For every company, the financial stability is one of the main goals in achieving company success. As such, it is absolutely necessary to have proper and accurate financial accounting procedures in place to achieve the company’s financial health.
A lot of businesses and entrepreneurs have embraced outsourcing various business functions including finance and accounting. But, why should you consider outsourcing in your business? Would known outsourcing benefits help your business achieve its utmost potential in the industry? With the advancement of technology, the way we do business these days is far different from how things are done before especially when it comes to finance and accounting. Sometimes, it can even be hard to keep up with the changes in the technology as well as the constant changes in accounting policies.
There is a reason why businesses outsource finance and accounting services from external service providers. For one, the biggest reason is the affordability of quality accounting functions. Outsourcing accounting personnel for a specific task proves to be more cost-effective and often even cheaper compared to hiring a person in-house and building your own accounting team. Another reason why outsourcing has become famous in finance and accounting is the already available and established processes that service providers have. They don’t only offer personnel but also tried and tested accounting processes like invoicing, paying bills, and reconciling accounts that can make the entire process faster. It means that you can now avoid the regular headaches you get when organizing your business accounts.
Another reason to outsource finance and accounting is the availability of experienced people and staff from outsourcing companies. They offer services that are task-specific which require them to be trained, knowledgeable, experienced, and certified for it. It means that when you outsource, you can get an expert to do your finance and accounting tasks, better than a regular in-house employee who is not an expert for the job. Accounting involves a lot of organization from all processes and documents that come with it. Sorting everything out requires a lot of time and effort. But, when you outsource this function, you can relax and give more focus on improving your core business functions. Hiring experts for the job also gives you a guarantee that it will be accomplished with little to no errors and discrepancies. When it comes to a business’ accounting documents, a CPA would always be a great help in sorting out and reconciling every data. However, hiring one in-house can be extremely expensive. Fortunately, you can outsource an accountant for your business. Outsourcing a CPA can greatly make your accounting issues so much easier.
One of the reasons why outsourcing finance and accounting services have become well adopted by a lot of companies is because it offers a certain level of reliability. When you hire an outsourced accounting service, you get reliable support. Unlike when your in-house employee had a sick or vacation leave, service providers often have a secondary staff to fill in whenever one of their personnel is not available. There are a lot of small yet extremely intensive tasks involved in keeping your business accounts organized and updated. Fortunately, with outsourcing, you don’t have to deal with the daily redundant and time-consuming finance and accounting tasks. You can let your outsourcing partner do the hard work for you, and you can give more attention to revenue-producing business functions.
Outsourcing suppliers utilise the best finance and accounting tools on the market. Below are some of the core accounting tools, for the leaders in the field.
We outline some of the most commonly outsourced finance and accounting roles. The Philippines now offers some of the best finance and accounting expertise and can be at a fraction of the cost to ‘Western’ equivalents.
Browse the widest range of productised outsourcing services. Easy purchase, best prices, clear deliverables, quality guaranteed, verified suppliers.
Making it simple, transparent & safe to engage with verified outsourcing suppliers
Find the best prices & unbeatable outsourcing deals – available on this website only
Browse a huge range of outsourcing services from the highest quality verified suppliers
The Source Superstore offers the widest range of productised outsourcing services. The Superstore offers incredible packages, supplied by some of the best companies in the industry and offer market-beating discounts.
The Source Superstore offers four pricing tiers for easy navigation and comparison. With the Superstore, you get a precise service, delivered within a distinct timeframe, for a clear price.
|Great starter packs||Deeper deliverables||Done-for-you packages||Advanced outsourcing insight|
|Save up to 30%||Save up to 35%||Serious savings||Comprehensive deliverables|
|Huge range of services||1 month OA support||1 month OA support||3 months OA support|
|Shop $199||Shop $599||Shop $1,299||Shop $5,999|
The Philippines is considered the ‘Swiss banking of outsourcing’. The country has been outsourcing longer than any other nation, so it has incredible expertise in the area, plus it has incredible cultural alignment with the ‘West’, a very young and well educated population, and English is a native language.
There are several different ways to get outsourced work done, and hiring a BPO company is just one of them. Another way to do it is to employ freelancers through an agency or directly hire an individual freelancer via his personal online site. These routes can be hard because you have to do a lot of research to find the best outsourcing websites and freelancers available.
However, there are also websites that make the search easier. Websites, such as Upwork, cater these individual and agency freelancers. These websites act as a marketplace that sign up individual and group freelancers all over the world. Companies who need to outsource portions of their operations can visit them and look for third-party service providers that could accomplish their requirements. Some of the most common outsourced jobs for individual freelancers are content writing, creative writing, product description and reviews, virtual assistance, and encoding.
If you want to work with an individual freelancer, then you can choose to do that. Working with an individual lets you have direct contact with the person when it comes to project development, project timeline, and payments. Workflow is easy with straightforward communications.
You can also choose to hire someone from an agency. Going this route means that you are given a contact person from the agency, and they will provide you with the staff that you need. Payments and complaints, if any, are coursed through the agency’s point person assigned to you.
The BPO company route may be slightly expensive than the other options, but you make up for those expenses with guaranteed returns. In BPO firms, you can be sure that you are working with highly-skilled professionals in their fields of expertise. Meanwhile, you are not certain about the skill level of your service provider when you hire a freelancer directly or via an agency.
Each outsourcing route has its own pros and cons, and so choosing the best option for your business depends entirely on the risk you are willing to take. The table below shows a comparison of these different outsourcing routes and some of their features.
|Verified Outsourcing Partner||✔||❌||❌||❌|
|Backup and Security||yes||varies||none||minimal|
|Trained and Skilled Professionals||guaranteed||varies||uncertain||uncertain|
Seat leasing and staff leasing are two other forms of outsourcing. However, they are quite different from the comprehensive outsourcing offered by BPO companies.
Seat leasing means renting a workspace or “seat” for a fixed sum each month where your employee can work on his tasks. The best seat leasing providers can offer you warm seat leasing or cold seat leasing options. Warm seat means that the space lender will also provide you with the staff that will fulfill your requirements. In cold seat, you have to find your own employee and rent the space only. Seat leasing would be ideal for startup companies that do not have that much capital to hire regular employees. It is a cost-effective way of getting some of your operational tasks done while you focus on running or promoting your business. The temporary nature of seat leasing is also an advantage since you get to further grow the business before investing in actual office space and equipment.
On the other hand, staff leasing means that the outsourcing company will provide you a set number of employees for an agreed number of days. Basically, it is almost the same as BPO outsourcing, but the length of outsourcing time or contract is quite short.
Staff leasing allows you to gain the benefits of having skilled employees anytime you need them without going through the hassle of recruitment, payroll, benefits, and other human resource concerns. The best staff leasing companies already have a talent pool where they can pluck out the specific skilled worker that you need. You only need to approach the leasing company, inform them of your requirements, and they provide you with the right staff to accomplish your goals.
Comprehensive outsourcing, also called complete outsourcing, is much more all-encompassing in nature as compared to the previous two. The BPO company is hired to manage all of the processes and activities for a certain operational task you hired them for. All aspects of that specific task will be managed on your behalf, virtually eliminating your need to allot time and resources to it.
There is only a thin line differentiating comprehensive outsourcing from staff leasing. In simple terms, staff leasing companies provide you with manpower primarily while BPO firms help with operational processes and other tasks as well.
The table below shows the difference between comprehensive outsourcing, seat leasing, and staff leasing.
|Comprehensive Outsourcing||Staff Leasing||Seat Leasing|
|Skilled and Experienced Workers Provision||yes||yes||n/a|
|Recruitment and Training||yes||varies||n/a|
|Payroll and Benefits Duties||none||varies||n/a|
|Hiring or Contract Duration||varies||varies||transient|
Outsourcing can be integrated into almost any business, in any business sector. Virtually any business function that can be done from in front of a computer monitor, can be outsourced. There are some more commonly outsourced roles though, and it might be wise to start with these roles first. We outline some of those here:
Do you want to list your company?