Strategic options

How will the finance function strategy fit with the larger organisational strategy?

Is outsourcing an option, outsourcing in foreign jurisdictions, outsourcing high volume processes? Is shared services an option, centralizing staff to focus on specific processes? What about financing costs and the structure of the balance sheet?

Consider the matrix below. Where does your organization fit with respect to needs. On the high end, needing complex tax advice or the low end using all your effort just to process transactions.

There are a number of strategic considerations to consider going forward, all of which will require investment and courage by the organisation. Each will require careful consideration and a business case to warrant consideration. Consider the following questions?

• Can you outsource the transaction processing and reconciliations to a cheaper model?
• What processes do you require to outsource transaction processing?
• Do you have the volumes to justify outsourcing?
• Are your transactions such that each needs specific tax plannign and considerations?
• What high level strategies are in place to deal with risk, Sarbanes Oxley etc.?
• How do you manage monthly reporting? Is this complex?
• How do you manage statutory reporting? Is this complex?

Ideally you want to outsource D in the cheapest way possible and manage B to maximise value to the organization. A required these things in place.