The fintech industry and banking sectors are booming, especially with digitalization. However, as the market expands, their customer base is also expanding rapidly. Additionally, many product- and service-based companies are struggling with payroll and accounting.
In such a scenario, company leaders must focus on delivering high-quality customer support and service to drive retention. Most finance and accounting companies have reached their maximum performance capacity.
In-house hiring becomes cumbersome, lengthy, and expensive. Thus, companies can choose to outsource their departments and customer service to financial services outsourcing providers. It helps reduce workload and gain a competitive edge.
According to a recent report, the global outsourced accounting services market is projected to hit $81.25 billion by 2030. It is growing at an 8.21% CAGR.
Your internal finance team might be able to handle the job, but as the business grows, it becomes more challenging. In such a situation, choosing a business process outsourcing company is the best option.
In this article, we discuss financial services outsourcing and how it supports financial reporting, payroll, customer tax preparation, and overall financial operations.
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What is Financial Services Outsourcing?
Suppose you’re a SaaS company or a product/service-based company? Now, you are a startup or a small business, or even if you’re making 7-9 figures. You have all the teams working, but managing tax, finance, payroll, and accounts is becoming increasingly challenging due to limited in-house resources. Hiring more in-house teams requires additional expenses.
Thus, financial services outsourcing comes to the rescue here. As with customer support outsourcing, many companies rely on various types of BPO for their accounting and financial operations.
Outsourcing your finance department to a third party is known as financial services outsourcing. It is cost-effective, includes automations and advanced tools, and provides full authority.
Also Read: 5 Top Reasons Banking BPO Helps Finance Companies Drive ROI
In the next section, we will explore which tasks are typically outsourced in finance and accounts.
What are the Common Outsourced Financial Services?
There are many accounts services leaders can outsource, but here are some of the most common financial services outsourcing tasks.
1. Payroll Support/Salaries
Many companies have large employee bases, and managing payroll in-house can be a significant burden. Thus, companies can choose to outsource payroll support for salary processing, reimbursements, account setup, time tracking, and tax preparation.
2. Manage Accounts Payable and Accounts Receivable
I guess this is simple. Anything the company owes and is invoiced for is accounts payable. On the other hand, any amount due to a firm for services delivered but not yet paid by customers is accounts receivable.
3. Bookkeeping
The offshore or nearshore outsourcing partner will maintain records of your business's financial transactions and financial statements. They will also prepare financial analysis, such as balance sheets and profit-and-loss statements.
4. Bank Reconciliation
Here, the outsourced agents will cross-check your bookkeeping. Usually, the outsourcing partner will compare your company's accounts against all the bank accounts. If you’re a financial service provider, you can also help your clients with these financial services outsourcing techniques. These are some ways to keep your customers happy.
5. Data Entry and Record Handling on Accounting Platforms
Suppose you need physical documentation to enter into a database. Then, you can choose offshore outsourcing and data entry outsourcing services from trusted BPOs like BolsterBiz. We can help with internet research, data extraction, data analytics, and entry for you at an affordable price.
6. VAT and Tax Preparation
Your offshore outsourcing agent will help ensure all your taxes remain up to date. They handle the collection, enabling you to make informed decisions to maintain compliance with local laws and regulations.
Now that you know the common outsourced financial services, let's look at the benefits of financial outsourcing and how it can positively impact your company’s bottom line.
What are the 5 Best Benefits of Financial Services Outsourcing?
There are multiple benefits of outsourcing in the US and globally. However, when it comes to outsourcing finance services, there are 5 key benefits. Let’s take a look at them in detail.
1. Helps in Cost Savings
It is not a myth that outsourcing always helps you cut costs compared to full-time hiring. Hiring an internal employee takes money from interviews, onboarding, to perks and benefits. However, with outsourcing, you can avoid onboarding and recruitment. Thus, you save time and money.
Try out our free outsourcing cost calculator to know how much you can save with outsourcing.
2. Access to Top-Tier Talents
Outsourcing companies like BolsterBiz come with years ot experience and talented, trained agents that align with your brand and company from day one. They know the ins and outs of finances, accounts, and your company. They ensure compliance, provide access to critical data, eliminate errors, and more.
3. Improved Productivity and Efficiency
With an extra pair of hands, your outsourced agents will collaborate with your existing employees and help you focus on core operations. You can reduce backlogs and tickets and ensure smooth processes and operations. If you’re outsourcing to customers who need financial assistance, you can also deliver the best customer service.
Also Read: What is CSAT score and how to measure customer satisfaction
4. Scalability and Flexibility
When discussing the benefits of outsourcing, it is important to note that scaling becomes easier and provides greater flexibility. You can choose to start small and scale as you grow. You can start with one agent and add more as the workload grows. By doing so, you can reduce the burden on your in-house team and have the flexibility to focus on core work.
5. Reduced Risks and Security
Many repeat outsourcing partners and financial services outsourcing companies ensure data security. You can ensure the security of information and personal data. Thus, you gain confidence in the team and the service provider.
How to Choose the Right Outsourcing Partner for Financial Services?
With so many service providers available today, choosing the right one can feel overwhelming. That is why it helps to approach the decision step by step. Below are a few practical ways to narrow down your options and make a smart choice.
Start by clearly defining your business needs. Before you begin your search, understand exactly where you need support. Every provider has different strengths, and knowing your priorities makes it easier to find a company that truly fits your requirements.
Take time to assess potential providers. Do not rely on pricing alone. Research their background, industry experience, and areas of expertise. A provider with proven experience can often deliver more value than the cheapest option.
Review their security standards carefully. Data protection is critical. Any weakness here can lead to compliance problems and damage customer trust. Ensure the provider adheres to strong security practices and understands data confidentiality.
Assess their communication approach. Since you will work closely with this team, clear and consistent communication is essential. Their responsiveness and clarity should align with how you expect to collaborate.
In the End
Financial services outsourcing is always beneficial when done with the right outsourcing partner. Just like our customer support and IT outsourcing services, outsourced financial services help you keep your teams and customers satisfied, depending on your line of business.
We at BolsterBiz offer customized customer support outsourcing services for all industries, including banking and financial institutions.
If you would like to learn how we can help, contact us today.
