One of the greatest challenges facing business owners is reducing administrative costs without affecting the quality and bottom-line of their company. In many cases, outsourcing financial, tax and accounting staff can be a great alternative to reaching this goal. And this is the topic we’ll expand upon in today’s text.
First of all, we should point out that outsourcing doesn’t guarantee cost reductions. There are a number of variables that should be considered and a detailed study must be done before the start of each project. We have already mentioned in the blog that there are other advantages to outsourcing, such as the ability to make procedural routines more productive, less bureaucratic and more efficient.
To better illustrate, we brought a case from Albieri and Associates that shows how we managed to reduce costs for a large company in the automotive sector. Our work involved the outsourcing of Accounting Reconciliations procedures, reaching targets much higher than expected.
Albieri’s accounting and tax consulting was key to carrying out the task because the challenge was so great: managing to work with only half the original budget.
We focus our efforts on 3 main fronts:
Chart the business processes involved,
Optimize the flow of information,
Automate various activities in the department through the RPA of accounting reconciliation activities (Robotic Process Automation).
What were the results?
Using our methodology, a number of activities involving information matching and extracting reports could be performed automatically, saving the team a great amount of time. The numbers are impressive: what had once been done using 18 employees was now being performed with only 8.
Another point that should be emphasized, both for this case as for any company that wants to outsource its financial, tax and accounting departments, is the quality of the service rendered. When the outsourcing company focuses more on training and preparing its employees, the quality of the work delivered is often higher than what was previously being delivered.
And, if you’d like to stay on top of news and examples of outsourcing involving financial, accounting and tax departments, keep on following our blog!