Finance and Accounts

FATAS– Market Overview

The complexity of finance and accounting functions has increased substantially in recent years.

In its earliest iteration back in the late 1990's, finance and accounting outsourcing was focused primarily on reducing costs, through “lift and shift “strategies that moved transaction reporting and other recurring finance and accounting functions out of the company. This version can be thought of as first generation outsourcing.

The second generation involved the use of offshore markets, which offered greater cost savings through labor arbitrage. Since then, the sophistication and potential value-add from outsourcing service provider have evolved markedly, in line with the growing problems that businesses now face.

Subsequent generations of outsourcing have moved beyond mere cost reductions to increase efficiencies within the operations of the finance department. They have added procurement and sourcing capabilities, and more comprehensively integrated those into the finance function to enable global strategies for the entire organization that could ensure best pricing and volume discounts.

Currently, finance and accounting outsourcing is on its fourth generation, which pushes the cost and efficiency improvements outside the borders of the finance organization and into the entire company.

The rapid phase of FAO transformation and tremendous competition in the sphere has over crowded the market. The excess penetration by multiple players has left heavy betting on valued resource. Owing to this hiring has transformed from being an HR proposition to effective role campaign through different qualified medium.

We effectively promote the role visa a visa skill set and supply a reason for choosing the organization as traditional approach cannot work anymore at any level of a company. Let alone learning acquired 20 years ago, skills acquired as recently as five years ago are becoming irrelevant fast.

FATAS in Irasol

Procure to Pay (PTP)

Order to Cash (OTC)

Record to Report (RTR)

Master Data Management (MDM)

Travel Expense Management

Controller's

Financial & Satuatory Reporting

Direct /Indirect Tax

US GAAP Sarbanes - oxley

XBRL

Financial Planning & Analysis

SAP, BAAN, Oracle 11i, BW

Accounts Payable - AP : Accounts payable are debts that must be paid off within a given period of time in order to avoid default. For example, at the corporate level, AP refers to short-term debt payments to suppliers and banks. Payables are not limited to corporations. At the household level, people are also subject to bill payment for goods or services provided to them by creditors. 

For example, the phone company, the gas company and the cable company are types of creditors. Each one of these creditors provide a service first and then bills the customer after the fact. 

The payable is essentially a short-term IOU from a customer to the creditor. 

Each demands payment for goods or services rendered and must be paid accordingly. If people or companies don't pay their bills, they are considered to be in default. 

 

Accounts Receivable - AR : Money owed by customers(individuals or corporations) to another entity in exchange for goods or services that have been delivered or used, but not yet paid for. Receivables usually come in the form of operating lines of credit and are usually due within a relatively short time period, ranging from a few days to a year. 

On a public company's balance sheet, accounts receivable is often recorded as an asset because this represents a legal obligation for the customer to remit cash for its short-term debts

Refers to

 Money that the company owes to others

Money that others owe to the company

Abbreviation 

A/P

A/R

Paid to whom?

Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier or vendor.

Accounts receivable are amounts a company has a right to collect because it sold goods or services on credit to a customer.

Recorded as 

Liability (payable always a liability)

Asset (receivable always an asset)

How each affects a business?

Accounts payable will decrease a company's cash

Accounts receivable will increase a company's cash

What Causes this Transaction? 

Purchasing goods on credit

Selling goods on credit

General Ledger : A company's general ledger can either be a physical book into which credits and debits are posted, or an accounting computer program where the various credits and debits are entered. The general ledger's double-entry bookkeeping requires that each transaction will be entered on the left side, or debit side, of one account and simultaneously on the right side, or credit side, of another account. A general ledger is used to prepare financial statements directly from the accounts, and as a means to identify errors and/or instances of fraud.