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:
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.
This is done through continuous improvement and innovation. Reduction in FTE through automation and reduction in turnaround time due to better management of services are some other benefits of outsourcing finance & accounting services.