Thought Leadership

4 Reasons Businesses Must Outsource Finances and Accounting

A business’s finances are its lifeblood. Without money, it can no longer operate, pay for necessary services, or compete with its rivals. Given the importance of enterprises’ finances and accounting, it’s understandable why many businesses are wary of the idea of outsourcing even part of their accounting function to other companies.

The truth is, however, that outsourcing finances and accounting is not only safe but beneficial to big and small businesses. Here are just a few of the reasons why enterprises need to seriously consider outsourcing their finances and accounting as soon as possible:

1. Your CFO Is Over-Worked

Whether you’re a large organization or a small one, your CFO is almost certainly taking on too much responsibility for one person to handle. There’s only so much one person can handle, even when they are entirely dedicated to a business, and, of all the people working in a business, the CFO is the one most likely to be under too much pressure.

According to Deloitte’s CFO Signal Survey, CFOs put in an average of 12 to 15 hours every day; worse, they spend much of their work hours attending to manual and trivial tasks that distract them from the main thrust of their duties. By outsourcing accounting and finance, your CFO can ignore these menial, time-consuming tasks, shortening their long workdays and letting them focus on the tasks that really need their attention.

2. Improved Accounting Efficiency

Outsourced accounting agencies measure their success by one metric: How happy are their clients? In an increasingly competitive outsourcing services marketplace, finance and accounting outsourcing agencies know that they need to deliver the best results possible, or their clients will find someone else to handle the job. As such, these agencies are increasingly adopting client satisfaction-centric business strategies, and utilizing the latest and best technologies to make sure they are doing their jobs accurately, efficiently, and cost-effectively.

3. It Cuts Costs

When it comes to managing their finances and accounting, businesses really only have two choices: 1) hire an entire department to handle it internally, or 2) save money by using an outsourced accounting service provider. By outsourcing accounting and finances, businesses avoid taking on the expense of scouting, interviewing, hiring, and onboarding new staff, as well as taking on the financial burden associated with hiring additional employees.

4. Capitalize on the Expertise of Service Providers & Accounting Professionals

When a service provider specializes in one thing (say, handling businesses finances and accounting), they focus their hiring efforts on finding personnel and dedicated teams who specialize in their area of expertise. In most cases, a third-party finance and accounting firm will have staff that is much more knowledgeable and be able to pull from a deeper talent pool than businesses whose main area of focus isn’t finding and hiring the best accountants and money managers.

For more information on financial and accounting outsourcing services, contact Datamark today at 800-477-1944.

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