Global Insight | August 2023

Key considerations for the middle-market when selecting financial outsourcing services

In today’s ever changing business landscape, middle-market organisations face increasing pressure to optimise their financial operations.

To achieve efficiency and maintain a competitive edge, many organisations are turning to experienced accounting firms for financial outsourcing. However, to ensure a successful partnership, middle-market organisations must provide essential information and demonstrate a willingness to embrace change. Services differ from firm to firm but bookkeeping, VAT services, supplier payments and management accounts outsourcing is common in the market.

Organisations must approach financial outsourcing with an open mindset, ready to embrace new technology, additional services, and procedure efficiencies. By embracing change, organisations can free up resources and enhance their financial processes. It is crucial to communicate to service providers the organisation’s readiness to explore innovative solutions that can streamline operations, improve accuracy, and boost productivity.

To enable the outsourcing service provider to generate accurate quotes and develop tailored solutions, organisations must be transparent about their current and future budgets. Turnover and profit is an excellent start point for experts to start modelling requirement as well as the sharing of any historical budgets to allow for deeper research. Clear communication regarding budgetary constraints and expectations allows the service provider to align their services accordingly and provide cost-effective solutions that fit within the organisation’s financial framework.

To obtain an accurate quote from the accounting firm, middle-market organisations should provide detailed information regarding their total transaction volumes, such as sales, purchases, banking and journals. Clear communication regarding transaction volumes enables service providers to assess the volume and complexity of the task and allocate resources accordingly. Additionally, explaining the nature of the business through commercial discussions helps accounting firms understand the sources of income and tailor their services to meet specific industry requirements.

A clear time frame for the completion of financial outsourcing tasks needs to be articulated. Setting realistic deadlines helps ensure timely delivery of services and aligns expectations between the two parties. Additionally, middle-market organisations should expect follow-up questions from the service provider as they fine tune their proposal. Clear and prompt communication enables both parties to clarify any uncertainties and ensure a smooth workflow throughout the engagement.

When instructing an accounting firm for financial outsourcing, middle-market organisations must prioritise open and honest communication, adaptability to change, and a willingness to explore new technologies and procedure efficiencies. By providing comprehensive information on the size of operations, opportunities in the sector, current balance sheet, finance staff available and transaction volumes, oganisations enable accounting service providers to conduct thorough fact finding and offer accurate quotes.

For more information, please contact:

Sarah Donaghay
London Partner at Saffery Champness
E: sarah.donaghay@saffery.com
T: +44 (0)20 7841 4191
W: www.saffery.com