The Local Accounts Department- Why Outsourcing?
With the deteriorating economic conditions, many businesses are struggling to respond to the changing environment. There are many options available, but accurate and up to date financial management is going to be the cornerstone to surviving the next 12-24 months and be at a point of advantage when the upturn happens. If you don’t know exactly how your organisation is performing, there is little hope. Headlines like these are difficult to ignore:
• “Latest Data Confirms "Significant" Economic Downturn”
• “Liquidations soar as recession takes toll”
• “UK to suffer worst recession in developed world”
The Financial Times (Monday 9th February 2009) reported the worst is still to come with even more shocking estimates that 1 in 5 businesses are likely to fail over the next 12 months.
Now is the time to act, Businesses need to take a critical review of their operation.
Businesses are experiencing the following instabilities:-
• Fluctuating turnover
• Increasing costs
• Lower margins
• Increased debtors
• Weakening cash flow
If you are not experiencing these now, it is very likely in the coming months you will see them appear within your organisation.
Reviewing your cost base is a vital discipline for many business leaders, and few manage to achieve this in a long-term sustainable fashion, whilst successfully maximising profitability.
It is important to look at effective ways of reducing overheads without destroying value. One consideration for organisations is the outsourcing of the accounting and finance process.
The strategic benefits from outsourcing your accounts and finance department include higher profitability, and improved performance and enhanced total shareholder return (TSR).
The practical benefits are abundant, including:-
• Scalability – no matter if your business scales down, or you go through a growth stage, The Local Accounts Department can add or remove resources to manage the change;
• Resource utilisation – very often staff are not fully utilised, an example is a management accountant who is on a salary of £30,000 but is only occupied for 70% of their time. This aspect is removed as we process the work on an , or fixed fee, basis;
• Reduced recruitment costs;
• Reduced operating expense;
• Reduced salary costs;
• Improved decision making;
• Increased focus on core business – this allows the management to focus on the business and the Finance Director to deal with more strategic matters, which is so vital in this current economic climate
The Local Accounts Department is the only business process outsource firm with 18 offices across the UK, which means the work might be outsourced, not it is not out of control or out of sight.
This is an innovative and blended service which utilises the latest technology, allowing the client to choose from a UK based operation, or an offshore destination. All work is delivered by qualified accounting professionals who have a vast amount of experience in working with clients, to provide a high quality service.
