Finance Shared Services

Finance Shared Services are vital for all sorts of companies and businesses, allowing them to thrive without the need of having to perform any of the servicing themselves. The Finance Shared Services Centre is responsible for providing multi-unit organizations with services to each department in the business, for instance, it allows financing and accountancy for counting and managing income and budgeting. This is essential in a business as this allows them to visually realize how much income can be spent on improving services and equipment as well as expansions needed for the corporation.

Finance

Using a Shared Service system prioritizes certain processes which can reduce errors when it comes to these tasks that need to be completed when it comes to financing, there can be no errors as a single error could prove fatal to the business at hand, no matter if it is a single digit incorrect. The smallest error could offset other variables such as budgeting for the business. Not only this but the more standardized the procedures used, the easier it is to control them and if need be to reconstruct them to better suit the organization’s needs.  Not only this but using a shared service system for finance can also make it easier to create inward and outward reports for the company.

Not only this but the shared service system allows outsourcing. This is work being given to the shared services centre, for finance purposes this would mean budgeting and calculations needed that involve money would be taking place here and not on site with the company’s staff members.

A Finance Shared Service Centre is beneficial to an organization’s growth, this growth fuels the drive to become better at providing its services, it’s an infinite cycle of benefits to the company, what’s not to enjoy about perfecting an already great business?

HR Shared Services

Organisations use shared services as a way of organising their HR activities, typically concentrating administrative activities into a centralised and commonly shared function. The shared service model often helps businesses reduce costs as well as many other factors such as avoid duplication of effort and allow a greater focus on HR strategy.

What are HR shared services?

The most important dimension of HR shared services is that the activities which are involved are available to a number of parties, all of which are common services. This then further defines the customer level of service and decides which services to take up.

A range of activities can be covered in HR shared services. These include activities such as administrative tasks. These tasks include payroll changes, benefits administration, pension administration and much more.

HR Shared Services

Benefits of HR shared services

There are many benefits with HR shared services. These include:

  • Lower and transparent costs
  • Improved management information
  • Better and more selective and strategic contribution from HR
  • Better quality services
  • Improved cross-group learning

Issues surrounding HR shared services

There are many issues which can arise with HR shared services. These include:

  • There are different types of customers to be convinced
  • Anticipating communication difficulties
  • Guarding against a lack of effective accountability
  • Devolving work to line managers successfully
  • Deciding to whom resources should be allocated