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 because, at each stage, certain advantages or disadvantages of this practice prevail.
Start of marked textSHARE! Do you want to college and universities email list 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 particularly 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 consultant may understand a lot about the company's 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.
