Finance And Accounting Outsourcing Trends

Outsourcing business operations is one of the new trends followed today by most of the companies. The Finance and Accounting outsourcing industry too has grown to a large extent today. Big, medium and small businesses resort to outsourcing accounting operations, because it saves them a lot of time and money. This is a process when a business hands over its finance operations to an external agency (team or individual). This external agency will take care of all the accounting operations, thereby releasing the burden of the businesses. These agencies charge a nominal fee for the finance and accounting services (preparing entries, finalization of accounts, getting audit compliance reports, year-end reporting, etc.) rendered. Some of the recent trends followed in this industry are as follows:

Robotic Process Automation (RPA)

One of the latest trends that are creating waves in the field of outsourced finance & accounting operations is Robotic Process Automation. As the name indicates, this process involves the use of technology to automate processes, improve their quality and eliminate all the unnecessary and repetitive processes involved in delivering the final result. Through this process, the agencies that take care of F&A operations of their clients, make use of computer software to bring about the speed, efficiency and accuracy in the way accounts are managed and presented.

Predictive & Prescriptive analytics

This is one of the most successful trends employed in the finance and accounting industry today. This method involves in providing a descriptive analysis, predictive analysis on how the future model would turn out to be and prescribing an optimum solution that suits the nature and operations of a particular business. When this trend is adopted by agencies who handle the F&A activities, businesses get an idea of their current situation, forecasts for future and apt F& A model to be adopted. The finance and accounting outsourcing agencies give a detailed report about this to the business for reasonable charges.

Hybrid pricing models

In the finance and accounting outsourcing industry, many agencies charge rates based on the hybrid pricing model. In this model, business owners need to pay the agencies that take care of their F&A activities, only for the exact services that have an impact on the business earnings. If you are a business owner, you can choose this model, because it is tailor-made for you with flexible pricing structure. Delegate only particular tasks to finance and accounting outsourcing companies and pay exactly for that.

Finance and Accounting Course – Takes Your Career a Step Ahead!

There is an increased demand from employers for young professionals that are trained and well-prepared for careers in accountancy and finance. Finance and accounting courses are seen to be spreading almost everywhere. You can find them easily over the internet or in many other areas. Thus, it signifies that if you would go for these programs, then there will be a variety of job options available for you.

By studying the different accounting programs that are supported by special accounting institutes, you can receive a solid grounding in all areas of accounting and finance, including audit, corporate finance, taxation, law and financial management. But before all this, the important question that is to be answered is “How to choose the best accountancy curriculum?”

Go through the following elements and be confident about selecting the correct educational plan:

Popularity: Do some research and go through the ratings and reviews before choosing out a program. Some of them really teach very well, while on the other hand there are some courses that do not provide us with the ideal teachers and learning. So select the course that is most popular and offers the best professionals. You can also make your decision easy by examining the number of people who have subscribed for these. If the curriculum is really worthwhile then it would have an identity worldwide. The course should provide you with good business opportunities.

Excellence & Quality: These two characteristics should definitely be kept in mind while going out for studies in accountancy. You can make a background check of these programs to find out its popularity and value when it comes to the level of quality.

Flexibility: A perfect finance course that is worth it will provide you with great abilities that are relevant to any kind of accountancy organization. Once the training course is complete, you should obtain professional status in different areas, be it in the public or the private field. To become a very good financial specialist, you also require practical knowledge. A good training course also needs to involve you in real accountancy work that assists you to choose an employer which best fits in your talent.

Ethics is a must: The accounting courses hold a lot of robust codes of conduct, laws, and regulation. Due to all this, you should choose a program that concentrates on expert ethics along with excellence. Go through a variety of courses offered and look into the syllabus thoroughly to determine which courses focus on specific fields that will be beneficial for you.

Student Guidance: A good course provider will definitely look after the well-being of the students. Ask questions such as “Does the firm have a number of offices that will help you out to solve your queries?” “Will proper training be provided to students?” and so on.

But if you are unsure about what to do and how to go about it, then speak to a qualified and impartial career guidance practitioner to make it easy for you.

Finance and Accounting Outsourcing Going Strong

Trends
Due to the growing economic instability and decline in profit margins in most industries around the world, the management strategies of companies are now solely focusing on increasing efficiency and on generating significant cost savings. Business process outsourcing as a strategic tool has been accepted as one of the most effective means to achieve these twin goals. Most companies now consider finance and accounting outsourcing as an important part of their outsourcing strategy. Some recent studies and surveys highlight the following:
• An independent survey estimated that Software and Services export revenues expected to grow over 16-17% to reach USD 62 billion by FY 11 with FAO being the second largest area of outsourcing
• The Finance and Accounting Outsourcing (FAO) market in 2010 is expected to resume a growth trajectory more similar to pre-recessionary levels, moving towards 20 percent and reach nearly US$3.7 million in annual contract volume (ACV)

Common Activities outsourced in Accounting
The most common activities in this area include:
• Record to Report (e.g., general accounting and reporting, forecasting and planning, banking)
• Procure to Pay (e.g., invoicing, travel and expense)
• Order to Cash (e.g., order processing, credit and collections)

Benefits
While cost reduction would remain the primary driver for finance and accounting outsourcing, a study suggests that global finance executives also appreciate the ability to gain sharper focus on core competencies. Thirty-two percent of the respondents said outsourcing was instrumental in increasing the business productivity of the finance staff and allowed their organizations to access best-of-breed talent and technology.

Some of the key benefits of outsourcing are as follows:

• Cost savings-Outsourcing reduces staffing costs by 30 to 70%, reducing the overall net processing costs by 20 to 50%. Good accounting firms are equipped with state-of-the-art infrastructure, innovative technology and professional expertise to handle custom projects in their branch of specialization. As a result, you are not only saved from making costly investment, but also get the benefit of professional expertise at a price most of the developed countries cannot offer
• Greater leverage-Buyers have access to supplier leverage gained from infrastructure sharing and process consolidation
• Improved reporting-Outsourcing could also improve service delivery, enhance process accuracy and increase the speed of reporting
• Achieve strategic business value- According to a recent study, half of the total respondents indicated that FAO is viewed as a tool to address both operational and strategic F&A needs

Buyers generally achieve the benefits they seek from their FAO implementation, particularly relative to reducing cost and using savings to fund F&A transformation efforts

The role of outsourcing in driving profitability has increased significantly in the current economic scenario. Organizations that adapt outsourcing will not only lower their operating costs but gain significant competitive advantage within their industry.