Before COVID-19, online shopping was growing by about 4.5% a year. The retail landscape has changed this year due to increased movement restriction measures and consumer preference for eCommerce. Those businesses that have successfully adapted to digital platforms thrived while traditional retailers with weak online strategies dwindled.

The growth of eCommerce has also contributed to an increase in financial services provided by non-financial companies. These are often called embedded finance services and can include digital payments, credit, and insurance at the point of sale. The growing trend of embedding finance within businesses can create a more robust and cost-efficient digital economy.

In recent years, platforms such as Alibaba, MercadoLibre, Jumia, and Amazon have expanded their financial services by allowing payment processing. The industry is increasingly becoming service-oriented, as non-financial companies provide credit and insurance to merchants and consumers at the point of sale.

More recently, published reports show that the trend of embedding finance in eCommerce is expanding beyond just online stores. Firms in the agricultural sector, ride-hailing companies, and online logistics are starting to follow a similar development path. They have either started offering financial products or have expressed interest in doing so.

Finance as a Service (FaaS) has been around for some time now, but it is only recently that the COVID-19 pandemic has caused it to become more important than ever. The marketplace eCommerce sector is seeing an increased need for financial services at the point of sale due to the increase in digitalization and remote work, including many non-financial companies offering these services. Finance as a Service provides customers with access to credit, insurance, and digital payments from one platform on any device while also giving businesses access to real-time data analytics.

How The COVID-19 Pandemic Shaped Today’s eCommerce Sector?

The COVID-19 pandemic caused a significant amount of economic damage in the eCommerce sector. The main reason for this is that it was difficult for consumers to spend money while they were sick and unable to work due to illness, which reduced productivity and profits—in addition, having fewer people at work meant fewer people to buy goods and services.

On the other hand, eCommerce businesses have also seen an increase in digitalization and the proliferation of remote work. Due to this, services such as digital payments, credit, and insurance are increasingly being offered at the point of sale by non-financial companies. This is a new development in eCommerce, which was unheard of before COVID-19 due to security concerns about online purchases with people who were not physically present and the increased risk of fraud.

However, this new development is great news for eCommerce businesses because it means they can offer more services to their customers while also increasing sales and revenue numbers. With eCommerce expanding rapidly, it will be essential to keep track of the changes in these selling practices and monitor any digital economy division that may result from them. The growing trend of eCommerce platforms gaining more customers in response to the COVID-19 pandemic suggests that companies within the sector are expanding their customer base by offering digital payment, credit, and insurance for point of sale transactions.

Finance as a Service will become increasingly important in the eCommerce sector due to COVID-19 and post-pandemic globalization.

What Is FaaS?

Finance as a Service (FaaS) is an apt example of the new finance sector, which has seen its value increase exponentially in recent years. Due to the COVID-19 pandemic and increasing digitalization across all industries, finance on demand will continue to be highly sought after. FaaS allows non-financial companies to become more financially involved with their customers without directly providing financial services. Finance as a Service is popular in the marketplace eCommerce sector, which has seen an increase in demand for remote work.

Outsourcing financial and accounting services let businesses focus more on core aspects of their business. Outsourcing the financial responsibilities of your eCommerce business can also help lower overhead costs, freeing up resources that may be dedicated to irrelevant processes such as hiring and training an accountant.

Third-party companies will take over all of the time-consuming financial activities for less than a team within the company can do it. Outsourced finance services are what businesses need to stay competitive without breaking the bank. Because of the vital need for these services, nonfinancial companies now offer them at points of sale with just a fraction of a price as an in-house finance department would cost.

Unlike traditional accounting outsourcing, FaaS goes a step beyond. FaaS is a business model that combines codified standard operating procedures, advanced cloud computing, and digital workflows to enhance agility in meeting partner needs. It also creates easy-to-read financial dashboards together with custom reporting capabilities for regulatory concerns.

How Can Finance as a Service Help the Marketplace eCommerce Sector?

In the post-pandemic marketplace eCommerce sector, Finance as a Service can help in various ways. The first way is by providing financial services to customers who could not physically be at the point of sale due to COVID-19 complications. This would have helped combat issues with customer engagement and increase sales revenue for businesses in the eCommerce marketplace.

The COVID-19 pandemic has created a need for technology to assist businesses with their financial management. Working with a professional finance team instead of internally relieves the organization from disadvantages and still benefits them. But what exactly does Finance as a Service have to offer to those in the eCommerce sector?

• Finance Professionals – Businesses that use FaaS have a professional team of finance providers they can call on at any time to resolve issues with bookkeeping or financial planning. The FaaS model allows businesses to access the expertise and experience of an entire team without having to rely solely on in-house individuals. It also allows companies to customize the services they need.
• State-of-the-Art Technology – An outsourced accounting services provider will typically provide modern software solutions like cloud computing, AI, and advanced analytics. Marketplace eCommerce businesses can use these types of accounting software to reduce work done in spreadsheets and replace it with digital tools that generate easy-to-understand business intelligence.
• Real-Time Reporting Capabilities – In today’s marketplace eCommerce sectors, in addition to a dedicated team handling financial reporting, organizations are also implementing combined systems that track metrics and key performance indicators. This allows them to have immediate insight into financial information from anywhere.
• Access to Professional Finance Services – For many businesses, the use of state-of-the-art digital technology is increasing, and there is a greater need to reduce operational costs. Outsourcing finance services can provide the much-needed flexibility that benefits both business owners and employees. A professional financial services company will use appropriate digital resources to automate tasks, which will help employees focus on core business decisions.

The Benefits of FaaS for eCommerce Organizations

The benefits of Finance as a Service for eCommerce organizations are numerous. There are many reasons it is beneficial to outsource with finance as a service, including the following:

Scalability Finance

Finance as a Service can provide scalable solutions for businesses of all sizes. This ensures that the solution can grow with your company and reduce costs associated with hiring additional employees or outsourcing work. FaaS providers are structured so that they adjust the allocated resources to every task, ensuring they always have the right amount. With companies building the right systems and streamlining their internal controls and processes, FaaS accounting providers can quickly and effectively jump in to help with any accounting activities after being contacted by organizations.

Cost Savings

Finance as a Service will help you save money by providing high-quality, cost-effective services through technology solutions offered through cloud computing software and advanced analytics. By allowing Finance as a Service to help you automate and streamline your financial operations, it will free up time for management teams so they can focus on other areas of the business that need attention.

Accessibility

Finance as a Service allows organizations to access experienced finance professionals at any time and from anywhere in the world with just an internet connection and a phone. Finance as a Service providers have the technology, knowledge, experience, and expertise to provide high-quality professional finance services without any geographical limitations.

CFO Support

FaaS providers, such as Consero, can offer CFO support for businesses without a dedicated finance chief. As the company’s financial leadership devotes itself to analysis, FaaS takes care of repetitive tasks. With this model helping thrive in a digitalized eCommerce world and proliferation of remote work, the CFO focuses on forward-thinking growth by steering attention towards future goals and providing a more strategic planning trajectory.

Increased Financial Visibility

As the business grows, leadership needs a bird’s-eye view of the organization. Finance as a service platform provides them with financial reporting, which presents current opportunities and challenges. With better visibility into their economic status, companies can make more informed decisions and monitor cash flow, understand their profitability in the market, track how effectively they’ve acquired new customers, and check account balances.

In addition, businesses can leverage FaaS to grow their business. This enhanced reporting system provides more data that can be used to make better decisions towards eliminating inefficiencies and identifying new opportunities that may arise from this digitalization.

What Can Marketplace eCommerce Expect from Finance as a Service?

Without up-to-date systems, inefficient processes, and the wrong team, it can be difficult for any company to achieve success. In particular, for new or small businesses, their finance departments often lack accurate data, and digitalization has made remote work increasingly common. eCommerce organizations will benefit from FaaS in the foreseeable future because it will help them improve their processes and reach new levels of success.

Strategic finance is crucial for eCommerce businesses looking to remain competitive. The trick to staying relevant during such unpredictable times lies in responsiveness and the effect of business decisions over time. It’s because of these business-impacting factors that companies need to look ahead rather than dwelling on the past, and you can do so by using finance as a service.

This is why Finance as a Service solutions can prove to be an efficient solution for companies that need significant financial system overhauls. Consero offers services that help you manage your marketplace eCommerce finance.

Marketplace eCommerce businesses are growing rapidly, and Finance as a Service has never been more needed. In light of the COVID-19 pandemic, Finance as a Service can help marketplace eCommerce companies tremendously. However, there are pros and cons to outsourcing accounting and finance function risks when eCommerce businesses look to scale their operations.

This article will explore some of the benefits that Finance as a Service provides to marketplace eCommerce businesses to grow their business without risking finances or scaling up too quickly.

The Effects of COVID-19 Pandemic On The eCommerce Industry

The Pandemic has had an extensive impact on supply chains. While some sectors have weathered the storm, many eCommerce companies are finding themselves in dire straits. The reason for this is that many of these eCommerce businesses rely entirely on third-party logistics providers. These platforms ensure that goods can get in and out of warehouses.

On the other hand, eCommerce businesses have also seen a rise in digitalization and the proliferation of remote work. This has created new opportunities to provide services such as digital payments, credit, and insurance at the point of sale by non-financial companies. Before COVID-19, this was unheard of due to concerns about online purchases with people.

Marketplace eCommerce businesses stand to benefit from this new development because they will be able to offer more services and increase sales and revenue numbers. Since eCommerce platforms offer customers digital payment, credit, and insurance for point of sale transactions post pandemic, it is essential to monitor the growing demand in eCommerce.

Marketplace eCommerce companies can increase their success by outsourcing accounting functions, but at the same time, they face increased risk when moving to a larger scale.

What Is Finance as a Service?

In light of the COVID-19 pandemic and its effects on supply chains and the eCommerce sector, it is evident that Finance as a Service has never been more important. That said, there are both pros and cons when eCommerce companies outsource accounting as well as finance function risks when scaling an eCommerce business.

Finance as a Service can help marketplace eCommerce businesses tremendously. Finance as a Service, also known as FaaS, is an accounting and finance function that offers personalized services and support for companies. This service provides financial management to smaller-sized companies to facilitate growth while allowing their larger competitors (such as Amazon) to focus on their core competencies.

Finance as a Service companies can provide guidance and assistance in cash flow management, financial forecasting, budgeting, accounting processes for payrolls, taxes, compliance audits (such as Sarbanes-Oxley), revenue recognition for mergers & acquisitions, or initial public offerings (IPO).

Outsourcing financial and accounting services can help lower your company costs, freeing up resources that may be dedicated to irrelevant processes such as hiring and training an accountant.

Businesses can outsource accounting while gaining a competitive edge without breaking the bank. Marketplace sellers no longer need an expensive finance department to stay competitive with these services at points of sale.

Unlike a more traditional approach to outsourcing the accounting function, FaaS takes it further by enabling standardized procedures, cloud computing for enhanced agility in meeting partner needs, and improved financial dashboards and reporting capabilities for regulatory concerns.

What Are The Finance Function Risks When Scaling Your eCommerce Company?

When many marketplace eCommerce companies outsource their finance function, they leave themselves exposed to finance function risks such as poor integration of technology or a lack of visibility. To avoid these pitfalls and others, businesses should look into their existing processes for areas that require improvement. Additionally, they need to take the necessary steps to minimize the risk associated with their finance function. Below are some of the risks associated with scaling an eCommerce business.

Inadequate Finance Technology Integration

Many eCommerce companies focus on tasks like scaling an eCommerce website or integrating with marketplaces and payment gateways. However, these initiatives can distract from the need to manage finance function risks during this time of rapid growth.

Instead of worrying about whether they are concentrating on the right things, eCommerce companies should use technology to integrate their business with finance and accounting functions. They also should be quick to adopt technologies that can help them quickly upload and access information.

In a fast-growth stage, companies might face the risk of errors in financial information and a lack of integrated systems. This highlights compliance issues when filing tax returns and preparing financial statements. The finance function can struggle to provide the insights that management needs, such as accurate gross profit margin, SKU profitability, and return on advertising spend. This is because they face various challenges, including time-consuming reconciliations between sales and bank receipts.

Inputting Operational Transactions into the Accounting System

The finance function can struggle to get financial transactions processed in a timely manner, especially during peak periods for eCommerce businesses such as Black Friday or Christmas. At this time, companies are under pressure to fulfill orders and meet deadlines for reporting, but it may also cause problems with refunds due to lost shipments.

Not having access to real-time financial data will impact how your organization performs during peak periods. Furthermore, the finance function cannot complete their tasks in a timely manner which affects your organization’s reporting capabilities.

Poor Terms of Contract Visibility

The finance function can struggle with a lack of visibility into the terms of contracts if eCommerce companies have not clearly outlined which payment means they offer. This makes it difficult for them to provide accurate cash forecasts and communicate this information to management if their performance is below expectations.

Marketplace eCommerce companies have limited visibility into their payment terms, which poses a risk to credit and cash flow management. Late payments or penalties could be avoided if the finance function was more aware of its obligations during periods of peak activity when companies are under pressure for financial reporting while attempting to refund orders and adjust lost shipments.

Correlating Spend Statistics With Revenue Statistics

The finance function struggles with correlating revenue statistics to spending patterns, especially during peak periods. This is because they struggle to correlate data due to poor integration between their sales and marketing systems (SMS) and back-office functions, including Point of Sales (POS), inventory management system, eCommerce store, and accounting applications.

Since eCommerce companies struggle to correlate data which interferes with their ability to provide accurate cash forecasts, they have difficulty communicating this information to company managers if performance is below expectations.

Scaling Overhead

For eCommerce business owners looking to scale operations, it’s crucial to understand how many employees they need for peak periods. If too few or too many are employed during those times, it can impact cash flow due to additional costs such as overtime payments and potential penalties for late deliveries.

There are several drawbacks to expanding a company’s finance department without understanding the underlying mechanisms necessary for their success. This is why scaling eCommerce operations benefit from using Finance as a Service.

The Pros and Cons of Outsourcing eCommerce Accounting Functions

Many turn to outsourcing their accounting and bookkeeping to avoid the finance function risks of scaling one’s eCommerce organization. However, there are pros and cons when it comes to making this decision.

On the one hand, outsourcing accounting can free up companies to focus on other core areas of their business. This can be a great advantage when eCommerce businesses expand quickly or enter new markets. When a business outsources core functionalities like accounting, the organization can focus on its own goals and take advantage of the benefits such as more sales.

Companies also need to consider the cost of specialized tools and training for new hires when outsourcing accounting tasks. Meanwhile, insurance packages might also be expensive. But in general, outsourcing accounting is beneficial because it gives eCommerce companies more time to focus on their unique selling point rather than core competencies within a company that contributes to growth.

On the other hand, however, outsourcing accounting will also mean that you’ll be losing some control over certain aspects of your organization. Business owners who outsource accounting to an external company can sometimes risk losing access to their financial information.

Additionally, some businesses struggle with communicating with an outsourced company resulting in slow and unreliable performance. Marketplace eCommerce companies typically use outsourced accounting services to save costs and ensure they have access to crucial resources when needed. However, external bookkeeping services may charge per hour or month. Therefore, it is essential that marketplace companies carefully consider potential communication challenges outsourcing your accounting process might create and the need for an expert partner whenever it scales its operations.

This is why many business owners still use in-house staff for finance and bookkeeping. eCommerce businesses can handle complex financial transactions, so it’s more convenient to have a specialized bookkeeper or CFO who understands business goals and objectives.

Nevertheless, since the marketplace eCommerce business must provide high-quality service, accounting firms experience even greater pressure by being held to the highest professional standards.

Focusing on growing your sales, you must prioritize finding a good accounting partner. An eCommerce-focused group that can stay current with changing laws and focuses on their specific industry is best for peace of mind. Furthermore, an accountant who has experience with companies in the same industry as yours will be able to provide better support.

What eCommerce Companies Get From Finance as a Service?

Finance as a Service brings Finance, Accounting, and Taxation together under one umbrella. Finance is the broadest division of these three core functions, including assessing financial health, cash flow management, and advising on capital structure decisions regarding debt vs. equity investments. That said, there are several benefits for eCommerce companies who outsource Finance as a Service.

Get Access To State-of-the-Art Technology and Experts

One of the key benefits to Finance as a Service is gaining access to state-of-the-art technology. The right Finance as a Service provider has an in-house finance team and CFOs who use these high-quality tools that give eCommerce companies unparalleled insight into their business. This helps them make more informed decisions on where they should focus their efforts.

Finance as a Service providers have access to the best technology that enhances their internal team’s effectiveness and gives eCommerce companies an edge over competitors who don’t outsource Finance as a Service.

In addition, Finance as a Service is another way for marketplace eCommerce companies to add value by providing expertise with financial analysis, which can be difficult when scaling an eCommerce business. Finance as a Service gives marketplace eCommerce companies access to expertise in finance and accounting which can provide them with the resources they need when scaling their company.

Minimizing Errors

Finance as a Service allows marketplace eCommerce companies to focus on their core business rather than having to fend for themselves. This is especially important when it comes to bookkeeping and accounting, which can be complicated if you don’t have extensive knowledge of these functions.

eCommerce businesses are not fully equipped with the proper tools and knowledge to handle Finance as a Service. Finance as a Service helps marketplaces minimize errors and fraud that could potentially lead to more significant problems.

Finance as a service also allows marketplace eCommerce companies who outsource accounting or bookkeeping to manage better their cash flow, which is vital in running an effective business.

Detecting errors and resolving them manually can be a very time-consuming and expensive process for small businesses working with multiple systems that are not integrated. This is common among companies who perform finance processes using various disconnected sources instead of through an automated service. These businesses will frequently pull information from different sources and then transfer the data onto spreadsheets. On the other hand, since FaaS is automated and has multiple layers of review built into their processes, it detects most errors and discrepancies on time.

Improved Financial Accuracy

Finance as a Service helps eCommerce companies that outsource Finance to provide greater financial accuracy.

A common issue small and medium enterprises face is having their finance function being outsourced or in-sourced. This can cause errors due to a lack of flexibility, capability, knowledge, and expertise in finance functions. Additionally, processes that are not automated can create high errors due to data entry and cumbersome reconciliations. Finance as a Service provides automation that eliminates these issues, allowing for greater financial accuracy for eCommerce companies who outsource Finance.

Finance as a Service also ensures that the numbers provided by the finance function are accurate since there is generally an automated process in place when it comes to Finance as a Service.

With integrated financial management systems, your team can focus on doing productive and profitable work instead of spending time stuck filling out paperwork. A platform for managed finance helps monitor the employees’ progress.

Actionable Reports that Assist In Decision-Making

Finance as a Service provides a finance function with actionable reports that can assist in decision-making. eCommerce companies that outsource Finance generally receive financial statements and other accounting data such as cost of goods sold, accounts payable, receivable balances, etc. However, these numbers usually don’t provide enough information to make informed business decisions due to the lack of data.

Finance as a Service provides marketplace eCommerce businesses with actionable reports that provide them the information they need to make informed business decisions such as cash flow forecasts, inventory and asset utilization trends, etc.

Many eCommerce companies lack central accounting, which makes it cumbersome to manage the company’s finances in a way that can monitor customer profitability and evaluate service performance. By outsourcing finance, however, more opportunities like tracking Customer Acquisition Costs (CAC) become available, and investors who are interested in knowing more about the company’s financial health can be shown a better picture of its

This is especially true for business owners and CEOs who do not have a finance background, as they cannot make effective decisions based on all the data at their disposal. Without access to financial reporting from within their businesses, these business owners leave themselves open to making uninformed decisions that could be harmful in the long run.

Saving Time and Resources

Outsourcing Finance as a Service allows marketplace eCommerce businesses to save time and resources. Doing finance tasks manually can be very time-consuming for small business owners who are busy running their companies day in and out instead of focusing on the financial details. This is especially true for payment processing, which involves manual data entry from invoices and receipts.

Finance as a Service, on the other hand, reduces manual data entry through an automated payment process that can be done in bulk, so you don’t have to spend time manually inputting these transactions.

FaaS also allows for faster cash flow since it has processes such as automatic reconciliation, which eliminates most discrepancies between financial reports and the actual cash position. Finance as a Service is also flexible regarding billing frequency, allowing for monthly or weekly invoicing depending on your preference and budget.

Finance as a Service can be integrated with back-office systems. Finance tasks such as invoice processing are done automatically without any manual data entry errors, which results in greater efficiency. Finance as a Service saves time and resources that can be invested in growing your business instead of doing tasks such as invoice processing, which is tedious for small companies who lack the financial know-how or have little time to do it themselves.

Finance functions within marketplace eCommerce companies are usually understaffed, leaving them unable to fulfill their roles properly. Finance as a Service, on the other hand, provides finance functions with access to more resources which allows them to focus their efforts on building long-term relationships instead of manual invoice processing and data entry that is prone to errors.

Takeaway

Outsourcing Finance as a Service allows marketplace eCommerce businesses to concentrate on their core functions such as sales and marketing while having easier access to information that helps them make informed decisions. Finance as a Service also saves time, resources, and money that would otherwise be spent doing finance tasks manually, which can have adverse effects instead of focusing on growing the business.

Finance as a Service is best suited for marketplace eCommerce companies that lack central accounting and finance staff, allowing them to scale their businesses with more information at their disposal while expanding access to resources needed.

They would benefit greatly from outsourcing their finance and accounting to Consero. We don’t just provide financial software; we develop a dashboard that displays the information you need for making better business decisions.

SIMPL is one of our financial services that allow eCommerce companies to communicate their financial health to execs. This particular module helps businesses to track their finances without adding complexity as they grow.

In today’s highly digitized business environment, businesses need to move away from paper-based systems and turn to technology to remain competitive in the market. Finance as a Service (FaaS), for example, is an approach that brings Finance and Accounting software together in the cloud. FaaS platforms are developed to meet specific business needs; most of these platforms integrate with existing finance tech stacks.

Some of today’s Finance as a Service is delivered with pre-built integration to enterprise-level Financial Systems. FaaS is an emerging software model in the Finance industry that provides access to all financial data from various systems in one place. This article will explore how Finance as a Services is delivered with pre-built integration to enterprise-level Financial Systems and the benefits of this approach over traditional ERP models.

What Is Fintech?

Finance as a Service FaaS is an emerging technology that allows finance-specific applications to be integrated into existing enterprise software systems. Finance departments can leverage the most up-to-date and cutting-edge technologies without having to worry about lengthy implementation schedules, server upgrades, and data security concerns.

Financial technology (Fintech) is a term that refers to new technologies that seek to improve and automate the provisioning and utilization of financial services.​​​ Fintech, at its most basic level, is used to help businesses, company owners, CFOs, and other stakeholders better manage their financial operations, processes, and lives by utilizing specialized software and algorithms employed on computers and increasingly smartphones.

The definition of “fintech” in the late 20th century was initially restricted to the technology at the back-end systems of traditional banks. The term has subsequently been extended to include new technologies and methods, such as cryptocurrencies. However, following the popularity of bitcoin and blockchain technology in the financial industry, there has been a change to more customer-oriented services, thus necessitating a more consumer-focused definition. Fintech now includes education, retail banking, fundraising, nonprofit management, and investment management, among its many categories.

Fintech stands for financial technology as well as services provided by specialized software companies. Finance as a Service is the next generation of fintech that allows enterprise-level financial systems to integrate with pre-built software solutions and integrations.

What Is the Fintech Stack?

A fintech stack, also known as a financial technology stack, is a collection of connected fintech tools used to operate, support, develop, and optimize finance, accounting, and operational processes at an organization. While different from one organization to the next, among the most common fintech tools that make up a fintech stack, we can include:

• Account Payable and Receivable Finance Systems
• Accounting ERP Software
• Expense Management System
• Payroll systems
• Spend Management System
• Accounts payable software solutions that integrate with A/R systems, including Prepay Solutions, are part of the fintech stack. The other significant forms of accounts receivables include:
  • Invoice Finance Systems
  • Factoring Solutions and many more.

Also, the FaaS software platform can integrate with all of these tools to bring all financial data in a single location for the user. It is easier than ever before for finance teams to oversee and control all their financial data.

The Importance of a Fintech Stack

In today’s era of remote work, building a financial technology stack that contains the proper fintech tools has never been more vital for businesses. Finance and accounting teams may use the best technologies to digitize their usual processes and systems, allowing them to access anywhere.

The financial technology sector is expanding quickly, and financial technology is becoming increasingly important in a CFO’s toolkit. Paper documents and Excel spreadsheets are no longer necessary. While it’s good to use Excel for some tasks, faster tools can speed up data capture and other processes.

Finance and accounting departments are replacing their technology toolkits to take advantage of value-added services like insights and reporting while automating as many procedures as possible. While Excel is still popular for some functions such as financial modeling, faster tools will provide more value and save both time and resources.

Back-end procedures change with the advent of new technologies, requiring that CFOs understand what technology tools they should finance and where to devote their funds. To keep day-to-day operations operating effectively, companies need more than one tool. Depending on the sector, stage of development, and company goals, different organizations require specific financial tools.

Understanding Finance as a Service

Finance as a Service (FaaS) is an outsourced financial service that allows companies to focus on their core business while still having access to the benefits of professional accountants. FaaS integrates with your other critical financial systems and provides real-time reports about how money moves in and out of your company’s bank accounts.

FaaS applications such as accounting, budgeting, planning, forecasting, reporting, and strategic CFO support can be integrated with other critical finance processes. And while this integration will require some technology to be achieved, it takes more than that. The business processes that we are integrating must be compatible with one another.

Finance as a Service (FaaS) aggregates all of your company’s finances in one common database and is working to become the most comprehensive resource for finance professionals. You can use FaaS not only for managing your financial information more efficiently – but also for improving your reporting, strategic planning, and budgeting. The software platform that Finance as a Service uses is designed to integrate with your other key finance systems. Finance as a Service and/or strategic CFO support can be integrated with other critical business processes as well.

How SIMPL Finance as a Service is Delivered with Pre-Built Integration to Enterprise-Level Financial Systems

SIMPL is Consero Global’s Finance as a Service cloud-based software platform with pre-built integration to all enterprise-level financial systems that a company needs. Finance as a Service (FaaS) works by bringing together Spend management systems, Expense management, Accounts receivable and billing systems, Accounts payable and payment systems, Payroll systems, and more.

SIMPL then brings all of this data in one single location so that Finance teams can work on top of the data. It is also important to note that CFOs can have complete control over how they want their Finance and Accounting teams to work: whether it be from a centralized or decentralized approach and having access to all relevant tools for Finance professionals in any location across an organization.

Simply put, SIMPL is a single sign-on and a single source of truth that’s user-friendly and designed to speak to department heads and other stakeholders who have difficulty understanding simple debits and credits. It’s also intended for financial experts who understand financial intricacies such as KPIs, board decks, financial statements, and other financial reports.

Finance as a Service from Consero is designed to make Finance and Accounting professionals more efficient, effective, and productive in their roles while providing them with the tools they need for success.

SIMPL Finance as a Service comes with pre-built integration with all enterprise-level fintech systems: Finance and Accounting software, Spend management systems, Expense management, Accounts receivable and billing systems, Accounts payable, and payment systems. Lastly, it also comes with pre-built integration to all payroll systems. By pre-built, we are referring to a specific best-in-class fintech stack that we’ve put together, which is better than any one company can put together by itself.

When Finance as a Service is delivered this way with pre-built integration to enterprise-level finance systems, it means Finance teams don’t have to worry about integrating their finance and accounting platforms. This way, CFOs and finance teams don’t have to constantly switch between finance systems to see what’s going on in their Finance and Accounting departments. They don’t need to manually combine and distribute data in Excel or other such platforms so that CFOs can get essential views into how the business is doing.

Instead, all relevant information, such as the current cash position, accounts receivable and accounts payable balances and details, approved vendor invoices are presented at a glance within SIMPL Finance as a Service. SIMPL also allows businesses to release payments online, manage employee expense approvals, consolidate hundreds of entities in minutes, etc.

Together with Consero Global, you can unlock opportunities for your business. We assist in establishing scalable systems as we supply a pre-integrated technology stack that can scale with businesses from series B to IPO, ensuring that all established policies and procedures are followed. Clean KPIs and data are available, and we’re providing an expert team that is available to jump into any carve-out or roll-up play in only 30 to 90 days.

Alternative Asset Managers face a pressing dilemma. Their focus is rightly on managing their investments and relationships with investors, but they still need to fulfill their duties and responsibilities for their own management company. And if such duties are postponed or under-managed, the fallout, from regulators and investors alike, can jeopardize the success of the entire firm.

This article examines how Investment Managers can tackle the finance function for their own management company, with a focus on the burdens and benefits of the various options. Many Managers begin using some in-house solution, eventually migrating to rely on an outside firm or adding it to the lists of duties for a fund administrator. But a third option is growing in popularity: outsourcing the finance function, by using a “Finance as a Service” model.

For any investment managers about to launch a fund, or who are relatively nascent in their evolution, the clock is ticking. The right choice for serving the finance function of the management company can mean the difference between establishing best practices early, the kind that allows the finance function to stay nimble and responsive for the life of the firm or facing the consequences of bad habits. Habits that began when the Firm chose the easiest solution, rather than one that truly suited their needs.

There have been many significant changes throughout the past decade that have impacted how experts in the professional service industry work. The trends associated with the industry are being driven by artificial intelligence and automation. Technology is evolving, enabling companies to expand their horizons.

For instance, telepresence has allowed employers to recruit from beyond geographical boundaries. The second trend that will dictate the future of professional services is automation. It eliminates the need for countless hours on mundane admin work. Employees can now focus on tasks that require critical thinking, such as improving service and quality.

The future of the professional service industry is here, and it looks more like a tech-enabled industry than ever before. The industry has been evolving for decades, but now we are in an era where automation has changed how many professionals work.

Artificial intelligence is impacting everything from marketing to accounting, as well as changing how some professionals manage their virtual offices. There are also new value-driven revenue models that have emerged over the last few years because clients want more transparency about what they are paying.

This article will explore these trends and more in order to predict the future of this industry.

What Are Professional Services?

Professional services are services provided by a professional to their clients. They’re very diverse and can include any industry where the client has an intangible need fulfilled via consultation, advice, or hands-on work.

Professional services are divided into two categories:

– Supporting Services – these are typically more transactional, such as accounting and finance offerings, and are usually in the business-to-business industry.

– Core Services – these are more consultative and include a wide range of industries, such as marketing & advertising services, educational services, or wellness and healthcare services.

The reason companies turn to professional service providers is for their expertise, experience, and business acumen.

This industry is heavily reliant on the talent of people. The future for professionals in this industry will involve many changes as new technologies, and business models are developed.

Businesses are looking to partner with service providers to help them take advantage of these trends or be prepared for disruptions from various innovations.

Business Strategy Realignment

The two main characteristics that set professional service providers apart from most other types of businesses include:

• They offer a customized service to their clients, regardless of the tools or business models used.
• The purpose of building and fostering a long-term relationship with clients.

Innovating within the professional services industry is an essential key to staying competitive. Learning how to use artificial intelligence and other new technologies can provide an opportunity to move your company forward. One example of advanced and robust software is the one that offers automated delivery.

The new trends emerging in the industry are pushing professional stakeholders towards more agile, tech-enabled, and value-driven business strategies.

The future of the professional service sector is now in question. What does this mean for services that are slow to change and maintain their legacy systems and old ways of doing things?

Top Trends Transforming the Professional Service Industry

The industry is in a state of flux, with changes coming from several directions. Some of the most noteworthy trends that will dictate the future of professional services include automation, artificial intelligence, virtual offices, value-driven revenue model, tech-enabled business model, and more. Let’s explore these key industry drivers now!

The Emergence of AI and Automation

Artificial intelligence and automation have been gradually creeping into the industry in recent years, but it is becoming increasingly prevalent as brands attempt to automate their services.

AI has already proved its potential for helping professionals with repetitive tasks or time-consuming ones like data entry, formatting emails, managing calendars, and more.

Automation will be a definite trend to watch out for in the coming years as it offers the industry a chance to develop new, innovative ways of delivering professional services.

AI and automation are also set to impact the industry as they help streamline processes or provide tools that make it easier for professionals to do their jobs.

The future is filled with potential when it comes to these two trends in particular because there will be no shortage of opportunities for brands looking at how AI can benefit them or those interested in what automation has in store.

One of the best ways for professional services to seamlessly solve client needs is data analysis. While effective, these practices can also be time-consuming and prone to human error.

While the onset of artificial intelligence and machine learning has only facilitated this arduous process, it is an integral part of interpreting real-time data to organize large chunks of data into usable information. Organizations are automating back-end work to allow employees to focus on more worthwhile projects.

Globalization and Proliferation of Virtual Offices

The emergence of the internet and other technological advancements has led to a significant shift in how employees communicate. As such, globalization has become more prevalent than ever before. Additionally, virtual offices are becoming increasingly popular as they provide increased mobility for businesses across borders while also simplifying onsite office space management.

Unsurprisingly, the professional service industry will have a lot to gain from this trend. As such, industry experts expect the rise of virtual offices to continue. There will be a global push for more collaborative approaches to office design to accommodate these different work styles.

In the professional service industry, technology-enabled tools have made communication across distance boundaries possible. Additionally, intuitive project and resource management tools have allowed managers to keep track of their projects from afar. Clients are approaching firms based on reputation and work regardless of where they are located.

In the past, many firms were limited to seeking potential clients in their local or regional vicinity. However, with a few exceptions, successful firms cultivate large networks of potential and current clients worldwide by recruiting valued expertise from anywhere outside of their geographic reach.

Virtual offices and remote work have become an integral part of the work culture and environment, exacerbated in recent years by the COVID-19 pandemic. Flexibility has proven to be the trend when it comes to recruiting top talent. 

The skills shortage, the coronavirus pandemic, and other unavoidable circumstances have led to an increase in globalization and remote work environments.

Value-Driven Revenue

Tax and audit services charge the client based on time and checking the accuracy of records. This billing model does not consider how much value is generated out of each task.

For example, an hour of billable work could lead to 10% tax savings for the client. But if the service provider is still invoicing the client based on the employee’s charge out rate rather than on the task’s value, the service provider sees reduced profit margins while the client fails to see the actual benefits of the project.

Firms are now opting for a different type of billing system, the value-driven revenue model, which charges based on benefits and profits.

Agency professionals are now paid for the total gains, such as tax savings, ROI, or insurance claims. This shift from time-driven billing to a value-driven revenue model allows professional service firms to get more clients and increase their profitability.

Tech-Enabled Work Culture for Team Engagement

Statistics indicate that highly engaged teams have, on average, 21% greater profitability. Engagement is also defined by how well team members can use technology and the collaborative systems that support their work.

For example, teams with access to online collaboration tools have a higher level of engagement than those without this kind of software in place. Technology has a massive impact on the way professionals interact with one another and their customers. Moreover, when teams are connected, their productivity increases and gives better results.

Therefore, professional services firms need to build a tech-enabled work environment that will strengthen employee morale and improve their performance. 

Conclusion

These growing trends mentioned above have provided ample opportunity for professional service firms to reinvent their roles and redefine the industry. Professional service firms can now take advantage of new trends because they can offer services that provide more value than ever before, which means higher profitability for these companies at the same time as lower costs on things like overhead or rent in a physical office space. For more information, contact us directly and stay ahead of the trend curve!

The Challenge: Build What Your Customer Needs

Consero Global partnered with Thinkbridge to create an elegant tech offering for their Finance as a Service solution, built around what their clients actually need from their finance function.

There is no shortage of software and systems that promise to crunch numbers faster and more accurately than Excel, with sales pitches that tout all the buzziest of buzz words like “machine learning,” “Al,” and “automation .” While there’s little doubt that they are as powerful and sophisticated as they promise, how does all that power and sophistication help the customer do what they bought the system to do?

It’s a question that Bill Klein, the CoFounder and President of Consero Global, put at the center of his initiative to continually improve the technology used in the company’s “Finance as a Service” (FaaS) model of delivering an outsourced and fully managed finance function . Early on, Consero had the vision of being a solution that could allow customers to leverage best practices and efficiency and have a scalable, efficient finance and accounting platform.

The power of standardizing the Faas software stack

“In the beginning, we would often plug into systems that a customer already had in place, and try to make the most of those,” says Klein. “And I think what we quickly learned along the way was we were never going to be great at what we do if we had to leverage all those different applications, essentially starting from scratch every time we onboarded a new client.”

Consero might solve a problem for client A, but that’s irrelevant to client B, who has a completely different stack of applications . “We knew if we wanted to be the best, we had to have a standardized stack of applications to develop real, battle-tested best practices,” says Klein. “Now our standardized stack is ingrained with our processing so that when we onboard a new client, we’re using a stack that’s proven its ease and functionality, and importantly, every time we implement that stack, we’re able to refine it a little more.”

“We knew if we wanted to be the best, we had to have a standardized stack of applications to develop real, battletested best practices”
– Bill Klein, President Consero

However, it still required that customers use a variety of applications . If they had to approve a vendor bill, approve an expense report, or see their cash position, they had to log into three different systems . “So, we asked, ‘How do we have a front end that would effectively be a unification engagement layer would allow the customer to interact with a single interface?”‘ says Klein. “And that’s when we decided to partner with Thinkbridge .”

Consero follows its own advice

Thinkbridge is a tech services firm dedicated to boosting the enterprise value of growth-stage companies through strategy, custom software, and data science.
Consero appreciated that thinkbridge deviated from many Fintech providers by not trying to simply sell the technology in hand. Instead, they would design it around what Consero’s clients needed. “With their help, we didn’t just get a solution, we got a process for continual upgrades, from ideation to alpha, beta, and the eventual rollout .”

“With their help, we didn’t just get a solution, we got a process for continual upgrades, from ideation to alpha, beta, and the eventual rollout.”

With their new partner, Consero began vetting their ideas for tech upgrades according to a few basic questions, such as “What problem are we trying to solve? If we solve it, what would be the impact for the customer?” This enriched the debate around what upgrade was truly worth the effort. Consero would also solicit customer feedback at various points in the process.

“Sometimes it would be very early, where we’d float a one-pager to a customer, and in other cases, we’d present an MVP [minimally viable product] for them to review,” says Klein. “And this dialogue is vital to making sure we’re investing in the right kind of improvements.”

Active and thorough dialogue with the customer

One of the issues Consero wrestled with is when to make a step in a process manual, say keeping it Excel, and when to build that step into the software. “It seems counterintuitive, as you’d want to give a customer flexibility to do something as they please, but then it leads to different behavior in different accounts, and that inconsistency can be a problem,” says Klein. “But when we build that step into the software, so there’s a uniform way of doing that, it becomes more efficient and standardized, which is part of the value we bring.”

Rather than try and build a full in-house tech team devoted to this, Consero followed its own advice by tapping an outside resource in thinkbridge to help, so they could be freed up to do what they do best. And the collaboration between the two has resulted in far greater clarity around priorities.

In one example, Consero learned a customer wanted a particular export function, but one of thinkbridge’s product team members asked why they wanted to export the data at that point. It turned out, the customer wanted to do a particular piece of analysis, and so the product team was able to build a solution that did that analysis for them.
“We wouldn’t get there without an active and rigorous dialogue among Consero, thinkbridge, and our customers,” says Klein.

Key Results and Benefits

• 80% Reduction in executives time spent in the finance function
• 20-40% Reduction in the cost of the finance function
• Efficiently closing the books within 7-10 days

So streamlined, so SIMPL

Old-fashioned customer service today will be the best way to beat the competition tomorrow.

And Consero achieved its goal of a unified interface platform, with SIMPL, a single dashboard that works closer to a consumer app like MINT, with all the rigor, flexibility, and sophistication of its best-of-breed application stack.

“This new interface serves two of our key priorities, which is one, making the frontend as transparent and user-friendly as possible, and on the back-end, automating everything we can, and that’s exactly what SIMPL does.” Klein understands that nowadays, no company has the luxury of denying the role technology plays in their performance, and knows the best technology adapts to client needs, not the other way around.

“We are the company we are today because we know that we are only as successful as our clients, and everything we can do to materially improve their experience and their operations, through technology, processes. Old-fashioned customer service today will be the best way to beat the competition tomorrow.”

Finance as a Service (FaaS) is quickly becoming one of the most popular ways for Professional Service firms to save money. Professional Services organizations, such as Marketing & Advertising, Business Consulting, Educational Services and Wellness & Healthcare can use FaaS to eliminate the need for costly in-house technical staff while still having access to all the benefits of these services.

The following article will discuss what FaaS are and how they work, along with some of their key benefits.

What Is Finance as a Service?

Finance as a Service (FaaS) is a type of agile service delivery model. It makes use of the best finance operation management practices by leveraging some of the most advanced technologies. These include things such as Artificial Intelligence, Machine Learning, cloud computing, automation, and more.

The Professional Service industry has grown by leaps and bounds in recent years. This is because it provides a wide range of services that are valuable to many organizations, including but not limited to marketing & advertising, business consulting, education service and health & wellness to name just a few.

Organizations are grappling with the challenges of high operational costs and low margins. This is causing some to move away from product development and focus on services only to compensate for this challenging business climate that they are facing.

Finance as a Service (FaaS) offers Professional Services organizations the opportunity to grow their business while reducing operational costs and increasing margins through automation, increased scalability, cost savings, and more.

The Benefits of FaaS for Professional Service Firms

Partnering with outsourced finance and accounting service providers creates tangible benefits for companies and intangible benefits for business owners. FaaS can help those in the Professional Service sector by providing benefits like cost savings, scalability, financial visibility, CFO assistance, and more.

Cost Saving

One of the most apparent benefits of FaaS is in terms of cost savings. Professional service firms are all about delivering a high-quality product. But to do this, they need to invest in their people and infrastructure. FaaS helps these companies spend less on the finance & accounting department by outsourcing back-office functions such as processing accounts receivable, accounts payable, and utilizing enterprise-grade finance & accounting software. 

Cost savings come about via multiple processes that FaaS can provide. Among these, we can include things such as:

• Automating many manual and repetitive processes.
• FaaS providers can customize and address their clients’ unique needs, determining the best processes to tackle their needs.
• Increased financial reporting capabilities.
• FaaS providers also have trained and skilled finance experts that their clients can leverage.

When companies don’t have a CFO, they’re always left without actionable financial reports and analytics. In simpler terms – without better reports or data, the business can be difficult to maintain, let alone grow and expand.

This also enables businesses to understand the financial health of their company, which is used to make better decisions for business needs. Organizations in the professional service sector will feel a sense of relief when they use a Finance as a Service provider. With these providers, companies can benefit from enterprise-level finance software that allows an organization to save time and engage with data and reporting for better understanding.

Easy Scalability

FaaS providers are structured for specific tasks and provide the right level of resource accordingly. FaaS providers can jump in and help quickly, allowing your company to be more scalable (having a higher capacity) than it would be with an in-house department.

Finance as a Service helps streamline scalability by providing the resources and tools necessary to operate your Professional Service business. FaaS providers help you avoid understaffing or overstaffing, which can lead to unnecessary costs.

The benefits of scalability include being able to accommodate new opportunities quickly as they arise without having any significant setbacks in other areas of your Professional Service company.

CFO Support

FaaS can provide CFO assistance to Professional Service organizations. Many Professional Services firms are structured in such a way that there is no one person with the primary responsibility for financial management and operations, which often leads to what we call “spreadsheet hell” or lack of focus on numbers. There may be several people managing spreadsheets because they don’t have time to do it themselves or nobody wants all the overhead involved with being responsible for accounting and other complex tasks like reporting.

This means that many Professional Services organizations miss out on opportunities when it comes to financial visibility, risk analysis, cost control, etc., without realizing any benefit from their analytics efforts – both financially and operationally speaking.

In contrast, FaaS service providers can assist by providing Professional Service organizations with the information they need to make critical decisions. Professional Services organizations that outsource their Finance as a Service will benefit from improved financial visibility, reduced risk of financial penalties due to missed deadlines, and lower costs required for IT infrastructure maintenance.

Finance as a Service enables companies engaged in the professional service industry to save money, manage finances better, and more. Consider Consero for CFO support – an expert financial advisor who can help provide advice on your expenses.

The FaaS model is appealing for many service providers because it reduces repetitive tasks, freeing up time and resources to focus on the data. A CFO provides perspective and helps you focus on the growth of your business.

Increased Financial Visibility

When using paper-based systems and collecting their data in spreadsheets, professional service organizations set themselves up for all sorts of human errors and time-consuming tasks. The result is often a lack of visibility into the organization’s financial performance.

Professional service organizations can use FaaS solutions to make their business more efficient by automating back-office operations, providing better tools and reports for managing finances, and decreasing time spent on data entry.

Professional services providers can access real-time reporting without paying for expensive subscriptions or hiring staff members with extensive IT experience.

The FaaS model facilitates a clear view of the future and present-day challenges offered by easy-to-read reports. Improved financial visibility will help companies by:

• Providing a bird’s eye view over cash flow and current financial position.
• Tracking ongoing account profitability and customer acquisition costs.
• Demonstrate performance gains to potential investors.
• Identify errors and potential fraud faster.
• Better utilize your current and future investment capabilities to make better financial decisions.
• Evaluate service lines in real-time.

With a bird’ eye view of your company’s performance, you can better mitigate risks and future-proof your strategy. With financial visibility to ensure all data is connected, you’ll be able to zoom in on the details as well.

Otherwise, depending on data stored in multiple disconnected systems prevents you from getting a view of unified information, which is crucial for making decisive decisions.

CEOs of Professional Service organizations usually bring business decisions without seeing what is happening across the entire business. Better financial visibility is vital in understanding and managing the organization’s progress better. As a result, they are less successful than companies with employees who can offer support, such as Finance as a Service (FaaS).

Faster Optimization

Finance as a Service can help Professional Services firms and account for their operations more quickly. This is because FaaS eliminates the need to manually input data, which speeds up processes that typically take hours or days by reducing them down to minutes or seconds.

Financial visibility of transactions in real-time allows Professional Services firms to adjust pricing models on the fly with increased accuracy, making it easier for clients to predict what they will be charged in any given scenario.

Professional Services companies can focus on developing new services rather than spending valuable resources worrying about reconciling invoices and payments from providers who charge hourly rates, etcetera.

When it comes to a company’s problems in finance and accounting, they often follow the same procedure – looking for an organization that researches systems and then picks one that fits their needs best. Next, they configure the system and implement it. This process takes longer to complete because most organizations need 18-24 months to optimize their finance function. One of the leading challenges that Professional Service organizations face is time management. They need to dedicate a lot of time and energy to get their systems up to date, which takes away from managing daily operations and provides less time for core functions.

The FaaS model is perfect for finance teams looking to spend less and get going faster. With the FaaS solution, in 60 days or less, you can:

• Optimize your finance function more cost-effectively than with an in-house department.
• Save time upfront as well as long-term time spent on business growth initiatives.
• Get access to resources like tax experienced CFOs, FP&A experts, controllers, and more to see a #1 differentiator from our competitors.

Increase Efficiency and Reduce Fraud

In a company growing in size, trying to stay productive and accurate using paper-based or excel-driven workflows while maintaining control over everything can be challenging. Fraud and error-prone manual input by staff is a significant risk. Instead of spending their time on value-adding activities, they waste their time undertaking manual tasks that result in errors.

By integrating financial management systems, FaaS offers help with tasks such as reducing duplicated listings and repetitive actions.

A consolidated financial platform that unifies all your data and eliminates paper-based processes will improve financial reporting, expedite collections, and reduce the chance of fraud. Furthermore, segregated duties and critical performance metrics are supported by integrated financial management, which leaves your staff with more time to focus on their core tasks.

Conclusion

Finance as a Service can provide plenty of benefits to Professional Service organizations that use them. Professional Services organizations that use FaaS can lower their costs, provide scalability and financial visibility to make the decision-making process easier for CFOs, and receive assistance from a qualified professional in finance.

FaaS is also flexible and provides more control over finances than traditional accounting systems. Professional service firms can spend less time on administrative tasks thanks to Finance as a Service. They eliminate the need for manual data entry, work cycle delays caused by waiting for accounts payable or payroll department approvals, and any other variables which lead to lost productivity hours spent on compliance issues related to bookkeeping.

In today’s highly volatile and uncertain business environment, technology has also played its part in the overall disturbance. The rise of cloud computing and automation has changed the finance leader role in surprising and unexpected ways.

CFOs have always had an important role in C-level decision-making, but now they also play a pivotal role as partners and problem-solvers for their client organizations.

The CFO’s new responsibilities include being the chief customer advocate, understanding customers’ challenges and opportunities better than any other person on the C-suite executive team.

The CFO is a C-level executive who has traditionally been in charge of running financial operations for the organization. Historically, this meant they were primarily focused on ensuring the company had the funds necessary to operate and grow. With cloud technology becoming more prevalent, CFOs have shifted their focus from managing the budget to leading decisions around critical strategic questions: What does it cost? What should we invest in next? Who are our customers? How do we make them happy enough to give us their business again and again?”

Below we will be looking at how the roles of finance leaders in the professional service sector have changed and what CFOs need to do to succeed in this new environment.

The Finance Department’s Shift Towards The Customer

Unlike the manufacturing sector, where product defects can be immediately identified and repaired, the professional service sector faces more unique customer challenges. Since true service quality is only proven later in the customer cycle, it will only initially be based on the service provider’s initial reputation and overall trustworthiness.

Professional service firms have historically focused on promoting “expertise” to win the trust and reputation of their customers. Statistics show that around 46% of executives point towards “expertise” as the main differentiation amongst the competition.

But as agile, customer-centric competitors seek to challenge established businesses, expertise alone is not enough. Professionals have also expressed great anxiety over these new customer expectations.

Customers now demand more value, a better quality of work, and an increased speed of service delivery. This is thanks to the technological improvements that allow for less human input.

The CFOs in organizations must find solutions that are both effective but also maximize customer satisfaction through transparency and accountability – all while not slowing down on their current responsibilities.

Also, according to the study above, “customer loyalty and advocacy will increasingly become the one true way to stand out from the competition. The research clearly finds that a new basis of competition is arising. Incumbents must evolve, or risk losing business to more nimble firms with innovative business models.”

In other words, decision-makers at professional service firms need a better understanding of how to delight customers than in the past. This change has transformed the expectations of CFOs and the finance function. One study has also shown that nearly 2/3 of CFOs feel substantial pressure to change their team’s mindsets to become more customer-centric.

Similarly, some 64% of customers, who are better informed and more tech-savvy, expect that companies respond and interact with them in real-time. CFOs are more likely to get involved in the decision-making process regarding product and service pricing.

How Automation and Cloud Computing Influence the Finance Function

Cloud computing has dramatically influenced the CFO role, as CFOs can now take advantage of new opportunities through cloud services such as business intelligence software and automation tools to free up time for strategic decision-making and customer-facing roles.

CFOs are increasingly required to make strategic decisions to anticipate and better react to the market conditions, consumer behavior, regulatory change, etc., which has traditionally been more of a CEO’s role.

The CFOs also have responsibility for understanding the customer and ensuring that they are happy with their experience while doing business with the organization, which was not traditionally a CFO function.

Aside from direct customer expectations, today’s cloud and mobile technologies have directly impacted the daily finance function operations. CFOs are typically responsible for financial reporting, forecasting, budgeting, taxes, and regulatory change investment decisions.

CFOs also have a critical role in managing the company’s IT infrastructure: servers, storage systems/warehouse management, and the company’s IT department. And because of this connection, CFOs are also expected to reach beyond their core capabilities. This ranges from finding new ways to developing revenue streams to adopting new metrics by which you measure success.

Aside from that, other areas of concern include billing, cash flow management, and expenses. In addition to their increased workload, finance leaders also need to focus on talent acquisition and management.

With increasingly automated and AI-empowered Cloud technologies, finance professionals are now expected to have more data-driven skills than task-based ones.

How Professional Service CFOs Succeed?

The most effective managers in professional service organizations are those with the ability to combine strategic vision and change management skills. As the CFO has become increasingly decision-oriented, they have been able to better anticipate and react to trends. Unfortunately, not all finance leaders are able to take on this role.

Common reasons for this include:

• Risk Adversity – A major responsibility of the CFO, in many organizations, is risk management. When dealing with mature outdated infrastructures and processes, this can lead to a myopic focus on problems instead of broader possibilities.
• Limited Strategic Leadership Skills – Professional service companies traditionally promote people based on leadership qualities such as who has been with the company for the longest or who has billed a large number of hours. These qualities do not always translate well to effective leadership, especially in challenging times.
• Limited Resource or Energy to Manage New Demands – Accounting leaders already spend a significant proportion of their time overseeing the implementation of organizational projects and managing expectations from other leadership teams. This leaves CFOs with less of a chance to handle additional demands on their time.

To succeed in a changing industry, successful CFOs need to do the following:

Embrace the Digital Transformation

The CFO has the potential to be a driving force in helping organizations embrace digital transformation and drive success. They have access to all of the data that is needed and knowledge about how best to use it for successful decisions.

CFOs are also key ambassadors between external stakeholders such as customers, investors or partners, internal C-level executives, owners, and other stakeholders. CFOs can play a critical role in the success of an organization by balancing financial objectives with innovation and customer-centricity.

Top areas to focus on include:

• Using intelligent real-time technology to build a better customer relationship. This helps the CFO understand what is important to customers and then make these changes in their products.
• Encourage safe spaces across the organization for experimentation and creative thinking to help talent-scarce SMEs develop the full potential of talented individuals.
• With cloud technology and automation, the role of a modern finance leader has shifted. They now take more direct actions to help incorporate customer feedback, such as listening to different departments and synthesizing that knowledge with the customer’s needs, expectations, and pain points.

Investing In The Right Digital Tools

CFOs should also look towards the right tools capable of automating their daily routine processes and allowing them to focus on customer relationships. CFOs should be looking for the right tools that will make their work easier and more efficient and cut costs in the form of time or money. CFOs need to invest in new technologies if they are not already doing so.

One such tool is Consero SIMPL. Designed specifically for CFOs, executives, managers, and other department heads, SIMPL is a cloud-based one-stop platform for all financial needs. CFOs can run their entire company from this software, including reporting and all aspects of financial management. CFOs will be able to cut costs on paper now that they have the right tools for automating processes, as well as streamlining tasks and projects with a single-source system.

Among the features of this platform, we can include:

• Cloud Accounting Software
• Customer Invoicing & Vendor Billing
• Employee Expense Approvals & Payments
• Statutory & Management Financial Reporting
• Task Management & Workflow Software
• Graphical Metrics & KPIs

This CFO software can be integrated with other business applications such as project management, accounting, and time tracking. CFOs will also be able to access client information in real-time, which allows for better customer service and quicker decision-making.

CFOs are no longer the behind-the-scenes managers of a company’s finances – they are critical players in the organization’s overall success. CFOs are often the most knowledgeable about all aspects of a company’s finances and have access to essential data points when making decisions.

Cloud CFO software empowers CFOs with an easy-to-use platform that allows them to make more informed decisions, provide better customer service, and manage their organization in ways they never could.