Advantages and Disadvantages of Shared Service Centres for Finance and Accounting
Companies from across the globe are now reaching to shared service centres to handle their finance and accounting functions. This is mainly because they are cost-efficient. In addition, they get professional service in return.
As per a survey, it has been found that more than 50% of the global companies have outsourced their finance and accounting functions to shared services centres. The reason for rising outsourced services can be attributed to the fact that companies want expert services to deal with regulation and compliance procedures of their businesses.
In this article, you will learn about the advantages and challenges that a company faces when they outsource finance and accounting functions to shared service centres.
Let us begin by learning the advantages of finance and accounting shared service centres.
Advantages of Finance and Accounting Shared Service Centres
- Companies can easily standardise their processes and chances of errors are very low when service centres handle finance and accounting functions. This is because the shared service centres have specialisation in their work and can handle the task with utmost competence and professionalism.
- The standardised processes help the companies to easily prepare their input and output reports. In addition, the process of control environment simplifies. This, in turn, helps in streamlining the entire system and reduces the iterations.
- Shared service centres help in making globally standardised processes which make it easier for companies to compare the different trends across the industry and within the organisation.
- Since shared services centres make one automated software for the whole organisation, it becomes easier for companies to introduce more automation and robotics.
The above mentioned are few of the advantages of finance and accounting shared service centres. Let us now learn about the challenges the companies face while hiring their services.
Challenges of Finance and Accounting Shared Service Centres
- The shared service centres standardise the systems of the company but that comes at a cost. The rules of one country is different from the rules of another country and that increases the cost of being compliant because additional mechanism would need to be developed to monitor the reconciled data and track its compliance in accordance with the country.
- Shared service centres can easily change the accounting methodology to comply in one country. However, the real challenge arises when they have to meet the local tax and financial reporting requirements. In such a scenario, the services of local specialists are required and assistance of shared service centre would not be of much use.
However, the above mentioned challenges can be overcome by selecting the right service provider. IMC Group is the leader in providing finance and accounting shared services to the clients. We have years of experience in serving various companies across the globe. We know how to overcome the challenges and offer cost-effective solutions to our clients.
We very well understand the problems faced by the companies when they move from accounting and taxation system of one country to another. IMC Group has the capability to converse with the local authorities of the countries and respond quickly to the areas which are important for the business. We not only maintain high compliance standards but also provide active monitoring of the upcoming regulation changes.
If you are looking for shared service centres for finance and accounting, you can contact us and know our quotes.