Outsourcing Accounting Provides a Six-Figure Cost Reduction with Added Flexibility

According to a 2022 Global Outsourcing Survey by Deloitte, the majority of businesses are leveraging outsourcing partners to tap into new technology-driven capabilities. This includes access to cloud-based software, artificial intelligence, data and analytics, and robotic process automation.

Together, a majority, between 89% and 94% of organizations, are finding partnerships to be effective in adding flexibility that fills exactly where they need support the most. Imagine a future fueled by access to talent and expertise that is designed to fill a need instead of a 40-hour work week.

Is it possible? At kept.pro, we partnered with a property developer to provide a team-based approach to accounting talent that offered flexibility while simultaneously optimizing processes to gain efficiency. The added flexibility that we provided to our client achieved a six-figure cost reduction, so yes–we believe that the right partnership can make transformative change possible.

Here’s a look at how our team can provide a path to agility for mid-sized companies.

Making the Case for Flexibility

Our client was a property developer with more than 50 separate legal entities. They kept separate books for each one–and staffed in-house accounting talent to manage them all. The bookkeeping alone was cumbersome. They decided to explore an accounting outsourcing partnership for the whole process, except for treasury management, to improve their processes.

With a little more flexibility, the client hoped to:

• Gain Efficiency
• Become More Adaptable
• Lower Costs
• Improve Compliance & Risk Management

Our team could provide the same coverage of talent and expertise without the full-time commitment and 40-hour work week FTEs (full-time equivalents) that were burdening the company’s current process and bottom line.

Outsourcing with a Team Approach Provides a Logical Solution

Outsourcing comes in many different varieties. There are many providers that specialize in staffing roles. When this client came to kept.pro, they were looking for more. They needed access to accounting talent who could step in and take over daily accounting operations while also helping the company improve systems and processes for greater operational efficiency.

With our team approach, the company also benefited from the excellence that comes from team culture and well-defined best practices. Teams inherently offer:

• Communication: Teams operate with clear expectations and the free exchange of information that benefits all parties.
• Accountability: Strong teams hold themselves and each other accountable, enforcing the adherence to policies and procedures that support transformation.
• Engagement: Teams work together to foster motivation and engagement, improving the quality and speed of work performed.
• Leadership & Respect: Teams already have an established rapport, which makes it easier to navigate change and achieve success.

Making the Transition: A Behind-the-Scenes Look at Migrating to a Provider

The onboarding process can be intensive. Our team worked to integrate technology, clean up accounting records, and document processes all while handling the daily accounting as efficiently as possible.

To navigate this complex scenario with a brand-new client, our team utilized a structured onboarding plan and clear communication. We proactively addressed common points of failure in outsourcing relationships.

First, we took time to thoroughly understand our client's needs and align our actions to achieve an efficient, streamlined accounting process encompassing 50 individual entities. Second, our team approach provided the flexibility to fill in with talent on multiple levels, satisfying roles in data entry, financial reporting, process improvement, internal audit preparation, and strategic advisory.

This flexibility ultimately unlocked the financial visibility that the client was missing, enabling change.

Better Visibility, Lower Costs

The balance sheet is often a big source of ambiguity in business finance. Bad debt, overvalued assets, and bloated inventory can all keep a company from seeing what is really occurring from a profit and loss point of view.

One of our first big wins was cleaning up the client's balance sheet. With timely financial data resulting from reliable accounting, we were then able to focus on creating a reliable cash forecast. This, in turn, supported proactive cash management capabilities.

With the finances in order, our client was able to spend more time working on their core services–real estate deals–and less time putting out fires caused by poor financial data or latency. Better visibility enabled the client to:

• Predict future cash flow with greater reliability.
• Run scenario planning to prepare for contingencies.
• Balance liabilities and optimize refinancing opportunities.
• Strengthen relationships with lenders and investors.

As an added benefit, this visibility facilitated a significant cost reduction, trimming six figures off their annual operating expenditures.

Consider Outsourcing as More than a Cost-Savings Measure

Your business runs on timely, accurate, complete financials. Every delay and every error is taking money away from your bottom line. At kept.pro, we can help you get things in order, providing accuracy and visibility that saves you time and money.

Learn more about outsourcing accounting and financials with a team approach today.