The benefits of outsourced accounting and finance servicesFebruary 26, 2020
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Excellent accounting and financial management is the cornerstone of any successful business. Done right and by the right team, it can afford a business with efficient transaction processing, insightful reporting and analysis and offers a business the necessary tools to plan for a successful future.
However, even the most successful and sizable of businesses find it virtually unattainable to maintain a dedicated accounting function that can not only encompass the seemingly limitless array of accounting specialties necessary, but who can also maintain the skills and experience to continually achieve the high standards demanded.
Therefore so many forward thinking CFOs and business owners now choose to outsource this primary function to an outsourced accounting and finance partner, enabling them to not only achieve considerable cost savings but also rationalize and simplify the whole accounting process affording increased standardisation, productivity and accuracy whilst increasing levels of quality and regulatory compliance.
So what should you consider when selecting an outsourced accounting and finance partner?
- Financial stability - you will want any accounting process outsourcing relationship you build to last, so making sure your outsourcing partner is financially secure is critical to ensure they can survive in the long run. You need to measure the value and history of performance relative to others in the industry and confirm they can match your expectations.
- Credentials and experience - consider how long they have been in business, how many offices and employees they have and where are the offices located. Investigate what types of projects they have experience of managing and do they have the right experience and knowledge of your sector. Do the team members who will be working on your account have recent experience that will benefit? Any credible partner will be able to provide a detailed record of their experience and case studies that can highlight their capabilities, expertise and levels of quality and service. They will also be happy to provide transparent details of insurance coverage and their data handling processes.
- Check references - A prospective outsourced accounting and finance partner should be happy to provide several varied client references who are happy to discuss if they are happy with the quality of service. This will enable you to make certain that your outsourcing partner has the right processes, technology and people necessary to handle projects.
- Check technology and infrastructure - it is vital to ensure that any outsourced accounting and finance partner has the technology and infrastructure in place to manage and execute your project successfully. It is ideal to visit your outsourcing partner’s work place to truly understand their processes, methodologies and to meet the team, however if not possible, ask for confirmation that they have the security of data, relevant accounting softwares, CCTV surveillance, virus and data theft protection, biometric logins in place to secure your data.
- Communication - effective communication will ultimately define the success of the relationship you have with your outsourced accounting and finance partner. They need to be accessible 24x7x365 and need to prioritise communication among their team members.
- Goal and cultural compatibility - your business aims and the business objectives of your outsourcing partner should match with each other. Equally it is important that your outsourcing partner understands your culture, organisation and your employees.
An outsourced accounting and finance services partner can be an incredibly valuable asset; however, not all are created equal. It is crucial to partner with a provider who comprehends the unique attributes of not only your business, goals, demands and culture but your industry too. Indeed, by making the right selection accounting process outsourcing can truly offer a complete solution to your accounting needs.