The industry is abuzz with trends showing the movement of small and medium organizations embracing F&A outsourcing. Experts feel that F&A outsourcing is a significant driver of growth and success for small and medium businesses.
CFOs of SME organizations are under immense pressure from management to make strategic contribution to the business. CFOs generally work with a skeletal team and lean cost structure. Many in-house finance personnel at SMEs lack the capability, training and knowledge to accomplish diverse and complex financial and accounting tasks that are called for time to time. Moreover recruiting the right talent and ensuring optimum utilization of internal resources is a difficult task requiring constant monitoring and management time. In these circumstances can F&A outsourcing come to the CFO’s rescue? CFOs of small and medium businesses are aware of FAO success stories of large enterprises, but they are not sure if small businesses can also achieve the same benefit. SMEs have lower appetite for risk and generally are averse to change. Moreover they associate outsourcing to cost arbitrage. They generally do not consider F&A outsourcing as a tool that will help them contribute strategically towards the growth of the business.