7 reasons you should outsource your financial services

There’s no better feeling than closing a successful round of fundraising for your high-tech startup. After pouring everything you have into getting your company off the ground, you finally receive the financial backing that will help you grow your business and achieve your mission. Now, with the money in the bank, it’s time to focus on the next step: recruiting talented employees to help make your goals a reality.?

Good people are hard to find

Only… hiring is hard right now. Like, really hard. We’re over 2 years into the pandemic, and the labor shortage is tighter than ever. According to one Manpower Group survey, 69% of US employers report that they’re struggling to fill jobs - the highest that figure’s been in a decade. And the higher the level of professional expertise required, the smaller the amount of qualified candidates available. So what does that mean for your company? Put simply, your company’s exciting new growth could potentially come to screeching halt if you’re unable to find the right talent for your organization. So what do you do?

Outsourcing is the new hiring

One option is to outsource your company’s financial services. You can’t get around working with accountants, payroll, bookkeepers, and administrators - these are crucial services your business needs to simply exist. But you can choose to have those services performed by an? outsourced financial management service. In fact, it might just be the best decision you can make for your start-up. Below are a few reasons why.

1. Cut down on costs

Look, there’s no way around it: when you’re an early-stage start-up, money is an issue - you’re probably tracking your burn rate by the minute. The last place you want to cheap out is in the people you hire, but between paying for salaries, training, benefits, and taxes, hiring is incredibly expensive.?

That’s why outsourcing is such a great solution. It doesn’t cost as much as hiring a staff of full-time, on-site employees, but the quality of work you’re getting is no lower. In fact, it’s often higher, because you’re getting access to an entire team of experienced, qualified staff of professionals who have the specialized experience your company needs.

2. Save time and effort

Hiring employees costs more than just your money - it also requires you to invest lots of time and energy in things like training and managing. But outsourced financial professionals are already at the top of their game, and they don’t need the same kind of professional development investment from you as employees do. So, instead, you can put those same non-financial resources toward other important, value-enhancing work that needs to get done to help your company grow.

3. Scale up or down as needed?

One downside to hiring your financial services staff is that, as a growing company, your needs are always changing. Some weeks you might only need your bookkeeper part-time while others, you have enough work to keep three of them busy.?

This is a problem with full-time employees, especially when every dollar counts. Not only will it drive your employees crazy when you always have varying amounts of work for them to do, but you’ll also sometimes come up against the problem of not having the manpower to meet your needs.?

But with outsourced financial services, this isn’t an issue. They can offer you the flexibility that full-time employees simply don’t have, so you’ll receive only the services you need when you need them. You can scale up and down with the changing cycles of your business’s growth without having to worry about laying employees off or being unable to handle peak times.

4. Access the best tools and processes?

As a growing business, you’re not always in a position to invest in all of the best, most cutting-edge software, tools, and processes. But your competitors might be in a much better position to afford that higher overhead. To stay competitive, you’ll need to find a way to be able to access all of the industry's best tools without breaking the bank.?

That’s where outsourced financial services come in. The professionals you end up outsourcing to will already have access to and be trained on these systems and processes so that you benefit from the best toolbox in the business without having to pay the premium.

5. Improved controls

There are a lot of risks inherent to the financial services department. When things go wrong in accounting or bookkeeping, the consequences can be dire. With a third-party financial services team, you’ll reduce the risk of fraud by working with teams of professionals who can implement best practices regarding avoiding hackers and phishing scams, double-checking work, and segregating duties.?

6. Set yourself up for success

?n the absence of being able to hire qualified professionals, it’s not uncommon for businesses to believe they have no choice but to compromise either by hiring people without the necessary experience or even trying to do it themselves with their current staff.?

But financial services simply isn’t the kind of department that you can ask a particularly savvy intern to carry on their own, especially taking all the legal and financial regulations into account. That’s why it’s crucial, especially at the beginning, to get started by implementing the best, most compliant processes for your organization’s unique needs. So rather than making a compromise that could damage your business later on, working with outsourced financial services pros right off the bat can help ensure you do things right from the get-go.

7. End your year stress-free

It’s no secret that the end of the year, when financial reports and tax preparations are due, is especially hectic and difficult for internal financial services departments. But when you’re working with outsourced bookkeepers and accountants, you’ll be able to lean on the power of a large, experienced finance team to help you compile the proper financial statements and generate the necessary financial reports with a faster turnaround time and less of a headache.?

Profitian is a boutique full-service finance firm, specializing in the high-tech industry. We’re happy to offer a full suite of financial management outsourcing services to help growing high-tech businesses meet their needs even in this difficult hiring landscape.

To learn more about how we can help take the weight of financial services off of your shoulders, contact us today. ?

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