Trends of Outsourcing Finance and Accounting Services

Organizations are looking for effective finance and accounting trends, ways to reduce the operational costs and gain a competitive edge in the market today by outsourcing their processes.

2014 is expecting a growth of 56% in BPO service sales in the first three months of the financial year.

As per the research carried out by a self-regulating research firm, strong development is estimated in business process outsourcing. The global market shows an approximate opportunity rate of US $150 to $200 billion in the field of finance and accounting.

Back in 2010, the industries that largely shifted to finance and accounting outsourcing were retail, manufacturing, travel, financial services and logistics. These sectors accounted for roughly 70 to 75 percent of the total spending. Other industries exploring the scope since then include real estate/ property buying & selling firms, medical, banking and IT firms.

The finance & accounting solutions also takes into account payroll, accounts receivable and accounts payable outsourcing processes. Evolving development trends in this sector are financial planning and business analysis.

Reducing cost and enhancing business productivity has always been the focus of organizations operating in this field. Today, looking beyond mere cost reduction the emphasis is shifting on to create new revenue streams. Potential BPOs must make noteworthy advancements of performance metrics while dealing with large accounts of inefficiencies. Subsequently, this moderates financial risks and ensures compliance with the developing regulatory norms.

The outsourcing organisations who are up to elevate the finance function and meet client challenges, propose the best ever finance & accounting solutions to the industry. In the virtue of accelerating financial growth without putting an organisation into much of a risk, BPOs plan to give a sustainable development while enduring to capitalize on manpower and innovation.

Obtaining a better insight on business performance and maintenance, the shared service providers can lend a great support for preparing revenue growth plans. These outsourcing firms operate as a comprehensive partner supporting, managing and executing finance related functions covering the following:

General ledger
Accounts receivable
Accounts payable
Reporting & compliance
Budgeting & forecasting
Financial service providers drive a robust implementation of process enhancement mechanism that manages the monetary and regulatory risks, contributes in business growth while maintain the cost.

Such refined economic methodology not only helps businesses improve efficiency but, also drives value through upgraded key performance indicators such as profit recovery, DSO, etc.

Adding on to the business value, the service providers work towards bringing process improvement to an organisation leading to profits that are greater than their yearly convention value. Organisations benefit as enhancement in the map of accounts leading to decline in the month-end closing cycle by 10%. Firms gain up to 30% more business efficiency during their work tenure of outsourcing processes.

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Database Cleansing And Verification For Finance And Accounting Firms

For many years, companies like finance and accounting firms are feeling the blow of low revenue paired with high operational costs. That is why aside from trying to find some ways to increase their sales through the accounting services that they are offering to their clients and would-be customers, they are also trying to find some new ways on how to minimize on costs. Since they need to generate and qualify accounting and financing leads, they also need to have their own effective lead generation campaign. However, before they can ever try to make the first call, they need one simple process that can be a big help to their telemarketing services and that’s to do their own database cleansing and verification processes.

Through database cleansing and verification, they can be able to streamline their lead generation campaign so as to save time and money. One can just imagine that they will call a client or prospect without getting know more about the client, what their needs are and how they run the whole operation of their company. Before any financial consultant can ever give out financial advices or even do bookkeeping for their clients, they have to know how everything in that organization works. Sad to say, they really don’t have the concrete and definite method of doing their own database cleansing and verification. That is the reason why they should outsource database cleansing and verification, telemarketing, providing themselves with targeted call list and even to a little bit of SEO if ever they have their own virtual office on the information highway. It’s a good thing that there are lots of different lead generation companies that are all over the place.

These lead generation service companies can assign somebody to be professional telemarketers, professional appointment setters and can do database cleansing and verification in behalf of their clients which are the financing and accounting firms. Since there is also a growing competitive feel between accounting offices, each of these firms should always be on their feet in focusing their energy on more profitable business appointments. They also need to give a lot of time and even precious money for their other important tasks. If they think that assigning their own people to do these jobs that outbound telemarketing personnel can also do, they might even waste a lot of time and money. They just need to concentrate on those other things and let these b2b telemarketing lead generation companies do the dialing and talking for them.

However, since there are a lot of different lead generation companies that exist today, they need to be very particular about the firm that they will choose. They just need to make sure that the lead generation firm they are going to hire to make all of these database cleansing and verification process possible is qualified and has the ability to contact and qualify marketing leads, sales leads and financing leads for their clients with different consumer targets from banks, credit card companies, retail investors and even government agencies.

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Finance And Accounting Outsourcing Trends

Outsourcing business operations is one of the new trends followed today by most of the companies. The Finance and Accounting outsourcing industry too has grown to a large extent today. Big, medium and small businesses resort to outsourcing accounting operations, because it saves them a lot of time and money. This is a process when a business hands over its finance operations to an external agency (team or individual). This external agency will take care of all the accounting operations, thereby releasing the burden of the businesses. These agencies charge a nominal fee for the finance and accounting services (preparing entries, finalization of accounts, getting audit compliance reports, year-end reporting, etc.) rendered. Some of the recent trends followed in this industry are as follows:

Robotic Process Automation (RPA)

One of the latest trends that are creating waves in the field of outsourced finance & accounting operations is Robotic Process Automation. As the name indicates, this process involves the use of technology to automate processes, improve their quality and eliminate all the unnecessary and repetitive processes involved in delivering the final result. Through this process, the agencies that take care of F&A operations of their clients, make use of computer software to bring about the speed, efficiency and accuracy in the way accounts are managed and presented.

Predictive & Prescriptive analytics

This is one of the most successful trends employed in the finance and accounting industry today. This method involves in providing a descriptive analysis, predictive analysis on how the future model would turn out to be and prescribing an optimum solution that suits the nature and operations of a particular business. When this trend is adopted by agencies who handle the F&A activities, businesses get an idea of their current situation, forecasts for future and apt F& A model to be adopted. The finance and accounting outsourcing agencies give a detailed report about this to the business for reasonable charges.

Hybrid pricing models

In the finance and accounting outsourcing industry, many agencies charge rates based on the hybrid pricing model. In this model, business owners need to pay the agencies that take care of their F&A activities, only for the exact services that have an impact on the business earnings. If you are a business owner, you can choose this model, because it is tailor-made for you with flexible pricing structure. Delegate only particular tasks to finance and accounting outsourcing companies and pay exactly for that.

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Strategic Outsourcing For Financing And Accounting Services

With the advent of globalization, vastly increased availability of bandwidth at rock-bottom rates and wage differences at various locations across the globe, firms are increasingly resorting to Business Process Outsourcing, or BPO. This allows firms to focus on their core business activities and strategic functions that are the revenue drivers. Non-strategic functions and business processes are outsourced from an outside partner. These could include customer support, invoicing and claims processing.

Strategic Outsourcing:

Considered at the strategic level, outsourcing essentially involves the transfer of control of a product or a process to a supplier who may provide the service either at the same location or remotely, whichever is most cost effective. In strategic outsourcing an entire service, product or product line may be handed over to the supplier for strategic value. By its very nature, strategic outsourcing yields best results by outsourcing to a provider who adds value to the company’s core business processes.

o Benefits – It is now well established that strategic outsourcing yields many tangible and intangible benefits to a business. It yields many competitive strategic benefits, lowering manpower costs, freeing up internal processes and ease of management.

o Concerns – The strategic outsourcing decision makes sense only if it brings tangible business benefits to the firm. If not properly planned, outsourcing could well result in lowered customer satisfaction levels, decreased quality, delayed deliveries, theft of intellectual property or customer information and increased costs for the firm.

Outsourcing Finance and Accounting Services

Companies are increasingly resorting to outsourcing the finance and accounting function to BPO firms located overseas. Preferred destinations are India, Ireland and countries in Eastern Europe. The finance and accounting function is concerned with the acquisition and use of funds by the business. These needs cannot be postponed or put on hold. Any errors in this department can have disastrous consequences for the entire firm. It is, therefore, of prime importance that the outsourcing is carefully planned and executed and lower costs quoted by a provider are not the sole criteria for selection.

o Advantages – Outsourcing of this function can accrue substantial savings for businesses. A separate accounting division may not be necessary with consequent savings in recruiting, training and labor costs. The outsourcing firm with specialized expertise and technology can help you improve the processes.

o Services Available – Services that can typically be outsourced include bookkeeping, audits, preparation of financial statements, ledger maintenance, payroll processing, training of accounts staff and software assistance, to name a few. These are essentially low value adding activities and eminently suited for outsourcing.

BPO is being accepted increasingly as an effective management tool enabling businesses to take advantage of labor arbitrage. It enables firms to access specialized services and latest technologies at competitive costs. It cuts on transaction times by leveraging the different time zones across the globe. Firms must include this aspect in their strategic planning to maximize the gains.

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A Look At Indian Personal Finance and Accounting for Life

The world today runs on the cogs of money, the centralized resource to obtaining, using and disposing of all the primary and secondary resources. As such, financial management demands the highest attention whether personal or corporate finance, holding the reigns of function at all levels. Financial management today is diversified with respect to the normal Indian- in the form of loans, insurance, credit card facilities, auto finances, property loans, fixed deposits and tax savings to mention a few.

With the changing regulations and increased awareness, the options available to a person to garner savings and create a financial back-up are growing too. From the limited openings like Life Insurance Corporation for insurance, National Savings Certificates and National Savings Scheme, Unit Trust of India mutual funds, Public Provident Funds etc. The opportunities to invest and save in India have burgeoned into innumerable options with the finance avenues broadening the playing field. This article gives you an insight into the other developments in some of these financial avenues like loans, tax savings and credit card facilities that have occurred, sharpening the financial tools required for efficient management of your finances.

The concept of insurance is essential to have a good start on personal savings as well as back-up for emergencies; and with life insurance policies like Unit Linked Plan offering tax benefits along with flexibility in the premium tenor, one can make use of the opportunity to invest and secure amount.

Auto loans are another viable option, and with 60% of cars in India financed, the credibility is sealed! The car or vehicle being a depreciating asset, investment in auto loans must be carefully scrutinised with respect to Equated Monthly Instalment (EMI) rates and foreclosure charges, not to mention turnaround time and mode of repayment.

The third aspect of finances includes the tax benefits and savings which the Indian can accrue, on account of home loans and Public Provident Funds, the latter being a long-term savings option. There are many rebates on taxes offered by the Government on certain investments, and tax exemptions are offered for several saving instruments mentioned above and this list includes home loans as well.

An important aspect controlling most of the financial transactions today is the credit card and debit card option, which allows us to perform financial transactions conveniently. Although statistics show the debit card transactions ranking higher than their credit card counterparts, the concepts of credit card usage and the recent developments through Consumer Information Bureau India Limited are invaluable in financial management today.

Credit card owners who have outstanding amounts piling up can look to salvage their position by turning those amounts into personal loans, which come at a rate of 12-18% p.a. as opposed to the high rates (36-44% p.a.) levied on the credit cards.

The concept of credit information reports are new in India, though common practice abroad, which gives the credit worthiness of every individual owning credit cards and going for loans. The information pertaining to the repayment behaviours and financial history obtained from banks, financial institutions, credit card companies and housing finances is used by the bank or lending agency to gauge the creditworthiness, set up the rates and decide on how fast to issue loans.

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The Benefits of Stainless Steel Roller Chains

Typically, roller chains can be found in a lot of mechanically powered systems. For instance, you can find them in a number of environments like automotive industries and agriculture systems. Examples of automotive industries they are used in are bicycles and motorcycles. In this article, we are going to take a closer look at some of the common benefits of roller chains made of stainless steel. Read on to find out more.

Rollers chains are also commonly used in conveyor belts and many other industrial assembly environments. Aside from this, you can find these systems in many other environments too.

Advantages of Stainless Steel Roller Chains

Although these products are made of other metals as well, stainless steel is the most common one. This is because this metal offers a lot of benefits. Some of them are listed below. Please note that this list doesn’t talk about all the benefits the unit offers.

Food Applications

Stainless steel roller chains are quite popular in the food industry for many reasons. One of the main reasons is that the steel offers immense strength unlike other metal types you can find and use.

Therefore, products made of this metal can withstand even extreme conditions. Another good thing is that it’s much easier to clean. For instance, in an environment where food packaging, processing and handling is done, you may need to clean the chain more frequently. This is what makes these roller chains a great choice.

Temperature Resistance

Another great thing about these roller chains is that they can work fine even if you place them in an environment where temperature exceeds 400 Celsius. In the same way, they won’t stop working even if you use them in a place where temperature drops below -20 Celsius. This is what makes it an ideal choice in environments that are not good for other metals.

Corrosion Resistance

They are also corrosion resistant even if used in acidic or alkaline environments. In many industries, these roller chains are used either in alkaline or acidic settings. This is why they are preferred in a lot of industries. Aside from this, it offers quite low magnetic permeability. Therefore, we suggest that you opt for them instead of other options out there.

Heat-Treated

Another good thing about these chains is that they are heat treated for a lot better temperature resistance. Plus, they are put under a lot of stress for testing purposes to reduce the chances of stretching issues or premature leakage. So, as far as safety is concerned, this is the best choice you can take. They can save you a lot of money due to their long lifespan.

Long story short, these are some of the most common reasons why these roller chains are quite popular these days. Although they can’t be the best option for all types of applications, they can work well in many environments. Therefore, if you want to opt for them, we suggest that you give them a go. You won’t regret your choice.

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