As a finance professional, I understand the importance of streamlining operations to maximize efficiency and reduce costs. One approach that has gained popularity in recent years is the shared services model.
In this article, I will explore what a shared services model is, some benefits of implementing it, and whether this model is right for your business. With this model, you can have your own Finance Department Online.
What is our Shared Services Model?
Our shared services model is a business model where a centralized finance team provides services to several small businesses. The finance shared services team will handle tasks from accounts payable, accounts receivable, and general accounting to payroll accounting.
Some Benefits of Implementing a Shared Services Model
Improving Efficiency, Standardization, and Automation of Processes
By centralizing finance operations, the business can eliminate redundancies and standardize processes, reducing errors and improving accuracy and efficiency. The shared services team can also use automation and technology to streamline operations and reduce manual interventions, freeing finance team members to focus on more strategic tasks.
Cost savings are one of the most significant benefits of a shared services model. Centralizing operations and standardizing processes can result in considerable cost savings. Additionally, the shared services team can take advantage of economies of scale by negotiating better deals with suppliers, which can further reduce costs.
One example of cost savings through shared services is in accounts payable. By centralizing accounts payable operations, the business can reduce the number of people required to process invoices, eliminate redundancies, and take advantage of early payment discounts, which can result in significant cost savings.
Conclusion: Is a Shared Services Model Right for Your Business?
A shared services model can benefit your business, including cost savings, improved service quality, and efficiency. However, it is essential to carefully assess the business's needs and capabilities before implementing a shared services model. By following best practices and addressing potential challenges, companies can successfully implement a shared services model and reap the benefits of a more streamlined and efficient finance operation.