Reasons to Outsource Accounting Services
Since 2005, some businesses have begun outsourcing accounting services at a more strategic level not just to reduce costs in non-core processes but to improve business performance as well. This is being driven by a number of factors:
1. Competitive and budgetary pressures
Decreasing budget allowances have forced businesses to evaluate strategies that can reduce costs in non-core business processes. Outsourcing accounting services have given businesses better focus working on their resources on core competencies and activities to attract and retain customers.
2. Advances in technology and communications
Operations are more independent of location than ever before. This is due to rapid infrastructure improvements and cheaper communication costs. Globalization gives access to resources and talent world-wide. Internet provides new opportunities to collaborate with other businesses on a global scale.
3. The need to transform the finance and accounting function
As an overhead, the finance and accounting departments are challenged to become more efficient and more effective. CFOs must demonstrate adherence to proper accounting principles and disciplines, and provide improved decision support capabilities. Outsourcing these services can be used to reduce costs in routine back office processes and also, increasingly in higher value support services. Outsourcing can be used to achieve step changes and streamline unnecessarily complex business processes, systems and structures.