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Outsourced Finance is anything but Copy & Paste
In a world that is driven by doing things as quickly as possible, yielding the best results every time, finding a balanced service that caters both to delivering results as well as being tailored to individual business needs, is often tricky.
And with the need for outsourced services becoming more commonplace, the finance industry is no different.
Deciding to outsource your finance function may be one of the best moves you make, as a business, but how much time do you spend on ensuring the right fit with your service provider?
According to a Deloitte’s 2016 Global Outsourcing Survey, most people surveyed felt positive about their relationship with their outsourced business suppliers. However, the majority of those services fell within the IT, HR, Tax and HR functions of their organisation, with their Finance function being the function outsourced the least. And just before you think that it’s simply because nobody is outsourcing their finance function, the same survey reported that the finance function is the one function that is demonstrating the fastest use of outsourcing – out of all organisational functions.
So, while we see a wave sweeping through our organisations, the time is ripe for business leaders to understand risks and opportunities associated with outsourcing critical finance functions, and why it’s important to work with a service provider who is:
- can provide demonstrable evidence of success
- is growth-focussed
- is agile and able to work around your requirements
As a provider of high-quality outsourced financial services, our clients have entrusted their critical growth paths into our care. Whether it was to raise business capital, prepare for IPO, provided company secretarial services that kept them compliant and their stakeholders happy – our team has been delivering exactly that for years.
But there’s one additional step that many service providers overlook – and that is the importance of a tailored approach. In the pursuit of delivering to be paid, many pride themselves on being first, being the quickest, doing just what’s needed, sometimes a simple copy & paste method just doesn’t work.
Keeping Up vs Keeping Updated
Regulations and standards change like the seasons in a year, and if they, the service provider, isn’t up to speed with every tweak and every update, they all too quickly fall short of their commitment to deliver you the compliance and security you need – in one of the most critical functions of your business. What may work for one industry simply won’t for another – each with it’s own set of rules and regulations to adhere to.
In the same survey, Deloitte noted that one of the biggest reasons (apart from being a huge cost-cutting excercise) businesses choose to outsource, is to free up internal capacity to focus on their core business. Are they just throwing caution to the wind by saying, “you deal with that. I’m busy doing other things”? Absolutely not. They outsource, because they realise that just as important as it is to keep your existing business on track, you need to depend on someone else to keep the critical function running, at the same pace. All the more reason why choosing who you work with, is probably one of the most important decisions you’ll make.
Those that do outsource, in fact 75% of those surveyed in Deloitte’s report, felt “confident in their outsourcers ability to stay on top of legal / regulatory issues”. Great news for you. Or is it? With the majority of business leaders feeling confident about their service provider’s ability to keep on top of regulations (i.e. making it one less thing for the business owner to think about) meaning that we, as service providers, have a duty of care to ensure that we are. Every time. And we do. But not everyone does.
In our next blog, we’ll be talking about critical things to keep an eye out for when choosing an financial outsourcing partner for your business.