Many small business owners want to handle every aspect of their company for the satisfaction of knowing everything that is going on with sales, production, customer service, money, etc. The idea of having an external company or employee handle all major financial aspects of a personal company is what turns away most small business owners from outsourcing. However, outsourcing is a great method for handling accounting tasks that small businesses should utilize. By hiring a company that employees fully trained accountants that specialize in small business accounting to handle some of, if not all of your accounting tasks, small businesses are able to focus more on their core competencies.
Advantages of Outsourcing
In the article, The Benefits of Outsourcing for Small Businesses, the New York Times lists seven benefits to small companies when they use outsourcing firms. Those benefits are; control capital costs, increase efficiency, reduce labor costs, start new projects quickly, focus on your core business, level the playing field, and reduce risk.
Control Capital Costs: According to a survey of key business decision-makers by InfoTrends, outsourcing is 60 % more effective in controlling capital costs than if a small business were to handle them internally. This means that small businesses are saving money, which is a positive factor in these difficult economic times.
Increase Efficiency & Reduce Labor Costs: By allowing a skilled company to handle all accounting tasks, small business are able to focus on major/new projects, core competencies, employee relations, and all other aspects of the company the will increase productivity, customer relations, and sales. As well as decrease costs because training new employees to handle accounting tasks or paying a big overall fee to an accountant is more time consuming and expensive than outsourcing. Continue Reading