Posted on September 20, 2021
Written By Rukmani Krishna
Financial operations are one of the core business functions that can impact the success of any organization. Therefore, many business owners tend to keep their finance and accounting (F&A) services in-house, so as to maintain control. However, this may not be sustainable in the long run as finance and accounting can be extremely time-consuming, expensive, riddled with errors, and prone to frequent legislative changes. This is where outsourcing this key function to a specialist can significantly benefit your business.
Outsourcing the finance and accounting function brings with it a slew of benefits as you may already be aware of, such as lower costs, faster turnaround times, and better accuracy, among others. But, how do you ensure that you get the most bang for your buck?
We’ve compiled 6 ways in which you can make the most out of F&A outsourcing.
1) Specify your exact requirements and prioritize communication: It is critical that you put forth your exact requirements at the beginning of your outsourcing relationship. The exact services that need to be outsourced will vary depending on your organizational needs, which could either mean outsourcing the entire function or just a few services. For example, you can outsource repetitive or specialized tasks that may require more time and resources. Ensure you make your exact requirements clear, clarify any doubts, and resolve any queries the specialist may have right at the beginning.
Communication is the backbone of a successful business and it’s even more crucial when dealing with a third-party specialist. Establish communication channels for faster query or problem resolution and ensure you hold regular meetings (weekly, fortnightly, or monthly) with your specialist partner. Don’t forget to be upfront with any issues your business might be facing and be transparent with your financial information, so that you can gain more from the outsourcing relationship.
2) Simplify information transfer: At the beginning of your outsourcing relationship, it can seem daunting to share sensitive financial information with a third-party specialist. However, this is a necessary step and you should ensure that it is done via a secure channel, so as to protect your data. You can utilize a software tool like QuickBooks to securely share sensitive documents with a specialist. This will also help you to stay organized, save space, and ensure data security.
3) Keep track of your financials: Outsourcing can take a considerable amount of time and weight off your shoulders, but this shouldn’t mean you no longer pay attention to what’s happening in the background. Ensure you regularly review your financial and management reports to gain relevant insights into how your organization is functioning. It’s also crucial that you keep track of whether the specialist is complying with local legislation.
4) Use a project management tool: It can be difficult to manually keep track of your outsourced F&A services, which is why it’s a good idea to invest in a project management tool. This will help your organization to be up-to-date with service-related progress, assign new projects easily, and better manage your outsourcing relationship under one roof. A project management tool will also allow you to set goals, milestones, and improve task collaboration.
5) Be smart about who you choose to partner with: One of the main benefits of outsourcing is cost savings, but if you compromise quality in order to save money it can be extremely costly in the long run. Ensure that you learn about the strengths and weaknesses, expertise, and experience of your shortlisted specialists. Quality should supersede cost, as hiring an outsourcing specialist is a long-term investment for your organization. In the end, choose a specialist who is experienced, has the right expertise as per your needs, and will enable your business to grow at a rapid pace.
6) Stay on top of security measures: Security is a major concern that makes many businesses hesitant to hire an outsourcing specialist. Therefore, it’s important to prioritize data security. You can do this by checking references for your potential partners, setting basic compliance standards, using an NDA, and gaining a better understanding of the security measures set in place by the specialist partner.
Outsourcing the finance and accounting function can be an extremely efficient and cost-effective solution for your business. It will not only help reduce overhead costs but also streamline processes, free up more time for strategic tasks, and help your business grow further. However, in order to make outsourcing work, you need to put in some effort to make it a win-win situation for both you and the specialist.
Are you on the lookout for a specialist who can take over your finance and accounting function? QX can support your F&A transformation initiatives! Get in touch with our experts for personalized advice on how to transform your finance and accounting function.
Originally published Sep 20, 2021 09:09:23, updated Dec 08 2021