Addressing agencies’ financial challenges through managed services
Finance leaders are increasingly pressured to transform financial management (FM) operations. Discover how an effective "as-a-service" model can help.
Making innovation in finance a habit
To paraphrase some famous shark hunters: A government finance team is going to need a bigger boat.
OK, so maybe there aren’t literal sharks circling the organization. But today’s rapid, unpredictable currents are teeming with risks, threats, and missed opportunities as the finance team’s available bandwidth is all but consumed by current processes.
Amid this expanding volatility, the organizational demands on its finance operations are also multiplying –more rapid budget execution, more accurate cost estimates, a need for advanced data analytics, and the demand for auditability by Fiscal Year (FY) 2028, to name a few. And all while executing with reduced manpower.
Yet many finance leaders and their teams are still weighed down by legacy anchors such as outdated operating processes and technologies, talent shortages, and a lack of funding to address those issues. It’s a systemic Catch-22 that stifles opportunities to innovate and create improvement opportunities.
It’s time to rethink their approach. That’s where Finance-as-a-Service (FaaS) comes in. By partnering with a new class of managed service providers, government organizations can transform the FM functions—gaining the scale, speed, and insights needed to navigate their most intractable problems.
Introducing a new approach to solve seven persistent FM challenges
Here’s a closer look at how the FaaS model is helping organizations sunset five key challenges.
Help wanted
The demand for skilled FM professionals outstrips supply. Teams are stretched thin, and critical expertise is often missing. Upskilling existing staff is a nice idea, but who has the time?
The FaaS track:
With FaaS, organizations gain instant access to finance professionals who bring specialized skills in areas across all FM functions, including advanced analytics, data and technology, and more. This ready-to-go team can seamlessly integrate into operations, bringing a powerful combination of both domain and industry experience—quickly absorbing critical tasks and elevating operations.
The result:
A stickier and more productive organization overall, with a 15 percent to 25 percent decrease in voluntary employee attrition.
Stuck in data limbo
Disparate, redundant, low-quality data—complicated by years of unresolved issues—have enterprise data enhancement initiatives permanently stuck in the “tackle it next year” bin.
The FaaS track:
FaaS specialists deploy advanced tools for data validation, cleansing, and integration. They implement new data models that streamline access and reporting, ensuring consistent, high-quality data across the organization. By mapping all required data to the cloud—and, increasingly, using AI to create on-the-fly virtual databases—FaaS enables organizations to quickly put legacy data roadblocks in their rearview mirror.
The result:
Faster data retrieval and reporting, improved accuracy and governance, and a 15 percent reduction in data quality issues.
Yesterday’s insights
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Despite access to vast amounts of data, many finance teams still struggle to produce insights that drive decision-making with the speed and value required today.
The FaaS track:
FaaS providers bring specialized teams and technologies that significantly enhance FM functions. For example, their specialists can deploy advanced intelligent execution forecasting and scenario-planning estimates that deliver faster, more accurate insights and enable leaders to respond to quick-turn data calls more rapidly.
The result:
A dramatic upgrade that delivers significant improvement in forecast accuracy and faster planning cycles.
Falling behind on AI
While AI offers enormous potential to transform finance, many teams lack the expertise and resources to implement and optimize AI-driven tools.
The FaaS track:
FaaS’s robust teams and services are loaded with AI capabilities from the start. The teams understand that generative AI (GenAI) is the latest addition to AI’s expanding suite of established AI technologies, including predictive analytics, machine learning, and more. These AI capabilities help streamline FM operations from end to end—everything from transaction processing to strategic planning.
The result:
AI-powered solutions are driving tangible results across the board—automations, productivity, innovation, and speed to decision makers.
Stuck in neutral
Year-end closeout and updating fiscal year forecasts still take too long at many organizations. Tradition-bound FM operations are struggling to adapt and keep up, which slows down the entire organization.
The FaaS track:
By automating repetitive tasks and standardizing processes, FaaS reduces cycle times and increases productivity. Teams have more time for innovation, collaboration, and identifying insights and trends that create actionable analysis for key stakeholders. The entire organization is better positioned to move quickly and keep pace with today’s ever-increasing challenges.
The result:
An improved employee experience and more agile operations, resulting in increased productivity which yields additional time for staff to perform analytical functions.
Transforming Federal financial management
Through automation and transformation, Federal agencies and military service branches can proactively drive value, innovation, and mission performance.
No results found.
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Begin your journey towards AI-driven success with KPMG Finance-as-a-Service
Our finance professionals design and deploy solutions that meet each client’s unique needs in the three core finance functions: transactions, financial close, and financial planning and analysis. These solutions are embedded with the latest AI, cloud, and enterprise data capabilities from the start. And, every custom solution leverages our significant functional and industry experience.
We then fully manage these core operations on an ongoing basis, working closely with clients to continuously optimize costs, generate impactful insights, and increase productivity and profitability.
KPMG Intelligent Close
Harness the digital, analytical, and AI capabilities that can move your team from accountants to value creators.
KPMG Intelligent Forecasting
Discover the industry-leading, AI-powered solution that dramatically improves the speed, accuracy, and value of your financial forecasts and insights.
Maximize Enterprise Performance
Unlock the full potential of AI and other leading technologies by building a strong foundation of core capabilities that are tightly connected across the organization.
KPMG Powered Enterprise
Transform your business functions with technology-enabled, outcome-driven transformation journeys, guided by skilled KPMG teams.
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We can help accelerate and reduce the risk of Finance’s transition from a reactive function to a proactive asset that can help support decision-making, provide predictive insights, and solve business and public policy challenges.
