From SMEs to large enterprises, businesses are seriously thinking of using innovative solutions through Finance and Accounting Outsourcing. Various industry surveys and research papers hint that partial or complete outsourcing of finance and accounting activities is becoming every CFO’s top priority.
As the industry is growing at a rate unlike before, companies are witnessing a rush in complex operations being outsourced. Plus, business managers are looking to outsource even more processes and functions. The earlier norm in outsourcing was simple or regular tasks with heavy flow of transactions, while now; the attention has shifted to indulging greater collaboration and deeper expertise between clients and vendors. CFOs these days look further than cost savings and see opportunities that add greater value. They now wish to utilize the F&A partner’s expertise to attain in-depth financial information and create better ROI and work decisions. However, the outsourcing area is full of challenges like costs, cultural readiness and finding the right fit.
Finance and outsourcing costs can be really complex to work out, mainly when multiple processes are outsourced simultaneously. It is really important that clients and vendors figure out these costs with respect to benefit outcomes and duration of agreement.
The idea of outsourcing accounting operations and finance often makes customers worry, as they are mostly known to be regular stuff a company does. Besides, markets also show minimal understanding of potential benefits and changes an organization requires for functioning. There is still some shift in cultural acceptance and understanding of how much of a commonplace outsourcing can become. This model can benefit both traders and customers. However, most clients remain worried about how much control they will have on the process and if their data confidentiality might be compromised, especially with vendors in another part of the world.
For successful outsourcing, a high level of understanding between customers and vendors can improve things. Poor unification of business coordination and accounting processes may lead to uncertainty and confusion, hence failing the transition. All the process stakeholders can perform well in a coordinated manner, but they need to help the transition team decide what fits best. The stakeholders can then design a plan and transition structure with associated accountabilities.
With new challenges coming up every day in the outsourcing business, transactions are getting more complex. A result-oriented and innovative approach is needed for managing the challenges adequately. It will make the outsourcing engagement one productive process for both, customers and vendors.