Beyond getting more sales, the success of a startup company often hinges on how effectively it can manage its earnings and costs. But making sure that you are handling your company’s finances well can often be complex work. And this can take away your focus from other areas of the business.
Thus, you might find yourself thinking if there is a way for you to outsource that work. Luckily for you, it is possible. But you need to know how to do it right to get the most out of the move. Let’s take a look at doing it for the company.
The Benefits Of Outsourcing Your Startup Company Financial Management
Since this is money we are talking about, you might be understandably uneasy about handling management to an outsider. But there are some great merits to the move. These guarantee that your company funds will be better handled and utilized.
A More Effective Financial Management System
Since your company is just starting, you might not yet have the right system in place to handle financial matters. Through outsourcing, you can quickly build and run that system to catch up to your growing business needs.
And this isn’t just any system. Financial management providers have years of expertise in different business landscapes. With that level of expertise, they can develop a strategy that best suits company needs. These firms will give you a more accurate picture of your current financial status and help you build the right system to accommodate it.
Better Budgeting And Expenditure Management
Central to an effective financial management strategy is budgeting and spending company money the right way. Outsourced financial experts can give budgeting insights that you might not even be aware of. Beyond developing a more efficient company budget, the management firm can help you handle any changes in it that might happen.
Additionally, the firm will help you spend that budget more effectively. They can guide you in formulating expenditure policies that different departments will use. Aside from that, they can help track these expenses so that you have a complete record.
Effective Integration Of Accounting Systems
Outsourced financial experts can also help determine what kind of accounting system would suit your business. That is crucial as the right system will implement your company\’s financial plans and schemes properly. The firm can then integrate that system into your existing business infrastructure in a more seamless manner.
Things To Consider When Outsourcing Your Startup Company Finances
Before you jump into outsourcing your startup company financial management, you still need to give it some thought. There are several important considerations you should take into account when planning the move.
Experience
When looking for providers, you want someone who already has some experience with your industry. They need to have a clear idea of the intricacies of financial management in your bucge. Study their portfolios to see if they have already worked with companies similar to you.
Culture
It might seem an odd consideration. But company culture can play a big role in how well a provider can work with you to manage your finances. Note that this isn’t just about the culture within the provider itself. You would also want to consider the regional culture surrounding them. This can create barriers that you need to take into account when planning to work with them.
Security
Since this is money you are dealing with, you also need to place heavy emphasis on security. Take a look at the technology that they use to encrypt and protect your financial information. Look into a provider’s data handling policies too to ensure that only the relevant people can access your financial sheets.
Pricing
It is important to note that going for the lowest bidder is not always a good idea when outsourcing your startup company financial management. What you want instead is something that will give you greater cost savings in the long run. Opt for something that offers a flat monthly rate. This will help you avoid any surprise charges down the line.
Identifying What Your Startup Company Needs
Since financial management is a fairly complex network of tasks, you need to have a clear idea of what you exactly need. Think about whether you want to outsource all of your financial management duties or just certain tasks.
If you go with the latter, you should carefully identify which tasks would benefit most from being outsourced. In most cases, these are repetitive tasks like payroll processing, accounts payable, and accounts receivable. By assigning them to the external team, your in-house financial team can go back to other tasks that require greater attention.
Alongside identifying the tasks you want to outsource, you also need to be clear about your business requirements. These include the type of security protocols you want and the benchmarks that you want to set. Potential providers will use this information to see what kind of service they can offer.
Doing A Trial Project With Your Chosen Provider
Once you have chosen a partner, you still need to assess their capabilities in action. For this, let them handle a small area of your financial process. The things you need to measure here are:
- Compatibility and communication: How well the provider can coordinate and work with your in-house staff.
- Efficiency and performance: How well they accomplish the assigned tasks.
- Value: How much of your business needs they can fill in. Look into both the quantitative and qualitative value they provide.
Aside from seeing how they perform, you can identify the gaps that the provider might have. You can then discuss these gaps with them and plan out how to resolve such issues. Additionally, you can create a more reliable set of standards they will use.
Keep Your Startup Company Finances Well-Handled Through Outsourcing
We at Virtua Outsourcing Solutions understand how much you want to make sure your startup company funds are handled well. For that, we offer the best quality support services to help you keep track of and manage your finances. Contact us today and we will show you how we have to offer.