F&A Outsourcing

Based on our experience in all industries of different sizes, a typical finance department that has not outsourced its F&A function is spending 70-80% of its time on transactional activities. A recent KPMG report states that organizations outsource more than 40% of their finance function processes. Outsourcing allows the internal finance team to focus on and specialize in forward-looking analysis and providing business decision support to the management and leadership.

Transactional activities are routine, rule-based, repetitive, and process-driven which can be delivered either off-site or on-site when outsourced. These lower value-add activities are easier to transition to a Shared Services or BPO model and provide the foremost immediate return on investment.

Outsourcing the F&A function helps with cost reduction, gives you access to the best talent pool, provides faster turnaround, helps you meet compliance requirements, generates reporting and analytics, and long-term savings. From the several F&A processes which a client can outsource, we typically recommend the following:

  • Accounts Payable
  • Collections
  • Customer Invoicing
  • Cash Application
  • Master Data Administration
  • Account and record Reconciliations
  • Journal Entries
  • Fixed Assets
  • Period Closing
  • Intercompany Transactions
  • Variance Analysis Support
  • Service level management and monitoring
  • Performance benchmarking
  • Automation (e.g. RPA) and continuous improvement for the functions in scope

Transforming The Finance Function

Once transactional tasks are outsourced, the abilities of your finance department will need to be closely assessed against the higher-value skills that your organization will need in the immediate future. Skills like data analytics, business analysis, and M&A integration are critical for modern finance teams. It’s no more necessary to bring focus to transactional activities as we can choose F&A outsourcing services instead to give higher attention to more managerial tasks and skills that add value to the business.

Outsourcing F&A brings pivotal professional expertise to the enterprise which utilizes modern technology to ensure implementation of best practices, compliance and keep the systems and processes adaptable to the changing business environment.

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F&A Outsourcing – The Way Ahead

Outsourcing the F&A function makes it an investment, not a cost. Using AI or automation assists companies to successfully reduce FTEs and improve productivity and efficiency, which are core KPIs. Outsourcing back-office tasks like F&A operations will lead to a lean, efficient, value-adding, and effective organization.

The finance professionals of tomorrow need to concentrate on driving strategic objectives, going beyond a bottom-line and compliance enforcer to a profitable growth driver.

With RPA replicating human effort and bettering it proactively, the self-correcting, self-adapting automation is driving the change.

Practus combines the right processes and people to deliver results. We have a hands-on approach and implement outcome-based solutions to deliver ROI on our fees.

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