Only 40% businesses make it past the 5 year mark and only 25% past the 10 year mark. There are various reasons for this but one of the most important one is the fact that most entrepreneurs are either (or start out as) financially illiterate!
When speaking to businesses that failed due to financial reasons, I always ask the question why did you not employee financial literate people to take care of the financial side of things whilst you focused on the vision of your company? The most common answer to the question “I didn’t have the resources to employ full time financial professionals.”
With technology enablers like the internet and #cloud accounting software, we’ve seen an increased trend by companies to rather outsource than insource various aspects of their financial function to make use of the benefit associated with business process outsourcing.
Benefits of outsourcing:
- Cost saving advantages by not employing full time employees
- Increased efficiency
- Let you focus on core areas of your business
- Save on infrastructure and technology costs
- Access to highly skilled resources
By outsourcing some of the processes listed below, you can use the time that you would off spend on doing the processing yourself and rather focus on the strategic direction and growth of your business.
What processes can you outsources?
- Procure to pay
- Order to cash
- Record to report
- Financial planning and analysis
- Payroll Services
When you’ve taken the decision to outsources various of your financial processes it is very import that you partner with a reputable business process outsourcing partner to ensure business continuity.
What factors should you consider when choosing you business process outsourcing partner?
- Before signing a contact make sure that the vendor is reliable
- Make sure that the cloud accounting technology functionality are suited for your specific business needs
- Find out if their resources are trained and have the necessary skills
- Make sure that you get a signed service level agreement that outlines each of the parties’ roles and responsibilities
- If pricing is one of your main motivations for outsourcing, make sure that the vendors pricing structures compares well to the market
- Establish clear communication lines to ensure that there are no delays when urgent matters need to be attended too