Client: A US-based company in the technology sector
Services Provided by Malander: Full Finance Function Outsourcing, with additional support for Financial Controller and CFO as needed
Background
As the festive season approaches, businesses often face the challenge of managing financial operations while key personnel take much-needed time off. For our US-based client, this challenge is magnified by the critical role that finance plays in maintaining the company’s day-to-day operations, especially during year-end reporting and planning.
This client has strategically outsourced its entire finance function to Malander Advisory, except for their Financial Controller and CFO. By doing so, they have ensured seamless operations during holiday periods, avoiding disruptions that can negatively impact year-end performance and strategic decision-making.
This case study explores how outsourcing their finance function to Malander provided significant advantages during the festive season and how additional support for senior finance roles ensured their team could take stress-free breaks.
Key Issues and Themes
- Holiday Staffing Challenges:
- For companies that manage all finance operations in-house, holiday leave can disrupt workflows, particularly in areas like accounts receivable, accounts payable, banking, FP&A, and the preparation of monthly management accounts.
- Many businesses struggle with balancing holiday leave schedules while ensuring critical financial processes continue without delays, which can lead to backlogs and missed deadlines.
- Burnout and Inefficiency:
- Finance leaders and controllers are often unable to fully disconnect during the holiday season. The fear of returning to a backlog of work or facing disruptions in financial processes can prevent them from taking meaningful breaks.
- In many cases, senior finance staff work through the holiday period, sacrificing rest and recovery, which ultimately leads to burnout and reduced productivity in the long term.
- Strategic Disruption:
- Year-end is a crucial time for evaluating business performance and setting strategic objectives for the year ahead. Any delays in financial reporting or interruptions in financial planning can significantly impact decision-making at the start of the new year.
Challenges Faced by the Client
Before partnering with Malander, our client struggled with the following:
- Staffing Bottlenecks: Managing accounts receivable, payables, and financial reporting while accommodating holiday leave schedules led to inefficiencies and delays.
- Lack of Flexibility: Their in-house finance team had limited capacity, and adding temporary staff was costly and time-consuming.
- Holiday Burnout: Senior finance personnel, particularly the Financial Controller and CFO, often found themselves working during the holiday period to keep operations running, leaving them exhausted and unable to fully recharge for the new year.
The Impact of Outsourcing to Malander
By outsourcing their finance function to Malander, the client was able to address these challenges effectively:
- Guaranteed Consistency and Streamlined Operations:
- Malander took over the management of key financial processes, including accounts receivable, accounts payable, banking, monthly management accounts, and FP&A.
- This ensured that there were no interruptions in the flow of financial operations, even when the client’s internal staff took time off. Critical tasks were completed on time, maintaining the company’s operational efficiency.
- Flexibility in Scaling Resources:
- Malander’s flexible model allowed the client to request additional support for their Financial Controller or CFO during peak periods or when extra hands were needed. This temporary support ensured that senior staff could take their breaks without worrying about a backlog of work or playing catch-up upon return.
- The ability to scale resources up or down, depending on needs, meant the client didn’t have to deal with the complexities of hiring temporary staff internally or worrying about holiday coverage.
- Supporting Rest and Recovery:
- By taking on the full finance function, Malander enabled the client’s finance leaders to disconnect fully during the festive season. This not only ensured they came back refreshed and ready to tackle the new year’s challenges but also significantly reduced burnout rates.
- The peace of mind that comes from knowing financial processes are being managed seamlessly allowed the client’s team to focus on their strategic priorities rather than getting bogged down in operational details.
Solutions and Benefits for the Client
- Maintaining Operational Continuity:
- With Malander managing all routine financial operations, the client experienced zero disruption in their finance function during the holiday season. This ensured timely monthly management accounts, accurate financial reporting, and seamless year-end close, crucial for strategic planning.
- Enhanced Flexibility and Efficiency:
- The client no longer needed to navigate the complexities of hiring temporary staff for the festive season or worry about covering shifts. Malander’s finance consultants provided immediate support, reducing lead times and ensuring that all financial processes were handled with minimal oversight from the client’s core team.
- Improved Employee Well-being:
- The Financial Controller and CFO were able to take their holidays without the stress of impending work piling up. This led to higher morale and productivity, with the senior team returning refreshed and ready to contribute strategically.
- Cost Efficiency:
- By outsourcing to Malander, the client avoided the additional costs associated with hiring temporary finance staff. This provided a cost-effective solution for maintaining service levels without the need for long-term commitments or internal adjustments.
Conclusion
Outsourcing their finance function to Malander provided our client with a resilient and scalable solution to navigate the challenges of the festive season. By leveraging Malander’s expertise, the client ensured consistent financial operations, protected the well-being of their senior staff, and maintained strategic focus as they entered the new year.
Key Takeaways:
- Operational Continuity: Ensuring critical financial tasks are managed without disruption during peak holiday periods.
- Flexible Resourcing: Access to on-demand support for senior finance roles, enabling rest and recovery without compromising productivity.
- Strategic Focus: Allowing businesses to focus on growth and planning, free from the operational concerns of finance function management.
This case study highlights the value of partnering with a flexible, expert finance advisory partner like Malander, particularly during high-pressure periods like year-end.