Recent Research by EquaTerra Projects Increase in Overall Outsourcing in 2008
-- Outsourcing of accounts payable and payroll processes accelerates as the need for CFOs to focus on strategic activities increases and the shortage of skilled accounting clerical staff worsens. Economic factors, Sarbanes-Oxley requirements, -- and now the move to fair-value accounting, which could affect everything from hedging strategies to emissions credits, and a push to overhaul financial statements to make them better reflect corporate performance -- has meant that CFOs more than ever have to focus on strategic issues instead of spending valuable capital, time and effort in improving low-value-added transactional processes such as accounts payable and payroll. These factors, combined with the severe shortage and rising salaries of experienced accounts payable and payroll staff, have meant that CFOs are increasingly looking at outsourcing these processes to stay ahead of the game. -- Companies are outsourcing individual finance and accounting processes such as accounts payable and payroll, rather than outsourcing the entire accounting function. As the use of outsourcing has matured, companies have realized that outsourcing of individual processes can achieve rapid and significant results with minimal risk. Many outsourcing firms have single process solutions utilizing advanced technology and best practices to bring a true state-of-the-art solution to a client. -- Shift away from use of pure technology solutions to best practices enabled by technology to address back office issues. In the continual search for ways to improve back office processes, CFOs have realized that technology by itself cannot solve back office business process issues. A good example is the use of document management and workflow software to attempt to streamline and improve the accounts payable process. For most companies -- except for those with plentiful resources such as the Fortune 500 -- this technology generates a negative return on investment if the true costs and benefits are measured accurately due to the extensive scale required to generate benefits. Companies now understand that technology is simply an enabler of a process. In order to achieve real and lasting results, companies need to develop and implement best practice processes -- enabled by technology -- while utilizing the best talent from across the globe.About IQ BackOffice A division of R.C. Baral & Co., IQ BackOffice is headquartered in Southern California, and is a known innovator in the finance & accounting outsourcing industry. With more than a quarter of a century of service to over 60 widely recognized clients in the restaurant/foodservice, manufacturing, distribution, financial services and publishing markets, clients typically reduce costs by 20% to 50% annually. SAS 70 Type II compliant, IQ BackOffice keeps up-to-date on the latest government-mandated regulations and delivers a complete solution that includes both technology and finance-specific domain expertise aimed at keeping clients in complete control, while significantly reducing operating costs. For more information, visit www.iqbackoffice.com.
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