The main objective of establishing any business is maximizing profits while providing the highest possible quality of various goods and services. A firm also needs to operate efficiently in the allocation of resources among the competing uses so as to minimize the cost of doing business. Outsourcing various business processes is increasingly becoming popular since firms want to major on their core businesses so as to guarantee high quality output. Most firms outsource functions which are not core to their operations which make it costly to maintain employees for that particular function only. For instance, finance and accounting outsourcing increasingly becoming popular among firms that want to minimize expenditure on having such departments while also remaining compliant with various regulations to prepare financial statements. Quality assurance plays an important role when evaluating any service finance and accounting service provider.
Small firms often find it cheaper to outsource finance and accounting activities since hiring such professionals is quite costly. Firms should have strong internal control systems which can best be implemented when there are many employees who are allocated different tasks. Outsourcing eliminates the need to have finance and accounting departments and also the need to process payroll internally. Quality assurance makes it easy to ascertain whether it would be cheaper to have such processes run internally or by outsourcing.
Compliance with statutory requirements
A quality assurance analysis is meant to determine the requirements of various regulatory requirements with respect to financial reporting. This is compared to the output produced by the service providers thus ascertaining whether the result is compliant with the existing laws or standards. Finance and accounting outsourcing is best done to professionals who have the relevant industry experience.
Interruptions in routine processes
Outsourcing is meant to minimize the frequency with which the core business functions are interrupted while performing non-core functions. Assessing the level of interruptions therefore helps firms determine whether they are obtaining value for finance and accounting outsourcing. There should be smooth integration of financial processes to guarantee minimal interruptions. Quality assurance therefore helps identify areas of weakness thus prompting corrective measures.
The decisions made by every firm should have an impact in enhancing performance or productivity. All non-value adding decisions should be eliminated so as to enhance efficiency and productivity. With an outsourcing provider of finance and accounting services, you are certain that the quality of services offered is of the highest possible quality. It also helps if your chosen outsourcing partner has ISO certifications because it means that internal controls and processes are regularly evaluated. Being a partner to a certified company provides reasonable assurance that quality assurance processes are being reviewed and corrected. Areas of weaknesses in processes and performance can be identified and improved with a thorough root cause analysis.
Firms can also afford to have experienced professionals do their non core functions at considerably low cost compared to if they were to hire them. Quality assurance ascertains the profitability resulting from outsourcing such functions. Through outsourcing, firms should also be able to expand their capacity through re-investing the savings from labor and space.
Quality assurance identifies areas of inefficiency
It is common to assume that once you outsource certain services, everything else will just flow smoothly. This is not always the case which brings the need to evaluate areas where you or the outsourcing company is inefficient. A discussion with these firms helps in weeding out any loopholes which may arise or areas where you are not comfortable with in terms of their service delivery.
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Author: Richard Tan
Richard Tan serves as Infinit Outsourcing Inc.’s Vice President for Client Solutions – Financial Services and Finance & Accounting. Richard has more than 6 years experience within the Banking, Financial services and Insurance (BFSI) industry. His financial and operational management undertakings within the industry, having served previously as an Associate with Deutsche Bank, strengthen the position of Infinit-O to provide exceptional Financial Services solutions. Prior to joining the company, he was a Lead Accountant in a major oil player in the Philippines.
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