Outsourcing Financial Activities

What are the advantages of outsourcing internal audits?

• Auditors possess specialized skills.
• Auditing firms retain high quality staff.
• External accounts obtain knowledge of best practices, which they can share with clients.
• Downtime is reduced for internal teams between audits.
• Companies enjoy reduced hiring and training costs for internal accounting teams.

What possible drawbacks accompany these advantages?

• Costs can be higher.
• Audit teams may include inexperienced accountants.
• Accounting firms do not assume responsibility of internal controls.

Overview/Description

Businesses are increasingly outsourcing portions of their accounting. This Business Impact explores the pros and cons of outsourcing financial activities to third party service providers.

Target Audience

Anyone serving in an accounting role with no previous experience in accounting, and non-accounting employees who want a working understanding of accounting and bookkeeping functions