Transforming Your Business Amidst the Pandemic
An essential point in coming out of this pandemic with a sustainable and thriving business is adapting to rapidly changing scenarios. With market disruption across all sectors of the economy within the past two years, it is clear that keeping productivity and performance high is essential to staying competitive. In some cases, people might even argue that reducing costs by managing cash flow is equally as important.
Indonesia’s most significant GDP contributor, micro, small, and medium enterprises, has reported a steady decrease in sales due to the pandemic. This group, which accounts for 99% of all businesses, said that their revenue had taken a nosedive by 30%.
Dr Armand Hermawan CPA (Aust.), Director of Strategy and Execution for multinational telecommunication company PT Indosat Ooredoo Hutchison, Tbk, says that a proper transformation strategy with excellent execution can ensure companies sustain in the face of market threats. Putting in the discipline of getting jobs done combined with persistence and commitment, the transformation of a company to survive will be within reach.
Starting with a common objective that is properly communicated will create a sense of urgency within the organization which will then turn into a full-fledged change strategy. Whilst conducting this, a method of measurement in each step must be implemented to celebrate each win and ensure that the transformation process flows nicely.
The Role of Financial Functions in a Business’ Success
It can be argued that the finance department of every business is the heart and soul of a company. It needs to be at the forefront of every business since this department will decide whether a business can sustain itself with its monthly revenues. Without a solid finance team, a company can collapse due to poor financial management.
A necessary part of any business, efficient management of the financial resources within a company can prove to be the most valuable part of keeping the business afloat. All this falls within the broad spectrum of financial management. Listed below are some reasons why financial management is vital for businesses:
Following Rules & Managing Tax
A proper finance team also acts as advisors on better managing the financial decisions within the legal jurisdictions. This department helps businesses follow regulations and find legal tax loopholes that could further strain the company’s financial position.
Control Business Costs
Every company has some essential fixed costs that cannot be substituted. Keeping costs low and reducing expenses should help the company maintain a cash surplus for rainy days or be used for investing in other departments. A sound financial management team will help find solutions when given a working budget.
Improve Weak Areas
As the brain of the business, finance teams will use their analytical skills to find out which areas are performing well and which areas are not. The management will then decide what functions are worth investing in. Such analysis is essential for exposing weak areas within the business, which can then be given special attention.
This list only highlights a small number of the critical areas where finance management plays a vital role in the success of a business. With this, a conclusion can be drawn: the financial industry is indeed thriving in the light of businesses constantly opening, scaling up, and transforming.
Benefits of Financial Outsourcing Services for Business Transformation in Indonesia
Businesses nowadays are constantly looking for ways where they can outsource their services. They do this primarily to reduce and control their costs of operations, improving the company’s focus. As a business outsources their services, they make more time within the company for new purposes. One other important reason is that a business would instead get experts to work on a specific function rather than internally hire.
In the wake of the pandemic, Indonesian businesses that have only recently opened up are heavily relying on professional services by outsourcing their business functions. Within the country, businesses are turning their heads to Semarang as the ideal location for outsourcing services in Indonesia. To find out why, read our piece on Outsourcing in Semarang.
A business usually hires highly trained accountants and professionals for financial outsourcing services to provide the best practices. There are many other ways that local businesses can benefit from outsourcing, such as:
Cost Saving
Businesses can look at cities with an increasing literacy rate and relatively lower labor costs when outsourcing in Indonesia. This, combined with costs like benefits, taxes, and bonuses, shows a significant advantage on why a business needs to outsource.
Increased Flexibility
Having more flexibility within the organization can pivot to other more high prioritized functions. If it is a small team, handling too many things in the finance department can be too overwhelming, reducing productivity and outcome. Delivering results without a time constraint is another plus point of financial outsourcing.
Access to Better Tools & Processes
When outsourcing financial services, financial service providers usually use several highly specialized tools and data analytic services to deliver the best results. Smaller organizations usually avoid these advanced tools to minimize their overhead costs. This is why by outsourcing the finance team, a business can get not only access these tools but also get introduced to new processes, which in turn builds overall efficiency.
Business Intelligence
Due to high competition, it may be challenging to compete with the major players when not fighting with the right weapons. In this case, when the competitors are using more analysis methods and a more concentrated team of business intelligence, it could be the differentiator when battling to come out on top. When receiving research from your outsourced business functions, you can develop plans and adjustments on how to reach those newly identified goals.
Even during tough economic times, what seems to be an expenditure that could look a little excessive can instead be the one thing your business needs to scale up in a way that it has imagined. Among several financial outsourcing services, important ones are tax reporting services & accounting services.
