Multi-process finance & accounting outsourcing will be worth US$16.5 Billion by the year 2025. Quite clearly, firms are not thinking twice about an outsourced finance department, if it is bringing a slew of benefits to the table, without breaking the bank.
Yes, there is no doubt that outsourcing your finance functions will improve process efficiency, improve productivity, help your firm leverage digital transformation, tap into comprehensive expertise of extremely well-trained accountants, and still keep costs in check.
But the question is – how do you know that it is time for you to use the services of finance & accounting outsourcing companies? Here are 3 signs that say you must outsource your finance department:
1. You are facing a talent crunch
It’s no secret that the UK is facing finance & accounting talent shortages. You are going to face a tough time finding professionals who have deep-seated experience and focussed expertise in the various activities that are a part of the finance & accounting function. Even if you do find the talent you are looking for, you might have a tough time retaining this talent, as their skills are in great demand, which means their services are in great demand.
Consequently, you might get trapped in an endless cycle of recruitment and attrition, driven by the talent crunch in the F&A industry. You will be wasting a tremendous amount of time and money, just hiring people, investing sufficient time and effort in training them on your existing processes, only to see them bidding your business goodbye.
When you start facing staffing problems wherein you are unable to find people who can handle your firm’s finance & accounting responsibilities, it is time to hire the services of a finance & accounting BPO.
2. Siloed Teams Across Multiple Locations
You must have heard the saying, ‘The right doesn’t know what the left is doing’. This perfectly describes teams working in silos and this problem is often magnified if the teams are spread across multiple locations.
Are you facing a problem wherein your finance & accounting team sits out of different locations? You would face a lack of communication between the teams, which is resulting in a lack of synergy between the teams that must work in tandem.
This can result in chaotic F&A services, that result in disputes, back and forth between teams and in a worst-case scenario, team conflict; taken together this will drive your operational costs up right through the roof. It also compounds the difficulty of putting together consolidated reports and implementing similar standards across the board.
If your business is suffering from such team-management issues, finance & accounting business process outsourcing delivers the answers you are looking for. All the F&A activities will be handled out of one location, resulting in process seamlessness that delivers multiple efficiencies.
3. F&A Operations Unable to Keep Up with Company Growth
If your company is growing rapidly, are your finance and accounting operations able to keep up? If this growth is inorganic, wherein your growth is a result of mergers and takeovers, you will face a problem of process integration. From the perspective of accounting, you will need to integrate accounting of merged entities into the standard accounting process of your parent firm. This presents its own challenges.
You will need to make an investment in digital transformation and deploy systems that can help optimally manage your accounts processes e.g. a vendor management system, or even an expense management system. The key here is standardisation. You must ensure disparate accounts processes are brought together and assimilated into a unified accounting system.
This not only presents digitisation and tech challenges but can also result in manpower and talent shortages. The answer again is an outsourced finance department.
These are the primary signs that point you towards finance & accounting BPO companies. But, look out for other tell-tale signs that indicate challenges within your finance and accounting department. This will ensure you outsource your finance and accounting function at the right time.