Outsourcing is the process of delegating specific operations to a company outside of your business to capitalize on benefits that were previously not available. A “highly detailed thirty page study on the evolution of outsourcing” concluded that the number one area [that needed] improvement for firms that outsourced specific operations was the “monitoring and managing [of] the benefits” of outsourcing. The article “Outsourcing the Accounting and Finance Functions” was published by the Society of Management Accountants of Canada (CMA Canada), the American Institute of Certified Public Accountants, Inc. (AICPA) and the Chartered Institute of Management Accountants (CIMA).
The most important benefits of outsourcing your accounting functions are as follows:
Outsourcing allows you to concentrate limited resources on your core business so you can be more profitable. You will be able to spend more time with your customers so your organization can offer them a higher level of service. Focus on your strengths.
Requiring less staff time for internal accounting functions will allow you to save employment costs such as salaries, payroll taxes, benefits, training and recruitment expenses. Hire employees that will focus on your main business purpose rather than auxiliary services.
By picking and choosing only the types of services you really need from your outsourcing partner, you will be able to eliminate unneeded overhead expenses in those areas. Businesses need to concentrate on the return of every dollar they spend and be ready to deploy resources where they can maximize their leverage quickly.
Better Business Decisions Faster
The ability to provide higher quality accounting information faster, more efficiently and with greater effectiveness is crucial. Working with accounting professionals will yield more reliable information to make improved business decisions in less time.
You will not need to spend time and money trying to keep up with an avalanche of new laws, policies, procedures and technologies. Missing critical business signals because you are not able to access the financial information in the form you need it, when you need it, will put you at a distinct disadvantage in today’s hyper competitive environment.
Reporting errors can be very costly. The penalties and interest charges for payroll and income tax mistakes are staggering. Litigation expenses and judgments levied against an entity can literally put it out of business overnight. Placing the responsibility for these types of expenses on trained professionals will greatly limit the risk of losses to your organization.
The benefits of outsourcing operations are summarized in the posting “Outsourced Accounting Services” by the Pacific Crest Group. The strategies, systems and processes developed for your business are yours to keep. The payback period for their implementation is very short. You will reap the benefits of greater transparency, efficiency and reliability long after your systems have been installed.
Pacific Crest Group (PCG) provides professional services that keep your business focused on your critical objectives. We create custom made financial and Human Resource systems based on creative strategies that are always delivered with exemplary customer service. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed specifically to maximize all of your business opportunities.