Financial Shared Service Center Setup in Singapore
Maximising cost is the number one priority of every business. Especially in recent years with how quickly the business landscape has evolved since Covid-19. Enter the need for a Financial Shared Service Centre.
Reducing costs while optimising processes and overall efficiency is the challenge that nearly every business faces. What happened during the Covid-19 pandemic only further cemented the need for a powerful solution that will allow companies to streamline their processes and improve decision-making. Companies must evolve as rapidly as the business landscape does or risk becoming outdated, or worse, out of business.
That is where the Financial Shared Service Centre (FSSC) solution comes in.
What Is A FSSC and Why Do Businesses Need It?
Businesses need effective solutions. More importantly, it needs a central hub within its organisation that is capable of handling a range of financial functions. That is what a Financial Shared Service Centre is. Essentially, an GSSC is a financial hub that is responsible for carrying out processes that include financial reporting, accounts payable and receivable, general ledger, payroll and more.
In short, an FSSC is a financial solution that consolidates and standardises a company’s financial activities. If a business is looking to reduce its cost, this is the way to go. By centralising your financial processes, you can eliminate the need for multiple tasks and redundant processes, and optimise the allocation of your resources.
Our experts at 3E Accounting can help you set up and build an FSSC within your company. Click here to get in touch with us to find out how.
How Does A Financial Shared Service Centre Work?
An FSSC needs several key components for it to run effectively. The first is of course the financial software and automation tools that are used. This is the crucial foundation upon which the success of the FSSC will be built. It is important to invest in good software from the start.
The other aspect that your business must invest in is standardising the procedures that your FSSC will use. These standards must be defined so that your software has consistency across all aspects. You will need a team of skilled professionals to collectively contribute to your FSSC too. This is again where our 3E Accounting experts will save the day.
Our 3E Accounting professionals are highly skilled accountants, technology specialists, and expert analysts in their respective fields. Together, we help our clients save costs and improve productivity. Almost every financial process can be done digitally online in the cloud space, and our experts are there to make it happen for your business.
What Services Can A Financial Shared Service Centre Handle?
An FSSC can handle a multitude of functions, including (but not limited to) the following:
- Accounts Payable
- Accounts Receivable
- Cash Management
- General Ledger
- Financial Reporting
- Financial Analysis
- Tax Compliance
- Intercompany Transactions
By standardising and streamlining these processes, your company will benefit from the consistency that the FSSC offers. Minimal room for error and a reduction in manual intervention is a welcomed addition, especially where financial transactions are concerned. Automating your workflow with the help of technology will only accelerate the processing time across the board for all transactions. It’s a win-win for everyone.
Are There Any Pros and Cons Involved?
As with every service within a business, there are always going to be some pros and cons that need to be ironed out. An FSSC is no different. Some of the challenges that you can expect when you are transitioning to the FSSC platform include the following:
One big challenge you will face is data security. Rigorous cybersecurity measures must be in place when you are transitioning to the FSSC platform. There is a lot of sensitive financial information at stake and there must be minimal room for error and data breaches.
Making the shift will incur a lot of change, especially where processes are concerned. However, this can easily be overcome if you have effective change management strategies in place to ensure a smooth transition. Our 3E Accounting experts can help you navigate this situation.
There could be some complex processes involved when you’re transitioning to the FSSC platform. This would depend on how big your organisation is and how many financial functions or departments are involved.
Shifting over to the FSSC platform may involve more time than you initially anticipate. This is because there is advanced technological, financial, and automation tools and software involved. This is not a process that can be completed quickly, especially if different departments are involved.
Your employees are going to be part of the change, and it is important to maintain constant communication with them. When change happens, there can be resistance. Especially if they may not fully understand what is happening. Support your employees with the proper training and effective communication they need to make this shift a success.
The benefits, however, of establishing an FSSC far outweigh the challenges that might be faced. Some of these benefits include the following:
The scalability factor is one of the biggest pros that come with an FSSC. The business landscape is always changing, and that means your business needs to change too. FSSC are designed to accommodate growth and continuous improvement.
The long-term efficiency that the FSSC offers is going to be financially beneficial for your company in the long run. With processes streamlined this way, your company will end up spending less money on redundant processes, thereby maximising profit.
New financial technologies will always be upon us, and an FSSC is designed to embrace innovation. This puts your business in the best position to tackle any challenge that may come your way moving forward.
An FSSC is also designed for continuous and ongoing improvement. With feedback given as the software is used, an FSSC can continually be improved as needed.
Let 3E Accounting Launch You Into the Future
When implemented correctly, a Financial Shared Service Centre can be a gamechanger. Let the experts at 3E Accounting launch your business into the future.
For more information about setting up an FSSC of your own, visit our website or contact the 3E Accounting team.