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Posts Tagged ‘Bookkeeping’

Why Outsourcing Business Services

Many cannot afford a qualified professional mostly due to the high cost and scarcity of top notch experienced accounting and financial management consultants. Mr. John (Giancarlo) Meazzo, President of GMA3000.COM, is the guru of outsourced accounting and financial management. GMA assisted companies with $1 million to $3 billion in revenues and has provided much needed “turn around” support and outsource services.

We can share a secret, for many companies a part time qualified (seasoned) contract CFO may the best alternative to a full time non-qualified CFO.  See an example of the smart alternative to a staff CFO. The contracted CFO should have at least 30 years experience as a CFO and should have worked in at least 5 companies.  We found that CFOs that had only a couple of positions, lack the diversity of experience that is usually needed for such an important position.   In some companies a CFO performs clerical work just to keep them busy.  Many invest a great portion of their time in performing work that can be easily performed by accountants.  The CFO should develop systems and delegate the responsibility for their use to their subordinates.   This will allow the CFO to concentrate on key issues and to assist the corporate executives in planning and financial management. The right experienced CFO will set the foundation for success and growth.   Many companies have closed as a result of inexperienced professionals.   Most non finance executives or board of directors do not know the difference between an accounting manager, controller or CFO.   As a result they fail when hiring this very important position.   Also there are many companies that have highly qualified bookkeepers with a title of CFO.   This can be disastrous.     The CFO should not under-employee himself.  The core of his time should be to insure all operations to financial systems are working well.  The CFO should understand and implement controls, budgets, 5 year plans, direct the financial aspects of the business operation and much more.

The 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 advantage”.   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 professionals in various fields of expertise. The market for outsourcing is estimated to be several billion dollars by the year 2011, according to an Accenture survey.

GMA has provided its clients with “boutique” accounting and financial management outsource services.   At the initial part of our engagement we review all systems to determine weak areas and areas that need immediate attention.   Internal controls are essential to eliminate any potential for theft by employees.   We also invest time to train supervisors, department heads and management.  We educate them in how to make use of financial reports as a tool to operate their departments.  We support the dissemination of financial data and train staff in budgeting, planning and communication.   Engaging companies such as GMA to perform reviews in accounting and financial systems may be one of the best investments a company can make.

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