What is financial BPO and how does it work?

Business process outsourcing (BPO) is an outsourcing of processes and management services. It consists of hiring a company specialized in the administration and control of finances. With BPO, organizations can outsource diverse demands and optimize their financial management.

Hiring a financial BPO can be beneficial for several realities. It can be useful for companies with a small staff or even for those looking for specialized management in the area and cannot hire a new employee.

BPO also presents opportunities for organizations that offer financial management services to others. With this, it will be possible to present more complete solutions for customers’ finances.

In practice, this process outsourcing encompasses routines involving finance, from payment control to data analysis. With the hiring, the company enables greater speed in the financial routine and achieves a macro view of the sector’s conditions.

Also, the financial BPO can be a tool for generating reports and graphs that facilitate the understanding of the main points of the business, highlighting the positive and negative aspects. That is, it guides the entrepreneur towards the aspects that need improvement.

What are the main services of a financial BPO?

Within the financial BPO there are different services that can be performed. Hiring is shaped according to the needs of each company. Next, you will be able to find out which are the main services that can be offered in a financial BPO.

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cash flow management

Cash flow management is one of the most important processes in the financial routine of companies. It is through it that businesses manage to control the inflows and outflows of capital from their accounts and keep their financial health up to date.

Tasks related to this management are useful for measuring financial performance, making projections and understanding the company’s reality. In this sense, cash flow management is one of the services that can be outsourced to a financial BPO.

Information can be monitored at the most strategic frequency for the business, daily, weekly, monthly, etc. With the work, the outsourced company can identify good opportunities for the contracting party and also warn about risks or economic vulnerabilities.

Through an in-depth analysis, the outsourced service can also flag inconsistencies and suggest solutions. In addition, it provides your business with the opportunity to maintain control over financial transactions.

Issuance of invoices

The issuance of invoices is another essential process for the financial routine of companies. It is from it that there is the record of purchases and sales of goods or services. In addition, the documents present detailed information about the classification of the product and its taxes.

Also, invoices are documents used for exchanges, returns and transport between states and countries. Even not issuing them can lead to legal problems.

In this scenario, outsourcing can be useful to manage the flow of notes, including import, entry, exit, returns, among other types. Thus, the financial BPO team performs the accounting process in the best way, considering each scenario and the needs of the business.

Bank reconciliation

Bank reconciliation is another process relevant to the financial routine of companies. It is from this task that they are able to compare information present in their bank statements with those registered in the financial control.

That is, bank reconciliation involves a double check of finances, considering capital inflows and outflows, relevant dates and other elements. In this way, the process helps to maintain balance in finances and avoid errors or inconsistencies in the data.

Therefore, the financial BPO can also collaborate with the company’s bank reconciliation process. The outsourced team is able to import and check entries directly from the business accounts, reducing the chances of errors and operational problems that can generate inconsistency in the data.

Data analysis

Making decisions is a process that involves several points of attention. After all, the choices need to be aligned with the company’s objectives and be strategic for the next steps of the enterprise.

But there is another relevant point for efficient decision-making: the analysis of updated data. This happens because, when this information is not taken into account, the manager has less solid bases for planning.

In this sense, one of the main services that can be performed by outsourcing financial management is data evaluation. A financial BPO is a tool capable of generating reports in real time, based on the most relevant information for corporate finance.

In addition to the reports, it is possible to access financial dashboards . The automatically generated screens and graphs also contribute to an understanding of the company’s financial health and effective decision-making.

Strategic support

Another service that may be included in the work of the financial BPO is strategic support for the contracting company. In this case, the contractor will have support in the preparation and implementation of the plan.

As the outsourced team will also have access to relevant real-time data and strategic reports, it is possible that they will use the information to generate insights for the company that contracted the services. This allows you to identify opportunities or visualize risk situations.

These perceptions can be shared to inform the client’s decision making. As a result, project plans can become more robust and efficient.

What are the advantages of this service for the companies that hire it?

Arriving here, you already understood what a financial BPO is and what services it can perform in a company. So it’s worth knowing what are the advantages that outsourcing financial management can bring to the businesses that hire them.

After all, this information can help when demonstrating the value of your solution when attracting customers.

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cost reduction

Firstly, hiring a financial BPO can be a strategic alternative to reduce operating costs for companies. This happens because the assembly of an internal team may require higher investments.

To understand better, consider the example of an entrepreneur who chose to keep financial management in-house. In this case, he will need to hire different professionals to perform services, so as not to overload the team.

It is worth remembering that there are several tasks and processes included in financial management. There is cash flow management, working capital control , management of accounts payable and receivable, among other points.

Therefore, it tends to be necessary to have a broader team to carry out all processes efficiently. But, in addition to hiring costs, it is necessary to invest in training the team and providing technologies for the efficient execution of the work.

In this way, hiring a financial BPO contributes to the reduction of these costs. After all, the manager will be able to outsource the services to another team and keep the financial team leaner in his company.

increase in productivity

In line with cost reduction, hiring a financial BPO contributes to increasing the team’s productivity . The opportunity exists because outsourcing generates a change in internal routines.

As you have seen, there are many services that the financial BPO can perform in companies. Several of these tasks, such as managing cash flow and producing reports to support decision-making, are processes that tend to take time.

In view of this, outsourcing generates an increase in productivity by taking on many of these functions. In this way, the team can be assigned to more strategic and planning functions.

Another advantage in terms of productivity is the automation of tasks. In this way, instead of concentrating on manual work, intelligent systems are used to automatically generate and track information. Thus, there is a gain of time.

Access to new technologies

As you have seen, financial BPOs can improve enterprise productivity. This happens, in particular, through the automation of tasks , which reduces the need to resort to manual work.

So another positive point of hiring is the potential they offer for the company to access new technologies. Bear in mind that hiring a financial BPO involves taking advantage of a specialized service focused on managing finances.

In this way, the outsourced team can adopt innovative solutions and technological tools to apply in their daily work. Therefore, contractors of this service will also be able to take advantage of this potential.

And to whom do you offer the service?

In addition to bringing positive points to the companies that hire them, offering financial BPO services can be positive for companies that work with financial management. First, it can work as a business opportunity.

As you noticed, financial management is an area that involves many challenges. So offering strategic solutions in this field can be advantageous to close deals with a focus on improving the financial routine of several other organizations — contributing to their longevity.

Another positive point is the role of this alternative in increasing sales. Introducing outsourcing solutions, the company can prospect new customers and increase its revenue by offering more complete services.

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