Financial outsourcing varies from business to business. Scope of services usually depend on the service provider as well as the firm seeking to outsource their financial planning to an external firm. Services include book keeping, payroll, financial planning and budgeting, cash flows, projections, forecasts and documentation (balance sheets, income statements etc.).
For Latte Laundry, one would need all past financial records along with current cash flows. Past balance sheets though not necessary would make the work easier. Latte Laundry’s business plan too would be needed to help passes future needs and forecasts. This information coupled with expenses such as rent and salaries will be used to maintain Latte Laundry’s records on spreadsheets.
Spreadsheets are a versatile tool. They are used mainly for planning purposes abut their adaptability and built in functions allows one to maintain accounts on them as well. By the use of macros one can virtually create a whole bookkeeping system using any spreadsheet software (double entry etc). Features can be used to generate graphs and templates for balance sheets as well. Furthermore, it is very user friendly which makes maintaining and working one excel easier.
Two most common questions that clients ask are whether the program is good enough to handle it all without errors or mishaps and whether it is cost effective or not. In spreadsheets usually it’s the expertise fo the user that counts. Since the accounts will be maintained by accounting professionals and computer science experts, there shouldn’t be much need to worry in this regard. Cost savings however are usually realized in the long term. Fringe benefits also include not relying on a single persons expertise but a whole team of advisors working to arrive at the best financial plan for the firm. Costs such as hardware setup (computerized system) or those associated with space and stationery (manual system) are done away with as well. Thus it is akin to having industry expert’s work on ones finances without having to go through the hassle and costs of employing such a team and setting up such a system.
Frankland J. (March, 2004). The benefits of outsourcing. CORSAIRE. Retrieved Januray 7, 2007, from http://www.corsaire.com/articles/020800-outsourcing.html
Functionx. (n.d.). Finance Functions. Retrieved Januray 7, 2007, from http://www.functionx.com/excel/Lesson12.htm
Outsourcing Institute. (n.d.). Top Ten Outsourcing Survey. Retrieved Januray 7, 2007, from http://www.outsourcing.com/content.asp?page=01b/articles/intelligence/oi_top_ten_survey.html
Walkenbach J. (n.d.) Excel 2003 Review. Retrieved Januray 7, 2007, from http://j-walk.com/ss/excel/xl2003.htm