Financial Outsourcing: Essence, Benefits, and Applications

Financial outsourcers as they are

If you now open job posting sites and look at the description of the job description of someone who is being sought for the position of financial director, especially in small companies, you will see a strange picture. Many need an employee who will essentially do the work of an ordinary financial manager or even an accountant, but with the loud title of "financial director".

It is interesting that there are people who agree to such conditions. Maybe out of desperation, or maybe hoping that this is temporary and they will soon be appreciated. But in the end, this leads to the fact that the position of financial director itself is devalued.

Let's imagine a situation: a person worked as a "financial director" in a small company, where he was mainly involved in accounting, a little budgeting. And then he tries to get a job in a large company for the same position and is surprised why they don't hire him. Nothing surprising - a higher level of responsibility and completely different skills are required there.

Even a small company needs an experienced financier. For example, when a financial management system is just being built. Here you really need a person who knows how everything should work and can set it up.

But here's the problem: as soon as everything is set up, such a specialist becomes... well, let's say, bored. And then the difficulties begin: the business owner looks at the salary and thinks "do I need this?", and the financier does not understand what to do with himself for half a working day.

Of course, there is another option when a company can afford to pay big money just to have "the best of the best" working for them. But that's a completely different story, and, frankly speaking, it doesn't happen very often.

Maybe it's time to start calling a spade a spade? If a company needs a financial manager, they should write so in the job posting. Otherwise, it turns out to be some kind of deception: the employer doesn't get what he expected, and the employee then can't develop normally in the profession.

Why companies are afraid of outsourcing - the supposed disadvantages

Outsourcing would seem to be a great solution for small companies that need a smart financier, but not full-time. But here's the problem - many business owners for some reason are afraid of it like fire. Why does this happen and what is actually true and what is just fear?

The first thing they often say is: "What if this outsourcer is not really interested in the result? Maybe he will just formally work and that's it?"

In fact, this is not so. Let's imagine: an ordinary employee has a fixed plus, maybe some bonus. And the outsourcer's entire reputation and earnings depend on how well he does the job. So which of them will try harder?

"Motivation" by fear: "The hired worker will be afraid of losing his job, so he will work better." In fact, it is often the other way around. An employee who is afraid of losing his job starts to imitate vigorous activity, complicate processes in order to appear irreplaceable. But the outsourcer does not need this - his time is money, and this is literally true, so he will try to do everything as efficiently as possible.

Another argument: "A full-time employee has the right to sign, which means he bears more responsibility." In fact, no. In reality, holding a full-time employee accountable for mistakes is a real headache. But with an outsourcer, everything is simple: the contract specifies fines for poor quality work, and there are no problems.

Finally, the most interesting thing. Some people think that with a full-time employee you can agree on a "gray" salary, but with an outsourcer this will not work. With an outsourcer - a company - a contract is concluded, which means that no taxes on wages need to be paid a priori - and no "gray schemes".

Most of these fears are simply due to ignorance. People are used to working the old way and are afraid to try something new. But the world is changing - businesses need to change with it.

Many companies providing outsourcing services face mistrust from potential clients related to issues of payment and information security. But how justified are these concerns?

Many objections to outsourcing are based on outdated stereotypes and a lack of understanding of the essence of this model of cooperation. If you need to build communication with an employee, motivate him, make sure he does not succumb to the persuasion of competitors, then with outsourcing everything is simple: the rights and obligations in the contract and the specific individuals behind the outsourcing company do not have the same importance as the employees.

Financial outsourcing is an effective tool that allows companies to focus on their business, improve operational efficiency and the quality of financial management. The choice of an outsourcing partner should be carefully considered based on the needs and strategic goals of the organization. Properly organized financial outsourcing can become a key factor in the success and development of a business in today's competitive market conditions.