The Advantages of Outsourcing Your Financial Operations

In this modern age of extremely dynamic and complex business markets filled with new technology, cryptocurrency and digitalisation, it is getting increasingly difficult to stay ahead of the curve.  Mounting operating expenses and inefficient labour in this financial climate are also not helping businesses achieve their envisaged growth, and to top it all off there’s the taxman squeezing the last bit of cash flow out of your business.

Handre Lourens, business rescue practitioner and consultant at Hobbs Sinclair, says that addressing these challenges from an operational and strategic perspective should not be taken lightly and certainly requires expert input. “The question you have to ask yourself is, does your business merit a full-time financial manager or financial director, or are you best placed to outsource this crucial function?” he advises.

Outsourcing

Outsourcing your financial function/operations has the advantage of securing a practised professional tailored to the requirements of your business when you need it, without employing someone full-time at the high cost of a permanent, qualified professional. 

Strategic Decision-making and Up-scaling

An outsourced financial go-to person can assist you with business growth by helping you to manage your working capital cycle, cash flow, strategic decision-making and mitigation of risks, which are critical in the scale-up phase of any business.

Monitoring your business

Experts in financial management have diversified skill-sets and knowledge and will be able to assist in implementing systems to mitigate risks and devise management accounts in order to monitor your business.   This will enable you to make better strategic decisions on growing revenue together with your customer base, cutting costs and increasing productivity and efficiency.

Business plans

Taking your business to the next level requires financial backing and if you need to obtain finance from the bank to help you grow your business, the bank will be looking for an in-depth forecast and/or a detailed business plan which will require expert input to make your dream become a reality.

Tax planning

Now that your business is booming and you have secured a sustainable market share, your customers are happy and your bottom line is smiling all the way, the next phase of efficient tax planning will be crucial.  Says Handre, “Before the taxman comes knocking on your door, get the experts in to ensure your tax planning is as efficient as possible and, most importantly, to make sure you have made sufficient cash flow provisions.”

The rewards

At the end of an era, when you want to sell your business, these outsourced tax professionals will be able to effectively evaluate your business to make sure you achieve the capital you deserve for all your hard work, sweat and tears.