by: Sarah Joson
Monday, February 13, 2017 |
Nowadays, business owners are looking to find the best solution to streamline processes - from planning, marketing, sales, human resources, and even finance and accounting. They do this to come up with the best way to optimize day-to-day operations and continuously grow the company. One of the go-to solutions is outsourcing.
Some of you might be surprised to find finance and accounting mentioned above, but the reality is it has been one of the most outsourced processes among small, medium, and even large companies for many years now. Some organizations keep an internal team of accountants; some outsource accounting processes in bulk, while others use a hybrid operation of having an in-house team for major processes, and outsourced accountants for basic finance tasks.
Believe it or not, some businesses do not have a process for their accounting, and because of inconsistent execution, mistakes pile up leaving them with incorrect reports and information, and uncertainty over whether they are meeting the company’s financial goals. When the time comes for them to face their books and check on their financial condition, they will realize that putting accounting work aside was a horrible move and they will start regretting that they should have planned and prepared for an efficient solution to avoid all of that mess.
This is where outsourcing comes in handy. An outsourced finance and accounting team can work hand in hand with the internal team, or autonomously to address the accounting tasks that are usually brushed aside.
But which finance and accounting processes can be outsourced?
Accounts payable and receivable
You have to keep track of your payables so you will not encounter issues with your suppliers and circumvent bad debt costs, and accounts receivables so you can avoid bottlenecks in your company’s cash flow.
Inventory and procurement
These two are part of finance and accounting as well, though some companies do not consider it as a core process. Keeping tabs on the company’s supplies and vendors is an important task of an organization, but it takes up a lot of time and resources that could otherwise be applied to crucial areas of the company.
Cost of goods sold
Having an organized cost of goods will give business owners a clear view of their profit margin. Some businesses do it in bulk and follow a strict schedule, but experts recommend that business owners keep accurate records and roll out updates regularly to see the trends and changes so the business can respond accordingly.
A reliable and competent finance and accounting partner can provide more than the processes listed above. They will help you create value for your money by improving your business’ productivity and transforming your finance and accounting processes.