Author: Author FAO

Details of processes that can be outsourced – high end (contd…)

Adding to the last post, these functions go higher up in the complexity and criticality chain for the CFO and other organizational groups. Management Reporting and Analysis P & L preparation Schedule preparation Cash flow & fund flows Financial statement preparation Final statements of accounts GAAP Analysis Regulatory reporting and compliance Filing of statements of accounts Financial statement presentation Stakeholder query handling & resolution Cross country conversions Statement consolidation and summarization, for groups / subsidiaries All that sounds familiar, doesn’t it? This is a critical CFO function and usually only pre-preparation work is moved to an outsourcing / back...

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Details of processes that can be outsourced – R2R (contd…) – high end

Continuing with the R2R process listing from the last week, we cover the other areas of R2R, which now are closer to the CFO more than others. Record to Report (continued….) Fixed Assets Asset Setup Asset Master maintenance Asset transfer recording Depreciation recording an management Financial Planning and Analysis Financial & statutory reporting Building financial KPIs Tracking & reporting of financial KPIs Budgeting & Forecasting Budget Preparation Budget Analysis Forecast preparation Revenue forecasting Forecast Analysis Budget Variance Analysis Forecast Variance Analysis Budget consolidation Regulatory reporting & compliance Compliance reporting – GAAP Compliance reporting – IFRS Compliance reporting – SOX...

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Modification to an earlier post

I made a small modification to an earlier post : http://faoblog.com/functions-outsourced/. The nesting of some of the process list accidentally got posted as being under R2R. This has now been corrected. You may visit the link above to view the...

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Details of processes that can be outsourced – R2R

It’s a festival in India today, so to all Indians, Happy Sankrant (the harvest festival). I hope you are enjoying my posts. I have not seen much feedback, except from people known to me, but the subscription is slowly increasing to the site. As the processes mature, “Record to Report” or “R2R” is considered for outsourcing or moving to the back office. Although in my initial listing, I had shown reconciliations separately, however, since it affects multiple functions, depending on the function it can be classified differently. Here now the level of complexity of the function starts increasing. The...

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Details of processes that can be outsourced – O2C

Moving on to the next best function which can be moved to the back office or to an outsourcing provider is the “Order to Cash” function, commonly known as O2C. This function is also referred to as the “Accounts Receivable” or “AR” function. Based on basic accounting principles, This relates to customers buying stuff from an organization and paying up for the same. Simple accounting for this, debit the customer and credit sales. As the organization grows larger and larger, the function starts specializing into components. As a customer would place his order, it would be booked, a bill...

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Details of processes that can be outsourced – P2P.

This week we focus on understanding various functions and processes under them. We start with Procure to Pay. This function is the most sought after function and one of the best candidates for outsourcing / moving to a back office. This function is also commonly referred to as the “Accounts Payable” or “AP” function. Procure to Pay relates to the purchase function of an organization. Simply for an accountant – you debit purchase account and credit the vendor or cash / bank for cash purchases. For larger organizations, this devolves in a much larger and specialized context. This starts...

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Functions that can be outsourced

The next question, what are these segments – the standard functions that can be outsourced. Pick up your accounting books. The fundamentals will start coming out of the type of transactions you know of. See how those transactions can be structured and grouped, and in that lies your answer. After all accounting is accounting 🙂 See the list below : Finance and accounting processes : Procure to Pay Order to Cash Reconciliations Record to Report General Accounting Fixed Assets Financial Planning and Analysis Budgeting & Forecasting Regulatory reporting & compliance Treasury & Risk Management Taxation Management Reporting and Analysis...

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What can be outsourced ?

This question looks so simple – we can say almost anything in the accounting world – but turns out to be equally hard to answer for most of the organizations considering outsourcing. Not just the organizations, the people who want to make a career in the back office, also quite often are not clear what finance and accounts outsourcing holds for them. They cannot decide which stream they need to get into and why, why will it be beneficial to choose a certain stream, whether they need to build their career as an SME or as a people manager....

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Why outsource ?

Now a question arises, why move a function to the back office, outsource provider or a shared center. The answer is very simple – consolidation, standardization, best practices, specialization, labor arbitrage, reduce software license costs, reduce management and infrastructure requirements …. and the list goes on. There are multiple reasons for outsourcing. The end result is for sure reduction in cost, better processes, satisfied customers and stakeholders etc. See the graph below, it indicates what you can actually gain / achieve over a period of time. You sure can achieve up to 50% cost reduction in a span of...

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The Ultimate Blog on Finance & Accounts Outsourcing

Hi Folks, Happy New Year. OOOOH…. Outsourcing again !!!!!! Well yes, this blog is on finance and accounts outsourcing. By this blog we wish to help and guide people working in the outsourcing world to help them deliver a better deliverable for their clients / principals. Though our blogging base will be finance and accounts outsourcing, however, the posts done by us can be used for a multitude of industries. This blog will guide people on various aspects of managing outsourcing processes, what to measure, how to build measurement systems, what to report, what to deliver, how to share...

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