UPDATES FROM SOUTH AFRICA – Why is it good for Outsourcing!
South Africa has made a push for foreign direct investment inflows into the country. In recent times the minister of finance has approached the US market to persuade the markets that South Africa is stable and ratings downgrade is not as it appears. The South African president recently concluded successful visits to the Kingdom of Saudi Arabia and the United Arab Emirates to strengthen bilateral trade and economic relations between South Africa and the two countries respectively.
The business environment in South Africa has followed the trends with emerging markets and there has been a lot of volatility in terms of market movements. Rating agencies have conducted a review to assess to what extent government policy can stabilise the economy and restore fiscal strength in the face of heightened domestic and international market volatility.
Rivaaj Kalidin, a Chartered Accountant and Registered Auditor has joined the team. He has gained valuable experience in both private and public sector. He is in a position to grow the company and comes with a strong will to serve clients in all aspects. We are offering clients a one stop shop of financial solutions. Rivaaj has a broad spectrum of industry and professional experience where his industry related experience includes consultative roles within the Financial Services industry, Shipping industry, Commodity Brokering industry, NGO industry, Entertainment industry, Industrial supplies, IT industry, Property industry and Education industry. Further to being a Chartered Accountant Rivaaj has developed his professional skills with the completion of various IFRS Financial statements which afforded him exposure to more complex and challenging dimensions of International Financial Reporting Standards.
We are now offering clients the opportunity of having the accounting records to be audited in house by our associate company.
Get into Outsourcing
Whether to or not to outsource non-core business functions is an increasingly important question, up for debate by growing businesses worldwide. The concept of Business Process Outsourcing (BPO) is often misunderstood. Many perceive it as being the outsourcing of their “call centre” to an external service provider. This is a parochial notion and undermines the broader aspects and value of what BPO entails. In the context of accounting and finance, BPO is the outsourcing of accounting and finance functions within an organization.
With growth, the efficiencies are challenged as the inevitable bottlenecks settle in. This is the perfect time for a business to do some “housekeeping” and ascertain whether there are certain tasks that could be handled better and more efficiently by an external service provider. Outsourcing often helps a business avoid a premature internal transition from the informal entrepreneurial phase to a more bureaucratic mode of operation.
A few examples of functional processes that can be outsourced:
- Accounting system set-up and book keeping
- Revenue and cost accounting
- Expense and cash management
- Accounts payable and received
- Fixed asset accounting
- Bank operation authority
- Account reconciliation and analysis
- Month-end close
- Financial reporting and consolidation
- Outsourced hr functions
- Company secretarial services
South Africa is well established as being a key BPO destination as there are the requisite skills and resources to complete all tasks assigned.
There are many benefits and drawbacks that are linked to BPO services, although benefits often surpass the drawbacks. It is essential to know the advantages and disadvantages of business process outsourcing before entrusting any task to a service provider. There are many companies that offer a vast and full range of outsourced services. This needs to be carefully considered and evaluated and should not be accepted at face value, finding the right fit between an outsourced service provider and an organisation is crucial in ensuring that potential exponential growth is realised, value unlocked and continued sustainability is achieved.