One Dozen Good Reasons Why Accounting Outsourcing Is a Smart Choice in Turkey
- Seda Bayraktar, CPA
- Partner
- Accounting Compliance & Reporting
- E-mail to Seda
Outsourcing accounting and finance isn't new in Turkey, but it is getting a second look as companies search for ways to get accurate and timely financial information, to manage complicating compliance issues, and to cut office costs.
For some organizations, turning over vital business functions, such as accounting, to a third party can seem daunting. Executives need to be well informed about outsourcing arrangements and processes in order to truly recognize the value and benefits of hiring third party experts to manage day-to-day functions. Here are some examples of why accounting outsourcing is a smart and efficient solution for your company:
1. Compliance with changing regulatory environment
As the world becomes increasingly regulated, the pressure on your finance department grows. How do you ensure your compliance requirements are in hand? What risk management strategies do you have in place? Particularly when you operate in multiple jurisdictions such as Turkey, ever-changing local rules and regulations put your companies at an even greater risk of non-compliance and increased liability. Cerebra’s accounting team can assist with maintaining your organization in compliance with laws and regulations, particularly with respect to new audit, accounting and reporting requirements.
2. Less time on non-revenue producing functions and focus on your core competencies and grow your business
In today’s increasing competitive environment, the trend in the market for many companies of various sizes is overwhelmingly moving towards outsourcing of key non-core services. Hence, by delegating such responsibilities to professional organizations, company owners and management can focus on their core businesses which consequently lead them to become faster, larger and more profitably growing companies compared to those non-outsourcing companies.
3. Reliable and accurate financial reports
With proper month-end closing procedures and quality control, you will receive reliable and accurate financial reports in a timely manner and make informed management decisions. This will also lead to an effective management accounts and preparation of group consolidation packages required by the head office.
4. Effective cost savings
Outsourcing provides cost savings to many organizations, including salaries, benefits, office space, technology costs and overhead. There are intangible benefits as well including reliable and timely financial reports, eliminated frustrations related to staff turnover, recruiting, performance management, and saving management’s valuable time.
5. Access to highly talented professionals
Trusting your accounting and finance function to a third part can provide access to highly talented professionals with various levels of accounting and finance to perform your non-core accounting services, expertise normally too expensive to hire staff for.
6. Better governance (effective risk management and internal control)
Trusted accounting advisors can help strengthen your organization’s internal controls, increase transparency and accountability in financial operations. Segregation of accounting duties can easily be achieved with the combination of your staff and outsourcing team members. Particularly this matter is getting attention in Turkey because new Turkish Commercial Code has introduced new non-delegable duties and powers to Board of Directors that will have an impact on the ways of doing daily business of directors and management.
7. Better business processes
Outsourcing will result in recommendations and implementations of financial process re-engineering incorporating best practices to improve efficiency and effectiveness of your accounting/reporting functions.
8. Elimination of the headache of recruiting, hiring and managing clerical staff
Managing a clerical staff that typically has high turnover and requires extensive training is generally a headache for most financial managers and takes time away from other priorities more important to the business. In this context, you can actually save money through using outsourced accounting and finance function services.
9. Best audit preparation method
For annual audit of financial statements, trusting your accounting to a professional accounting firm is an excellent way to obtain support for the preparation of the audit. Effective outsourcing teams will save their clients audit fees by being fully ready for the audit, responsive to auditors needs and effectively managing the audit process.
10. Flexible to your organization’s need
Outsourcing can be extremely flexible to meet your organization’s specific needs. You can outsource the entire accounting function or only certain positions or tasks. Outsourcing can be performed on-site, or off-site, which can result in cost savings for office space, equipment, furniture and overhead expenses.
11. Built-in scalability
Outsourcing provides built-in scalability. As your organization grows or shrinks, you can easily have your outsourced accounting service provider adjust the staffing needs and deal with resource management.
12. Greater "control” over the business and the accounting and finance function
Management is freed up to focus more time, energy, and resources on building the company's core businesses as your accounting advisors assume full responsibility for managing the day-to-day back-office operations. Many executives are under the impression that outsourcing reduces "control" over the relevant function. In fact, outsourcing greatly increases "control". Why? Because management has better control when it can spend time in "analyzing” business information instead of simply managing the daily aspects of the function.
Ongoing pressures to optimize business performance and considering the aforementioned factors have prompted many executives to outsource accounting and finance function. However, many executive directors find it difficult to find someone with the right skills to maintain accounting records, produce financial statements, and analyze financial data to answer management questions. And finding such a person at a fair rate is even more challenging.
CEREBRA Accounting Compliance and Reporting Services is perfectly suited to help your company transform into a high-performance organization that streamlines processes, maintains compliance and cuts costs, all while letting you focus on your core competencies and grow your business.