In today’s highly competitive business world, it’s imperative to make sound and timely financial decisions to stay afloat. This is where financial analysis services come into play. Financial analysis involves the systematic examination of a company’s financial statements to understand the financial health of the business. These services are often outsourced to professionals who have extensive knowledge and expertise in conducting in-depth financial analysis.
Notably, recent research by Deloitte’s Global Outsourcing Survey 2020 claims that 53% of surveyed businesses planned to outsource their functions at the same rate or more compared to pre-pandemic periods. This is a clear indication of the growing acceptance of outsourcing as a viable and strategic business decision.
The Benefits of Outsourcing Financial Analysis
There are several significant benefits to outsourcing financial analysis services, let’s shed light on a few:
Access to experts: Outsourcing gives businesses access to a team of financial analysis specialists who possess robust financial knowledge and stay updated with the latest financial analysis tools and methodologies.
Cost savings: Outsourcing financial analysis functions can lead to significant savings. Businesses are relieved from the burden of hiring, training, maintaining technology, and payroll processing, which can be more cost-intensive than external service costs.
Focus on core activities: By relegating these functions to external specialists, in-house teams are free to focus on core activities relating to the growth and development of the business.
Risk reduction: Outsourcing financial analysis to professionals can help businesses mitigate risks associated with regulatory non-compliance or poor financial decision making.
Addressing Common Concerns
Despite its many benefits, businesses often express concerns regarding confidentiality breaches, diminished control, and the quality of services.
Concern about confidentiality: Understanding the sensitive nature of financial data, outsourcing firms place great importance on data security. They adhere to stringent data security norms to prevent unauthorized access or data losses. Some even have ISO 27001 certification, the international standard for information security management.
Concern about loss of control: Many businesses worry that outsourcing might lead to a loss of management control over financial data. However, this rarely happens. Reputable outsourcing firms maintain transparent operations and regularly update clients about any changes or developments.
Concern about service quality: Establishing performance metrics and regularly reviewing these can help ensure the continuous quality of service. Personal interaction with the outsourcing team can also be beneficial to manage this concern.
Enhanced Financial Decision Making
From a strategic perspective, outsourcing financial analysis services can enhance financial decision making. For instance, research conducted by Accenture suggests that analytics-as-a-service, a part of the outsourcing umbrella, allows companies to make more accurate and faster decisions, with 94% of businesses experiencing improved insights into business.
Furthermore, businesses can access insights such as risk analysis, profitability analysis, pricing strategy, and financial modeling from experienced financial analysts. These insights can greatly enhance a company’s strategic planning and decision-making process.
The Road Ahead
In conclusion, outsourcing financial analysis services is a strategic and beneficial move for businesses of all sizes. It offers an array of benefits, including access to expert professionals, cost savings, risk reduction, and the ability for companies to focus on their core activities. Scrapped ambiguities associated with outsourcing clarify that it’s indeed a strategic advantage and not a disadvantage.
Indeed, Josh Bersin, a renowned industry analyst and published author, aptly states, “Outsourcing is not a bad thing; in fact, it’s a critical aspect of a global economy.” So, whether you are a startup, a mid-size company, or a Fortune 500 giant, outsourcing your financial analysis services can be a game-changer. It’s high time to make a smart business move and join the wave of businesses reaping the benefits of outsourcing financial analysis services.