Why Companies Outsource Their Back Office & How You Can Benefit
In our ever-changing business environments, many businesses are moving towards a revised operating philosophy and execution in order to:
Simplify Their Business
By reducing the management focus to revenue producing activities, customer service response, and business development activities, owners can focus on their core strengths.
Establish Effective Automation
Many manual processes are no longer efficient and can be replaced with automated technology to perform these functions.
Virtualize Their Information
By having all financial records, documents, contracts, and communications available in the Cloud, management can access current and active information from any location that is web-enabled. Fewer capital expenditures for servers, desktops, applications and IT staff are needed.
Add Mobility To Virtual
By having information available and editable and interactive with smartphones, tablets, and laptops, management can be mobile.
The major benefits to an operating business of outsourcing this process, once the change in operating process is accepted, would include:
Adding A New Business Dimension
Virtualizing and creating digital data streams allow you to measure more activities in order to manage more outcomes.
Performed Assessment & Design
Before a process change occurs, an operations assessment is performed, and the efficiencies identified as a prelude to designing the new environment.
Implementation Of Your Virtual Environment
In this stage process and duty changes are installed to create real-time information available to management anywhere.
Scanned Data Is Input Digitally
Vastly reducing requirements to use and file paper documents. They are then accessed and used in a virtual environment.
New Environment Integration With Your Team
Training, repurposing staff and designing dashboards with key performance indicators occurs.
Intentional Insight Reviews Are Held With Management
- 1) In-person meetings can occur as needed.
- 2) Virtual Video conferencing sessions occur to review performance, insights and operational effectiveness.
- 3) Meetings hosted by experienced CFO and finance professionals.
These Insight Reviews Lead To Clear Action Plans
- 2) Assignments to specific individuals for follow up and outcome responsibility occur.
- 3) Timetables are agreed to perform the assigned tasks.
- 4) Follow up on all parties occur with subsequent meetings of management.
Outsourcing may not be appropriate or comfortable to some management teams, but it is one of the fastest growing segments of the financial services industry.
If you have not considered these services in the past, you owe it to your business to inquire and investigate how it might make you more competitive and viable in your decision making. If you are not going in this direction, and your competitors are, you are at a distinct disadvantage in the future!
About The Author
Stephen Gross is a big picture thinker and connector, with 40 years of rich and diverse experience in the C.P.A., business consulting, and venture capital worlds. Steve was an early adopter and evangelist of cloud-based accounting, as well as the concept of a virtual C.F.O. or Controller as a method of outsourcing the position in small businesses and startups. Steve brings his extensive experience as an entrepreneur, board member, and business advisor to his role at TCFOS. Learn More About Steve…