For entertainment companies that face continued pressure to control overhead costs, outsourcing all or part of the accounting function could be an attractive option.

Outsourced accountants can elevate an existing accounting team or serve as a full-service accounting team, but it is important to find an outsourcing partner that understands the unique financial challenges of the entertainment industry.

While evaluating outsourced accounting, businesses should consider the potential benefits:

SOLVE THE PAINS OF TURNOVER AND INCREASED COST OF LABOR

Labor shortages are causing a rise in labor costs and more competition for talent, which can lead to increased employee turnover. Having a reliable outsourced team of professionals can alleviate this pressure to compete and allows leaders to focus on the business without worrying about the basic accounting functions. Furthermore, as the organization grows, an outsourced accounting team has the flexibility to scale with the organization.

CHOOSE AN OUTSOURCING PARTNER THAT UNDERSTANDS THE BUSINESS

When choosing an outsourcing partner, it is important to work with someone with entertainment-specific experience. With subject matter expertise in place, the organization can ensure that any services the firm is bringing to the table (e.g., accounting, tax, advisory) are in line with industry trends and best practices. GHJ can take on revenue recognition nuances, assess production costs and streamline accounting systems and processes.

LEVERAGE SYSTEMS USED BY OUTSOURCING

Implementing, maintaining and upgrading systems can be expensive. Outsourcing gives access to talent, but it also allows organizations to leverage premier cloud-based accounting solutions and other software to create efficiencies and controls without incurring the enormous costs of maintaining accounting systems.

MAKE THE COMPANY WORK MORE EFFICIENTLY AND SAFELY

Outsourced accounting partners should bring fresh ideas on how to more efficiently and effectively the accounting function works with other parts of business. This includes evaluating the existing accounting infrastructure and streamlining the company’s processes so they employ industry best practices and utilize technology. These steps may also limit the business’ exposure to fraud risk through the implementation of quality control measures, segregation of duties and adoption of a multi-layered approach to process oversights.

CREATE BETTER MONITORING OF THE BUSINESS

Tracking the right metrics can offer unique business performance insights for the owners and management. Outsourced accounting partners should be able to design a financial reporting package that helps the business assess the financial condition and make well-informed business decisions.

To learn more about how businesses can enhance their day-to-day operations, please contact GHJ’s Client Accounting and Advisory Services Practice. To learn more about how GHJ partners with businesses and individuals to achieve their goals, please contact GHJ’s Entertainment Practice.