The Business Case for FAO

“30 years ago, firms did their own payroll; while today the vast majority outsource payroll.  Management Science delivers costs savings through F&A services (FAO) that streamline cash collection and provide institutional level financial controls that every business needs to survive, thrive, and create wealth.”  -Garry E. Meier

The Business Case for SaaS FAO:

 

The move to a SaaS financial management system and/or FAO outsourcing solution platform is occurring according to numerous analyst reports and thought-leaders due the the benefits of the SaaS model (enables every user to benefit from the vendor’s latest technological features without disruption or additional cost) and the utility being derived by employees, managers, and executives.

 

Beyond the IT and corporate benefits associated with the SaaS model; the benefits of SaaS service in the hands of employees is powerful.

Self-Service Utility & Benefits based on Operational Efficiency and Personnel Productivity

Lower Total Cost of Ownership (TCO), utility based pay-as-you-go model, on-demand

Controls supported by Business Rules Engine, Workflow, and Alert Notifications

24x7 Access, Worldwide from the road, remote locations, or anywhere with mobile access

Employees have self-guided access to training, development, and their careers

Employee Consumerism (employees take accountability for their health, welfare, career)

 

Self-service in the hands of employees providers consumerism, drives engagement and accountability, and productivity.

The benefits of SaaS financial management platform for managers and executives includes significant resource savings. More and more organizations are opting to leverage technology to automate and streamline their operations so that employees can focus on their core activities and so that managers have more time as well. Time savings and resource savings enabled by a SaaS FAO and financial management platform include:

• Simplify the process of proposals and contracts.
• Automation of 80% of bill invoicing, collection, and reporting.
• Reduces employee requests of managers and executives by up to 60 to 80% as majority of inquiries / communications can be handled by the seeker without direct communication.
• Provide managers with intelligence: alert notifications trigger email communications and reports related to any of the following:
  • Variances in spending, expenses, collections, forecasts, and cash.
  • Threshold and benchmark reports based on employee productivity, operational key performance indicators, and budget ratios.
• SaaS FAO enterprise capabilities include automation / streamlining of complex tasks:
  • Cash Forecast for Cash Management
  • Revenue Recognition
  • Total Compensation (Sales Performance Management and Bonus, Commission)
  • Partner Revenue Recognition
  • Multi-state, multi-country or global payroll and HR requirements
  • Data management, data reporting, data governance

Further saving managers and executives significant time is SaaS’ ability to support today’s work and today’s workforce. Today and in the future SaaS is a better fit as the following trends will become common:

1. Tablets will be the dominant work tool and communication device for many workers.
2. Mobile communications are a requirement for professionals as well as remote workers.
3. Contingent workers will be a primary component of the workforce.
4. Global requirements.

Today’s technology has advanced to the point that a mobile iPad tablet can offer managers all the financial controls and intelligence needed be used to run a multi-location enterprise from the business from the road, or the beach.

 

Are you evaluating moving to SaaS and/or a better financial management, ERP, or business management system?

Email us for our “Getting Started Playbook” which includes an evaluation and selection checklist, scorecard, and short-list of vendors, providers, and implementation firms.