6 Benefits of Outsourcing Financial modeling to a Specialised Service Provider
In today’s fast-paced business world, accuracy and efficiency are essential for making informed decisions. A financial model is a critical tool that helps companies forecast and analyse the financial impact of various business decisions. However, building and maintaining these models in-house can be time-consuming and complex. As a result, outsourcing financial modelling to specialised service providers can offer several benefits. In this blog, we will explore the advantages of outsourcing financial modelling.
- Access to expertise and best practices:- Outsourcing financial modelling to a specialized service provider ensures that your business has access to a team of experts with in-depth knowledge of financial modelling best practices. This helps ensure the model is accurate and robust, giving you the information you need to make sound business decisions.
- Access to a team:- A financial modelling company contains a pool of professionally trained modelers working to a common set of financial modelling best practices. Therefore, outsourcing to such a company means that the risk of reliance on an in-house modeler is gone, and your modelling requirements are always met in a timely manner.
- Improved efficiency:- Specialized service providers use best practices in designing, building, and maintaining spreadsheets combined with automation that streamlines the modelling process, reduces the time needed for model development, and ensures that models are maintained and updated efficiently. The result is a more streamlined financial operation that enables companies to make faster and more informed decisions.
- Improved accuracy:- Financial modelling is a complex and intricate process that requires attention to detail and high precision. Specialized service providers have the tools, experience, and expertise necessary to ensure that the financial model is accurate and reliable.
- Flexibility and scalability:- Specialized service providers can quickly adjust to changes in a company’s needs. This is particularly beneficial for businesses experiencing rapid growth and needs to promptly adjust their financial models to keep pace with their changing needs. Additionally, outsourcing can allow companies to free up internal resources, enabling them to focus on other strategic initiatives and core competencies.
- Reduce hiring and training costs:- Building an in-house financial modelling team can be expensive. You need to hire experienced professionals and provide them with training and development. Outsourcing financial modelling eliminates these costs and allows you to access experienced professionals already trained and equipped with the necessary skills. This way, you can free up valuable time and resources that can be better spent on other aspects of your business.
Conclusion
Outsourcing financial modelling to specialised service providers can offer several advantages, including modelling expertise, gaining access to a team of professionally trained modellers, getting consistent quality and style of models every time, improved efficiency, accuracy, and, most importantly, time and cost savings. This enables companies to focus on strategic tasks of the business and use accurate and reliable financial models to make more informed decisions and create a streamlined finance function.
At FAB Analytics, we specialise in building granular monthly models in Excel for corporates, funds, financial modeling consultants, and advisors. Our team is professionally trained in the best practices standards, such as the FAST standard. We provide full-spectrum financial modelling services, from transaction modelling support to running ongoing reporting and analytics for our clients.