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.