Why are businesses outsourcing their accounting and financial functions?
A new survey published by Financial Director has revealed that the primary objective of adopting an outsourced accounting or financial function is to reduce costs.
The study showed that 70 per cent of chief financial officers (CFOs) had brought in the services of outsourced accounting services to cut their spending.
This reason was a change to last year’s report by the same authors, which found that the primary goal of outsourcing was improving agility and enhancing the quality of the financial functions within a business.
The change seems to be a result of the pandemic and subsequent cost crisis, which has been amplified by recent world events, such as the war in Ukraine.
Speaking about the findings, Paul Prendergast, Managing Director of Accenture’s CFO and Enterprise Value Europe Practice, said: “At the end of the day, it does all start with costs. CFOs now recognise that by using outsourced services providers, they can achieve process improvements and better insight into their company and its business, which in turn ultimately leads to cost reductions.”
Within the Financial Director article, Paul said that many CFOs had come to realise that outsourcing their accounting to a trusted firm could help them to reduce costs, especially regarding accounts payable and accounts receivable.
Beyond the cost savings, the report highlights that a general move to flexible working within many businesses and a growing difficulty to recruit the right people meant that many companies see outsourcing as an easier alternative.
Additionally, the use of outsourced accountancy services gave CFOs access to the latest technology, without the cost of having to invest in new software or training.
If you would like an initial free consultation to find out how our Outsourced Accounting Services team can help your business, please get in touch by emailing firstname.lastname@example.org or calling 01494 552100.
This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 30th May 2022.