Is Outsourcing right for your business?
There are many different aspects and considerations when running a business, many of which take you away from the core reason why you got into business in the first place. If you find you are spending precious time and energy on tasks that take you away from what you want or need to be doing, you may wish to consider outsourcing.
Why Outsource?
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Financial
Outsourcing time-consuming tasks to a service provider who can perform those tasks more efficiently than yourself can actually save you money in the long run. When you factor in the lost opportunity to earn while your business is completing those tasks it often makes more financial sense to outsource. For example, consider a task that usually takes you 6 hours to complete, what if that same task could be completed in just 3 hours by an experienced professional? Yes, you need to pay for that 3 hours but can you earn more in the 6 hours you have freed up to make that worthwhile?
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Workforce
Many small businesses run on minimal staff. If you lack the manpower to get essential tasks completed, outsourcing is a great way to fill the gap without needing to commit to another permanent staff member. This is especially true when considering temporary or inconsistent tasks.
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Time
Time is one of the most valuable resources you have as a small business owner. Outsourcing can free up your time so you can focus on the more important tasks within your business. Often service providers can provide the service you require quicker than you would be able to do it in-house.
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Sanity
We all have our preferences when it comes to how we spend our time. Outsourcing can allow you to pass on tasks that frustrate you so you can spend more time doing the things you love.
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Increase Strategic Reach
Outsourcing can give you access to networks or customers that you may not be able to access on your own.
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Risk Reduction
Outsourcing can shift legal or technical risk from your business across to the service provider.
Choosing a partner to outsource to
All service providers are not created equal and there are some important aspects to consider when you are considering outsourcing
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Expertise and Reputation
Do they know what they are doing? Checking credentials and how many years of experience the provider has working with similar businesses to yours can give you some peace of mind. Checking reviews and case studies will offer insight into what the service provider is like to work with and where their strengths lie. You may also wish to speak directly to an existing client or two in order to get a good feel for what to expect.
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Pricing
How much and how often does the service provider charge? If your business has a consistent workload and steady income then a subscription model or retainer may work for you, allowing you to have certainty over how much outsourcing will cost each month. If like most small businesses, your workload fluctuates week to week or month to month it often makes more financial sense to “pay as you go” and only engage the services when you need them.
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Approach and Values
A good provider will act as an extension of your business and be invested in your goals and values. If they are customer-facing, they should represent your company to the same standard as you would. Again, reviews can be helpful here to determine if they are the right fit for you. Also, consider what their communication and support are like and what will happen if a problem does arise.
Spectrum Accounting has over 40 years of experience providing bookkeeping services to small and medium enterprise and self-employed contractors like Paula Apparel 2020 Limited. We know what we are doing, and we do it well. If you are considering outsourcing your bookkeeping, get in touch with us today.