Financial Process Services
Financial Process Services involve outsourcing, automating, or streamlining key financial functions to improve efficiency, reduce costs, and enable companies to focus on their core business. These services can be delivered in-house, offshore, or via third-party providers.
Key Financial Processes Covered:
- Accounts Payable (AP)
- Invoice processing
- Vendor management
- Payment scheduling
- Accounts Receivable (AR)
- Billing and invoicing
- Collections
- Cash application
- Record to Report (R2R)
- General ledger accounting
- Financial reporting (monthly/quarterly/annual)
- Intercompany reconciliation
- Statutory compliance
- Order to Cash (O2C)
- Order entry
- Credit management
- Revenue recognition
- Procure to Pay (P2P)
- Procurement planning
- Vendor payments
- Spend analytics
- Financial Planning & Analysis (FP&A)
- Budgeting and forecasting
- Variance analysis
- Management reporting
- Tax & Treasury Services
- Tax compliance
- Cash flow optimization
- Risk management
Why Companies Use FPS Providers
- Cost efficiency (especially with offshoring or automation)
- Standardization of processes
- Access to expertise in global compliance, tax, or reporting
- Faster turnaround and real-time visibility through digital tools
- Scalability as the business grows or enters new markets
Technology in Financial Process Services
- RPA (Robotic Process Automation) for repetitive tasks
- AI/ML for fraud detection, forecasting, and analytics
- ERP systems (like SAP, Oracle, Workday)
- Cloud-based platforms for real-time reporting
Key Trends in Financial Process Services
- Hyperautomation: Combining RPA + AI + analytics
- Blockchain in reconciliation and intercompany transactions
- Real-time data dashboards for CFOs
- Focus on ESG and regulatory compliance
- Nearshoring instead of just offshoring due to geopolitical and data sensitivity concerns