Outsourcing certain business processes is no longer a novelty when it comes to helping companies to secure flexibility while keeping costs predictable. Carefully evaluating our core processes and separating responsibilities can help us assess what the best sourcing mix will be. Companies are already used to the outsourcing of, for example, accounting or information technology (IT) services. But extending the XaaS strategy to other areas is also gaining traction, for example, by analysing all of your company’s present and future competence requirements to help you achieve your goals.
The XaaS strategy can be clearly applied to, for example, significant transformation projects in your company. This is likely to be a situation where you need more resources, your current staff don’t have such experience, you need other types of competences, and these needs last for the project period only. A key role in this case is the project manager who not only plans and monitors execution of the project but also coordinates various subproject activities, analyses project risks, and communicates with all stakeholders and decision-makers. Transferring project management to a service provider is a great solution for the following reasons:
It’s worth considering whether we will secure our business processes on our own or whether we will take the XaaS approach not only when our company is planning significant changes that drive the need for specific expertise and more labour.
Let’s take the finance function and processes it provides as an example.
Below are a few questions you need to answer before making a decision:
As we analyse these questions together with our clients, in addition to accounting mentioned above, we see an opportunity for companies to consider outsourcing or using the XaaS strategy, for example, in the following functions:
In all these examples, your experts are rarely busy for a full month, a business understanding is required to a limited extent, or the competences you need are unique or specific.
Of course, an analysis of this issue involves comprehensively assessing the strategic directions of IT infrastructure and considering any planned systems improvements, as well as automations or robotisations.
Transferring standard functions to a service provider offers the following benefits:
To recap, the ability to adapt to changing conditions is key in modern business governance. Adopting an XaaS mindset, which includes using specific competences in the form of services, companies acquire not only flexibility and cost predictability but also the most suitable competences, which is a key aspect.
Sole traders were exempt from making advance personal income tax (PIT) payments in 2020, 2021 and 2022 after tax aid measures were adopted under section 6 of the Covid-19 Act. According to the current rules and the information published by the State Revenue Service (SRS), sole traders would have been required to resume advance PIT payments in 2023, with the first payment due on or before 23 March. However, proposals were submitted on 3 March to extend the deadline for another year.
Thanks to the considerable interest in PwC Academy’s introductory lecture in November, which offered an overview of the content of PwC’s Digital Academy (still available as a video recording), in January PwC’s Digital Academy Latvia launched a series of three webinars for managers, accountants, bookkeepers and everyone who works with data, reports and standard processes on a daily basis.
We are happy to share with our MindLink.lv readers the topics we discuss in our webinars.
In our article of 27 September 2022 we explored what Power Query is like and why we should use it, as well as giving a brief overview of what the tool offers. This article explores how we can benefit from using Power Query to compare data, because participants of PwC Digital Academy Latvia’s upcoming webinar on 23 February will have the opportunity to find out how they can set up templates in practice for comparing various types of data.
On 19 January 2023 the Cabinet of Ministers met to debate and approve proposals for amending the Company and Consolidated Accounts Act (CCAA), which provide for extending the time limits set for small companies to file their financial statements (FS). The amendments are to cover FS prepared for the year ended on 31 December 2022 and later. The proposed extension is one month.
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