It's common for entrepreneurs to have difficulties with the financial and fiscal management of the business. The problem is that these failures tend to hinder the company's sustainable growth. At this point, it becomes important to know what financial BPO is and its benefits.
The idea is to hire a specialized company to take care of these activities, which are not part of the core businessbut are relevant to the company's continuity. Among the results achieved are increased specialization, reduced costs and the identification of investment opportunities.
Are these some of the goals you want to achieve? If so, you've come to the right place! In this post, we'll explain the main details about financial BPO and how it can help your company. Read on!
What is financial BPO anyway?
BPO stands for Business Process Outsourcingor outsourcing of business processes. When it comes to the financial sector, the aim is to hire a company that specializes in the function to ensure that operational flows are carried out with operational efficiency. In this way, the area's processes are integrated.
This practice has been gaining momentum in recent years. Many companies, of all sizes and segments, are looking to this alternative to increase productivity and profitability while reducing costs.
As a result, economic and financial results are maximized. This allows the business to look to the future and focus on what is relevant.
It's important to note that financial BPO increases the company's chances of survival. To give you an idea, the Sebrae indicates that the level of business continuity for up to two years is 58%, when the Individual Microentrepreneurs (MEIs) are excluded. This means that 42% of organizations close down in the same period - and one of the main factors is financial management difficulties.
What is the responsibility of the financial BPO?
Any financial activity can be outsourced, such as accounts payable and receivable, invoicing and cash flow. The specialized team has a duty to adopt the best market practices in order to ensure compliance.
Among the activities that can be outsourced are:
- bank reconciliation;
- preparing the cash flow;
- accounts payable and receivable;
- indicator management;
- credit analysis;
- issuing tax documents, etc.
Other more strategic tasks can also be outsourced. This is the case with business budget and controllership.
In the first case, potential future investments are checked and resources allocated to each sector. In the second, experts contribute to decision-making based on strategic planning and the objectives to be achieved.
In addition, the professionals review processes with the aim of reducing labor costs and management problems, especially regarding employees, such as absenteeism, vacations, absences and more.
What are the advantages of outsourcing?
The option for outsourcing is interesting for the financial area. Optimizing management leads to improved results. On the other hand, specialists can also focus on budget management in order to identify opportunities for new investments, areas of activity or product diversification.
It is therefore clear that financial BPO goes beyond an operational activity. It has a very relevant strategic focus, which helps the entrepreneur with daily decisions and routines. It is up to the manager to direct their efforts towards relevant actions aimed at sustainable growth.
In this context, what are the advantages of BPO? The main benefits are:
- adoption of best practices and structured processes without requiring the hiring of one or more professionals;
- controlling payments and receipts, balancing cash and quickly releasing funds for working capital;
- reduction in default due to the implementation of an efficient collection policy;
- improvement of the control and governance environment due to the existence of approving and executing areas;
- reduction of labor costs in areas that are not part of the core businessThis makes it possible to meet the demands of the sector as the organization grows;
- reducing problems with hiring and managing people, while freeing up key employees to carry out strategic activities;
- automation of management processes, because the company understands the relationship between objectives, resources and production capacity and this reduces risks, increases productivity and boosts profits;
- continuous monitoring with reporting and performance indicatorsin order to identify aspects that need to be adjusted, improve the quality of information and enhance the structure of the business;
- lower operating costs due to the standardization of work routines and the automation of processes.
What is the difference between BPO and consultancy and advisory services?
Many people confuse these three concepts, but they are different. So what is financial BPO? As we pointed out, this practice involves outsourcing business processes, according to the acronym. Thus, the company contracts out business functions and activities, such as outsourcing controllership.
Consulting is a service more related to advice on decisions to be made. In the financial case, experts analyze various aspects and recommend the best course of action. However, they are not involved in a practical way.
In this process, professionals are able to offer training and lectures. However, the company needs to maintain an in-house team for all operational activities - and this is very costly.
In advisory services, technical assistance is provided by an advisor. The professional assists from the development of the execution of a project to the provision of the service. In the financial area, they can indicate the current situation and recommend improvements.
However, the advisor also requires a well-established internal team. They act on an ad hoc basis, rather than continuing the project.
Because of this, BPO is the best option for increasing process efficiency and ensuring continuous improvement, while reducing the need for employees.
Now you know what financial BPO is, right? As you can see, there are a lot of activities that can be outsourced and this brings different benefits. You also have the chance to rely on specific software that takes care of accounts payable and receivable and contributes to management analysis and decision-making.
What do you think about the possibility of applying the BPO concept to your company's finances? Leave your opinion or ask a question!
REQUEST ASSISTANCE FROM OUR EXPERTS
