This video and article are a part a six-part series, “One Question with … Rehmann Advisors on Discovering Your Organization’s Great Advantage.” This series features a select group of Rehmann advisors who unpack six questions on timely issues, as well as reveals practical advice for today’s ever-evolving economic and business landscape. Learn more about this series and Rehmann’s solution offerings here.
Growing a business is a challenge. It requires you to strike a delicate balance between pursuing aggressive growth strategies and hiring quality talent on the one hand and controlling costs and managing cashflow on the other. In recent years, outsourcing has become a potent strategic weapon for many organizations, allowing entrepreneurs to focus on critical operational activities while shifting the burden of time-consuming administrative tasks to outside providers that can perform them more efficiently and effectively.
We sat down with Rehmann advisor Sharon Berman, a principal on our finance and accounting solutions team, to explore what it looks like for an organization to partner with a third-party vendor for back-office help. She answers this question: How specifically can outsourcing back-office services help an organization?
The value of outsourced accounting and financial services
Too often, organizations take a “rearview mirror” approach to accounting. In other words, their accounting systems show them where they have been, but provide little insight into where they are going. Outsourcing can provide organizations with access to cloud-based, real-time financial information and knowledge that enables them to better manage cashflow and address problems before they spiral out of control.
Meshing an outsourced partner with your team
Partnering with a third-party needn’t be disruptive to your workforce – in fact, it will likely complement your team. You may realize that your employees are often better suited to assist in other areas of your organization. The third-party vendor will work with you to determine what makes the most sense to outsource vs. keep internal.
In many cases, your organization may want to outsource processing routine transactions, accounts payables/bill pay, and payroll. Processing invoices, meanwhile, may stay within the organization because staff members have a more familiar knowledge of marketplace happenings.
Ultimately, a third-party vendor can help your organization understand the bigger picture of financial reporting requirements. The outsourced team helps your organization stay on top of financial information on an ongoing basis, rather than only examine the numbers at the end of the month or year.
Getting started: assessing your financial situation
One of the first things you’ll accomplish by working closely with a third-party on your back-office services is assessing your current technology. This critical information will help you determine how exactly you can improve upon and leverage current tools and processes to help streamline your financial management.
Your organization will have a clear picture of timely financial information, which in turn will help you make sound decisions going forward that benefit your organization’s bottom line.
Big benefits
With real-time information available and analyzed with help from a third-party vendor, your organization will experience benefits including:
- Understanding how your products and/or services are performing
- Knowing your costs and cashflow (and if you are spending too much in certain areas)
- Recognizing different tax regulations, particularly if you are looking to sell outside of your local area or internationally
- Staying compliant and following regulations
Partnership, growth, and sustainability – this is what an organization can expect when working with an experienced third-party vendor on back-office services. Most small- to medium- sized organizations struggle to afford to have on staff all the expertise needed. What better way to be competitive in the future than leverage a bench that can bring people in and off that bench as needed as the company expands and grows. It all starts with having real-time information to make solid and smart decisions.
