Rose Report: Issue 23
Efficiencies Found from Outsourcing
As the global business environment becomes more competitive, companies are constantly seeking fresh ways to reduce costs by streamlining their finance and accounting process. Driving efficiency while improving the quality of financial information is a focus for many company leaders, causing many organizations to look at outsourcing some or all of their finance and accounting functions to gain access to new technologies and best practices.
The right Finance and Accounting Outsourcing (FAO) partner can help an organization simplify and standardize its finance and accounting processes and procedures, giving the company high-quality results with significant cost savings. High-quality FAO partners use a combination of technology and best practices to streamline the processing of transactions, allowing the FAO partner and the firm to allocate more resources to higher level and strategic finance and accounting functions. While transaction processing—accounts payables, billing and receivable, and payroll—are commonly outsourced, quality FAO partners offer higher level functions as well. Forbes recently interviewed Ed Thomas, an analyst from Ovum, who stated “[Companies] are looking to move from relatively basic transactional processes, such as accounts payable, to more strategic functions, like budgets, forecasts …”.
In addition to making sure that each transactional function becomes more efficient, FAO partners that provide higher level services will have a better view of the overall business, allowing them see the cash flow ebbs and flows and make recommendations for other areas in need of improvement. FAO partners leverage their industry-specific knowledge to share benchmarks, identify trends, and implement best practices. FAO experts utilize powerful analytics tools and metrics to better understand and communicate the meaning of the financial information created by the underlying transactions.
While companies need to stay focused on their primary business objectives and core competencies, a high-quality FAO partner can provide access to a cost-effective and scalable financial infrastructure that produces timely, accurate and meaningful information. This financial clarity helps executives make better business decisions.