How much it costs to outsource finance
Outsourcing finance, like any other sector of a company, is usually sought as a solution to problems or as an investment for the company.
future. However, before outsourcing sectors or hiring companies, you need to think about the costs and potential benefits involved. However, making this calculation is not as simple and straightforward as a closed account.
Many factors will influence the decision. So check out what factors are usually taken into account when calculating this cost and what details cannot be left out when considering outsourcing finance.
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Need to outsource finance
The outsourcing of services and sectors has gained a lot of market share in recent decades. This is largely due to the emergence of many new companies, especially Small and Medium-sized Enterprises (SMEs) and Individual Microentrepreneurs (MEIs). As these companies grow, they find themselves in
need to outsource some services, precisely because it doesn't yet have the size to create new administrative sectors.
Therefore, the costs of outsourcing a company's finances are directly related to its size. A micro-company that doesn't issue many invoices and has a small workforce may be able to operate without a finance department.
A small or medium-sized company that is growing, on the other hand, must pay attention to its financial and accounting management. In this case, the company has two options: create a financial management sector and hire a professional to take care of the administration, or hire a specialized company.
Normally, the cost of setting up their own department and hiring professionals is beyond the capacity of SMEs, which is why the most popular alternative is outsourcing. Large companies, on the other hand, generally create their own sectors and departments.
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Costs of outsourcing
There is a consensus in the market that for companies with a turnover of less than R$ 50 million a year, outsourcing is the best alternative.
The costs of outsourcing will vary according to factors such as: the size of the company, the complexity of its segment, the number of employees, the taxation system, the average number of invoices received and the types of activities to be outsourced.
A good financial management or accounting firm charges around R$ 2,000.00 per month to service a small company with around ten employees and an average of one hundred invoices per month. In this case, it's significantly less than the cost of creating your own department within the company, considering that the average salary for an accountant is currently around R$ 4,000.00.
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Outsourced activities
When considering financial outsourcing, it is essential to be careful and define before signing a contract which financial activities will be outsourced. You can have more flexibility in negotiating prices if you know exactly which activities will be included in this package and which of them your company can continue to carry out independently. Many managers, for example, prefer to keep control of tax payments and payroll.
Among the activities most requested of financial management companies are: tax and fiscal services; audits; consultancies; help with starting a business; payroll management and accounts payable and receivable. However, each company can offer different types of service and advantages.
We usually find financial management companies that specialize in certain business segments. That's why it's best to find companies that serve clients with businesses similar to yours and compare the services they offer, the prices they charge, etc.
The great advantage of hiring a financial management company or an accounting firm is that it guarantees the professionalization of the company's financial management. In addition, these companies take care of the use of technology and innovation, giving more quality to the work done.
This will be seen in the delivery of results such as management reports, process analysis and cost reduction, and in all the assistance that only a specialized company is prepared to offer. So, if you consider outsourcing finance to be a priority for your business, it's now up to you to research the best companies on the market and request evaluations and quotes to find the one that can best serve you!
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Practical examples of financial outsourcing
- Coca-Cola: Coca-Cola opted to outsource specific financial functions to Accenture, seeking greater efficiency and cost savings.
- Unilever: Unilever has outsourced parts of its financial operations to Genpact, allowing for a more strategic approach to its financial functions.
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Conclusion
The decision to outsource finance involves careful consideration of the company's specific needs, as well as an analysis of the associated costs and benefits. Companies that choose to outsource generally seek significant gains in efficiency and strategic focus, but it is crucial to weigh these benefits against the potential challenges. When making this decision, it is advisable to seek expert accounting advice to ensure a smooth and effective transition.
If you need to rely on experienced accounting advice, capable of providing the best strategies for your company to improve its financial performance, get to know CLM Controller's solutions now.
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