What is Outsourcing
Outsourcing can be defined as a contract with an external organization to take primary responsibility for providing a business process or function. The outsourcing service provider takes primary responsibility for ensuring that the process works, interfaces effectively with other company functions, and delivers the outcomes intended.
Our consulting and outsourcing service offerings are aimed at businesses in commerce and industry. Service delivery is by a strong team of commercial finance experts employing a suite of proven financial management processes, internal controls and management reporting mechanisms.
Our services can extend far beyond routine transaction processing and management reporting. For many European and US clients, we act as their local CFO to support their CEOs in more traditional areas – sourcing and liaison with external advisors e.g. banks, legal advisors; pre and post acquisition support including due diligence and business integrations.
Why Consider Finance & Admin Outsourcing
Many businesses in the region have faced increasing pressure on profit margin from rising raw material costs, labor costs inflation (especially in China), and with relentless competition prohibiting any pricing increases, businesses are forced to seek efficiency improvements and cost savings from their support functions. However, as management is pre-occupied with maintaining and developing the current business, there is little energy or resource left to drive improvements in the back offices. Although indirect cost savings is a major reason behind companies considering F&A outsourcing, other reasons for outsourcing the F&A function include:
Resource Constraints – companies, especially start-ups, with limited in-house resources and expertise to handle all their transaction processing, reporting and analysis needs; with finance and accounting function in need of more expert management.
Focus on core business – recruitment, training and management of back-office staff taking management’s focus off the core business.
Technology – existing back office accounting function running on outdated labor-intensive processes, management reports not available in a useful time frame. Management realizes the need to upgrade business process and systems, but is bogged down by culture, staff mentality and limited resources.
Internal Controls – weak internal controls leading to risks of fraud and mismanagement.
Efficiency – business with multiple business units operating with independent support structures under pressure to reduce costs and improve efficiency.
Finance & Admin Outsourcing Benefits
Management Focus. Our F&A outsourcing service allows management to focus on driving core business leaving the burden of back-office administration to process experts.
Value Through Knowledge Sharing. Given our breath of experience, we can employ industry best practices to achieve greater processing efficiency and better information delivery. These benefits of effective knowledge sharing are passed back to clients through a set of more comprehensive, secure and flexible services – at lower costs than our clients employing the same quality of staffs themselves.
Flexibility. Our F&A outsourcing clients can upscale or downscale their back-office capability to meet their business needs – effectively turning some of their staff costs to variable expenses.
Capital Cost Savings. Clients benefit from huge capital cost savings in IT – cost of software, hardware, consultant implementation, IT staff, maintenance. These savings are significant as IT systems and software changes every few years and upgrades are costly and time consuming.
Continuity Without Disruption. With back office functions outsourced, clients need no longer be concerned with staff turnover of key personnel. They can count on dependable service without disruption.
Ad Hoc Business Advice. As a long established CPA firm, we can support our clients with a wide range of finance and legal expertise. For instance, from advice on new company formation, issues regarding local labor law for staff reorganization, taxation benefits maximization, to obtaining working visas for ex-pat staffs. All these advices have been provided to our outsourcing clients, mostly without any additional charge.
NEED MORE INFORMATION?
Contact Andrew Ng 伍樹彬
Tel +852 2572 7328
Fax +852 2838 2239