According to Harvey Nash CIO Survey 2015, 56 per cent of Australians believed they have been affected by digital disruption—21 per cent higher than the global average. This possesses significant threats to the Australian economy, specifically on the accounting industry. But, more than just a fad or a buzzword, digital disruption is real. Only those who can turn these threats into opportunities and adopt to this innovation will be able to keep up.
For some organisations, outsourcing accounting is not an option due to regulatory requirements or other sensitivities. But for others, it’s an alternative worth considering. The decision to outsource may be driven by one or more of the challenges faced on compliance functions. And, these includes:
- Continuing shortage of talent
- Significant increase in operating costs
- Addressing need for global compliance
- Investing in technology and related infrastructure
- Risk on data security
The Benefits of Outsourcing
Given the number of complexity in compliance work, outsourcing accounting is an option worth considering since there are plenty of ways it can turn your business into success, and here are the few advantages it delivers:
Focus on Core Business
Through outsourcing, organisations can now pursue opportunities that gives direct impact on business growth and bottom line. This can be advisory, nurturing, and sales. Your local team will manage everything that focuses on revenue-generating tasks.
When it comes to accounting and money management, it is more practical to hire professionals who are skilled and trained for this exact purpose than trying to do it yourself. With some direction and good strategy outline, they can make it happen.
Investment in Technology Infrastructure
Technology constantly changes and unless you’re an IT-related company, it’s hard to keep up with it. Through outsourcing, businesses can use advanced tools and leverage the vendors’ access to improved technologies without investing in the time it takes to master them.
Outsourcing reduces costs as it maintains a paperless workflow technology and eliminates mundane data entry. Also, the lower cost structure offshore is one of the factors that lure foreign countries to outsource their business processes.
Outsourcing actually helps you reduce uncertainties because you share accountability with your outsourcing vendor. They already have mitigation strategies in place for certain risk considerations.
Digital disruption is challenging the status in the accounting industry. Which is why, firms should take action to minimise the risks and maximise the opportunities. Outsourcing helps you become a proactive, real-time accountant and helps you add value to your business if done right.
This article was first posted on Smithink. You can find the original article here.
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