Behind good financial advice, there must always be responsible internal leadership.
Different stages of business may require different external financial services.
Outsourcing services is a widespread practice. In the financial field, cloud computing, due to its ubiquity, has brought fluidity to the relationships between advisors and companies.
However, outsourced financial services are not an inert body separate from the company. Their use changes with the evolution and circumstances of the business , largely democratic republic of the congo email list
because, at each stage, certain advantages or disadvantages of this practice prevail.
Start of marked textSHARE! Do you want to outsource financial services in your company? Take note of how, when and why!End of marked text
Advantages of outsourcing financial services
By outsourcing financial services, you can gain some advantages , such as:
Specialization . Smaller companies thus avoid having to have staff who share financial management with other functions. As you grow, even when you have a dedicated financial department, it makes sense to hire very specific one-off services.
Experience . External consultants have the opportunity to assist many companies in similar situations. This allows them to carry out certain actions that are critical to financial processes with great ease.
Reduction of bottlenecks . Situations of lack of material, intangible or human resources in the financial department are avoided. Do not forget that delays, errors or malfunctions can affect any other department of the business.
Fight against idle resources . External offices provide their resources. You can hire more or less extensive services according to your real needs. You suffer fewer forecasting errors that can lead to oversizing the financial department.
Technological update . External advisors must be able to anticipate technological changes. Their organization must be more flexible and oriented to the needs of the financial field. Therefore, they must be able to assess the usefulness of different types of tools before anyone else.
Internal credibility . External financial reporting can provide objectivity. This is especially important when different departments within the company have different criteria and priorities.
Disadvantages of outsourcing financial services
You may also experience some drawbacks , such as:
Loss of independence . This is especially noticeable when the characteristics of your business require certain innovative financial practices. Typically, advisors will guide you towards standard practices in your sector in investment, financing, budgeting, control, treasury management, etc.
Less knowledge of the business . The external advisor may understand a lot about business finances. However, internal employees have a better understanding of the idiosyncrasies of the business, which is very important in making financial decisions.
Failure to take advantage of the informal structure . External consultants often have one or a few main contacts. However, their work affects the entire company. Internal staff often know better how to deal with each person or area involved.
Potential communication difficulties . In general, the financial 'language' is full of uncomfortable truths that are difficult to assimilate. This obstacle becomes more evident when the reports come from people who are not steeped in the culture of the organization.
Potential adaptation issues . Sometimes it is difficult to separate the financial from the organizational. However professional the external consultant's judgment, he or she needs the support of internal leadership.
Cost . You have to be careful that the quality of the service received compensates for the fee paid.
