Top 10 Reasons Why You Should Consider Outsourcing In Business
If you are a small business owner, you probably know by now that good accounting is one of the essential foundations that are needed in order to guarantee success. The truth is that most small business owners spend too much of their precious time on the admin aspect of their business, where they could have been focusing on other important aspects such as communicating with clients or researching new ventures that could ensure more profit.
Why consider outsourcing your accounting? Here are 5 reasons why:
1. Focus
The most time consuming aspect of a business is accounting. Bookkeeping, payroll, tax services and all related financial categories can consume all the time and focus of a business owner, especially when you try and get the books to balance. And to leave it out completely, will get you into even more trouble! Outsourcing your accounting to experts will reward you with the time to focus on the core elements of your business; improving on customer service, growth in profit and any critical needs can be attended to with the comfort of knowing your accounting is taken care of and you only have to approve it once it is done.
2. Saving Money
When you outsource your accounting – you save money. Tax administration is better handled and timely tax preparation helps you avoid penalties for late/wrong submissions.It comes without saying that your employment fees are lower, instead of paying several people in your accounting department, you pay one company and you have no responsibilities towards them with regards to company contributions, staff policies, maternity leave and all those extra expenses. A good accountant will cost you anything from R25, 000.00 per month, while you can outsource all of this to an accounting firm and pay anything from R5, 000.00 per month.
3. Better Technology and Knowledge
When you outsource your accounting to experts in their field, you get access to modern systems and procedures, you get up to date information on your accounts with accounting software that would have cost you more if you would have bought it yourself. All aspects of your business get covered with extensive knowledge on new laws and regulations, new trends and important information.
4. Growth
Decision making in your business becomes something that you do with ease. Outsourcing your accounting ensures that you have up to date, accurate and relevant information at hand when you need to make a financial decision. Your monthly reports, financial statements and other important financial services become an aspect of your business that you can rely on – this is what outsourcing your accounting guarantees.
5. A Business Partner
When you outsource your accounting, you gain a business partner that is an expert in the field of accounting and taxation. There is also better knowledge to ensure you get the best expert advice regarding your money and how to handle it, with their advice and knowledge, you can manage to build a better business, make better decisions and consult them for better options.
Victorious leaders’ through-out the ages have pointed out that the reason for most of their success has had more to do with whom they have supporting them than with their own ability. For less money and effort of an on-site accountant, you too can outsource your accounting work and have a partner that will help you take your business to the next level.
The Bean counter offers outsourced accounting and tax services and can custom make a package according to your own requirements. Get in contact with us today, and make 2012 a great year for you and your business.
Outsourcing is the process of moving out a function of your company to a third party service provider. It’s different from offshoring in that outsourcing only entails having processes done outside of an organization by a third party service provider. On the other hand, offshoring refers to moving business processes offshore, usually to a place where a business can benefit from significant cost savings. So technically, a company can offshore without outsourcing in the same way that it can outsource without offshoring.
Many Fortune 500 companies, about 70%, including bigwigs like IBM, HP, JP Morgan Chase & Co, have already embraced the benefits of outsourcing and offshoring, contracting huge volumes of work to countries like India and the Philippines.
If you’re considering it for your business, but are still in doubt, here are some of the key advantages to outsourcing for you to think about:
6.Profitability. You can cut your costs in half!
If the processes you are thinking of outsourcing are labor-intensive, you can minimize overhead costs by about 40-50% when outsourcing your work to countries like the Philippines where labor costs are a fraction of what you pay your in-house employees. Other costs you cut back on or avoid altogether would be related employee benefits and insurance costs, office space rent, infrastructure investments, administrative costs, utilities, etc.
7.Access to World-class Talent
About 10% of Filipinos work abroad- as doctors, nurses, engineers, entertainers, teachers, and IT specialists, to name a few. Filipino talent is in demand in many countries around the world, especially in creative industries where Filipinos compete head-on with their non-Filipino counterparts and win. The lack of employment opportunities in the country have resulted in a growing “Overseas Filipino Workers” population over the years. However, the recent boom in the Philippine Business Process Outsourcing (BPO) industry has given Filipinos an alternative. BPOs currently employ more than 600,000 Filipinos. The demand for labor in the BPO industry is encouraging many Filipinos to stay in the country and explore working in specialized outsourcing fields such as Creative Process Outsourcing. Last year, the IT-BPO industry reported approximately $11 billion in export revenues, and the Business Process Association of the Philippines (BPAP) estimates it to reach $25 billion by 2016.
8. Focus. Put your energy where it counts the most.
As your company grows, you need to pay closer attention to core functions without disrupting or ignoring the small, tedious processes that keep the whole organization running smoothly. By outsourcing non-core work to a third party service provider, you boil your operations down to the basics. You’re able to specialize on the core functions of your company, without sacrificing the quality of non-core tasks.
9. 24/7 Customer Service. Never lose a customer because you’re not there.
The task of accommodating customers’ concerns is the core task of many outsourced service providers. These companies are set-up to deal with customers like their existence depended on it. And in most cases, it does! These companies have customer satisfaction down to a science and generally deliver faster resolutions, faster service, and faster feedback. Many providers also offer their services round-the-clock, which gives you the ability to serve your customers all the time, every single day.
10. 24/7 Operations. Work gets done while you’re sleeping.
As your workday is ending, outsourced service providers from the other side of the globe are just starting their day. If you partner with the right one, you can set-up your operations such that your virtual team can continue working on your projects while you sleep. For example, Straight Arrow’s solutions for Digital Agencies and Creative Outfits include Virtual Teams: a mirror-set-up of clients’ creative teams that uses the latest online tools and collaborative technology to let work flow seamlessly between Straight Arrow’s creative teams and the client teams they are supporting.
For more on outsourcing benefits and references on outsourcing to the Philippines click here.
About the Author
Christine Clemente is a contributing writer and a former Communications Specialist for StraightArrow’s Campaigns and Special Projects Team. She’s a creative writer, blogger, media relations point-person and a generous foodie.
