Nevertheless, small medium businesses are beginning to explore outsourcing these more complex processes (financial analysis) as a means to develop a competitive advantage by reducing costs and increasing efficiency amongst a traditionally high cost, skill intensive set of finance activities.
Benefits of outsourcing Financial Analysis Services
- Enhanced Decision Making- Outsourcing financial analysis services gives management access to faster and more accurate interpretation of financial data. This would result in quick decision taking abilities as they have easy access to the most important data of their company.
- Better technology- Use of superior technology means that the data can be used on regular basis to advance service levels of company.
- Cost Savings- 40-60 percent savings in analyst costs
- Transparency and regulatory compliance: CFAs the world over are turning to financial services outsourcing to achieve improved financial reporting and regulatory compliance with laws such as the Sarbanes-Oxley Act.
- Significant top-line and bottom-line impact from analytical insights into areas such as cost management, product profitability, inventory, and project appraisals, etc.
Financial Analysis Services which can be outsourced
- Financial analysis and research
- Corporate financial statements
- Analysis of financial statements- monthly, quarterly, and annual management reports
- Analysis of portfolio structures
- Industry reports (fact books and competitor analysis)
- Financial ratio analysis, break-even analysis, NPV and IRR analysis
- Budgeting & Forecasting Reports
- Financial Accounting
Outsourcing financial analysis services is a fast growing way used by many small and mid sized businesses to take care of their financial accounting needs. It may appear risky at some extent but the outsource activity of this job is highly likely to bring you successful and efficient results in real time. While financial analysis outsourcing services have numerous advantages, choosing the right person (service provider) is also critical. Make sure while choosing a service provider for your financial accounting needs they have the experience and technology to service you. The real purpose of financial outsourcing is only achieved when all the services required by the client are provided by the service provider.This allows you to control your business by being able to come up with a considerable decision.