What is one of the most important factors that contributes to the slow-paced growth of an organization? Ask CFOs and they would immediately cite inefficient finance and accounting as the main reason. An Ovum study of 150 large companies in the United States, United Kingdom and Canada revealed that the biggest priority of CFOs is outsourcing F&A processes. Most survey respondents considered efficiency delivery as the main strategic aim of the accounting department, be it within the department itself or across the company on the whole.
In the competitive framework of modern markets, there is little room for F&A functions that are not standardized, streamlined and fully functional. In such a scenario, finance and accounting outsourcing (FAO) has come to assume new importance. Be it reviewing financial statements, developing operating budgets or cash flow management, clients want quality services from lower financial investments from their outsourcing partners in order to achieve remarkable results efficiency wise in their F&A functions.
What makes industries take to FAO?
Cliché-ridden yet time-tested functions like cost reduction, improved process, access to the best talent resource, freedom to focus on core competencies and faster turnaround time essentially prompts industries to consider FAO.
The growth of FAO globally signals its bright future, albeit those providing customer-centric, cost-compliant and quality services would stay longer in the market. Here is why this phenomenon is becoming more popular by the day:
Accounting and Finance, while being crucial to any business, needn’t always be handled in-house and shouldn’t be a cause of worry if you don’t have in-house talents to handle it. A good FAO vendor will help you save on all the above-mentioned fronts and fast-track your business to growth. FAO is an emerging function that will only grow more with time and the future will be extremely competitive for companies offering FAO services.