Written by Sabir Adam – Head of Western Cape-AFA
In the dynamic economic landscape, businesses will find themselves in a volatile terrain where they must navigate the merging of transformational technology, changing labour choices, and global economy uncertainty. The significance of strategic decision-making is becoming increasingly critical as businesses work to adapt and prosper in this ever-changing environment. There has been a noticeable shift in business priorities towards concentrating on core tasks while delegating non-core activities to specialists. Historically, Information Technology stood out as the primary area for outsourcing services. This raises the question, “Why should businesses outsource accounting functions?”
AFA-Accounting and Financial Advisory recommends that businesses consider outsourcing specific repeatable, quantifiable non-core work to specialized service providers. This is a calculated risk that will help create the kind of workplace culture that the “new” workforce has been longing for. Procure to Pay, Payroll, Order to Cash and Record to Report are among the areas that are ideal for outsourcing.
The potential benefits for companies embracing outsourcing are manifold:
Management Focus:
Outsourcing administrative functions allows the management team to redirect their focus from daily firefighting to concentrating on the company’s core competencies and strategic objectives.
Business Continuity:
The COVID-19 pandemic underscored the risks associated with employee illnesses and their potential impact on business operations. Outsourcing mitigates this risk by providing a pool of skilled professionals who can seamlessly step in if team members fall ill.
Cost Saving and Efficiency:
Outsourcing certain processes brings about increased efficiency and reduced transaction costs.
This is facilitated by:
- Better system process and continuous improvement
- Increased skills and training
- Improved escalation and better focus on resolving bottlenecks
- Improved stakeholder engagement and reporting
Access to Specialized Skills and Cutting-Edge Technology:
Outsourcing service providers possess a cadre of specialists with exposure to various systems. Companies can tap into this intellectual capital to address challenges and make informed decisions, leveraging cutting-edge technology for enhanced operational efficiency.
Industry Best Practice and Continuous Innovation:
Outsourcing teams specialize in the processes being outsourced, bringing diverse experience and best practices to the table. To remain competitive, service providers continuously innovate and adopt new technologies, a scale of investment that might be challenging for in-house processes.
AFA boasts a dedicated and specialised outsourcing team poised to help clients realise these benefits. By strategically outsourcing non-core financial tasks, companies can not only adapt to the changing work culture but also position themselves for sustained growth, improved efficiency, and a competitive edge in their respective industries.
In summary, outsourcing accounting services is critical for businesses —it’s not just about saving money; it’s a strategic need for negotiating the intricacies of a corporate environment that is changing quickly, to be more competitive. Outsourcing becomes a compass that points enterprises toward increased operational resilience, agility, and creativity as they cope with labour dynamics, technology advancement, and economic recovery. Businesses will have access to worldwide experience through the specialist outsourcing team of AFA, which places them at the forefront of industry best practices and ongoing innovation.
