The advantages of outsourcing financial and accounting services with the right firm.To compete and succeed across the long term in this ever-changing environment, many visionary executive leaders have chosen to outsource part or all of their in-house functions (primarily back-office activities, such as accounting and information technology) to an outside provider. Their reasons for doing this follow: * Focusing on mission. Rather than expending management's time and effort to build internal finance, information technology, and other noncore operations, these CEOs are outsourcing them to an outside provider that can perform the process better, faster, and oftentimes cheaper. This frees up management time to focus on the organization's mission. * Attracting top-quality people. Outsourcing is a way to acquire the knowledge you need by inviting another company with a different core competency A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
* Optimizing back-office operations. Frequently, these operations are the least optimized areas in the organization. Oftentimes, nonprofits don't leverage technology to its full potential, or they maximize the productivity increases when they do obtain new systems. * Instilling in·still also in·stil tr.v. in·stilled, in·still·ing, in·stills also in·stils 1. To introduce by gradual, persistent efforts; implant: "Morality . . . discipline in ongoing operations and implementing change. An outside party is not bound by the legacy systems and-legacy thinking that often exists within the organization. The new provider is likely to have seen a great number of efficiently run operations and will evaluate an operation with fresh eyes and ask why a process is done a particular way. Such providers are more likely to ask the tough questions and suggest new ways of doing things, without fear of internal political ramifications ramifications npl → Auswirkungen pl . "Outsourcing has been a major change for our organization," says Audrey Peeples, former CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the YWCA YWCA abbr. Young Women's Christian Association YWCA n abbr (= Young Women's Christian Association) → Asociación f de Jóvenes Cristianas YWCA of Metropolitan Chicago. "I was somewhat concerned about how it would change our culture, yet I wanted to change our culture. I wanted our program directors to take their financial responsibility more seriously and not take the budgeting process for granted. The outsourcing provider has brought discipline to our budgeting and monitoring process. They get financial information delivered faster and clearer, and I have more control over operations." External forces of change have created a need for nonprofit organizations to rethink how their organizations are structured and how services are delivered and acquired. Management guru Peter Drucker Peter Ferdinand Drucker (November 19, 1909–November 11, 2005) was a writer, management consultant and university professor. His writing focused on management-related literature. advises: "Do what you do best, and outsource the rest." Specialized outsourcing service firms offer greater expertise than individual staff within an organization, and executives increasingly understand that outsourcing yields long-term strategic benefits, such as greater focus on mission, innovation, and the ability to accelerate change and increase quality. In today's changing, knowledge-based environment, strategically managing nonmission knowledge through outsourcing has become a key component in the organizational vision of many successful nonprofit leaders. Bob Billig is a partner in the RSM McGladrey RSM McGladrey, Inc. is a tax, accounting and consulting firm in the United States, headquartered in Bloomington, Minnesota. It is the US member firm of RSM International, the 6th largest network of professional service firms in the world. Not-for-Profit Services Group in Bethesda, Maryland Bethesda is an urbanized, but unincorporated, area in southern Montgomery County, Maryland, just Northwest of Washington, D.C. It takes its name from a church located there, the Bethesda Presbyterian Church, built in 1820 and rebuilt in 1850, which in turn took its name from , Al Weber is a managing director in the RSM McGladrey Not-for-Profit Services Group in Alexandria, Virginia Alexandria is an independent city in the Commonwealth of Virginia. As of the 2000 census, the city had a total population of 128,284. Located along the Western bank of the Potomac River, Alexandria is approximately 6 miles (9.6 kilometers) south of downtown Washington, DC. . Both are certified public accountants Certified Public Accountant (CPA) An accountant who has met certain standards, including experience, age, and licensing, and passed exams in a particular state. . RSM McGladrey currently serves more than 3,500 national and 650 local nonprofit clients. The team consists of professionals who have extensive experience with nonprofit organizations in the areas of audit, tax, consulting, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , technology, and more. Our objective is to maintain the most current information available as it relates to developments for your nonprofit organization so that you can focus on achieving your mission, efficiently and effectively. [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] Contact: www.rsmmcgladrey.com bob.billig@rsmi.com; al.weber@rsmi.com Bethesda: 301-897-3200 Alexandria: 703-549-7800 |
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