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Why is Finance and Accounting outsourcing beneficial?

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After reading this article you would know what finance and outsourcing is and why is it beneficial to any organization.



Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. Financial outsourcing is a business strategy that involves contracting with outside providers of services for various types of financial and accounting functions.

Benefits of Finance and accounting outsourcing:

1. Cost saving

 

Outsourcing functions and processes such as finance and accounting reduces the cost burden on companies. They can get access to proficient accountants, CPAs and CAs at a much lower cost, without compromising on their quality. It helps reduce costs greatly, as you no longer have to maintain an in-house accounting team.

2. Technological advancement

Many companies are not completely aware of all the applications and techonolgy which are available in the market and which ones are suitable for their business. With technology changing everyday it is also difficult to keep up with it. It could be sometimes expensive for the companies as well. However, external service providers are willing to invest in this technology, knowing which ones are right for which kinds of business.

3. Increased efficiency in reporting

All organizations work differently and has unique needs, so outsourcing follows a unique collaborative approach to provide clients with tailor-made finance and accounting solutions. it makes sure that your requirements are met in a personalised manner with reduced cost and gives a head start to businesses against competitors.

4. Scalability

A client company can benefit from a solution that is customised for its requirement. An external service provider can scale up or down the financial and accounting processes as per the requirements of its clients. This is of great benefit to businesses always.

5. 24*7 Operations

You get all the financial data you need within the time frame that you need it, which means you can take business decisions faster and more efficiently. There is a time zone advantage when you outsource finance and accounting service to a 24*7 service provider. The business could be fearless as all the deadlines would be met before hand.

6. Reduction of risk

Outsourcing reduces the risk of any liabilities related to payroll and income tax returns, which can attract heavy penalties. A professional finance and accounting company ensures that this problem is taken care of.

7. Monitoring

Keeping track of constant changes in accounting rules is not easy for any company. An outsourcing company would keep track of all the changes and implement them as and when required, making sure that the client company is always in the good books of the financial market regulators. An outsourcing company follows the guidelines of GAAP and IFRS and all accounting standards.

8. Focus on core competencies

As a rule of thumb, when a client outsources process, it actually gets relieved from the tension of concentrating on that particular project. So, it gives the company the time to focus on other competencies.

9. Confidenciality

Outsourcing companies work on strict standards with respect to client confidentiality and their data. Companies can be sure of their data being handled and stored securely.
I hope that this article helped you gain necessary knowledge regarding Finance and accounting outsourcing and its benefits. Comment below if you liked it or if you want to add something to it. For more of such articles, subscribe to my newsletter and to discuss your finance and accounting outsourcing goal contact us at

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