The Intangible Benefits Of Outsourcing Of Finance Accounting Services

Outsourcing of various operations like finance accounting services

, customer relationship services, and data services by organizations has always been marketed as a cost saving exercise. There is no doubt about the fact that outsourcing finance and accounting services has the potential to substantially reduce the operating costs, but a lot of organizations fail to see the intangible results and advantages of outsourcing such a vital process.

Some organizations have now evolved the concept of outsourcing of finance accounting services such that it is an inclusive process which allows organizations to concentrate on their core priorities. This outsourcing of finance and accounting services is often accompanied by bigger multi-process and IT related outsourcing as well. This evolution has given rise to many intangible benefits.

One of these benefits includes increased efficiency in carrying out organizational growth. This growth could be in terms of a new business, a merger, an acquisition or just a new product launch. All growth initiatives are deeply linked to finance and accounting services, and by outsourcing them, organizations gain access to established platforms and process models that can accommodate any kind of growth. Another benefit of outsourcing finance accounting services is the provision to achieve very standardized management of information. This is necessary according to current Government rules and regulations, which call for complete transparency and good governance of financial data. Outsourcing of finance and accounting services allow the organization to be confident about their finances. This has helped managers make better decisions, along with facilitating better organizational monitoring. This allows management to accurately identify growth areas and assess critical areas before they are beyond control.

Outsourcing of finance accounting services ensures that there is a sound relationship between the organizations and the customers. This relationship is more electronic in nature, and hence it reduces the dependence on manual intervention during the process. It also allows for greater compliance with Government regulations and avoids potential lawsuits due to financial irregularities. When these tasks are taken off the managements backs, they can focus on more strategic initiatives and hence productivity increases.

The direct financial benefits of outsourcing finance and accounting services are many. These include the improved cash flow due to standardized methods for collecting payments, taking maximum advantage of tax benefits which are applicable, reduction in the expenses related to compliance of rules and regulations.

One of the major benefits of outsourcing finance accounting services is that it enables a work culture that is unburdened by financial responsibilities and allows employees to work to their potential unhindered. Innovation takes the front seat in the mind of the employees and often they form dynamic relationships through interaction with employees from different locations. The freedom to concentrate on their work due to outsourcing of finance and accounting services allows them to think creatively and better utilize the tools that are being offered.

Outsourcing of finance accounting services has also given organizations a greater access to the latest technology, provided better tools to measure their performance, improved their quality management skills, provided better analytics to gauge their operations, brought about a change in the work culture, allowed them to manage change in the organization in a better manner, provided them with data on the latest market trends and a generally more strategic view of the business operations.

by: Ruby Sahiwal

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