Ken Johnson, SVP at IQ BackOffice, discusses mistakes he sees accounting departments make when outsourcing AP, and how doing it correctly leaves you with a leaner organization that can focus less on administrative work and more on growing the business.
Restaurant owners need to carefully look at the third-party services and pick the one that best suits their restaurant and can deliver the most significant volume of daily orders. And they should consider innovative and collaborative accounting providers, such as IQ BackOffice, to partner with them.
Ken Johnson, IQ BackOffice, discusses mistakes he sees accounting departments make when outsourcing accounting functions to execute their strategic plan.
Companies often choose to transfer recurring operational activities to an outside supplier with better technology, business processes, and lower costs to improve outcomes and maximize profits while minimizing risks.
Business Process Outsourcing (or BPO) is simply hiring another company to perform a specific function instead of doing it yourself.
Companies turn to outsourcing for better technology, business processes, and lower costs to improve outcomes and maximize profits while minimizing risks.
Outsourcing accounting is generally worthwhile especially for businesses whose core-competencies fall outside of the financial and accounting disciplines.
Because accounting duties include many low-value transaction-laden activities, outsourcing and automation are viable alternatives to keeping them in-house.
Outsourced accounting costs are generally lower than the cost of having the accounting function operate in-house, generally between 30-75% of current costs.
Outsourcing accounting processes, for example, generally saves between 30% and 75% of current costs, while improving quality and timeliness.
There will always be potential risks in every partnership, however, the goal is to select an appropriate function for outsourcing - and the right provider.
To control outsourcing, the business will have to ensure there is sufficient communication between the business, the teams, and the outsourcing provider,
In very broad terms, outsourcing challenges can typically be categorized as organizational/culture challenges or system/process related obstacles.
IQ BackOffice offers full service accounting outsourcing to restaurant and hospitality companies. Savings up to 68% - improved quality and internal controls
Imagine your accounting processes reengineered into a customized solution that offers 99.97% quality, 40-50% cost reduction, close on financials to 3 days.
According to Debi Warren, CPA, CGMA, “adding bookkeeping and accounting resources can increase firm revenue and provide your clients with more options.” Accounting outsourcing, she writes, enables firms to offer a greater variety, and level, of expertise at a lower cost.
According to Debi Warren, CPA, CGMA, “adding bookkeeping and accounting resources can increase firm revenue and provide your clients with more options.” Accounting outsourcing, she writes, enables firms to offer a greater variety, and level, of expertise at a lower cost.
Given how little time leaders of growing companies have, the thought of senior resources spending many working weeks each year just on their finances has many weighing the Pros and Cons of Outsourcing their accounting work.
IQ BackOffice significantly reduced the client’s current operational cost over 60% annually; some processes saved over 75%.
IQ BackOffice significantly reduced the client’s current operational cost over 60% annually; some processes saved over 75%.
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