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The Benefits of Shared Accounting Services

Accountancy is one of the most important parts of any organization. The main aim of any accountant in an organization is to keep a strict watch on the movement of the finances of the organization, increase the profits of the company as well as to help it in its future endeavors. One of the revolutionary concepts that have emerged in the domain of accountancy is the shared accounting services. The concept of shared accounting services emerged in the early 1980s when the companies like HP started implementing this model of finance and accounting. The major reason behind the companies in adopting this method of accountancy was to augment the cost base as well as make the accounting operations all the more efficient.

Almost all the major companies who implemented this model, the main driving force were the business needs of these organizations. The major achievement in the shared accounting service is the increase in the productivity of various business units along with the regions. In the shared accounting model the companies or organizations merge two or more of their units into one in order to have better economics. It involves the centralization of the departments that can really go a long way in augmenting the company’s reputation as well as its finances. The centralization also helps in improving the processes through the use of technology and other latest business models and methodologies.   
   
It has been estimated that in almost 30 to 40 percent of cases in the large organizations the finance and accounting departments can be switched over to the shared models. Some of the other benefits that shared accounting models can provide the companies are accelerated business growths, agility, as well as risk mitigation.

Apart from these Benefits Some other Advantages that the Shared Accounting Models can bring to the Companies are:

  • Consolidation of numerous general ledgers of the company into a single ledger
  • On-time account reconciliation can be improved dramatically
  • AP/AR processing is reduced
  • The process quality improves by 30%
  • Several operations can be standardized onto a single platform
There is no doubt that the shared accounting is the new face of accountancy in the present business scenario. The tremendous benefits that the shared accountancy can bring to the organizations only indicate that this model is going to be implemented by many other companies and organizations as well.