💡71% of financial service executives outsource or offshore some of their services. Most businesses have periodic tasks that require time and labor but do not directly contribute to the financial growth or operational activities of their business, and in consequence, suck up valuable time and energy. Offshoring and outsourcing non-revenue-generating activities, like accounting and bookkeeping, can benefit businesses that want to focus on their core competencies while reducing costs and increasing efficiency.
For entrepreneurs and owners interested in building their businesses up from the ground floor or expanding their operations into new markets but lacking the necessary resources or expertise, offshoring or outsourcing financial services offers a cost-effective solution. It frees them up from having to hire additional staff while still ensuring they maintain compliance with industry regulations.
Why businesses offshore financial services
Financial services commonly offshored or outsourced are back-office tasks like accounts payable and accounts receivable management, accounting functions, bookkeeping, data entry, payroll, and risk management.
But why? First off, cost. The average salary for back office roles in the U.S. is $41,888 a year, and it goes to as high as $76,511 in New York and $84,710 in San Francisco. To get e better picture of the expenses, add the hiring, onboarding, managing, office space, and paying benefits costs, in addition to the salary. If you don’t need a professional in-house full-time but you hire one, you’ll end up overpaying for the services you need and if you need more than one professional to join your team it can become too costly for your business.
Second, expertise. Offshoring and outsourcing let you have more resources and more manpower in your business without demanding resources from other departments or hiring professionals in-house. Additionally, you tap into a pool of financial experts, with a wider experience range and access to the latest technologies that would otherwise be unnecessarily expensive for your business to obtain.
Third, financial flexibility and operational resilience. You get to choose the kind of services you need, or whether you need hands on deck full-time or part-time. Fixed costs can be converted to variable costs, and you can scale the service you’re getting as you continue to grow. You can also upscale or downsize your offshored or outsourced processes at any point, using offshoring and outsourcing as a shield against operational risk, unforeseen circumstances, or a volatile market.
Financial service offshoring and outsourcing companies assemble teams of specialists who are hand-picked for their expertise in finance. These experts, who together have more experience than any in-house team can bring, ensure consistency and best practices for your business.
Financial services most commonly offshored
At Zagragja & Associates, we’ve offshored and outsourced services to support short-term, long-term, and project-based goals for businesses. We’ve connected businesses with top-tier professionals who get great results at a fraction of the cost of a full-time in-house financial professional. Financial services we most commonly offshore and outsource include:
- Accounts Payable and Accounts Receivable
- Month-end Close
- General Ledger Reconciliation
- Prepare Financial Statements
- Implementing Accounting System Integrations
- Bank Statements
- Invoices and Receipts
- Financial Reporting
- Inventory Management
- Organizing Assets and Liabilities
- Monthly Preparation and Declaration of WHT & VAT
- Tax Return Preparation
- Tax Accounting
- VAT Services
The business landscape is constantly changing. That’s why the clients who offshore and outsource with us have the flexibility to adjust the level of support and services based on their financial needs and resources at any time.
Legacy of trustworthiness
Cutting costs and increasing efficiency is a must for businesses that want to compete in the modern business landscape. Offshoring and outsourcing let you do that while maintaining visibility and control over your finances. At Zagragja & Associates, we have over 17 years of experience in providing quality services to our clients, with integrity and trustworthiness as the foundation of our collaboration. Our difference lies not only in our ability to provide excellent service but also in our experience, which enables us to provide customized solutions for your specific needs.
Our team of experts has years of experience in providing strategic expertise and innovative solutions that can save you time and money in the long run. We offer a full range of accounting, tax, audit, and advisory services so you can rest assured knowing we have everything covered. Experience the Zagragja & Associates difference!