Finance and accounting operations involve various complex and highly critical tasks. Hence, most organizations prefer having in-house finance and accounting professionals.
However, although having in-house resources benefits in various ways, not every organization (especially startups and SMEs) has the financial muscle to nurture them. No wonder 36-38 percent of small businesses outsource their accounting functions.
Besides, scaling up against financial constraints can become a crucial operational concern following an increase in the company’s business volume.
In situations like these, outsourcing finance and accounting operations can benefit companies enormously on the commercial and operational front. Let’s focus on the latter and look at some vital operational benefits of finance and accounting outsourcing.
As a market, finance, and accounting outsourcing is experiencing exponential growth. Per reports, valued between USD 42-44 billion in 2022, the market is projected to fare at nearly USD 70 billion by 2030! One can significantly attribute this incredible growth to the competitive operational edge finance and accounting outsourcing offers. Here are six ways finance and accounting outsourcing can enhance your operations.
One of the first and most significant advantages associated with finance and accounting outsourcing is the access it provides to expert and experienced resources.
In-house hiring might compel you to confine yourself to a particular level of expertise and experience, considering cost limitations. But when you outsource finance and accounting, you work with people with varying expertise and experience levels.
It essentially helps you leverage a blend of freshers, mid-level, and senior professionals working in sync to meet your project needs. While freshers remain technically agile, you can look to optimize your finance and accounting workflows with the help of the team’s senior members. Overall, it benefits at the technical and holistic operational level.
Outsourcing finance and accounting operations can involve hiring a team dedicatedly to working for your organization. It won’t have anything else on its plate. Besides, since all the resources are highly trained professionals, completing tasks on time and managing them overall becomes a breeze. You can bank upon them and focus on your core responsibilities, limiting your role to occasional supervising and reviewing reports.
Your business may expand with time. In fact, it should and you’d be happy doing it. But operational expansion also calls for scaling up various teams, including the accounting department. It could be challenging scaling with an in-house setup, as it will involve finding people and hiring and training them. It will incur time, effort, and money!
But outsourcing proves advantageous within this area as well. With a finance and accounting service provider by your side, you can scale easily and quickly. Outsourcing firms usually have access to an extensive pool of resources they handpick resources from. You can have prepared resources at your workplace to serve your augmented business needs. It proves much more convenient than the conventional in-house model.
India is considered a massive talent base, where you search for one and find hundreds. Although that’s true to an extent, finding the best-suited resources proves challenging.
In the case of finance and accounting, in particular, you need sincere, trustworthy, and balanced individuals who can deal with the domain’s intricacies.
It can take considerable time, money, and effort to find the right match if you look for everything yourself. But finance and accounting outsourcing relieves you from the daunting hiring task. All you have to do is look for a finance and accounting firm suited to your requirements and specify your needs. Rest, managing, and onboarding the right people remain the outsourcing company’s onus.
Outsourcing finance and accounting offer another operational benefit – access to the latest finance and accounting technology. Credible outsourcing organizations leverage the latest automation-based accounting software platforms like Sage, QuickBooks, Xero, SAP, Microsoft Dynamics, etc. to deliver accuracy, speed, and efficiency and reduce risks.
Besides, they may help you move your data to the cloud, per your needs and consent to help you benefit from the cloud’s operational flexibility, scalability, and data security.
Compliance is one aspect no one can afford to discount, especially while discussing finance and accounting. Companies providing finance and accounting services have professionals well-versed in a particular country’s accounting standards, rules and regulations, and compliance. While ensuring operational accuracy, they also help their client remain compliant by adhering to the prescribed and ethical accounting practices and following the required filing and declaration dates.
Finance and accounting outsourcing can benefit your business in various ways you’ve seen above. But how positively the decision or venture impacts your business depends on the outsourcing firm you choose. So, how do you select the right finance and outsourcing accounting company for your business? Here are some quick tips.
Don’t live with the operational challenges of finance and accounting or struggle dealing with them in isolation. Partner with processvenue, one of India’s trusted finance and accounting outsourcing companies. We offer our years of experience, unmatched expertise, and technological access. Choosing us will help you gain the operational, strategic, and scalability advantage to stay competent and compliant. Click to connect with us and allow our experts to discuss your requirements.