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Report Outlines Benefits of Accounting Outsourcing Questions to ask when considering providers NEW YORK, May 28, 2003 Companies are turning to outside experts for financial functions in order to seek the transparency and accuracy that is demanded by the Sarbanes-Oxley Act, a new report from Cap Gemini Ernst & Young says. The ExecutiveEdge management series, entitled Finance & Accounting Outsourcing: Reduce Costs and Improve Performance -- Simultaneously, notes that CFOs can look to business process outsourcing (BPO) to improve accuracy and timeliness of their current transaction processing. Finance and accounting outsourcing involves management of the procedure-driven functions including accounts payable, general ledger, fixed assets, accounts receivable, billing, payroll, and benefits administration, among others.
"Outsourcing the finance and accounting functions typically delivers more consistent, accurate and timely data, with greater control over the processes and improved policy enforcement for organizations," said Bill Frech, Vice President, CGE&Y. "Managers and executives can focus on creating solutions and anticipating markets rather than compiling a patchwork of financial data generated from multiple sources at periodic intervals."
The CGE&Y brief notes that a company and its outsourcing provider must command a clear, realistic view of the inherent risks and challenges in order to collaboratively develop strategies that mitigate risk, achieve desired outcomes, and support the relationship. Key issues to address include security, privacy, and confidentiality controls and transition planning for systems, people, and processes.
"The capacity to anticipate, accommodate and address change as a team is a critical component of successful outsourcing engagements," states Frech. "Flexibility is simply a requirement, not only in the contract, but in how both teams communicate, solve problems, and achieve strategic goals."
According to the report, there are several key questions to ask when considering outsourcing:
Other reports indicate that companies are outsourcing accounting and finance functions in order to reduce costs and increase productivity. For more on this story: |
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