Qualms On Finance and Accounting Outsourcing Fail To Hinder Industry

Finance and accounting outsourcing is one of the branches of outsourcing that has gained traction over the past few years as companies coming from different business sizes have seen the benefits that they can gain from engaging with a finance and accounting outsourcing company. Among the services that outsourcing companies offer are payroll outsourcing and accounts receivables and payables outsourcing. It is this particular department of a company that can be considered as one of those departments that require a high level of patience and a keen attention to detail. The volume being handled in the finance and accounting department of a business is usually heavy, which allows finance and accounting outsourcing companies to pitch in their services to companies as they can easily reduce the burden at a cost that is not heavy on the budget.

The Wall Street Journal reports that there has been a rising demand for outsourcing services. However, despite the efficiency and benefits displayed by outsourcing, there are still those company executives and companies that are quite uncomfortable with the idea; thus, they would rather host their finance and accounting processes in-house. A research report by Ovum shows that a barrier that prevents big companies to outsource their finance accounting processes would be their loyalty to their staff. Peter Ryan, a lead analyst from Ovum, suggests that a combination of a company’s sense of responsibility for their staff and their skill level could be one obstacle that hinders companies from outsourcing their finance and accounting duties.

Another reason that is being pointed out by the research conducted by Ovum would be the high risks that they attribute to outsourcing is the industry’s low-cost pitch. 38.5% of chief financial officers in the United States and in the United Kingdom are having second thoughts with engaging in outsourcing with a service provider, particularly Indian service providers, who offer finance and accounting services for a low cost because they consider this as an “unacceptable” risk and they would be more comfortable in tapping the services of those who offer services at a higher price.

But despite company executives holding back on outsourcing their finance and accounting outsourcing, there are still some companies like Accenture (NYSE:ACN) and Wipro Limited (NYSE:WIT) that are being tapped for this kind of service and they are showing that their businesses are growing mainly because they have already established a name in the industry.

Other outsourcing companies meanwhile are becoming interested to explore the finance and accounting area of outsourcing. As the month of May began, business process outsourcing company, EXLService Holdings (NASDAQ:EXLS), acquired a service provider of finance and accounting services. US-based Outsource Partners International’s 3,700 professionals and 80 clients would add to the 13,000-population of EXLService Holdings. According to the President and CEO of EXLService Holdings, Rohit Kapoor, this particular acquisition will enable their company to be more known in different verticals, as well as strengthen their company presence in three continents in the globe, namely the United States, Europe and Asia.

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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.

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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.

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