Corporations face brutal economic conditions these days. To improve business performance, many have cut costs by outsourcing some of their business processes to cheaper labor, often based overseas.
As a budgetary measure, outsourcing business processes isn’t a bad idea. Accounts receivable, accounts payable, payroll, master data, and general accounting are all transaction-based processes, and consequently are ideal for outsourcing. But because those processes are so critical to financial reporting, “finance process outsourcing” (FPO) does bring governance risks a compliance officer needs to monitor. Consider a few:
Timeliness. Financial reporting submissions may not meet the required accounting period-end-close timetables.
Continuity. Business continuity may ...