Three Ways Outsourcing Can Help Your Government Improve Financial Reporting
The financial accounting departments of most state and local governmental entities do not have an abundance of time and resources. That can mean high stress, high turnover, and a chronic inability to produce the accurate, clear, and timely financial reporting that an effective government demands.
On top of it all, state compliance requirements are constantly changing and technology continues to advance. Keeping pace takes people and financial resources that you may not believe are within your scarce budget.
You can resign yourself and your department to this fate, or you can take action. Outsourcing is an option that many governmental entities are reaching for on an as-needed basis. By bringing in help from outside, your department can tap into the experience of professionals from across the country, gain greater flexibility, and add a new perspective on your entire operation.
What's keeping financial accounting department managers up at night?
- Turnover in the accounting department
- Improving clarity in financial reporting
- Modernizing, automating, and integrating processes
- Ineffective general ledger systems
- Change in leadership through retirement and succession
- Implementation of new state compliance requirements
Access deep financial and accounting knowledge
One benefit to outsourcing is it provides you access to vast resources of financial and accounting knowledge. This includes best practices for presenting your financial statements to your governing boards, budget forecasting for multiple years to develop long-range planning, access to help on implementing new state compliance requirements, and updates on new accounting standards that will have a direct impact on your governmental entity.
Financial accounting departments are being challenged with an increasing amount of compliance and new accounting standards — plus the increasing costs of services, operating supplies, and capital equipment — even infrastructure becomes outdated. Outsourcing can provide you with experienced personnel to help evaluate your processes and resolve issues.
Get the job done without adding full-time staff
A second benefit to outsourcing is that it allows greater flexibility on the actual time needed for a specific project versus hiring a full-time employee with full salary and benefits. Certain situations arise that may be reason to involve professionals outside of the entity, even though they are not needed on a recurring basis. Situations may also arise where an individual is only needed on a temporary basis when a full-time employee takes leave.
Outsourcing provides the flexibility of having staff available as needed without having to commit to a full or part-time hire. As a bonus, the outsourced personnel will have accounting experience with governmental entities so you can benefit from a broad range of best practices.
A fresh perspective on your challenges
Outsourcing allows someone outside of your organization to thoroughly evaluate your financial accounting staff needs. This individual can listen to you and your team and help evaluate the issues you face, with the goal of improving your efficiency and timeliness.
This consultant can share specific suggestions and walk beside you to prioritize an actionable plan with a timeline, resources, and leadership to guide the execution. It can be very helpful to have your financial accounting department assessed when there are staff hiring challenges or known future successions.
How we can help
Whether you need a complete finance team or specific positions on a full-time, part-time, or temporary basis, CLA’s outsourcing services are government-specific and scalable to your organization’s budget.