Accounting and finance is a highly specialized operation which is carried out throughout the year in every organization. It is necessary to carry out proper and organized financial accounting methods and bookkeeping to portray a perfect image of the financial stability of a firm.
With the growing needs of the KPO industry, a Chief Financial Officer needs to spend an ample amount of time on the core accounting activities. It is also noted that manual reporting carried out by the internal employees might lead to numerous errors, thus, bringing downfall to financial stability.
As per the financial experts, the major tasks/ activities outsourced under Accounting and Finance in a KPO industry includes:
+ Accounting and bookkeeping services
– It generally includes cash accounting, bank and credit card reconciliation, ledger handling, accounts receivable and payable.
+ Preparation of the tax returns
– It includes the examining of the balance sheets and interpreting and classifying the items accurately or filing the tax returns quickly.
+ Payroll processing
– Outsourcing payroll processing includes setting up payroll items such as hourly rate, salary, and wages.
Other activities outsourced under the accounting and finance consists of balance sheet reporting, cash flow preparation report, internal auditing services, preparing the income and loss statement, and sales order processing, among others.
Experts believe that outsourcing the accounting and financial tasks can be highly beneficial to all the sectors including the KPO (Knowledge Process Outsourcing) industry.
+ Minimizing the cost
– When you decide to outsource the F&A needs, it will simply assist you to focus on revenue generation and thus, would simplify your accounting process. Experts believe that outsourcing F&A can save a large number of your resources and cash outflow.
+ Monitoring of the accounting rules
– Outsourcing can help to keep a track of the accounting rules, being updated in the industry from time-to-time.
+ Safeguarding the company during an economic crisis
– Today, a lot of changes are taking place continuously in the industry due to the change in economic situations. Outsourcing the F&A process can reduce the burden on KPO companies.
+ Minimal errors
– Errors occurring in the process of F&A can be anything, right from wrong calculations to the faulty accounting procedure. An outsourcing specialist will have varied layers of review inculcated into the F&A process.
A recent survey conducted by a few of the economic expert state that outsourcing finance and accounting will witness a higher and robust growth for many of the companies, including the KPO industry.