- High expenditure in human resources and overheads accompanying business expansion constrains business potential of small and mid-sized companies
Implication- Outsource accounts to eliminate fixed costs associated with expansion
- Mid sized companies compared to larger companies
- spend a higher proportion of their revenue on back office services
- maintain a greater staff count in Finance and HR functions
Implication- Outsource bookkeeping and execute accounting outsourcing to enhance efficiency of operations
- According to a study, finance and HR functions in mid-sized companies spend as high as 87% of their time in processing routine accounting and bookkeeping activities rather than strategic analysis and reporting
Implication- Outsource bookkeeping accounting to focus more on critical business
functions
- Lack of access to real time financial data impedes faster decision-making
Implication- Implement accounting outsourcing to enable faster turn-around time
- Absence of specialized expertise in functions like HR ,accounting and bookkeeping results in lower productivity and process efficiency
Implication- Outsourcing accounting to India brings in specialized expertise in accounting and bookkeeping
