Driving efficiency is a high priority for CFOs who want to outsource Finance & Accounting processes. The main strategic aim of the accounting department as delivering efficiencies, whether that is within the department itself or across the company as a whole. This is a wider trend in outsourcing as a whole, cost reductions are the table stakes, and companies want to know what else their outsourcers can do to make their processes and technology run more efficiently.They are looking to move from relatively basic transactional processes, such as accounts payable to more strategic functions, like budgets, forecasts and internal audits.
Accounting is the foundation of any business and clients benefit when this work is done by a professional adept in the entire process from source document to financial statement analysis. The accountant must be entrenched with the transactions to correctly classify, be current, consistent and compliant. Once your clients understand this concept, they’ll be more likely to see why outsourcing the entire accounting function makes sense.
There are significant advantages for clients who decide to outsource starting with cost efficiency. According to a survey conducted by Northwest Staffing Resources, an employee can cost approximately 57 percent more than the stated wage due to the cost of benefits and the amount of time they are actually focused and on task. For example, a $50,000 employee could actually cost the company almost $78,500 a year. An outsourced firm, however, can provide complete accounting services for roughly $3,000 per month or $36,000 per year. For the monthly fee, the client receives a higher level of expertise since the outsourced firm brings experience from a variety of client situations, continuing education, and the firm’s other resources. The work is done in much less time without the normal distractions of an internal employee, such as routine staff meetings to vacations.