Finance teams could be set to go external
In-house finance teams could be a thing of the past with 33% of business leaders and employees seeing external expertise as essential for businesses to thrive after the Covid-19 pandemic.
New research by consultancy and advisory firm Theta Global Advisors found that expertise and leadership within businesses is gradually shifting towards a greater reliance on external finance teams.
The research found that 44% of the 2,069 surveyed valued advice and guidance from outside leaders over internal management with 37% of white-collar workers agreeing that if their employer is to successfully manage the ‘ever-changing’ workplace post-pandemic then they must bring in assistance from external experts.
Theta Global states that as a result of a shortage of skilled workers, tension within the labour market, and new or different expectations, hiring costs have skyrocketed meaning that CFO’s are seeking more innovative ways such as consultancy-based practices as the future of their finance teams.
The research found that CFO’s believe that external finance teams can offer ‘lean, agile, and tailored solutions at a fraction of the cost’ by avoiding the overheads of traditional in-house teams.
This shift is also set to continue even further with over half, 51%, of 25-34-year olds saying that they are more likely to enact change introduced by external experts.
Chris Biggs, partner at Theta Global Advisors said: ‘Attitudes to the future of work have affirmatively shifted, and internal finance teams are rapidly becoming a thing of the past for leading innovative, forward thinking companies post-pandemic.
In-house finance teams have proven to have huge overheads and may often lack the flexibility and breadth of expertise needed to adapt quickly to rapidly changing needs, as evidenced throughout the pandemic and in the masses of unemployment and resignations the UK has seen as restrictions have eased.
‘The landscape of finance teams for leading companies is rapidly changing and external teams and consultants have proven themselves entirely essential.
‘CFOs are able to access teams of accountants that are flexible, with a far wider range for expertise to suit specific situations and offer tailored solutions at a fraction of the cost of traditional, in-house teams.
‘It is now no longer a question of how many accountants it takes to support a successful business, but which consultant body with an ever-flexible roster of accountants they can access interchangeably these successful, top-tier businesses will rely on moving forwards.’