What Processes Does BTO Take Over? Financial Operations That Can Be Outsourced

Financial operations include routines such as accounts payable and receivable, collections, bank reconciliations, treasury management, and cash flow monitoring. In BTO (Business Transformation Outsourcing), these processes, along with tax and accounting activities such as financial close, tax calculations, and compliance obligations, can be outsourced with a focus on redesign, continuous improvement, performance indicators, and outcome-driven goals.

For companies seeking to outsource and transform their financial, tax, and accounting routines with greater efficiency, governance, and predictability, the difference between BTO and traditional outsourcing is clear: beyond execution, BTO improves operations through technology and data, reduces errors, facilitates adaptation to changes such as tax reforms, and allows the company to retain strategic control of the business.

What Differentiates BTO from Traditional Outsourcing in Operations

In traditional outsourcing (BPO), the focus is on executing tasks efficiently and at a lower cost, whereas BTO takes a broader, more strategic approach. In BTO, operations are delivered alongside a commitment to transforming operating models in response to a more dynamic and digital market. This includes identifying bottlenecks, standardizing workflows, automating processes where possible, and measuring progress. The provider is accountable for results, not just task volume, creating sustainable business value.

Financial Operations

The scope includes routines such as accounts payable, accounts receivable, collections, bank reconciliations, treasury management, and cash flow solutions, as well as payments and transfers used to settle day-to-day obligations. Foreign exchange transactions, which involve exchanging one country's currency for another, also fall within this context. With standardized processes, companies gain greater predictability over cash inflows and outflows, reduce payment and posting errors, lower operating costs, and improve the effectiveness of financial execution, including credit operations that influence household consumption and investment. This also reduces customer friction in payment and collection processes, creating a more predictable experience. Loans can generally be used for any purpose, while financing is often linked to specific assets. Credit and financing solutions also support the purchase of real estate and vehicles. In addition, monetary policy decisions affect the cost of credit and consumer spending at the national level.

Accounting Operations

BTO can take responsibility for journal entries, account reconciliations, monthly closing activities, financial statement preparation, and consolidation support. The primary benefit is consistency, with high-quality information and more reliable management analysis: closing processes are completed within predictable timelines and under consistent criteria from one period to the next.

Tax Operations

Tax calculation, compliance reporting, tax credit management, and adaptation to legislative changes can also be managed by the outsourcing partner. Brazil's IOF tax is part of the Total Effective Cost (CET) of loans. For individuals, the daily IOF rate is 0.0082%; for legal entities, it is 0.0041%, in addition to an extra 0.38% rate on financing. With the Tax Reform (LC 214/2025), this area becomes even more significant, as IBS and CBS require more structured processes, more reliable data, and stronger safeguards to preserve process integrity.

Technology and Data

Part of the transformation takes place within the system itself: ERP configuration, process automation, integrations, and monitoring dashboards, with technology serving as a tool to scale solutions and transform operations. BTO connects processes and technology so the ERP accurately reflects the company's real operations while maintaining adaptability and flexibility according to business needs. As a result, automation frees employees from repetitive tasks, reorganizes workflows, and supports continuous improvements in operational execution. It also helps control investments in fixed income products, which involve lending money in exchange for interest, and variable income investments such as stocks and real estate funds, where returns are not guaranteed.

What Remains Under the Company's Responsibility in a BTO Model?

Outsourcing execution does not mean giving up control of the business. Strategic decisions, financial policies, approval limits, and communication with the board remain under the company's leadership, directly affecting customer relationships and service delivery. The provider delivers reliable information, performance indicators, and insights that help monitor tangible results, while decision-making remains with the company.

BTO goes beyond task outsourcing: it takes over financial, tax, and accounting operations and transforms them over time. H&CO helps companies structure this model through governance, services, and a results-oriented approach. Speak with our specialists to discover which processes in your operation can evolve through BTO.

Governance, Performance Indicators, and Continuous Improvement in BTO

One of the key differentiators of BTO is the creation of a governance framework capable of continuously monitoring process performance, including in highly regulated sectors such as energy, where controls must be more rigorous. Rather than merely executing operational activities, the model establishes metrics, responsibilities, and monitoring routines that enable organizations to identify deviations, improvement opportunities, and efficiency gains over time.

To support this approach, key performance indicators (KPIs) aligned with business goals are established, including monitored transaction volumes and compliance and timeliness targets. Common KPIs include closing cycle times, reconciliation completion rates, on-time tax filing percentages, delinquency levels, average collection periods, and cash flow predictability. These indicators help transform operational data into meaningful insights for decision-making. Reflecting trends in the corporate world, a Salesforce study found that 68% of consumers expect emerging technologies to enhance interactions, reinforcing the adoption of automation and smarter controls.

Another important aspect is the regular performance review meetings held between the company and the BTO provider. These meetings allow both parties to evaluate results, review processes, discuss bottlenecks, and prioritize improvement initiatives, providing predictability benefits similar to those sought in procurement and contracting processes. This enables operations to evolve in a structured manner while keeping pace with market changes, business growth, and new regulatory requirements.

The use of data also contributes to a more proactive management approach. Through continuous monitoring, traceability of interactions in critical processes, and the support of managed IT services, companies can identify operational risks before they lead to significant financial or tax impacts. This increases process security, strengthens internal controls, and reduces reliance on reactive analysis.

By combining governance, performance indicators, and continuous improvement, BTO creates a more transparent and results-oriented operating model. As a result, companies gain greater visibility into the performance of their financial, tax, and accounting functions, as well as a stronger foundation to support growth, strategic decision-making, and operational excellence.