In the last few years, large corporations have started exploring Financial Planning and Analysis (FP&A) as a new area to begin outsourcing, so as to remain leading competitors within their sectors while minimizing costs. FP&A is typically a skill-intensive, high expenditure set of financial strategies entrenched inside companies. However, comfort levels are changing as methods of outsourcing prove cost-effective and beneficial to enterprise success. Here is what you need to know about how Financial Planning and Analysis are quickly becoming the next frontier of business outsourcing:
Traditional Outsourcing Anxieties
Since Financial Planning and Analysis requires a connection to business executives, corporations are hesitant to transition from internal FP&A to externalized experts. These concerns are legitimate considering how varied technologies and processes currently are between company departments and geolocations. Discrepancies result in a time-consuming and complicated transition period to third party outsourcing. Fortunately, FP&A Advisors are structuring their services to resolve issues around learning new technologies by developing tool standardization within businesses. Some companies require context-rich high-value Financial Planning and Analysis, however, FP&A vendors have been prioritizing management methodologies that allow them to quickly up-skill their own staff to meet this type of work.
Outsourcing Avenues Rising in Popularity
Since FP&A generally requires extensive finance and judgement experience than other functions, successful companies have identified certain sectors that could benefit from outsourcing by achieving significant expense reduction through centralization and standardizations. Finances are required for developing strategic planning within corporations, so hiring outside experts to monitor routine expenditures and budgets for company departmental expenses have been popularized to improve the accuracy of forecasting financial performance. Since management reporting is generally a company’s key driver of cost due to its labour-intensive demands, outsourcing has proven a successful means for businesses to speed up reporting completion while reducing expenses. Analysis related to decision controls and support has also caught the attention of companies for outsourcing to provide external perspectives to important commitments.
Current Achievable Benefits of Outsourcing FP&A
The biggest advantage in outsourcing your company’s FP&A is the power of more accurate, regular financial reporting catered to your current operations and interests for development. Costs for internal, experienced employees are exorbitant, with the unique, decentralized structure of their work often leading to redundancies within the company. Organizations like Sobo, specialized in FP&A and financial advisory, have streamlined their work by standardizing procedures, leading to a meaningful reduction in Full-time equivalents (FTEs) for your business. Many corporations suffer from broken or inadequate systems for FP&A, leading to inaccurate or delayed reporting, despite more expensive labour. Outsourcing hands over your needs to a company equipped with centralized methodologies that provide automatized and accurate monthly reporting; improving the speed and quality of your business’ Financial Planning and Analysis capabilities while producing savings by eliminating redundancies and inaccuracies.With experience in Financial Planning and Analysis, as well as Information technology, Sobo is uniquely equipped to provide your business with streamlined, automatized techniques to improve reporting reliability and diminish labour costs. Call us today at 404-999-0712 or visit us online to discuss how outsourcing your FP&A can lead to further business growth.