What is Outsourcing and how it helps to the companies?
Outsourcing is simply taking a service or in other words hiring a company for end to end accounting and also reporting services. One of the rising tool among the global and international companies in order to optimize the costs and advance the processes to expertise level.
Some of the main benefits of outsourcing are listed below;
1- Expertise on the Profession
Accounting profession requires certain level expertise and professional need to update theirself in order to comly with local GAAPs and IFRS as well as management reportings and requires continuity to keep the operations up and running. Early 2000's, global company started outsourcing their finance operations mainly accounting and reporting teams as well as internal control, internal audit, treasury. While some of these global actors used both Shared Service and Outsourcing approach and some mainly using outsourced operations.
2- Cost Optimization
Outsourcing your accounting and reporting operations will be creating significant cost benefit to the organization, not only from S&W perspective but interms effectie utilization of the sources. Off Shore outsourcing model is enabling the cost optimization where operations are being held in a relatively a low cost country.
Having a core business as finance & accounting, Outsource service providers have the full team with high expertise and working as one team, meaning that by using an outsource company you will not be dealing with maternity leave, sick leave, annual leave or retention risks.
4- Work Load
At month ends, quarter ends and especially year end workload increases in accounting department. Any lack of sources and misplanning can result a big failure for companies. Outsourcing Services can eleminate the risk of increased work load with its large team of accounting experts and can easily allocate resources when needed.