The increasing amount of workload on businesses has established a special place for outsourcing in the business market. Be it IT, customer care or Accounting outsourcing is increasingly being adopted by businesses in US. Outsourcing means transfer to third parties of the performance of service-based functions once carried out within a company or more generally within an organization.

Finance accounting outsourcing refers to outsourcing of activities pertaining to finance and accounting functions. It includes outsourcing of activities pertaining to accounts payable, accounts receivable, credit and collection, bank and other reconciliation, general ledger maintenance and financial analysis among others. Companies are either outsourcing entire functions (end to end accounting) or outsourcing specific functions. Finance and accounting outsourcing (FAO) has become a key element of outsourcing. The benefits of FAO are listed below

Benefits:

• Substantial costs savings: Finance accounting outsourcing has been considered cost effective savings almost between 30%-50%. The expenses of keeping an entire specialized staff for managing accounting work can be more expensive than outsourcing it. Also the client can be assured of well maintained and absolutely accurate financial records being maintained by professional accountants. This enables the client to have ready access to his financial records at a moment’s notice.


• Favorable time difference: There is a complementary time differences between India and USA. This ensures that work gets done faster; the time thus saved can be used for concentrating on other matters of your business that need more attention.


• Data is secure using the latest technology for data encryption, firewalls, redundant back-ups and around the clock monitoring.


• 24/7 access to all your data, irregardless of whether you are in your office, at home or traveling.


• Flexibility to grow: Moreover finance accounting outsourcing gives the distinct advantage of flexibility to grow without huge investments in human resource and infrastructure.


• Access to specialized skill set of an outsourcing service provider

Accounting outsourcing has been implemented by several businesses with wonderful results. This includes both the large and small sized companies across diverse industries like manufacturing to retail. Of course, you need to be properly informed about all the aspects related to accounting outsourcing. This includes short-listing what to outsource, selecting right service provider, planning the handover to the service provider, and managing risks. You can start with a pilot project for a particular function and scale up at your pace.

When you hire an accountant from one of the outsourcing firms to do you work, you end up saving a huge amount of money in the process. The money they charge for doing the work is less than half the amount that you would require to hire a full time accountant to handle your work. Accounting outsourcing is a smart decision that you will make for your business. It will give you benefits beyond just large cost savings. It will help you manage your business and compete better with your competitors!