Outsourcing any part of your business can be liberating and challenging, in equal measures. It is tempting to outsource aspects of your business to keep overheads low, save time, and utilise outside expertise. But outsourcing also throws up many questions, such as is outsourcing secure and reliable? And when should it be considered?
In this blog, we are answering seven of the most frequently asked questions when it comes to outsourcing the accounting functions of your business.
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In any business, accounting and finance is the most essential and crucial function. Outsourcing saves you time and money. The time you spend managing your accounts and finance back office could be the time you spend elsewhere in your business — creating winning business strategies or building long-term relationships with the clients you already have.
Over the years, the outsourced accounting model has evolved, and when you partner with the right service provider, the benefits are significant. Working in partnership with IMS Decimal means your business has unlimited access to expert advice and guidance. To find out about the main benefits of outsourcing the accounting function, read https://bit.ly/3jckypt
You should consider it immediately, as soon as you set up your business. Transitioning to an outsourced model can be quick and seamless with the right provider. If you have not considered yet, you don’t need to rush into anything; you don’t need to outsource all your accounting functions straight away; you can outsource some or all your accounting functions at various stages through the contract.
There are both direct and indirect cost savings to be had when outsourcing. An outsourced full-time equivalent (FTE) costs up to 50% less than an onsite employee, including their payroll cost, healthcare and other benefits, equipment cost, and more; you are saving money indirectly by implementing an outsourced model that streamlines operational and reporting processes. Your management cost can also be decreased as the resource will be managed by your outsourced partner. This benefits management and key stakeholders with more time to focus on supporting and driving business growth. When you outsource, you pay for only the services you need for your organisation.
To enjoy significant cost savings, it is crucial; your provider produces a detailed transition management plan, so when you go live, everything is set up and ready to go.
When you are researching and comparing providers, you should always read through their online reviews to get a feel for the quality of their service delivery. After choosing your provider, it is vital that both you and the provider contractually agree on the delivery service level agreement (SLA) and key performance indicators (KPIs) prior to going live.
This way, you are both on the same page when it comes to expectations. After this point, there should not be any surprises when it comes to service delivery.
Outsourcing your accounting means you get an unbiased view of your existing processes. Sometimes, your in-house teams yearn for fresh perspectives, and that is where outsourcing comes in. The outsourcing model also comes with access to the qualified and experienced talent pool. At IMS Decimal, we can help deliver process improvements after we have evaluated your current processes. After that, we can implement a reliable outsourced model that is tailored to your specific requirements as a business.
When comparing providers, you should analyse their take on security measures such as data storage, data security and staff awareness.
At IMS Decimal, we take security seriously, we know how damaging it can be if data falls into the wrong hands, and that is why we are proud of our automated security measures. Our in-house security specialists back up our security measures, and with a disaster recovery process in place just in case, you are in safe hands. We adhere to the international standards on information security. We understand security is the utmost priority for you and for us too. We are ISO 9001:2015, ISMS 27001:2013, GDPR Compliant and Cyber essential certified.
We train our staff fully on information security from the minute they join our business and ongoing capacity. Our team must be in the loop on any security risks; after all, they play a key role in maintaining your security.
You can always ask our sales/operations team for a detailed overview of our IT security and Infrastructure.
We always recommend clients establish a phased approach to outsourcing their accounting function, regardless of organisation size. An outsourced accounting model can ebb and flow with your business needs, so let us say you start with just outsourcing your accounts payable. Suppose your existing onsite function is currently staffed with two onsite FTE’s. In that case, we recommend that you replicate that number with two outsourced FTE’s, until you feel comfortable that adequate service delivery has been attained.
If you need your outsourced provider to handle more than one accounting function a few months down the road, you can add more functions to your contract whenever you feel it is necessary after discussing with your service provider.
Here at IMS Decimal, we are experts in managing your accounting and financial tasks. We have been a trusted accounting partner for over 180 clients spanning 15 years.
We can take care of any accounting or finance requirement — equipped with our all-in-one accounting solution; we can take care of reporting, invoicing, credit control, accounts payable and accounts receivable, financial reporting, payroll and bookkeeping. Our team is filled with trained accountants just waiting to help you streamline your accounting operations and make cost-saving suggestions.
We understand how transformational a well-oiled accounting department can be to any business — that is why we can effortlessly slot right into your organisation, offering a seamless and secure accounting solution.