Controlling your finances means controlling your business…efficiently. Simply put, finance and accounting is at the heart of your company’s success and survival.
The formula for effectively navigating a business towards success is by effectively managing income and expenses and having a great finance and accounting team. With those factors at hand, unexpected financial downturns can be easily circumvented. Generating business strategies and contingency plans can also be designed more adeptly through a well-established Finance and Accounting process and skilled domain experts team.
Aside from that, other major reasons why finance and accounting should be one of the backbones of your business are;
But, even though finance and accounting are separate entities and stand alone disciplines, they’re usually lumped together. Knowing the key difference between Finance and Accounting is vital to create an effective process and build a right team. The basic difference between them is their core responsibility.
Finance is the one exercising high-level control for your company’s financial strategy or more forward-looking for future financial acquisition while accounting is taking in a more detailed look at your company’s books or looking back to a company’s past financial transactions.
For a more detailed understanding of the difference between these two, The Difference Between Finance and Accounting blog will give you a full list and a comparison of table help to get you more acquainted with their distinction.
Aside from knowing the core knowledge in Finance and Accounting, being updated with the industry news and trends are equally important to be in the loop for the latest information and current events of F&A. This does not only help identify new opportunities but also your leverage in building business credibility, check whether your plans and strategies are in line with the industry’s business model and assess if your company is heading towards the future of F&A.
Aside from the latest news and trends, being aware of biggest scandals that disturbed the world of finance and accounting is a great way to get reminded about how crucial it is to maintain good accounting practices and recognizing tactical course of action in case these mishaps happen to you business.
Being aware of the market overview leads to understanding the common pain points of Finance and Accounting. The industry news and trends allowed business owners to rightfully identify these pain points and ways to effectively overcome them.
Now that we know the importance and key differences between finance and accounting, another layer to fully understand Finance and Accounting is being aware of the pain points of the industry. Awareness of the challenges is a ticket to resolving potential issues and watching out for common yet preventable finance and accounting snags.
Below are the common hurdles of Finance and Accounting and tips on how to effectively overcome and bridle them:
Like any other areas of business, F&A technology is also rapidly evolving. Oftentimes, companies are reverting to good ‘ol reliable spreadsheets that are familiar and convenient yet time-consuming. Outdated tools and technology may be ineffective in the long run making it difficult enough to report numbers after the factual, let alone in real-time.
Without updated tools and F&A technologies, your business is prone to miss deadlines, commit mistakes, devise ineffective strategies and remain in business stagnation. Having an updated system fills up any finance and accounting requirements needed for your business to grow. Make sure to get the tools that have features fit for your current business needs.
One of the most important and private data that should be kept secured is a company’s financial and accounting records especially those that contain business assets, budget and revenue. A compromised book allows hackers to take advantage of your business’s financial assets.
Simple firewalls and antivirus softwares as your company’s sole security measure may not be enough to outmaneuver data risks, security threats and cyberattacks. Because underestimating the importance of information security especially in this digital age can put your business in jeopardy. Cyber-thieves are mostly targeting a company’s financial records because they gain most from it. And they prey on small and medium businesses because they are slower to adapt.
US Bureau of Labor Statistics data states that there are only 5.5% of accountants and auditors nationwide aged 24 and under and in the workforce as a whole, there are only 12% F&A professionals. But as businesses continue to become more global, the demand for F&A professionals increases. In effect, hiring the best finance and accounting talents can be challenging because of talent scarcity. There is a limited pool of talents for these professions in the US.
Because of the limited talent, one of the underlying effects is major burnout especially during the heaviest weeks of tax season. Accountants regularly cite working for 70-80 hours a week causing a reported higher level of perceived stress than law enforcement officers creating a major turnoff for future candidates between choosing a job in F&A or settling with other parallel fields.
Now that we know the importance of Finance and Accounting, how to distinguish the key differences between each discipline, the hurdles of finance and accounting services, and being up to date with the latest news and trends, putting these information into good use should be your next target. Those information can be your guide in how to grow your business and achieve your goals.
Although, the common denominator for each set of information shared above is having a solid F&A process and building a great team of F&A experts. Juggling these two responsibilities can be quite hard. You need to have hyper focus on your business’s value proposition to fortify your company’s F&A process, thus getting support from the right outsourcing partner allows you to still have a great F&A team despite the limited pool of talent in a very high priced job market.
Infinit-O is a trusted global solutions partner that can help you build and operate a dedicated team of well-trained specialists specifically designed for your unique needs, with cost savings of up to 70%. With access to excellent talent that uses cutting-edge technology, we provide some of the best strategic solutions for your business. We are ISO-certified and GDPR-compliant, so your information is safe with us.
Curious on how to spot a great team? We’ve got your covered! Knowing these qualities and traits will not only help you distinguish the best people fit your unique needs but also serve as your guide in finding the right partner to help you build this great team. Because it’s all about turning the ME to a WE. Let’s work together for more endless opportunities. Start small. Exceed expectations. Think infinitely. Think Infinit-O.
The four fundamental pillars; People, Process, Technology and Security showcase how an outsourcing provider caters to different demands and needs of an F&A company. To achieve organizational efficiency, balancing this framework can maintain business harmony. If proper processes are not in place, people can’t be effective. Also, to experience and utilize the fullest potential of top F&A technologies and tools, a business and outsourcing partner must have a well-established information security in place to ensure no secured data and private information are compromised. In business intelligence, it is crucial for the four pillars to be in alignment.
Success starts with proper planning and investing with the right resources. These Finance and Accounting companies wanted to grow their business and were able to determine their needs. Thus, their next step was to seek help with an outsourcing partner to help them scale, build a great team and expand their business reach. We’ve gathered success stories in the F&A industry to learn more about their outsourcing journey and how they were able to achieve their goals with the help of the right partner.
Infinit-O has been in the outsourcing industry for 15 years, creating long lasting partnerships and endless opportunities to small and medium businesses across the Healthcare, Finance and Accounting, Research and Development, and Customer Service industries.
Our vision is to help small and medium sized companies to grow and prosper by enabling them to experience the full benefits of partnering with an outsourcing company.
We build great teams for our partners through understanding their unique needs in order to help them achieve their business goals and the vision they have for their company. We have rendered a strong combination of business consultancy, process optimization, and outsourced services; all utilizing the latest technology to provide excellent value for our clients.
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We share 15 years of experience in navigating data privacy laws and regulations. We guarantee strict compliance from the best information security practices with up to date cybersecurity certifications.
Your data is in our care.
At Infinit-O, we not only value your business but acknowledge the importance of information security especially in this digital age. For us, your peace of mind is as important as your business’s success.
Your company and client’s data are safe with us. Our operations and associated client information are housed in state-of-the-art facilities with controlled access areas that provide 24/7 security.
To overcome customary challenges and build a better cybersecurity system that ultimately protects and secures data, we are certified and compliant with:
Learn more about the full list of our Information Security bundle in this Whitepaper.
Having an extensive and profound expertise in the finance and accounting industry, we’re here to help you build a great Finance and Accounting team for your unique needs with up to 70% operational cost savings. With our A+ recruitment team, we assure speed to market hiring process, sourcing and bring specialists on board in only 30-45 days. We also guarantee operational excellence through collaborative Service Level Agreement and metrics-intensive performance evaluation. And most importantly we take pride with >97% client retention rate founded through trust and collaboration.