Outsourcing can be appealing at times of uncertainty.

The outlook for larger SMEs and corporate businesses is shrouded in uncertainty. The country is climbing out of the pandemic and the economy has started its meandering path to recovery. The one thing that is certain is that as an owner/director you will be forensic about your costs and how and where to keep them low.

Your people costs are likely the single largest element of expense. Some people will be central to the core function of your company. Others are nearer the edge, and you may think some of these roles could be suitable for outsourcing. HR and marketing are two examples. But the purpose of this article is for you to consider the merits of outsourcing the finance function.

Outsourcing is like fashion; it comes in and goes out.

Outsourcing is not new and has been in vogue before. The lead up to the last millennium being one such time when IT outsourcing was popular.

Outsourcing the right part of your business to the right partner can bring advantages that are more than just cost savings. Outsourcing means your core team can spend more time on key activities that add and create value. The team is happy and motivated because the business revolves around them.

Is outsourcing right for your business?

Here are eight things to think about if you are considering outsourcing:

1. What are the core business functions that you do better than anyone, and therefore you should not outsource?
2. What are the other areas of the business that aren’t within your core competencies that may be considered for outsourcing?
3. Are there companies that are experts in providing services in these areas? Can they perform these functions better than you can and more cheaply?
4. What resources will be required to manage the outsourcing relationship as successfully as possible?
5. Is outsourcing consistent with the values in your business? Consider the human aspect of those affected and those who remain.
6. If outsourcing happens, how will success be measured?
7. How will the relationship work on an ongoing basis?
8. Is the change worth it when the costs are factored in?

Should you outsource your finance function?

Time and cost savings are normally the main drivers of outsourcing the finance function. Assuming that your access to timely and accurate financial information is not affected by the decision to outsource, other benefits include:

  • Access to top financial talent without having to a pay a full-time salary. This can create a more effective and efficient business.
  • Better quality of work. An outsourcing partner will have their team focussed on doing what they’re trained and good at.
  • Access to technology.  When you outsource, you gain access to software and tools that maybe superior to your own. Software systems automatically keep organised books, and daily backups ensure you are fully prepared come audit time.
  • Outsourcing provides access to a scalable finance team, that can more easily adapt to the peaks and troughs in your business.

What types of businesses will consider outsourcing their finance function?

  • Overseas companies setting up an operation in this country. These will often be sales led operations at first and may not want to employ a finance team directly. Plus, a local supplier will be knowledgeable about local accountancy rules and regulations.
  • Business owner/managers who need regular management reports, but do not have the capability or time to create these internally.
  • Business owner/managers who need the expertise of a finance team to help decision making, but not on a full-time basis.
  • Successful and established consultants that have Limited Companies and want to reduce the amount of time they spend on their accounting and bookkeeping.

It doesn’t matter what your circumstances are. We are a business that specialises in outsourced accounting and finance We can offer a tailored, effective solution to meet your specific needs. Bookkeeping, payroll, VAT returns, management reporting and year end compliance; we provide a comprehensive service.

Effective outsourcing of finance and accounting can deliver a win-win. You focus on your core business competencies, build those up and keep fixed costs under control. With Confian Accountancy Services you can be confident that your “numbers” are being looked after by the experts.