Indicators that it might be time to outsource your finance function
1) Do you have gaps in your finance team?
Managing a team is complex and time-consuming. Finding the right people to grow with your business is difficult when the talent pool is small. If you have gaps in your finance team or your current team is struggling to keep pace with changes in regulation and technology, it might be time to consider outsourcing.
To outsource your finance function gives you access to talent that might not be available internally. Outsourcing experts keep up to date with the latest financial regulations, new technology, market offerings and best practice, minimising the risk of errors and compliance issues. They have the resource available to cover annual leave, meaning that you are not reliant on one person to get the job done.
Outsourcing allows businesses to convert fixed costs into variable costs, paying only for the services they need. This can lead to substantial savings, particularly for SMEs that may not have the budget for a full-time finance team.
2) Is your business going through a period of change?
Changes in your business – such as periods of fast growth, moving into a new market, restructuring or looking to raise funds or sell – can put a strain on your finance team. If your management team is burdened with the day-to-day financial tasks, it means that they do not have the time or resource to focus on the strategic objectives of these big business milestones.
Outsourcing not only frees you up to focus on the bigger picture, but it also ensures that you have the scalability required to adapt to changing circumstances. This flexibility allows businesses to respond quickly to market demands without the hassle of hiring or laying off employees.
3) Are your systems and processes holding you back?
If your accounting software and processes are not regularly reviewed and optimised, you could be at risk of being left behind. With the advancement of technology and AI, there are many tools available to give you the insight you need to future-proof your business. If you are wasting time with manual processes or don’t have the financial insight you need, it could be time for a change.
Outsourced accounting providers use the best technology and have the sector expertise to advise on the right solutions and security measures to streamline processes and improve accuracy.
4) Do you have the financial insight you need to make the right business decisions?
Without the right financial reporting in place, you can never have a clear picture of how your business is performing against your objectives, making it difficult to have confidence in your decision-making.
Outsourcing your finance function can lead to improved financial reporting and analysis. Outsourcing firms can provide tailored reports with key metrics for your business, looking at financial and non-financial analytics to provide deeper insight into your financial performance and market trends, helping you make informed decisions that drive profitability and growth.
5) Are you up to date with the latest compliance and risk management?
Financial regulations are constantly changing, so keeping up with compliance is daunting. Outsourcing finance functions can help mitigate this risk. Reputable outsourcing firms have teams dedicated to staying informed about regulatory changes and ensuring that their clients remain compliant. This reduces the risk of penalties and enhances overall financial integrity. You get the added benefit of secure financial systems, as they are regularly assessed for cyber threats and GDPR compliance with all the solutions and systems used to service clients.
Help from the experts
Outsourcing your finance function can provide a myriad of benefits, from cost savings and access to expertise to improved focus on core business activities and enhanced compliance. As companies navigate an increasingly competitive landscape, outsourcing part or all of your finance functions presents an opportunity to optimise operations, drive growth and stay ahead of the competition. Whether you’re a small start-up or an established enterprise, considering outsourcing may be a strategic move that pays dividends in the long run.
How we can help outsource your finance function
Get in touch with our outsourced accounting services team today to find out how we can help you on your outsourcing journey.