Outsourcing of core business activities was seen to be trend of SMEs however it is evident that today even larger organizations outsource their core functions as these activities are seen to be burden for the management. In the present business or corporate world competition has increased thus the managements are more inclined in utilizing their time for the business and competitive strategies thus they find outsourcing a feasible option however before making any such decision both the pros and cons of outsourcing core business activities like accounting/finance must be analyzed and then it should be decided whether to keep them in-house or outsource. Considerations for Outsourcing Finance/Accounting It is not just burden of working and maintaining records that has to be considered before making the decision for outsourcing there are mixture of risks and rewards involved that must be analyzed. First and for most criteria has to be the cost analysis the cost maintaining a finance department keeping in view all the expenses like training, salaries, office space, benefits, equipment and software would have to be compared to outsourcing keeping in view that same targets are to be achieved thus the related costs of outsourcing along with in-house operations must be recorded and documented (Jayamalathi, Magiswary, Dr. Murali, & Noreen, 2009). In case of finance department being outsourced decision regarding the access of records has to be made that how the relevant data would be delivered, who would be accessing the company records and in what format they would be presented to the outsourcer. All these factors have to be discussed in outsourcing agreement so as to be clear and whether they would be comfortable as it should not be impeding their regular course of business. It has to analyze the level and range of services that the outsourcer would be offering they should be less than what the company maintains in-house. Deadlines are important for finance and accounting as the relevant records are required from time to time thus it had to be made sure as how the resources would be allocated in order to ensure that the deadlines are met. In choice of outsourcer it has to be focused that whether his working style could be integrated into the culture of company otherwise data integration would be an extra burden over the company (Tejaswini & Rajiv, 2010). Company records are the critical factor for working and operations thus it often seen that management is not comfortable in sharing the information and the internal data even with the outsourcer thus it has to be considered the level of services required and decisions to be made regarding the data that would be shared with the outsourcer. Pros and Cons of Outsourcing Finance/Accounting Pros mostly can be said to be the reasons or the benefits for which the small and medium sized companies chose to outsource their finance/accounting departments (Yunus, Ren, & Jing, 2005). Cons can be said to be the risks that may cause to avoid the decision of outsourcing. Following are the pros and cons of outsourcing discussed: Pros of outsourcing Financial saving is most lucrative advantage that the SMEs focus on due to their limited financial resources thus
Name Tutor Module Date Abstract This paper gives a brief introduction and consideration regarding outsourcings, with focus on the fiance and accounts work. Further on, it provides discussion as well as description related to the pros and cons of outsourcing, Keywords: Outsourcing, pros & cons Outsourcing Introduction It seems to be the trend for small and medium sized companies or business that they outsource that they outsource specific niche activities of their business like tax planning, legal assistance and financial portfolio…
The private sector on the other hand operates with the main aim of maximizing the return of the shareholders . Because of the differences in the reporting nature and the objectives of accounting reporting, government accounts failed to reveal the high level; of bankruptcy as was observed by the private sector.
The company operates with a workforce of 164,000 employees in more than 70 manufacturing units established worldwide. It is worth mentioning in this regard that recent global economic turmoil has affected various manufacturing companies across the globe, including Ford.
A number of factors have become considered before a firm can decide whether outsourcing is the right path for the firm to take.o many organizations the objective of outsourcing is to improve the company’s financial competitiveness, majorly through reduction of costs.
The food is genetically modified through biotechnology to yield crops of better quality and quantity. The technology has proven to be an answer for increasing food needs of the growing world in the wake of draughts, malnutrition and calamities. However, several questions have come up pertaining to the safety, legal aspects and disadvantages of genetically modified crops farming.
It is basically a concept that serves the main purpose of providing an effective means of communication in which multiple users are able to communicate with each other with the help of internet. It also helps in communicating with people located at different parts of the world effectively and efficiently.
The answers to each question are in bold
Question 1 text
Which of the following is a liability of a firm?
A building owned by the firm
Cash in the firm's safe.
Money owed to the firm by its debtors
Money which the firm has borrowed and has not yet repaid.
It is way to gain competitive and strategic leverage. This study looks to conduct an in depth analysis of the various aspects of IT outsourcing including the human side of IT outsourcing. It also looks to explore the
Accounting degree is a rewarding degree for individuals as it opens up range of career options to students. The demands for accountants are growing and it is exceeding the supply. The Job opportunities in today’s business climate are far better than ever for accountants.