Outsourcing has made it easier for companies to turn over finance functions to a third-party provider at a reduced cost. The work that an outsourced accountant has produced in recent years has increased in both quality and quantity. As outsourcing evolved, so did technologies that made it easier for companies to communicate with providers and their teams.
Today, we hear about outsourced teams handling all sorts of functions in different industries, not just in finance. These industries have ranged from healthcare, manufacturing, and even construction industries just to name a few. A few well-known startups relied on outsourcing when they first started out, and have gone on to find even greater success. No longer relegated to just customer service roles, outsourcing providers have teams capable of taking on any function at any level.
Finance Functions to Outsource
It’s exciting to think about how far outsourcing has come, especially when it comes to handling finance functions. Years ago, it was unheard of – often impossible – to consider various finance functions being sent to outsourcing providers. Because of its confidential nature, some companies believe it these roles should be kept locally to mitigate security risks and data loss.
Here are just some key financial roles your company can outsource.
Bookkeeping
Bookkeepers perform general accounting duties. They keep track of financial records and accounts, while also verifying the accuracy of procedures used for recording financial transactions. When companies outsource bookkeepers, the savings can be quite considerable. When teamed up with the right provider, you will be given access to many skilled bookkeepers who are able to address your company’s financial objectives.
Payroll Processing
Together with an outsourcing provider, you will be able to get quality payroll services at a fraction of what you would pay locally. Through constant coordination with banks, they are responsible for calculating salaries, overtimes, and leaves of your employees.
Part of payroll processors’ responsibilities is collaborating closely with banks daily.
As they are also responsible for preparing reports promptly, payroll processors continuously can hone their skills to stay competitive in your industry. This helps ensure your company is turning over key financial responsibilities to knowledgeable, reliable, and forward-thinking people. Through outsourcing, you can hire people with the level of expertise you need and at an affordable price.
Accounts Payable Specialist
Those working in accounts payable are well-equipped to address tasks that suit their skills. As they are responsible for company liabilities, they help maintain ledgers, secure financial information, and prepare all the needed financial reports. Doing these tasks often requires a high level of accuracy. By assigning this role through your outsourced provider, you can ensure better management of your back-office functions.
Accounts Receivable Specialist
Working as accounts receivable means processing payments that sync with your financial policies. Because they manage what your company has a right to collect, it requires daily transactions from them. They are responsible for computing, posting, and verifying all accounts receivable data whether it be from assets or debit. It’s a very specialized role that would need people with the right knowledge to fill out. Luckily, working with an outsourcing provider will give you access to experienced professionals who can take on these tasks. By working with an outsourcing model, you can put more focus and resources on core business objectives that will increase your profitability.
Financial Administration
Finance administrators are in charge of maintaining financial records and processing income and expenditure. They often work in a group environment, thus ensuring collaboration with fellow team members and their managers. By outsourcing a very labor-intensive role like this, it becomes possible to prioritize more revenue-producing activities. Through modern technologies given by most service providers, businesses can take advantage of accounting services that previously would have taken longer to complete.
A Beneficial Endeavor
Outsourcing has shown that, with the right provider, companies can effectively outsource key financial roles they may have. This helps them maintain a high level of work at a reduced cost than hiring locally. More than that, the outsourcing approach helps them stay much more competitive in today’s fast-paced business environment. If a company is only thinking about outsourcing now, chances are their competitors are thinking the same thing, or already have an outsourcing model in place.
Looking to get started on crafting an outsourcing strategy of your own? Get in touch with us today and we can help you take that crucial first step.
