As a business owner, you always try to stay on top of all the business functions in your company. However, there will come a time when managing all the finance and accounting related administrative tasks will become excruciatingly difficult for you. The solution you may be looking for to unburden yourself is in outsourcing your finance function.
Before we delve into the benefits of outsourcing your finance function, let’s briefly discuss at what stage of your business life should you consider the option of outsourcing.
When should your company be outsourcing the finance function?
To put it simply, the moments it gets too much!
At the pre-seed stage of your company, your finance requirements are relatively minimal. Many successful start-ups have tackled this problem by outsourcing CFOs.
On the flip side, you may have been able to manage the finance function in-house with some external help, but now your company has grown to the point that it needs a dedicated finance department. Hiring a financial services provider would be feasible here.
Lastly, there could be a chance that your company is not doing well financially. In this case, you should consider outsourcing the finance function to get external help.
Why outsourcing finance could be the right option for your SME
1. Access to Best Practices and Expertise
Young SMEs do not have the resources to continually invest in the latest accounting software such as Quickbooks and NetSuite. Through outsourcing, your company gets access to the latest software without actually purchasing them.
Also, a financial services provider has teams comprised of experts in their field. They have tools and frameworks that allow you to extract insightful information about your company.
2. Time Efficiency & Added-Value
If you’re managing your finance function inhouse in the post-Coronovarius world, we know you’ve got your hands full.
It won’t be a stretch to say that you’ve taken on more than you can handle at this stage. You’re already low on cash. The 2020 growth plan you diligently mapped in fall 2019 has gone to bust.
So what now?
An outsourced finance function acts as a deterrent to your current challenges and helps you adapt. You’re able to focus on the core activities of your business such as sales and production.
Moreover, acclimating to the current economic environment is extremely difficult for many SMEs.
A financial services provider has exposure to various industries and experience in handling different clients in different market conditions. Thus, it can provide projections and models that can help you adjust your goals and allow you to continue operating.
3. Your Company’s Bottomline Improves
Now, who does not like to save money? Statistics show that by outsourcing you can achieve 25% savings against existing total salary and associated costs of your financial function.
Outsourcing your finance function enables you to save up on the costs associated with developing a back-office finance department.
What should you look for in an Outsourced Finance Service provider?
You must scour through all the available options in the market and see what best fits your needs. You should choose a financial services provider that has the expertise and experience of getting SMEs to achieve their goals.
Our suggestion is to go for providers that can provide an end-to-end solution that aligns with your goals.
How We Can Help
If you’ve made it till here, I’m sure you have lots to think about.
Before you go, I’d like to briefly shed some light on Trivium Global’s approach to becoming your outsourcing finance partner.
Your success is our success. We form deep collaborative partnerships, working alongside you, to develop and map the right path forward. We are cognizant of the COVID-19 implications on business activity and can help you survive, adapt, and grow in it.
Our process includes applying both inductive and deductive reasoning in our analytical process to drill down to the root causes of your challenges. Our range of services encompasses all the financial needs your SME may have or need in the future, be it back-office accounting services or financial modeling and valuation.
If you would like to know more or if you are considering outsourcing your finance function please do not hesitate to contact us.