In this globalised world where everything is dynamic, it is crucial to understand that managing a local or international business requires the right personnel and other resources.
When it comes to your in-house finance department – employees in charge of one of the most critical business activities – you probably sometimes wonder if there are alternatives.
After all, hiring, training, and retaining highly-qualified accountants could be costly, and if they leave, you have to start the process again. However, you can outsource your entire finance department in a cost-efficient way, in addition to all the other advantages that outsourcing can offer.
The main benefits of outsourcing your finance department are that you don’t need to hire as many people as you once thought, and you have access to specialist knowledge without all the headache that comes with managing in-house staff.
So, let’s take a look at five strategic factors that could make finance department outsourcing an excellent strategy for your business.
1. Reduce Employee Costs
Outsourcing your finance department can eliminate in-house employee costs, such as payroll, National Insurance, pension contributions, and holiday entitlement.
Indeed, the costs associated with hiring in-house specialists are significant. But if you bring in an external financial partner, you’ll be able to use and pay them for the work your business requires without the associated HR costs.
Besides, outsourcing your finance function means no disruptions due to holidays or sickness. They’re always available to assist you with whatever you need, and when your business grows, they grow with you, too.
2. Ensure Business Continuity
People come and go, but when they do go, they leave with all the inside knowledge and expertise. So, when you hire a replacement, getting them up to speed takes some time.
Outsourcing your finance department facilitates continuity and flexibility. In fact, this way, you can distribute your risk while strengthening your foundation and having external help to lean on.
3. Access Expert Advice
External accounting and financial service providers are at the top of their game. Whether you’re after highly specialised, niche services or customised process improvement, the right external financial partner can help you achieve your business goals.
Through outsourcing, you can narrow your focus, gain access to the brightest minds across a wide range of skill sets and achieve results that would only be achievable internally with investment in ongoing training.
4. Reduce Staff Training Costs
New accounting and finance trends coupled with changing financial regulations mean that your staff will need training. Training your staff can be costly, and if a member of your team leaves, you lose twice.
Outsourced accounting service providers don't need to be trained. These professionals are very agile, staying on top of developments and working with numerous clients in other industries, so they always have fresh knowledge and best industry practices.
5. Focus on Your Business
Finally, outsourcing your finance department allows you to buy back your time and focus on the core business while the external finance partner takes care of all your finances.
Having a virtual finance department at the tip of your fingers can make a significant difference between making or breaking your business, as it gives you the extra protection and the much-needed peace of mind to think, plan and execute your future business plans.
Interested in having a chat about outsourcing your finance department? Here at Sanay, we’re committed to providing you with the resources necessary to achieve optimal financial performance and make smart decisions that will benefit your business in the long term.