So, why outsource your software development?
Outsourcing will help you conduct a cost effective business by decreasing your payroll. It will help your company give a more specific oriented task to your executive employees.
1 – Cost Savings
Outsourcing makes sense for cutting costs while reducing workload on the employee. Outsourced labor may cost 90% less than the same labor performed in-house in Western Europe or North America, particularly for low-level tasks. You won’t need to make any upfront investment, which makes development projects much more attractive.
2 – Time Savings
Software development takes less time when people are working on your applications around the clock, so you can get your product to market more quickly than your competitors can.
3 – Lack of in house experience
When the internal resources of the company are not enough to globalize the company’s business, Outsourcing software development will bring new dimensions to manage a business worldwide. Business applications will be more sound and systematic for an overall performance.
4 – Flexibility
When you outsource, you don’t have to spend time recruiting, hiring, training, and housing employees for short-term projects.
5- Talented IT Professionals
You’ll have immediate access to some of the best and brightest information-technology professionals by going overseas and bypassing the gaps in hiring pools in more developed countries.
6- Focused Strategy
Outsourcing software development would streamline business processes. It will provide a focused strategy to have a competitive advantage in the technological race.
7 – Improved Compliance
Outsourcing software development would create an automated compliance system that will reduce human follow-ups in business processes.
8 – Enhanced Accuracy
Offshore development will improve work accuracy in terms of given deadlines on a project. Defined software will deliver accurate results in less turn around time.
9 – Technological Advances
Technology is evolving in different countries of the world. Companies thriving to gain competitive advantage are better off outsourcing software development. For technological prowess.
10 – Risk Mitigation
You can mitigate risks by choosing an outsourcing firm that has a high-quality project management system and a tried-and-true process for developing applications.
Several functions can be outsourced by a company in different departments. From management training to Accounting and Finance, outsourcing takes care of it all. Website development & web design are increasingly outsourced by almost all companies for better maintenance and timely upgrades. Outsourcing certain area of your business makes a lot of sense in order to maximize your profits in a small amount of time.
Founders create businesses because they have a passion or expertise in providing particular goods or services to market and often get caught up on focusing on items outside of their expertise. Being a startup means there’s always more work to do, and not enough time to do it. It is easy to get caught in numerous non-value add tasks that take anyway from working on the business. That’s why most success startups outsource certain tasks to companies or individuals who specialize in providing valuable time-saving services for a fee.
With all the advancements in technology, it’s easier and more convenient than ever to outsource. Here are five things you should consider outsourcing to experts.
1. Accounting & Finance
Most entrepreneurs are not Accountants. However, understanding cash flows or analyzing profitability of a business is vital to its success. Too often startups neglect building an accounting process until profits go downhill or cash slowly drains away. Setting up an accounting process for your startup is critical to the long-term success. An accounting process is also important because it allows your business to look forward. Startups or small businesses that that don’t have an accounting process in place find themselves trapped by past actions or constantly worried about having enough money to pay bills.
In addition to accounting process, setting up an accounting system is important for your startup as it will allow you to see how your business is doing and allow you to make decisions to strategically position your business for growth.
Look for a firm that does more than just bookkeeping. Partnering with someone that goes beyond debits and credits and gives advice on such things as cashflow will help set you up for success. Technology is vital to help provide necessary insights.
2. Graphic Design and Web Development.
Coming up with a brand-defining logo, an attractive website, and print materials can be extremely time consuming and difficult to get right. Using a professional graphic designer will help your business look its best. They understand a lot of things that you may overlook. Whatever your goals, there’s a graphic designer with the talent, aesthetic sensibilities, and visual skills to fulfill your vision and enhance your company brand.
Look for a graphic designer that offers web development to help streamline the process and provide a unified message.
3. Web Research.
Prospecting for new business and keeping up with the latest developments in your industry can be time consuming and daunting. A web researcher can research information you, whether it’s gathering information and statistics for an upcoming presentation or looking up the names of companies and contacts for a leads list. They can also organize this material in a form that’s easy to use and read.
4. Administrative Assistance.
If half your day is spent sifting through your overflowing email inbox, returning call and making travel arrangement, a virtual administrative assistant (VA) may be just what you need to streamline that frustrating process and keep you from being inundated by a constant stream of on administrative tasks that keep you from more value-added items.
Before you waste your time on something that is not in your expertise, consider outsourcing. This will make your to-do list shorter and free you up to focus on the things you’re best at and that generate the most income for your business.
Technology is Transforming Accounting & Finance
The Association of Chartered Certified Accountants (ACCA) recently came out with a report last month showcasing technology’s role in the future of finance. The report concludes that technology can revolutionize finance and accounting.
Technology has played a role in Accounting and Finance for numerous years. Originally, most software was targeted to large enterprise due to its cost and complexity. The cloud drastically changed the landscape by bringing enterprise type technologies to the SME market. Now 80% of CFOs have cloud as part of their technology roadmap. Here are the benefits technology brings as identified in an ACCA survey of CFOs:
- Improving efficiency and productivity – 70%
- Creating new value for a business – 53%
- Reducing costs – 33%
- Improving communication internally and externally – 20%
- Improving quality and standardization – 20%
As technology advances the above numbers will even be higher. Software companies have already begun to use artificial intelligence and machine learning.
Even though the returns can be great, it is important to be cautious about guaranteeing huge returns or overnight results. The report warns CFOs to use caution about where, when, and how they do or do not implement new technology.
A Technology Roadmap is Key
Technology is not automatically the solution. You need to understand your business goals and processes. Automating a bad process doesn’t fix anything. Implementing the wrong technology can be catastrophic and can possibly lead to employee turnover and insurmountable costs.
Companies shouldn’t rush into a decision, but also there is a lot of risk in not embracing technology and being left behind. The solution is to create a defined technology roadmap. A technology roadmap is a document which outlines the plan to reach short-term and long-term goals through the use of technology solutions. This type of roadmap typically provides key information which helps organizations make better decisions around technology investments.
Technology roadmaps are often driven by IT. However, it is important for CFOs and other business executives to be involved. They are the ones that understand short and long-term goals. Lavoie CPA continuously studies and evaluates technology. We also have the business acumen to apply the right technology correctly. Need help with a technology roadmap or software evaluation, give us a call.
Small and medium-sized businesses (SMBs) are often driven by a passion or cause – not spending hours on accounting and financial management.
SMBs face many financial challenges that affect cash flow including hiring new employees, increasing profits, employee healthcare, growing revenue and properly managing expenses.
Fortunately, technology has changed the game for SMBs. In the last decade, new technologies have enabled SMBs to compete with large enterprises.
Technology is only part of the equation. Accounting as a Service (AaaS) is a hybrid solution that combines services with software; thus, the client can enjoy the benefits of professional expertise and leading cloud technology. This lays a great foundation, allowing companies to focus on revenue generating activities. They are able to focus on future growth instead of being stuck analyzing the past.
10 Benefits of Accounting as a Service
- Real-time visibility to your business performance via dashboards
- Reduce financial risk
- Increase productivity
- Be audit ready at all times
- Improved process flow and automation
- Eliminate staff turnover
- Cost savings
- Increased security
- Reduced IT headaches (upgrades and maintenance)
- Integration with your other applications to eliminate information silos
Interested in learning more?
Outsourced Accounting or Accounting as a Service (AaaS) provider can be the catalyst to take your organization to the next level. For some SMBs, accounting is not looked at as a strategic function of the organization, but it should be. It also shouldn’t take focus away from growing your core business. Lots of SMBs don’t consider Outsourcing. Here are 5 main reasons why.
1) They think it is too expensive
By using Accounting as a Service, you have access to shared service center. Providers have put a lot of investment, thought, and execution into their model and have staffed accordingly. With an AaaS provider you now have access to a full accounting department that often is less expensive than one full-time FTE. This doesn’t even figure in technology costs that come with the service.
2) It is the same as bookkeeping services
Bookkeepers are responsible for recording daily financial transactions. Controllers are responsible for financial reporting, internal audit and internal controls. CFO are responsible for financial planning, financial data analysis and strategic planning. By relying only upon a bookkeeper you are stuck looking in the past and cannot see into the future to effectively make critical decisions for your business. AaaS providers ensure daily transactions are done correctly but also greatly reduce risks and provide necessary forward-thinking strategy to help growth your business.
3) We can just do the same in-house
For most SMBs it is hard to justify the expense of having a bookkeeper, controller, VP of finance and CFO. All positions have importance. You don’t want to pay a senior level person to do daily transactions and you definitely don’t want to ask an entry level person to manage financial risks.
4) We cannot have any finance staff in-house
Often AaaS providers work with internal staff to fill voids. Yes, providers can function as the entire finance department but often work with existing staff to help maximize their production.
5) We have more control and stability by utilizing in-house staff
Employees turnover and training are always on the minds of companies. If you don’t have a defined professional develop plan for each employee, you are at risk of losing your top talent to other opportunities. By using an AaaS provider you eliminate the risk of employee turnover. You also will not miss a beat when people people are out sick, on vacation, or on leave.
What do I get with an AaaS?
- Enterprise software platform (workflow, automation, dashboards etc)
- Vendors paid on-time
- Customers billed on-time and accurately
- Employee expenses captured and reimbursed
- Cash transactions reconciled
- Timely payables collection
- Accounts analyzed and reconciled on an ongoing basis
- Financial and management reports delivered on-time and accurately
- Scalability and rapid deployment, when needed
- Regulatory compliance delivered
- Audit ready
- A finance and accounting function that is STRATEGIC
FP&A Teams Have the Wrong Focus
According to a recent report by Adaptive Insights, CFOs want their employees to spend less time on collecting and preparing data and more time on forecasting and analysis. The survey revealed that financial planning and analysis (FP&A) teams are currently spending 53% of their time on reporting and data gathering alone.
“Reporting, whether it’s on actuals or forecast or planning should be quick. We shouldn’t be spending a lot of time on that,” says Jim Johnson, CFO of Adaptive Insights. “We should be spending much more time on the model that’s supporting it. The predictive analysis, the key performance indicators and the stuff that is really important for the company.”
There is a good reason why employees should spend more time on analytics. Oracle found that businesses who were effective at integrating financial and operating data, using analytics in processes and utilizing predictive analytics outranked their peers by 70% on profit and revenue.
How Can You Improve Your FP&A Process?
Implement a Dynamic Planning Process
First of all, your business need to incorporate a FP&A process that allow for flexibility. Rolling forecasts, for example, is one way to ensure you are adapting to market forces. Since rolling forecasts ultimately is an approach where you add or drop data on a rolling basis, you consequently have real-time insights to your performance against your predictions. APQC reported that an organization can save a median of 25 days on the annual budgeting cycle by using rolling forecasts.
“It makes no sense to use a 19th-century tool to manage 21st-century company in a volatile global economy,” argues Steve Player, a program director at the Beyond Budgeting Roundtable. “In the old days, the CFO sat in the back of the ship recording what happened. Now, the CFO stands on the bridge looking forward and adjusting for variables.”
Traditional annual budgets have limits. They often take too long to prepare, and when completed the data is already out of date. Rolling forecasts offer continuous updates to your data and a longer horizon with data up to 12-18 months ahead. Thus, you have much more accurate data and reliable insights. This, as a result, allows you to take more strategic decisions about your business.
Related: How to Improve Your Sales Forecast Accuracy
Make it Easy for Employees to Collaborate
Collaboration among employees and management is crucial for your business. First, they help you realize your goals, but they can also aid in reducing hidden costs. According to research by CEB, hidden budgeting and forecasting costs may prevent companies from realizing their full potential of investments in FP&A improvements.
How do businesses encourage collaboration? There’s one simple answer. Leverage technology. Cloud-based software is a great solution for companies that have data that needs to be shared and aggregated by more than one employee. In addition, cloud software also allows for employees to access the same data from virtually anywhere. Finally, most cloud-based software providers offers integration with other enterprise systems, which allows you to have one source for your performance management.
Related: A Beginner’s Guide to Cloud Computing
While you may think your business is doing well enough, your competitors are advancing by implementing better FP&A processes like the ones discussed above. Don’t wait, instead, invest in FP&A processes that will help your business achieve outstanding results and reduce hidden costs.