Are you a wealth manager who struggles to provide exceptional client service due to overwhelming administrative tasks?
If you are, back-office support outsourcing can help you resolve this concern.
Back-office support outsourcing offers wealth managers an efficient way to delegate and pass on some of their administrative tasks to a specialized third-party provider. This includes things like accounting, payroll, and bookkeeping.
Through this solution, your organization can free up time for more important work and reduce costs by not needing to hire additional in-house employees just to take care of these tasks.
There are plenty of reasons why wealth managers should consider outsourcing their back-office tasks. Here are some of the top benefits they should take into account:
The right outsourcing provider can help you get access to professionals who know the latest rules and technologies. These professionals stay updated with changes in the industry, ensuring your organization follows all necessary rules without needing extra in-house training or hiring.
Outsourcing can be a cost-effective way to get the services you need without having to hire full-time employees. This allows your firm to focus on its core competencies, which may be more profitable than managing back-office work.
By outsourcing back-office tasks, your in-house team can focus on core responsibilities. This leads to better client service and improved focus on investment strategies.
Experienced outsourcing partners will often have systems and processes in place to ensure accuracy in financial reporting and compliance, helping you avoid costly mistakes.
When choosing an outsourcing provider for your wealth management firm, there are several important things to keep in mind:
Remember the saying, "If you fail to plan, you plan to fail"? This is especially true when finding the right outsourcing company.
Before anything else, you need to understand what your organization needs, whether it's having extra support with accounting or compliance reports or finding qualified accountants who have relevant experience in your industry. Every wealth management firm has different needs, so it is important to plan and know exactly which tasks your organization needs to outsource.
For instance:
Once you identify your organization’s needs, it can be easier to shortlist potential providers that excel in these specific areas.
Another thing to consider is the outsourcing provider’s experience in dealing with clients from the wealth management industry. If they’ve helped organizations like yours before, they’ll understand your challenges better and offer solutions that fit. They can also have better familiarity with the types of financial reports and regulations you deal with day-to-day transactions, making the transition smoother.
You may ask the potential partner several questions such as:
Technology plays an important role, especially when working with an outsourcing provider. Make sure to find a partner that uses up-to-date technology and software systems. These outsourcing providers must also be able to integrate their advanced software with your current systems. By evaluating this, it'll make the processes run smoother and the collaboration much easier.
One thing to keep in mind when you outsource back-office tasks is that you will be sharing sensitive client information. Therefore, it is important to partner with an outsourcing provider that has stringent data protection measures in place to ensure your clients' data remains secure.
You may consider asking them the following questions:
Another benefit of outsourcing finance and accounting services is scalability. Hence, it's important to choose a partner who can expand their services to meet your organization's needs. This way, you won’t have to switch partners down the line as your needs grow.
Here are a few questions that you can consider asking:
Outsourcing is known for being cost effective; however, it is important to understand how the outsourcing provider charges for their services. Ask for a clear cost breakdown and check for any hidden fees.
You may ask the potential partner several questions such as:
When selecting a back-office outsourcing provider, cultural fit and communication are crucial. In a recent blog, we highlighted how cultural compatibility plays an important role in a successful partnership. The same applies to good communication. Your provider should be easy to reach and proactive in keeping you updated.
Here are a few questions that you can consider asking:
Picking the best back-office outsourcing provider for wealth managers is important. By understanding your needs, checking out potential partners based on their expertise, technology, scalability, security, communication and asking the right question, you can make a well-informed choice.
This partnership won’t just make your back-office work better but also help your wealth management firm stand out.
Consider D&V Philippines. We have a wide expertise in handling the numbers of companies across various industries and broad experience in working with wealth management firms. Through the support of our experienced accountants, you can gain more time to make the right decisions in managing your clients’ assets. Contact us today and we’ll help you find the right solution for your needs.
You can also download our whitepaper Unlock the True Potential of Your Wealth Management to learn how we can be your reliable back-office support.