There are certain fundamental departments that firms have in their operation. Departmentalization is brought forth as a result of the concept of segregation of duties. As a result offices handling similar tasks are placed together for easier coordination. Common departments include marketing, finance and accounts. The last example shall be scrutinized. More specifically, outsourcing accounting in Chicagoland area is the main issue here.
The function of this department is to prepare financial statement according to a particular framework. This involves obtaining information about various transactions and events and the placing them in records. The information in the records is then used to prepare a statement of financial position, an income statement and a statement of changes in equity. This work could be done by internal employees or external experts. Before choosing on who does the work, several factors have to be considered. These include cost against benefit considerations, level of expertise, complexity of transactions and organization culture.
There is a plethora of advantages that come with setting out to outsource the function. The outside experts will be perceived to being independent by outsiders. Thus, they are seen to perform their work with due professional competence and care.
The members of the department are perceived to exercise the greatest level of integrity and professionalism in doing their work. The degree of confidence of current investors in the company is improved. Potential investors are also impacted positively.
It is essential to note certain disadvantages of this. The firm will have less control on the outside party that has been entrusted with the responsibility. Certain confidential information about the firm are likely to be leaked.
outsourcing accounting in Chicagoland area is a good practice. The advantages outweigh the limitations. The firm is also likely to be at par with market changes.
The function of this department is to prepare financial statement according to a particular framework. This involves obtaining information about various transactions and events and the placing them in records. The information in the records is then used to prepare a statement of financial position, an income statement and a statement of changes in equity. This work could be done by internal employees or external experts. Before choosing on who does the work, several factors have to be considered. These include cost against benefit considerations, level of expertise, complexity of transactions and organization culture.
There is a plethora of advantages that come with setting out to outsource the function. The outside experts will be perceived to being independent by outsiders. Thus, they are seen to perform their work with due professional competence and care.
The members of the department are perceived to exercise the greatest level of integrity and professionalism in doing their work. The degree of confidence of current investors in the company is improved. Potential investors are also impacted positively.
It is essential to note certain disadvantages of this. The firm will have less control on the outside party that has been entrusted with the responsibility. Certain confidential information about the firm are likely to be leaked.
outsourcing accounting in Chicagoland area is a good practice. The advantages outweigh the limitations. The firm is also likely to be at par with market changes.
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