An outsourced business finance team refers to the fact that a business uses a third-party provider to perform their financing functions. This has benefits for smaller companies that want to take advantage of strategic skills they do not have as well as for larger companies that want to save money on staffing costs. Many companies have discovered that outsourcing their finance functions to a larger, specialist provider can save on costs as well as providing strategic support from experienced finance professionals.
To be successful this requires that the provider be able to interact with a company’s bank accounts and accounting software and have a full view of the company’s financial resources. This may require remote software solutions, management systems and collaboration tools to be effective. The principal skill of a good finance provider is the ability to systematize processes and the amount of work required after outsourcing should decrease as they put procedures and processes in place.
