Operations Outsourcing

Question One

As the organization grows and the financial flow increases, accounting, and bookkeeping become tedious, requiring financial experts. As financial flow increases, more errors are likely to be made in the presentation of financial statements, including errors of omission, commission, Correction or avoidance of such errors requires a qualified bookkeeper like a Certified Public Accountant (CPA) or a Certified Investment and Financial Analyst (CIFA) holder (Thiefels, 2019). When an organization starts recording multiple and complex financial transactions and cannot handle the pressure, it is the right time to outsource help. Evident from the case study, the financial management of the institution is facing serious manning problems. Therefore, the institution should consider manpower outsourcing at this point.

Question Two

Outsourcing involves an outside organization (third party), separate from the primary organization performing management and transaction operations on behalf of the primary organization. On the other hand, insourcing places new operations onsite within the primary organization. Additionally, outsourced operations differ in terms of access to specific data. Depending on the area where labor-boosting is required, outsourced operations differ from each other.

Question Three

Most organizations` goal is to make profits. Whether an organization insources or outsources operations, the bottom-line anticipation is profitability. As a result, suppose the insource operation as per the case study provided is inadequate to handle the financial pressure. In this case, Spottsville General Hospital should consider outsourcing. In either case, the bookkeeping must be accurate, reliable, understandable, analytical, relevant, simple, comparable, complete, and qualitative (Williams, 2019). Regardless of the criteria employed, these qualities must exist in the financial and management statements.