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6 Reasons to Outsource Accounting & 4 Ways to Evaluate Providers

For companies considering outsourcing financial functions, now is the perfect time to begin realizing the benefits that delegating accounting and related tasks can provide. Technology has advanced to where sharing documents and data is quick, reliable, and secure. Also, the third-party financial services industry has greatly matured and become proficient in providing customized solutions to clients.

Healthcare, transportation, finance and banking institutions, retail and manufacturing firms, and more are all turning to outsourced bookkeeping and related services. In fact, financial functions are now among the most commonly outsourced business operations, alongside outsourced call centers, computer programming, and web design.

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Most Major Multinationals Outsourcing Financial Services

Big companies are increasingly outsourcing financial functions. According to Global Business News, 75 percent of U.S. and European multinational firms use outsourcing or shared services for financial functions and plan to continue doing so over the next one to two years. About 29 percent planned to increase their outsourcing of financial functions. The survey reported by Global Business News was conducted by PricewaterhouseCoopers and included executives from 127 European companies and 127 U.S. companies.

Outsourcing appears to be getting results for big companies using it for financial functions. The survey reported that 47 percent of executives surveyed said outsourcing financial functions have saved their companies a moderate or greater amount of money. By and large, executives are pleased with their outcomes. Eighty-four percent of European executives report that outsourcing financial functions has met or exceeded their expectations. Eighty-one percent of American executives are pleased with how outsourcing has worked for them.

The most common financial functions outsourced by U.S. firms are payroll, billing, accounts payable, and benefits and claims administration. European firms’ top two outsourced financial functions included tax services and payable services trailing. European firms were also more likely to outsource IT and systems support than their American counterparts. Outsourced call centers for customer service work also remain a commonly outsourced function.

It’s not just big multinationals that are outsourcing financial functions. Small businesses are also using third-party vendors to provide accounting and bookkeeping services. Advances in technology and innovation by third-party providers have made outsourced bookkeeping and accounting affordable and practical for small business customers. According to CPA Practice Advisor, about 71 percent of small businesses outsource at least one financial function.

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Why Outsource Accounting & Financial Functions?

Businesses large and small are outsourcing financial functions to reduce costs and better focus their available labor and technological resources. Delegating bookkeeping, accounting, and related tasks to a skilled third-party benefits companies by:

Choosing an Accounting Outsourcing Provider

There are many third-party accounting and bookkeeping providers in the market, and finding the firm that’s the right fit for your company can pose a challenge. When shopping around for accounting and bookkeeping services, consider the following:

By being smart and deliberate in your hiring process, you can reap the productivity and cost benefits of outsourcing bookkeeping, accounting, and related services. DATAMARK provides a variety of business services to clients, including outsourced call centers, data entry, mailroom management, document management, and more.

The company’s business engineering team can help clients improve efficiency by applying Lean Six Sigma concepts to operations. DATAMARK offers onsite, onshore, and offshore third-party services to clients, allowing it to tailor services to clients’ individual preferences and needs.

Sources

  1. http://www.cpapracticeadvisor.com/news/12055950/what-are-the-biggest-accounting-challenges-small-businesses-face

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