Outsourcing a company’s finance and accounting operations is a major decision for key stakeholders due to the sensitivity of the information involved. Organizations tend to exercise extreme caution while selecting a What is Financial Accounting and what are its advantages? Outsourcing Services partner.
While Finance and Accounting Outsourcing (FAO) services have been around for long – at least since the early 90s – their usage was dominated by firms located in the United States. However, with the passage of time, companies from other regions around the world started using these services, and they have grown phenomenally since then.
Not only cumulative business, but the kind of work being handled by FAO services has evolved. Initially, companies would only handover repetitive and simple tasks to these firms.
Today, Outsourced Financial Services have expanded their scope across accounts payable and receivable, travel expense management, supply chain accounting, payroll processing, payment processing, pricing administration, bookkeeping, record to report, joint venture accounting, and financial analysis reporting to name a few. Apart from this wide array of services, FAO firms are also being entrusted with more complex tasks like treasury planning and tax strategy.
Before a company decides to employ the services of an FAO firm, it needs to lay the groundwork for it. Given the long-term nature of such contracts and the sensitive nature of details to be shared, some pre-preparedness is essential to ensure a smooth transition of services from the company to the FAO firm.
7 Factors Play an Important Role in Financial Accounting
- Cost saving:
- Talent pool and skill set:
- Size of the FAO firm:
- Management stability:
- Scalability:
- Adaptability:
- Technology:
Outsourcing financial accounting processes can help companies streamline their business and reduce costs. Whether they want to handover repetitive work to let their in-house finance and accounting function concentrate on more complex tasks or turn over the reins of the entire function to financial accounting partner, putting in an effort to find the right firm to assist them in doing that is time well spent. Because this relationship is one which will last a long time and can pay great dividends if done right.
If you are ready to free up capital and grow your business, Contact us at Rayvat Accounting.