Running a successful business depends on efficient and accurate finance & accounting operations. In more recent years, numerous organizations have started outsourcing some of these functions to specialized professionals to bring a tremendous benefit to the company. Outsourcing part or all financial processes to a Finance as a Service (FaaS) partner will offer numerous growth opportunities down the line while also allowing the business owner to focus more on the core aspects of the organization.
Several variables can help businesses determine whether they should outsource their finance functions and accounting department. Firstly, a finance and accounting professional can bring a significant advantage to the table through the state-of-the-art technology they use. Second is the issue of whether the organization can or can’t afford a full-time in-house team.
In addition, businesses often consider outsourcing solutions if they can’t find qualified personnel able to do high-value work or if the in-house employees are making too many errors. Resolving these errors is often a time-consuming and expensive process. But by outsourcing these accounting operations to finance professionals, businesses will also take advantage of the multiple layers of review built into the service provider’s workflow, which allows them to keep these errors at a minimum.
Put simply, outsourcing one’s financial operations to a specialized services provider will help overhead and labor cost reduction and have access to better financial leadership for improved business decisions. In addition, it will help with financial stability, relieve the human resources department, and provide for scaling opportunities. That said, not all outsourced providers are the same. Below, we’ll look at what businesses should consider for their outsourced financial business partners to determine whether or not they will be a good fit.
Choosing an Ideal FaaS Outsourcing Provider?
Once a company has decided that outsourcing is the right choice, it’s time to find a partner capable of meeting its finance and accounting requirements.
What Are Your Needs?
Not everyone needs the same level of services from their finance and accounting provider. Businesses need to determine their needs, which can also include the level of security measures required. This will depend on the type of data shared with the outsourced team.
Companies also need to determine whether they also need Controller Services, Financial Planning, and CFO consulting, alongside an accounting core function. These are all factors that need to be determined before searching for an eligible partner can even begin.
In addition, businesses should also consider what specific roles need to be outsourced, which can include things such as bookkeeping, accounting management, tax accounting, payroll processing, financial data analysis, CFO, and more.
Determine Their Technical Expertise
A professional outsourcing service provider should explain their methodology to you when it comes to managing projects, track results, and resolve any issues that may arise. This is important as it helps you understand how your projects will be handled. In addition, they should have a business continuity plan that will ensure they can deliver uninterrupted services to your organization.
How’s The Culture Fit?
When working with a FaaS provider, it’s always best that they are willing to align to your vision and business objectives. Among the best financial service providers are those willing to provide financial visibility through regular reporting. A company’s culture is strongly tied to its own success, and the service provider needs to understand that.
What About their Communications and Client Management?
Businesses need to discuss their expectations with their potential partners so that everyone on the outsourcing team will be available by phone, email, or other communication systems during predetermined times. If operating in different time zones, the outsourced accounting team must ensure that both your working hours align to a certain degree to minimize any communication gaps. The same thing will also apply to have a designated point of contact for any queries, feedback, or concerns.
How’s Their Tech Infrastructure?
Outsourced service providers need to be technologically ready and capable of taking on any financial and accounting responsibilities that may come their way. It’s only by having advanced software and other IT infrastructures such as a reliable network and integrations that they can cover all of your needs and expectations.
What’s Their Reputation?
Once you’ve done a quick overview of their capabilities, it’s time to check their reputation by looking for client references, reviews, and testimonials. Various online platforms offer such reviews from clients that they’ve worked with in the past. Pay attention to the reviews coming from companies that have similar needs to your own. See what they had to say about the finance provider’s performance, quality of work, core competencies, overall collaborative relationship, and staff. Use that information to narrow your selection to a few potential candidates.
The Trial Run
After all of the steps mentioned above have been accomplished, it’s time to put the final FaaS candidates to the test. The best way of doing this is by working with them on a short project, allowing them to present their skills which will enable you to evaluate their performance firsthand properly. When doing this trial run, consider the following:
- Overall Efficiency – What were the outsourced team’s performance and efficiency based on the work given.
- Overall Compatibility – How well the financial services provider works with your in-house staff? Determine if there are any serious communication gaps or barriers that negatively affect your business operations.
- Overall Value – How well do their professional services complement your needs and requirements?
Once the trial project is over, you should have a pretty clear picture of how well that particular outsourcing services provider fits your financial and accounting needs. The FaaS service provider and/or CPA firm you decide to partner with should understand the financial aspect of your organization while also having sufficient industry knowledge in your niche. By using the best practices and modern software solutions, they should also be able to cover any accounting gaps in your organization.
Consero as Your Finance as a Service Partner
With Consero’s Finance as a Service, businesses can strategically outsource their financial and accounting functions while still maintaining a core finance team. Our services can help organizations bridge the gap between their financial numbers and goals and provide financial stability to smaller and larger organizations.
By increasing financial visibility, companies can also monitor their progress and measure their performance in real-time. In addition, they will be able to improve their risk management and risk mitigation procedures in various scenarios, overcome obstacles, and facilitate business growth.
Unlike simple accounting outsourcing services, Consero’s FaaS also removes the hassle of staying on top of the latest accounting software and employee onboarding. Consero is equipped with state-of-the-art technology and has an established and experienced finance department that has successfully implemented the right resources and mapped out the process numerous times.
By providing both the right tools and human resources that can, in turn, generate accurate data and easy-to-understand reporting, organizations no longer have to design their finance and accounting processes from the ground up. With the system already in place, our customers only need to get into it and have everything up and running within a couple of months. This is in comparison to roughly 18 months it takes to do everything from scratch.
All of this will free up your leadership team, allowing it to focus on more critical business areas. Our Finance as a Service platform collects tremendous amounts of information, while our artificial intelligence technology ensures that everything is up to date, accurate, and correctly automated. Every report generated will be created in an easy-to-read format that even stakeholders with a non-financial background will be able to understand.
Takeaway
As the outsourced financial services industry continues to show its value to organizations of all shapes and sizes, more are willing to outsource more complex financial functions. Instead of just outsourcing basic bookkeeping services, they are now looking for long-term outsourcing relationships with partners that can create IRR forecasts, project valuations, cash flow models, and other complex finance and accounting tasks.
Together with Consero as your partner, you will increase your financial visibility and achieve financial stability while also maintaining your own core finance team. Let’s discuss your FaaS needs and a potential customizable solution by requesting a free demo today!
