With the advancements in fintech technology in recent years, outsourcing accounting function to a firm focuses on bringing efficiencies to the businesses processes.
FREMONT, CA: Previously, outsourcing the accounting function was a case of passing over the compliance aspect of handling the business' accounts and finances. However, with the advancements in fintech technology in recent years and the use of automation through cloud accounting software, outsourcing to an organization of accountants now focuses on bringing efficiencies to the businesses processes; offering business owners with access to greater tools and data to run their business, and another value adds – all without additional costs to recruiting a conventional financial controller.
Outsourcing accounting functions can offer a viable solution to replace those individuals. One of the key benefits is that instead of replacing the individual one-for-one, outsourced finance can offer added value through having access to specialists and experts sitting behind them, who can help and advise on a wide range of specialisms. This means they can help the business throug
h any of the hurdles that it faces and allow the business leaders to stress the business's strategic aims.
An outsourced finance team will be able to look at the Key Performance Indicators (KPIs) that the organization would be expected to report against and those related to the business's objectives. Typically, KPIs are a combination of financial, commercial, and people-based data. The accountant will be able to both extract and objectively scrutinize the data in the system and find what information firms need to input to track progress; in doing so, finding the best reporting structures for the business.
By outsourcing to an external financial function team, the business can benefit from a privileged insight to benchmarking data. The accountant captures other businesses' performance metrics in the sector, whom they act for or have access to through external databases. This allows business owners to assess how they are performing against others in the industry. If a business operates at a 55 percent gross profit margin but others average at 65-70 percent, the owners may require to assess cost structures and sales strategy.
