Finance and accounting services have been associated with businesses trying to accomplish more from less. The constrained levels of resources such as capital, infrastructure, knowledge pools and global talent have led companies across the world to lower their transactional and operational costs. With the increasing popularity of firms delivering finance accounting services, it has now become convenient to create cost effective and strategic business assets through the inputs of proven technology and service options. The alignment of the business goals and requirements with the finance and accounting services delivered by competent third parties has added a new dimension in the way business is conducted across the globe.
The outsourcing of finance accounting services to qualified firms in the European Union and the third world countries, has resulted in the offloading of some of the core functions such as bookkeeping, management of final accounts, tax return filing, bank reconciliations, tax planning and other jobs directly related to the in house accounts department.
The ever changing accounting standards and regulations definitely increase the workload of compliance by the specialized firms and the client’s accounting department staff alike. It is, therefore, important to remain updated with the latest changes and up gradations in the policies and standards that guide the preparation and filing of the processes. Availing finance accounting services makes sure that the regulatory changes are integrated with the existing software and databases and the penalties arising from non compliance can be safely avoided.
These firms are now offloading their workload to qualified firms in developing countries. The knowledge resources available at immensely low costs increase the returns for companies who provide their expertise for financial service to their global cliental. This trend in the world of finance accounting services offers sub contractual opportunities for the firms based in smaller countries, who have the expertise but not the resources to gain access to the bigger clients in other parts of the world.
There has been another visible trend in the finance and accounting services sector wherein, more complementary services are being offered by the service providing firms. Accountants related with the firm are being increasingly used as confidants to provide value added service such as tax consultancy. The clients turn to these providers in critical times for expert advice, along with the primary services offered on the day to day basis.
With the increase in the functionalities offered and providers are moving away from the traditional modes of operations. There is a growing trend of sub contracting the standardized and generic functions such as accounts receivable and payables and other bookkeeping functions to smaller finance and accounting services providers and retaining the higher value processes for themselves.
According to the latest trends, the specializing in a specific industry sector and providing the highest levels of expertise and technology in handling the outsourced work. Clients are also looking towards the bigger finance accounting services firms for complex solutions while hiring the services of the smaller firms for the standardized functions at lower hiring costs.