Outsourced companies have gone from service to solutions providers, focused on improving the businesses of their clients. An Ovum study on 150 big companies in the UK, US, and Canada reports “driving efficiency” as the main priority of CFOs. They want to know how the resources of outsourcing companies—such as technology and F&A processes—can help in running more efficient businesses.
Simplifying your company’s F&A processes is key to an efficient business, as it enables positive results such as a higher benchmark and baseline for financial processes, increased services, higher cash flow, and a reduced cycle for book closing. Thus, both backend tasks such as payroll and accounts payable and strategic responsibilities such as auditing and forecasts will be delegated to outsourcing companies.
There are more benefits to outsourcing multiple F&A functions, as opposed to limiting services to only one or two tasks. According to Jag Dalal of the International Association of Outsourcing Professionals, outsourcing multiple functions gives companies “value beyond improving the transactional component because the outsourcer can see when cash comes in and goes out.” There is an opportunity to take advantage of the cash-on-hand and “optimize internal processes,” he describes.