MAKING A SMART TRANSITION TO OUTSOURCING WITH GM & ASSOCIATES (GMA).
WHAT IS OUTSOURCING. Outsourcing takes place when an organization transfers the activity of a business process to an outside service provider. Strategic control remains with the executives of the main company while procedural control (i.e. the day-to-day function) is performed by the service provider (GMA).
Outsourcing is not a new concept, but the kind of outsourcing implementation many leading edge companies use today involves a paradigm shift for business. This shift is made possible by the application of business wisdom and technology -- together.
In today's marketplace, increased automation, virtual marketplaces and a increased scarcity of highly-skilled employees has driven businesses to explore new processes to outsource. One of the most logical of these is the accounting function.
It is complex for the non-finance management to understand the responsibilities and potential of the finance department. An outsourced Chief Financial Officer (CFO) is the best professional to understand the needs of their clients. The outsourced financial manager will assist the client in determining the level of staffing needed to accomplish the tasks efficiently, productively and at reasonable costs.
A well established accounting department requires exacting attention to detail as well as standard procedures. Financial and accounting services are an integral and important part of a business from an information standpoint. For any company, having a timely flow of accurate, meaningful accounting information allows management to build the company by making intelligent and calculated decisions.
However, the accounting function itself is repetitive and requires expert accountants and systems to provide such useful information to management. In the past, for a business to have truly meaningful and timely accounting information, the company had to create its own, costly and elaborate in-house accounting system and staffing. For those smaller companies, depending on a small accounting staff may be dangerous if key personnel leaves the company without policies and procedures and without cross training.
Insuring that tasks are segregated into the various levels of accounting staff is important not to over or under-employ staff and therefore maintain costs at appropriate levels.
Finance and Accounting: the Logical Outsourcing Choice. Today's companies are finding that outsourcing accounting is smart business.
A Gartner Group report indicates that “market perception has shifted from outsourcing as a way for companies to meet short term financial objectives to a technique for strong companies to improve competitive positions.” In addition a recent Chief Executive Magazine/Andersen Consulting survey stated that half of the CEO’s surveyed said they used business process outsourcing (BPO) strategically, but more than 90% said they expected to have strategic outsourcing or strategic sourcing relationships by the end of this year.
In short, strategic select task outsourcing is emerging as a cost effective tool for “unbundling” the corporation. Outsourcing can effectively create alliances and partnerships with the experts in various fields of expertise. The market for outsourcing is estimated to be several billion dollars by the year 2002, according to an Accenture survey.
Clearly, there has been tremendous change in the way businesses approach the accounting and financial function.
Executive and business owners depend on partners for financing, marketing, and production. Through our Business Process Outsourcing (BPO) solution, GMA extends its superior service to include outsourcing the entire back-office process, providing enhanced control, lower cost and improved solution to clients. GMA offers scalable and flexible solutions to the small, medium and large organizations.
GMA CAN REDUCE COSTS BY USING WEB BASED ACCOUNTING PROGRAMS - USING WEB BASED VIDEO CAMERAS TO INSTRUCT, DIRECT, INTERACT AND MONITOR OFFICE STAFF. WE WILL BE AVAILABLE ON VIDEO CONFERENCING ANY TIME WHEREVER WE ARE WHETHER IN OUR OFFICE OR ON THE ROAD! WE'LL BE THERE JUST A COMPUTER AWAY!
consideration for a small or medium business is whether to hire a full
time financial manager to perform the various high and lower level
financial tasks or to outsource that position. Outsourcing will allow as
an example to have a 10% high level CFO, 30% Controller, and 60%
Accounting Manager. This would total 1 FTE. Having one full time
professional to perform all duties may be dangerous. The full time
professional will either be under or over qualified and employed for
many of the tasks that they are responsible for. The best alternative is
to determine your finance and accounting needs and allow me to bring in
a mix of professionals that would match your needs. No need to under or
over employ one full time employee. Also it may be that you do not need
a full time professional. With GMA paying for only what you need will
most likely be a great cost saving. We can prove it.
FINANCE OUTSOURCING – COMPONENTS Outsourcing creates breakthrough thinking by management to concentrate on core competencies—those things it does best—and then allow GMA the unique capabilities of equally talented and focused outside partners to handle non-core competencies.
Decision Support—e.g., using financial information, planning through setting of goals and objectives, financial analysis, revenue enhancement, management of costs.
Reporting—e.g., generating financial and operating statements, management reports, budget vs. actual variance analysis and reporting, general ledger, closings of monthly accounting records, general accounting, and tax compliance and planning.
Transaction Processing—e.g., billing, fixed assets, inventory, payroll, accounts payable, accounts receivable.
GMA’s Financial Manager is dedicated full or part time to your business, functioning much like a controller or chief financial officer. The Financial Manager manages the on-site staff and is always available to meet with management and respond to any inquiries. Located off-site, but readily accessible to you and our Financial Managers, are GMA's senior partners and other professionals with specialized skills. Importantly, when turnover in personnel occurs, we will provide continuity of services as a result of our inter and or intra-company cross training.
GMA's CAPABILITIES. Calling upon our extensive experience and best practices, GMA assesses your processes and identifies where quality and efficiency can be enhanced. Subsequently, GMA implements the identified strategies and creates an environment for continuous improvement. GMA can provide a complete solution by determining where your current gaps are and then filling them in with a team of outsourced professionals - bookkeepers, controllers, CFOs. GMA' comprehensive Finance and Accounting Outsourcing Solution can help. When you outsource your financial business processes to GMA, we manage the day-to-day activities, freeing you to focus on the more important strategic work. Day-to-day activities -- such as billing, accounts payable and receivables, expense report processing, general ledger management -- that can be streamlined and improved.
GMA has provided administrative and financial process consulting since 1982. Our proven process reengineering methodologies, process management expertise, and technology application capabilities can help you simultaneously improve service performance and drive down transaction costs.
When possible we'll also capitalize on your staff's experience. GMA and your management will yield synergistic results to the way they support your operations.
HOW MUCH WILL IT COST? GMA can provide services to meet your needs at approximately your current costs. Your savings can often be obtained through practices too difficult to achieve on your own such as: leveraging technology, recruiting, training and other indirect costs; standardizing and centralizing; utilizing accounting best practices; and avoiding investments. However, a definite answer will surface after an assessment of the cost for your specific current service requirements, with their related processes, technology and people. Training new staff for by a non financial manager may cost up to 6 months of the new employee salary. GMA will have the proper policies and procedure and experienced training to bring this cost down by 90%!
GMA’s STRATEGIC PROGRAM. GMA understands that the information of a business evolves as the business grows, in response to its customer requirements and as it adjusts to competitive pressures. It is therefore our objective to not only provide the right information at the right time, but also the right resources at the right time. The exhibit below illustrates how GMA Finance & Accounting solution evolves and changes as companies move from the Formation Stage to the Start-Up Stage, and ultimately, to the Operational Stage. Our approach carries flexibility as its hallmark and demonstrates our capacity to respond to a company’s needs in terms of scope of work, processes, technology, people, and cost.
CLIENT’ S INTRINSIC BENEFITS. Focus on Strategic Planning. Let Us Take Care of the Details. If you're like most financial executives, you know you should focus on strategic issues facing your company. But in reality you spend much of your time on administrative details like budgeting, cash flow management and transaction processing tasks. In fact, industry reports indicate that CFOs spend approximately 80 percent of their time on the day-to-day operations, leaving only 20 percent for the strategic planning and decision-making that is so important to a company's growth.
GMA offers the
expertise of our own human resource
consultants to assist you with HR
management. Our highly experienced
professionals will design customized
strategies to meet your needs - through HR
audits, recruiting, organizational
development, hiring services, compensation
and benefit planning, employment services
and termination services. GMA understands
the employer's perspective and is committed
to advancing your culture and profitability.