Frequently-Asked Questions About First Trust Accounting Outsourcing Services

What factors should I consider when deciding whether to outsource finance and accounting?

Prior to deciding whether it makes sense for your organisation to outsource finance and accounting, you need to:

• Identify activities that are really core to your business and where it is necessary to invest capital and  them in-house; and 
• Analyse which non-core processes that are not being managed efficiently and  would gain from the expertise and leverage provided by a finance outsourcing specialist.

What are the benefits of outsourcing your finance and  accounting to First Trust?

• Free-up management from administrative and regulatory tasks to concentrate on higher-level finance decision-making and other strategic corporate initiatives
• Utilisation of established external infrastructure, without the upfront costs
• Replace current fixed cost structure with a variable cost  arrangement which is directly linked to your business requirements
• With First Trust on board, you would have at your disposal experienced finance specialist to help you with your
  high-level planning and transactions
• You also would have the dedicated services of an experienced finance manager to oversee your day-to-day back-office activities, and those of an experienced associate level person to record your transactions in a timely and efficient manner
• Convert in-house cost center into a customer-focused service centre through the use of service management framework
• First Trust offers web enabled technologies which allow transparency of accounting information anytime, anywhere.
• First Trust utilises a secured, permission-based document management and file sharing system to store files and scanned copies of source documents and share these information securely and quickly with the client organisation via the web. And with one dedicated web data folder per client, information is secure and password-protected.
• First Trust work closely with management to comply with all your internal audit programs and to support the periodic compliance requirements of your external auditors.

Doesn't outsourcing remove the control and accountability an in-house accounting department would give me?

On the contrary, outsourcing to a third party like First Trust gives you the very checks and balances that can be difficult to achieve in-house.

Which First Trust Accounting Outsourcing Solutions are appropriate for my organisation?

Every organisation has different finance outsourcing needs. Our first task would be to gain a thorough understanding of your business.  First Trust would do this by conducting an analysis of your potential outsourcing needs by leveraging our knowledge of and experience with companies at similar stages of development as your own.

Based on this analysis, we would then design and recommend a customised suite of services to meet your outsourcing needs.

Should I also outsource  accounting systems?

Once finance and accounting outsourcing scope is determined, the next step is to focus on the supporting accounting systems.  Frequently, the processes outsourced and the supporting systems are highly aligned. Therefore, it makes sense to outsource the related systems.  The following factors would be taken into consideration:

• The integration of the present accounting systems with other business systems.
• The intricacy of the interfaces.
• The age of the systems and extent of recent investments in the systems.
• The anticipated uses of the systems.
• The current functioning of the systems.
• The degree of control and customisation required.

Where will the outsourced services be provided?

Full outsourcing off-site is generally considered to be the most cost effective of all outsourcing options. This is when the accounting functions are managed and processed by non-employees at First Trust off-site service center.  All cash receipts and expenditures, including payroll are processed off-site. You are then provided with various reports, including monthly financial statements. How the information is transmitted to/from First Trust depends on your specific requirements.

The next best option is to outsource the accounting functions on site. In this way you can have ownership over the technology, which can then be integrated with operational databases. However, First Trust loses the advantages of processing centrally, and therefore it cost First Trust more to provide similar services; costs which are passed on to you. In this type of arrangement, management generally retains the same type of control over the accounting functions as they had before.

How will outsourcing affects my staff?

The people currently performing finance and accounting functions will either:

• be offered employment by First Trust;
• be redeployed to other activities within your organisation or;
• be one of the positions eliminated.

You can expect First Trust to make a determination of the skills, experience, and number of people needed. This often results in a significant number of people being offered employment with First Trust. Regardless of the outcome, up-front planning is essential.

During our implementation process, it is critical that lines of communication remain open, questions are answered, and change is implemented smoothly to limit disruption to people and   business.

If I elect to outsource, how will I know it's working?

First Trust provides regular service performance reports describing activities performed and related volumes and quality measures.  These reports are essential to help inform you of First Trust's performance and actions that help ensure future goals are being met.

What are the costs of accounting outsourcing?

Typical annual savings of 20%-40% LESS than your current costs is expected when you partner with First Trust. A definite answer will surface following an assessment of your specific current service, processes, technology and people with related costs; and a comparison to First Trust's proposed solution and pricing.

If you are interested in exploring an outsourcing partnership with First Trust, what is the next step?

Typically, we start with an introductory meeting to share information about each other (i.e., your objectives, current operations environment, internal issues, project requirements, First Trust services, how we operate our service center, how we work together, etc.)

Based on this, we outline a plan for conducting mutual due diligence, visiting each other's centers, putting together a proposal and building a side-by-side financial model. We recognise that these projects may take a considerable time to reach fruition and that each organisation has its own unique evaluation process. We are flexible and responsive. We will do what is necessary for you to make an informed decision.