Trends of Outsourcing Finance and Accounting Services

Organizations are looking for effective finance and accounting trends, ways to reduce the operational costs and gain a competitive edge in the market today by outsourcing their processes.

2014 is expecting a growth of 56% in BPO service sales in the first three months of the financial year.

As per the research carried out by a self-regulating research firm, strong development is estimated in business process outsourcing. The global market shows an approximate opportunity rate of US $150 to $200 billion in the field of finance and accounting.

Personal Finance and Debt Lessons From Our Past

There are many debt considerations in personal finance, whether to take a new loan, apply for a new credit card or accept student loans to help kick start your career. Following the government’s example we would all spend with abandon and borrow with recklessness. Tough economic times, though, are helping to get the message that the best debt is no debt at all.

When money and credit were easy, and the economy was experiencing persistent growth during the boom years of real estate and technology, borrowing and spending seemed a sound financial decision to leverage your cash capabilities. Current times have reversed this financial wisdom, teaching the necessity for ready cash on hand and a freedom from debt liabilities that will benefit many for the years to come.

During the depression era of the early 20th century, our forbearers learned hard taught lessons about personal finance at the verge of starvation and desperation. They learned sound financial principles of frugality and saving your money for a rainy day. Farmers of the dust bowl learned the hard lesson that debt collateralized homes were not truly their own, without the security of debt free ownership. These lessons were dearly learned by the depression generation, and they served them well, but these lessons were all too often lost to following generations.

Finance and Banking Degree Possibilities

Managing funds is a science and learning to work with money is highly important in every aspect of society. With finances being a part of public, private, and business operations the ability to work with money directly in a bank setting is crucial. Education in finance and banking can be gained through a college degree program in two main ways.

Finances are directly related to the operation of a bank. Money is deposited into a bank and that money is loaned to other customers to build investments and interest. The first approach to education is earning a degree that combines finance and banking. Earning a bachelor’s or master’s degree are the two most prevalent options when it comes to earning a combined degree. An associate’s degree in business can be a good precursor to a bachelor’s degree for students. Degree objectives in a combined bachelor’s or master’s degree include:

  1. managing financial operations within a bank
  2. marketing and accounting skills to gain further understanding of how to work directly with a bank’s finances
  3. understanding of foundational business principles
  4. maintaining and overseeing the economic, strategic, and legal areas of managing a financial operation

Online Finance and Banking Training

Finance and banking are two of the leading forces behind the economy. Both categories are applicable to business, corporate jobs, and personal usage. With money being a driving force in the world people have the option of gaining specialized training in these areas.

First, let’s look at the definitions for each field of study to gain a better understanding of where an online class will head as a student progresses through the coursework. Finance is the commercial activity that provides funds and capital. It is the branch of economics that studies the management of money and assets.

Banking is the business of keeping money for savings and checking accounts that enable the bank to exchange or issue loans, credit, and more. An individual transacts business with the bank via depositing, withdrawing, or requesting a loan. In essence a bank is a financial institution licensed by the government.

The Evolution and Economics Behind Payday Loans

Americans are increasingly being financially pinched in our modern profit driven economy. Don’t get me wrong, I believe the profit motive is a natural solution to many problems and that American capitalism has been a great engine that has lead our country to worldwide economic dominance over the past 100 years. Nothing is perfect, but the American model has been, in my opinion, as good as it gets. As we move away from an industrial base and towards a service based economy, and as farms and ranches consolidate and move into the hands of fewer but more economically strong people, and as business’ grow larger and have fewer competitors, the gap between the rich and the poor continues to grow.

In the financial industry this was the case as well, when I was growing up in the 60’s and 70’s I could go to a bank and get a short term loan. There were many banks and a lot of competition who served the large middle class. By the 1990’s, as the middle class shrunk and the lower-middle class grew, the traditional banks had moved away from small dollar, short term lending. This change was largely due to the high cost of servicing these loans as compared with profit made. The banks made a simple business decision to cease short term lending. At the same time the banks made another business decision to improve profits, after all isn’t that what capitalism is all about in the first place? The banks decided to greatly increase the cost of bounced checks, overdraft protection fees and late payment penalties. Instead of providing short term credit to Americans, they decided to profit from the lack of it. Today more than ever, a large percentage of bank profits are made through fees and penalties. Again, I can’t blame the banks for making the decisions they did, the decisions were based on the profit motive, and it is not necessarily the duty of banks to provide credit to everyone.

Every business I have ever associated with has a profit motive, most of them would be glad to charge you whatever the market will bear for their products or services. Luckily, American Capitalism is about supply, demand, and competition. So when a company starts to charge too much for a product, another company comes in and says we can make some good money providing that service for that same price or less, this is what has historically kept prices in check. When the traditional banks limited the availability of short term credit and increased fees and penalties, a demand was created for short term lending, One day in the early 1990’s the first payday loan business opened in response to that demand. There goes that free market again!

Finances and Saving is Dominating Consumer Behavior

Due to all the doom and gloom purported by the mass media after the mortgage crisis fallout, and stock market collapse; many financial commentators have stated things like; “it’s like the consumer just fell off the cliff all of a sudden.” Meaning that the consumers stopped buying, and retailers noticed this right away.

People stopped buying cars, electronic equipment, imported Chinese goods, and they even cut back on the amount of food they were buying. Some might say this is a good thing because consumers were spending tons of money on credit cards. Due to all the layoffs many people have had their houses foreclosed on and they have stopped paying their credit cards.

In fact, the fallout rates are very similar to the unemployment rates which continue to rise. Even those people who are not losing their jobs are worried about them and they have started saving more, and spending a lot less, worried more about their budgeting. The savings rate of consumers is now a 10% which is unheard of in the last four decades.