A cost effective strategy
for your finance function
Outsourcing Benefits | 3 min read
The imposed national lockdown has taught us that all businesses need to operate on a leaner, yet more efficient base. This is not always possible, especially with growing regulatory requirements, as well as the cost of skilled personnel. Outsourcing, although a relatively old concept, has gained more popularity as companies are now attempting to work smarter, more efficiently and even remotely. Companies, now more than ever, require a cost effective and efficient solution to address their short term constraints. Outsourcing introduces a host of advantageous that can assist companies during this time.
There are various forms of outsourcing including:
- Outsourcing a project – e.g. creditors/debtors alignment and reconciliation
- Outsourcing a task – e.g. preparation of Annual Financial Statements
- Outsourcing a role – e.g. outsourcing a financial manager role, or maternity cover
- Outsourcing the entire function – e.g. outsourcing the reporting function of finance, or outsourcing the creditors function
Some of the main benefits of outsourcing includes:
One of the primary reasons why a business may want to outsource a task or project is when it requires skilled expertise. When you outsource your financial function tasks, you bring years of experience in business practice and expertise in delivering on complex projects. The task is therefore done with knowledge and understanding of worst case scenarios and encompasses a holistic approach of all areas affected by the task allowing you to focus on your core mission in providing a high quality product and service to your customer.
Focus On Core Functions
Workload increases with additional non-core functions at the detriment of the quality of your core activities as your business grows. Often staff are left to deal with tasks that are admin intensive. Outsourcing partners understand the need to focus on core tasks to allow your business to grow and your staff working at the core functions of the business.
Outsourcing certain independent tasks, allows your business to maintain a financial flexibility when there is an uncertainty in demand. You can scale up or down comfortably without having to worry about the fixed overhead of payroll cost.
Upskilling & Training of Staff
Outsourcing provides on the job training and upskilling of staff on areas of concern thereby eliminating any further training.