While outsourcing finance services used to be a practice reserved for large, complex, cash-rich corporations, it is increasingly becoming the model of choice for businesses of all sizes and industries. In fact, industry research shows that 70 percent of small businesses outsource services such as tax preparation – and only 42 percent of small businesses employ their own CFO or controller in-house.
So, what factors are driving the trend toward outsourcing financial services, and why should your firm get on board?
1. Additional Headcount. Outsourcing can fill in the gaps in your in-house resources. In addition to giving your firm the extra bandwidth needed to handle administrative tasks and regulatory filings related to your finances, an outsourcing model also means your own staff can focus exclusively on the strategic modeling and planning needed to move your business forward. Outsourcing with a professional team located in a different time zone is a practice to consider as well, as this model can set up a 24/7 operation for your company.
2. Guidance from Financial Experts. Partnering with a financial services firm can better ensure that your company is tapping the expertise needed to keep pace with changes in the industry. This is because these experts focus solely on the accounting and finance landscape and, accordingly, are in a better position to ensure your company is operating fully in compliance with ever-changing regulations – and that you are navigating tax laws and other regulations to your financial benefit.
3. Access to Advanced Technologies. Outsourcing with a professional financial services firm can provide your company with access to the newest technologies, without having to build and service that infrastructure in-house. This is an important consideration as so many new innovations continue to impact the industry, including new accounting software platforms that can dramatically streamline the process. An outsourcing model can also provide your company with access to technological assets that are custom configured for your unique needs, including for your industry, company size, and budgetary requirements.
4. Cost Savings. Hiring experienced finance and accounting professionals in-house can be cost-prohibitive. By contrast, an outsourcing model delivers the economies of scale your company needs to access high levels of expertise – without having to fund full-time compensation packages for high-salaried finance and accounting employees. Outsourcing with a firm that maintains operations outside the U.S. is a best practice that can help save on costs as well. Many other countries around the world have lower costs of living than the U.S., and the hourly fees you will pay for professionals with the required degrees, licenses, and certifications can be much lower than they would for comparably credentialed U.S. professionals.
You may also read: Outsourcing for CPA Firms: 5 Steps to a Successful Onboarding
Selecting a Partnering Firm
When choosing a partnering firm, the most important practice to follow is to thoroughly vet the company. Be sure to check references well, asking about the service levels provided by the financial services firm – and how their contributions impacted the client’s bottom line. Ultimately, you will be relying on this outsourcing partner to help your company achieve financial health and regulatory compliance – and to help shape your reputation as well with customers, investors, and the communities you serve. To that end, look for a firm with a track record for working closely with clients and being readily available whenever their assistance is needed. Expertise in your sector, whether that is healthcare, technology, industrials, or consumer goods, is helpful as well, as your financial services consultants will be involved in analyzing business data, foundational to helping you build out your strategic roadmap.
At Scrubbed, we staff teams of experts in accounting, finance, tax, audit, and other related disciplines who are there for your firm every step of the way to help you navigate the complexities of today’s fast-advancing finance and accounting industries.
Our rapidly-growing firm is comprised of more than 800 highly credentialed professionals, many of whom are CPAs – and who bring to your company decades of experience in accounting and finance, including with the Big 4 accounting firms.
As a trusted partner in achieving your business goals, we pride ourselves on our professionalism, work ethic, and communication skills, and on delivering quality work that translates into exceptional client experiences. With every client engagement, we embrace our core values of Integrity, Excellence, Empathy, and Openness, which make us well-aligned with the mission and values of your own company and well-positioned to meet future challenges and opportunities by your side.
See how working with Scrubbed can enhance your operations, financial outlook, and strategic market position. Contact us today for a free consultation.
