Finance outsourcing is an innovative method in arrangement of entrepreneurial operations, where certain functions of a finance department are outsourced to a third party specializing in finance and having competent staff. A client contracts an outsourcer to efficiently use the outsourcer’s staff in achieving the objectives of its core operations.
1. Maintain managerial accounting, make reports
2. Plan the company’s operations and budget
3. Create business plans and projects
4. Prepare documents to obtain loans
5. Control payments and plan cash inflow
6. Implement automated management systems
Finance outsourcing ensures that the client will enjoy high-quality performance of proficient experts, without involving the chief financial officer.
Finance outsourcing: Benefits
Finance outsourcing is applied for efficient management of a company’s financial affairs:
• time for headhunting will be saved;
• no need for advanced training of the client’s own staff;
• no need to provide work places and equipment;
• the client will be relieved from any insurance contributions and payroll expenses;
• full confidentiality of financial data will be guaranteed; no need to inform a large number of people;
• significant cost savings and excellent optimization of processes
Finance advisors have been niche experts in the finance area for many years to contribute to the client’s success. The client will not need a chief financial director or have to think of staff redundancy in view of the current changes in the market situation.
Outsourcer selection criteria
Before engaging a finance outsourcer, one should estimate its past experience and quality of completed projects. To estimate the company’s profile, it is possible to read reviews, feedbacks and recommendations, check the reputation and successful projects. High competency level and continuous improvement (through trainings) of an outsourcer’s staff are also critical. A successful outsourcer is ready to make commitments and guarantee quality of its services.
Other important criteria for selection of a finance outsourcer include duration of operation in this market and availability for work in different regions of Russia. A good outsourcer should have a website and impeccable reputation over many years. Successful and fast implementation of projects confer outsourcers with positive references from former clients thus contributing to the overall reputation. The pricing policy is another relevant selection criterion.