The figure that we know today of Accounting Outsourcing consists of the outsourcing of service, and it is the process by which an organization identifies a portion of its business process that could be performing more efficiently by another company specializing in the subject, which is contracts to delegate said activity, which was previously carry out internally by workers within the company.
Outsourcing frees organizations to focus on the core function of their business and is a business strategy use for quite some time, which allows being at the forefront especially in those areas that do not constitute the main activity of the company, but that are essential for its operation.
Why do companies favor this alternative?
Currently, companies are in search of more flexible organizational and cost structures, which allow them to have a solid specialize support, an adequate cost structure for their new businesses, and to be able to face changes in the market.
Modern companies cannot afford not to have immediate and solid answers on the issues of implementing new businesses and new technologies. The speed of adaptation to new modalities, to the design of simple and orderly processes to support new businesses.
In this sense, Outsourcing offers modern companies a whole range of activities, namely, accounting, payroll, logistics, personnel, technology, etc.
A good example is a payroll or accounting. Every business has to do it and today there are specialize firms that can do it better and at a lower cost than any other business can handle. The contracting company provides basic information about its personnel and the contracting firm is in charge of calculating the payments and delivering the receipts digitally or virtually.
In the case of accounting, outsourcing can directly receive the information, organize it, process it, and guard it, complying with all the requirements of the law, being up to date with the latest regulations, and in this way supporting decision-making in a more accurate way. At first glance, this is cheaper, since it avoids having a whole department in charge of payroll, or accounting, which implies paying the salaries of the people in the department, running expenses such as social security, pension funds, etc. In addition to the use of infrastructure and equipment that this entails.
Currently, there is outsourcing “In House” or “Out House”, the first consists of outsourcing the service, but controlling it directly from the client’s offices, in that case, the client supplies the infrastructure to carry out the service, the facilities, equipment and requires external hire staff to work from their office. The second option, Outsourcing Out House outsources everything and seeks to provide all the means to carry out an objective, but outside of your office.NumberPro also Provides outsourced BookKeeping services with respect to accounting Outsourcing.
When a company decides to hire an outsourcing service, it is because a series of aspects have been previously considering and evaluate. In the first place, the service to be outsourced has been identified and define and what is to be obtain with the outsourcing. It is important that before hiring an outsourcing, several aspects are analyze, such as:
- The costs.
- The background, references, and experience of the firm to be hire.
Advantages of Outsourcing
- Personnel costs, investment in plant and equipment are reduce.
- It allows the company to respond quickly to changes in the environment since they offer a constant update.
- A rise in the company’s strong points.
- Help to build a share value.
- Build a long-lasting competitive advantage through rule change and greater organization reach.
- Increase engagement in certain technologies improves the timing and quality of information delivery for important decisions.
- It helps define the business.
- It allows companies to use the best available technology without having to train staff to use it.
- In the face of competitive pressures, enables rapid adoption of information services.
- Utilizes the organization’s talent and resources in key, key areas.
- Helps respond to changes in the business environment.
- Increases organization flexibility and reduces fix costs.
- Deploys staff to support assign tasks in areas such as law, finance, tax, and foreign exchange.
In times of economic readjustment, outsourcing is an attractive option for companies by allowing them to reduce the costs of a part of the business development quickly, disposing of assets that may be unnecessary to meet the business strategy and objectives.
Outsourcing has a lot of outsourcing, but in fact, it consists of establishing alliances with collaborating firms that will make the transversal tasks of each company more efficient, to concentrate on the core of its business.