business, while accounting is not.
By defining what is core to your business, you can determine which tasks can be outsourced without compromising the quality or integrity of your product or service. This will also help you identify which tasks should be kept in-house and performed by your own employees.
Tip 2: Research potential vendors
Once you’ve identified which tasks can be outsourced, it’s important to research potential vendors who can provide the services you need. Look for vendors that have experience in your industry and can provide references from satisfied customers.
When evaluating vendors, consider the quality of their work, their level of expertise, and their pricing structure. You may also want to consider the vendor’s location, as this can impact communication and collaboration.
Tip 3: Consider the cost of outsourcing vs. hiring in-house staff
One of the primary benefits of outsourcing finance and accounting functions is cost savings. Moreover, it’s vital to consider the cost associated with outsourcing vs. hiring in-house staff.
When outsourcing, you’ll need to consider the cost of the vendor’s services as well as any additional costs such as communication and collaboration tools. You’ll also need to consider the cost of hiring in-house staff, including salaries, benefits, and training costs.
To determine which option makes the most financial sense for your company, you’ll need to compare the costs of outsourcing vs. hiring in-house staff. Keep in mind that outsourcing may provide cost savings in the short term, but hiring in-house staff may provide more long-term benefits such as increased control and flexibility.
Tip 4: Put a plan in place
Once you’ve decided to outsource finance and accounting functions, it’s important to put a plan in place. This should include defining the scope of the project, setting goals and objectives, and identifying key performance indicators (KPIs) to measure success.
You’ll also need to develop a communication plan that outlines how you will work with the vendor, how often you will communicate, and what types of communication channels you will use. A plan will ensure that your team is on the same page and that the project is completed on time and within budget.
Tip 5: Monitor results
Finally, it’s important to monitor the results of your outsourcing project to ensure that it’s having a positive impact on your bottom line. This means tracking key performance indicators (KPIs) such as cost savings, productivity, and accuracy of financial reporting.
If you’re not seeing the results you expected, it may be time to reevaluate your outsourcing strategy. This could include renegotiating the terms of your contract with the vendor or even bringing some tasks back in-house.
Outsourcing finance and accounting functions can provide significant cost savings and improve financial reporting. However, it’s important to approach outsourcing strategically and with careful consideration. By defining what is core to your business, researching potential vendors, comparing the cost of outsourcing vs. hiring in-house staff, putting a plan in place, and monitoring results, you can ensure that outsourcing finance and accounting functions are a positive step for your business.
MYND offers finance and accounting solutions to small and large businesses. We have served diverse business verticals such as QSR, Telecom, Retail, Hospitality, Healthcare, Automobile, Manufacturing, and Facility Management. Our experience has taught us to combine business automation and human intelligence together for increased efficiency. If you have any queries or would like to avail of a demo, get in touch with us.