Tag Archive for Finance

7 Reasons You Should Consider Outsourcing Your Finance and Accounting

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Successful businesses, no matter how small or large, are able to focus, like a laser beam, on what’s important: innovation, customer service, growth, company culture and winning against their competition.

Finance and accounting, while critical to business operations, is often urgent, but not important. Yet so many executives like you allow themselves to get distracted from these critical success factors by responding to inquiries, tracking down missing checks, making sure the books get closed accurately and reconciling accounts.

If you are looking for better ways to focus on growing your business you should consider outsourcing your finance and accounting operations. Here are seven key benefits of outsourcing accounting and finance.

  1. Be more efficient– For one week, keep track of how you spend your day. (You can easily accomplish this with a free tool called toggl. http://toggl.com ) How much time do you spend each week on finance and accounting? If it is more than 1 – 2 hours a week…it’s too much. You should be spending your time improving operations, better serving customers and growing your business. Removing the daily distractions of accounting will help you do this.
  2. Reduce costs – Outsourcing your accounting eliminates all of the costly taxes and fringe benefits associated with full and part time employees. You pay one fixed monthly fee for everything. Research has shown that outsourcing accounting can save up to 40% in monthly costs, when you consider the salary plus taxes, supervision, vacation and health insurance.
  3. Eliminate fraud –Most small businesses have one accounting person that does everything….sends out the bills, collects and deposit checks and reconciled the bank account. When these duties are not separated, you increase your risk of fraud. A recent Association of Certified Fraud Examiner’s study showed that the most common victims of fraud are privately owned small businesses with less than 100 employees with an average fraud amount of $147,000. Outsourced accounting provides you with the checks and balances, as well as the oversight that you need to prevent fraud.
  4. Highly qualified and experienced staff – By having a team of accountants and CPAs work together to take care of your books, you can take advantage of their significant accounting, tax and compliance expertise which is all included in the monthly cost. By outsourcing you will automatically stay ahead of and comply with the myriad changes in income and sales tax and reporting laws.
  5. Ability to scale – By outsourcing finance and accounting, scaling your business becomes easier. Rather than distract yourself by hiring additional finance staff, outsourcing grows automatically with your business. You can focus on hiring the best people to sell your products and service your customers…which goes right to the bottom line.
  6. Improve cash flow – Outsourcing provides you with access to cloud based tools and technologies that will help you get paid faster and manage payments more effectively. At the simple click of a mouse, you can see an up to minute analysis of your cash.
  7. Better Manage Your Business –What type of information are you receiving today from your finance system? Most importantly, how timely is it? When you get last month’s financial on the 20th of the following month, how do you support decisions in the beginning of the month? Outsourcing provides you with real time information on all aspects of your business, not just financials, with the click of a mouse.
Can your company benefit from outsourcing your finance and accounting? Take our 1 minute assessment! Get your assessment now >>

7 Free Informative Webinars for CFOs and Finance Professionals – March 2016

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Every month, Intacct sponsors a series of informative webinars covering critical issues for CFOs and finance professionals.

Here is a list of their webinars for February / March 2016. Click the Learn More button for additional information or you can register directly by clicking the Register button.


The Tech-Savvy CFO: From Visibility to Insight

Thursday, February 25th at 11 AM PT / 2 PM ET

Everyone is turning to you for answers… So, where do you turn for the technology to give you those answers?

Learn More

Register


Project Accounting and Financials for Your Services Business

Wednesday, March 2nd at 11 AM PT / 2 PM ET

For services and project-based companies, capturing 100% of client billable time and expenses, developing accurate budgets and forecasts, and improving cash flow management is always challenging. How can you meet these challenges?

Learn More

Register


Cloud Financials Done Right: Avoiding the Pitfalls of Implementation

Wednesday, March 9th at 11 AM PT / 2 PM ET

Your financial management and accounting applications are one of the most critical components of your business infrastructure. Switching to a new accounting system can seem overwhelming, but it doesn’t need to be.

Learn More

Register


A Board’s Eye View into SaaS Metrics

Thursday, March 10th at 11 AM PT / 2 PM ET

For SaaS companies, fast growth requires fast decisions made with the right information. How can you quickly get the critical information you need?

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Register


Revenue Recognition Made Easy for Your Project-based Business

Wednesday, March 16th at 11 AM PT / 2 PM ET

Are you spending too much time tracking down project data and manually recognizing revenue?

Learn More 

Register


Not Your Mother’s Chart of Accounts—Leveraging Cloud Technology for Nonprofit Accounting

Thursday, March 17th at 11 AM PT / 2 PM ET

Your chart of accounts is the foundation of your finance system, but does it support your current and future reporting needs?

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Register


Finance and Project Analytics for Services Businesses in 2016

Tuesday, March 29th at 11 AM PT / 2 PM ET

With real-time financial and operational analytic, services businesses—technology, consulting, business, construction, and other services—can effectively manage revenues, costs, and overall performance. Where can you find this information?

Learn More

Register


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A System Approach to Business Strategy – “Our Outcome Is Winning” or Business Lessons from the Court

Organizations can achieve routine success by defining and employing the right process or system – which can be a true competitive differentiator – and having the discipline to stick with it. This post gives an example of a successful system from college basketball…and reflects how systems can work for your organization or division.

It is safe to describe the University of Connecticut Women’s Basketball Program as legendary. The program has been led by Coach Geno Auriemma since 1985 and over that time has won eight NCAA Division I championships, advanced to 14 Final Fours and won over 30 Big East regular season and tournament championships. The UConn Women’s basketball program also has the longest winning streak, for women’s or men’s basketball, in the history of the game.

Why are they so good?

I attended a Middlesex Chamber of Commerce meeting where Coach Auriemma was the guest speaker. As expected, he gave his appreciation to the Chamber leadership, people in the community, the UConn athletic program and the people who were and are influential to the program. He then spoke about the current season, the upcoming NCAA tournament and his thoughts on winning. He wasn’t concerned about UConn’s placement in the tournament brackets. He also wasn’t terribly concerned about the competition. Why was that?

When he scouts for talent, Coach Auriemma travels throughout the country and it is an understatement to say that he watches a lot of high school basketball games. In his address to the chamber audience, he said he just returned that day at one in the morning from a scouting trip. Someone in the audience asked: What kind of player do you look for?

One may conclude that he must stack his team with the best talent in the land to win so consistently. But that assumption is simply not true. Sure, he does find very talented players–but he answered the question admitting that there is a threshold for talent. So, beyond the obvious talent and physical attributes necessary to be able to play college basketball (height, speed, court sense), what does Coach Auriemma look for that is perhaps different from other coaches?

“All of the players I consider are good enough to play competitive basketball at this level”, Coach Geno answered. “What I look for is someone who is unselfish. What do I mean by unselfish? A player that passes the ball to another teammate on a chance to score, one who doesn’t complain and doesn’t argue with a ref over a call, one who doesn’t have to play 40 minutes of every game. Our players usually are not in the top national ranks for individual scoring. They are team players. Our outcome is winning.”

Jim Collins in his wonderful book “Good to Great: Why Some Companies Make the Leap…and Others Don’t” writes about the critical importance of having the right people on the bus–staffing your team with the right people, letting go of the wrong people and getting people in their proper seats. The approach to employing the right people, however, is only one part of a larger system. Not a complicated system, just a system that includes, as a component to it, a distinct method of considering talent. The system includes rules that, when followed with discipline, ensures the accomplishment of a desired outcome.

Coach Geno is not concerned about competition. Other great teams recruit star players–players who feel they need the 40 minutes on the court. Those star players undoubtedly help their teams win some games. That kind of player does not fit the criteria of Coach Geno’s system. His desired outcome is the win, every time. His system dictates a certain kind of input (player) and it is this system that creates UConn’s competitive advantage. Coach Geno is highly disciplined in working his system–which is clearly defined and aligns with his desired outcome–and his system rewards him.

Do you have defined systems of success in place? Here are some introspective questions to ask yourself about your organization, company or division:

• Have you clearly defined your desired outcomes? Are they communicated? Do they align to the company’s vision and strategy?
• Do you have systems (people, processes, procedures and technology) in place and are they aligned to accomplish those outcomes? How do you know? Are they documented, have you measured them, are they working, are they effective, are they efficient?
• Are you disciplined in working your system? Is your system rewarding you–by resulting in your desired outcome? Have you set yourself up to win–consistently, every time?

Jim Harper is a director in BlumShapiro’s consulting group, Jim specializes in middle-market/large client offerings including CFO solutions, shared services, process re-engineering and business process outsourcing (including control and internal audit) for the firm’s business solutions and technology consulting practices.  He has diverse experience in finance, finance transformation, accounting, reporting, controls and operational management.