The Ledger No. 14: Back-Office Accounting Services

Welcome to The Ledger where we sum up the latest finance and accounting news and trends for you. On this week’s entry, we’re diving into the topic of back-office accounting services and why this finance function should be outsourced. Read on to see what the future of the back-office is, why companies should consider India for back-office functions, how COVID has accelerated automation for back-office, and how to choose an outsourcing provider.

The Future Of Back-Office Is Here

With the last year looming behind us and the effects of the pandemic still rearing its ugly head, companies are now having to plan ahead for future changes. A few things that are at the forefront of every organization are digitalization, automation, and analytics. But before the finance department evaluates budget requests for these impending changes, CFOs need to self reflect on their own department. Over the past decade, the financial back office has melded itself with accounting and bookkeeping, thus creating accounting functions that we know of today – accounts payable, collections, FP&A, and more. But how can back office functions deliver analytical insights while focusing on time-consuming low-impact tasks? Here are a couple of ways to streamline back office tasks:

• Automation – According to a survey done by Deloitte, automation skills were cited as desired skill requirements by CFOs.

• Move Beyond Basic Automation – If you want to move beyond the basics of automation and maximize your ROI, here are a few ways to do just that:

  • Develop upselling strategies

  • Audit your back office processes

  • Capitalize on the opportunity

To learn how to turn accounting automation into a business opportunity, read the full article on Forbes.com.

Why Choose India For Back Office Accounting Services Work?

Decades ago, companies would hire in-house for accounting and finance positions. Over time, those same companies began outsourcing low-impact tasks to third party providers. Now, outsourcing is a commonality amongst different industries. But what about the Intellectual Property (IP) sector? Initially, organizations would manage IP functions internally. However, as IP activies began to require more skills, the need for in-house IP departments decreased. And just like most businesses who begin their outsourcing journey, finding a team with the right skills for the right price is no easy feat. Here are three reasons why you should consider outsourcing your back office:

• You don’t have a stable budget;

• Your ROI is prolonged;

• And you don’t have the right resources in place.

When you outsource your back office to India, you’re getting a large pool of talent as well as cost-effective services. Moreover, here are some benefits to outsourcing to India:

• High-quality talent

• Premiere destination

• Low-cost services

• Time-savings

To explore why India is the top location for outsourcing back office functions, head over to Forbes.com to read the full article.

Automation Becomes Top Priority For Businesses and Back Office Accounting Services

It’s no secret that the pandemic changed the finance and accounting landscape. In fact, COVID fast-tracked the digitization of companies, starting with automation. And according to MineralTree’s State of Accounts Payable Report, several key trends and themes have emerged over the past year:

• COVID may have quickened digitization, but B2B digital payments are still running behind.

• Businesses want to make more digital payments, but are being road-blocked by internal resistance as well as external vendors.

• AP automation is a big driver of digital payments, but end-to-end automation is severely lacking.

• The top obstacle to AP automation is status quo.

• Supplier trends are putting pressure on AP processes and emphasizing their importance.

To read more about why businesses are “still failing to fully capitalize on the dramatic business advantage of AP and payment automation”, visit CPAPracticeAdvisor.com to view the full article.

Before Choosing An Outsourcing Provider, Consider This

A majority of companies are turning to outsourcing to offload their data entry tasks and get back time in their day to focus on strategic initiatives as well as contain costs. However, before finance and accounting executives make the jump to outsourcing, they need to contemplate a few things before selecting a provider:

• Data security – Double (better yet, triple) check whether the potential provider has kept-up with data security best practices. There’s nothing worse than a data breach.

• Cultural differences – If you’re outsourcing your data entry tasks offshore, you’re bound to come across a few language and cultural differences. The best way to tackle this issue is by choosing a provider that is familiar with working with clients from your geographical area.

• Lack of focus – Make sure you choose a provider that is established and experienced.

• Inconsistency and errors – In order to avoid the potential of poorly executed jobs and mistakes, choose a provider with a good track record.

Now that you’ve confronted the four concerns mentioned above, it’s time to address the following factors when picking the right provider:

• Choose a data entry provider that is ISO-certified.

• Identify your requirements.

• Calculate your potential ROI.

• Research the provider you plan on working with.

To explore more about how to choose a reputable outsourcing provider, explore the full article on AnalyticsInsight.net.