Archive for December, 2009
Be an Entrepreneur, not an Accountant!
On December 29, 2009 in F & A Outsourcing
Business entities need to redirect their full energy towards core competencies and strategic decisions such as business development, research, sales and marketing etc. In our opinion, the biggest advantage of outsourcing is not saving money but saving time! Lot of times, entrepreneur end up spending their valuable time in managing daily operations, accounting hassles, inquiries, compliances and even more complex functions such as FP&A, Board and management reporting, due diligence etc. which are essential functions but sadly not the revenue generators!!
The power of outsourcing, if used diligently, can lead into time and cost efficiencies, process improvements, technology optimization, scalability hiring best talents, exercising industry best practices, focusing more on strategic and high end management issues and many more value additions!
Research have showed the average cost saving from outsourcing is anywhere from 35% – 50% which can be a big number for a CFO who is dealing with budget constraints.
Document storage, filing and retrieval has never been less important and especially in the paperless environmental friendly atmosphere and this function has also been successfully handled by service providers.
It is very interesting to see how FAO has evolved in last couple years and the increasing number of companies trying to find out if the kind of solution that fits for them.
For more details visit www.accelero-corp.com
Some interesting facts on outsourcing
On December 14, 2009 in F & A Outsourcing
Outsourcing entered the business world in the 1980s and since late 1990s FA outsourcing has evolved a long way and has spread its wings on practically every aspect of a finance and accounting! Now it has become a question of “What” and “When” to outsource rather than “should we outsource?”
In today’s more mature marketplace, the customer no longer seeks only reduced costs but also more complete business solutions, including process improvements and efficiencies achieved through the expertise of the service providing partner.
Today, businesses leverage by joining hands together and by realizing that the key to success is “Specialization” and leave non core activities for other partners who are specialized too!
Some interesting facts:
-The global market for outsourcing finance and accounting functions is expected to grow at a 9.6% compounded annual growth rate (CAGR), and top $47.6 billion in 2008.
-Processing services, business advisory services, financial compliance are expected to serve as the most effective leads into FA BPO arrangements.
- Accounts payable and accounts receivable remains the most widely outsourced FA function
Accelero Thought-
Just because almost everybody and anybody is undertaking outsourcing for their business does not mean that you will also need to undergo the process. Have the outsourcing company carefully examine the various factors of your business and determine if undergoing this process will actually reap benefit in long run!
For more details visit www.accelero-corp.com
Our insights in Finance and Accounting industry!
On December 08, 2009 in F & A Outsourcing
-Neetika Maheshwari, Accelero Corporation
Is Outsourcing, a strategy only for big players?
Business, regardless of their size, need to account for every little expense or income as something which seems small right now may make a big difference in the long run. Would’nt it be great to see the accountant of the company carrying the commitment of a founder and is willing to work long passionate hours, willing to take risks, willing to even forego rewards now for the sake of long term success! I have seen outsourcing companies providing the same kind of commitment as they associate themselves right from the conception to maturity!
Ledgers, journals, reports etc. may seem quite overwhelming and intimidating tasks for a business that has just begun its operations. Outsourcing is not restricted to medium –big size companies and even small entities can benefit by delegating these grueling tasks to an outside service provider who are more specialized and experienced. This action would also take off the burden from corporate to maintain the accounts correctly as a business cannot afford to have mistakes in the financial records, no matter how small!
Thus, one of the qualities that businesses should be looking for in an outsourcing partner is the degree of flexibility. They should be open to new ideas, new processes, new technology. Their schedule should match up with company’s in terms of filings, deadlines etc. Companies should evaluate thoroughly what can be outsourced and to what extent so that company enjoy the advantage and the same time not lose the control.
Hiring professional right from the beginning helps in saving lot of future costs which could be a result of minor mistakes in record keeping. For e.g. companies can save lot of audit costs, due diligence towards loan, investment or other strategic arrangements, Government penalties and fees etc.
For more details visit www.accelero-corp.com