Why should you outsource your accounting, bookkeeping and payroll functions? Simply, because it makes common sense (pun intended).
If you are a small business, this simple step could put you on a level playing field with companies two-three times your size…
In addition to this major benefit, an outsourcing partnership with a company like ours, Common Cents Outsourcing, is more effective and in the long run costs considerably less than doing it in-house. Here are some reasons why:
- Costs: Handling your own accounting/payroll may mean building and maintaining your own team of professionals. With that comes the necessary human, financial and technical capabilities needed to do the job(s) properly…all equal high fixed costs (salaries, benefits, office space, technology, etc). By partnering with an outsourcing firm, you pay only for the time needed to complete the services needed (making it variable costs) and you can typically add-on other services as needed (making it scalable).
- Removing Non-Core Activity: If you are running an accounting, bookkeeping or payroll service then creating an accounting team doesn’t present a problem for you. However, if this isn’t your core business, the real and intangible costs of creating and managing such a team or individual takes time and focus away from your core…money making…functions.
- Reduce People management Issues: Advertising/recruiting, interviewing, hiring, training and managing an in-house employee or team takes time and money. Outsourcing removes these issues and you don’t have to worry about staff turnover. Losing a trained team member can impact the effectiveness of your entire accounting function. By outsourcing, you won’t encounter this problem or incur the cost of retraining.
- Working With Specialist: For some small businesses (contractors, property management companies, grant funded non-profit organizations, etc), their industry requires some specialized compliance. Partnering with an outsourcing firm that caters to your industry is key. Since they may work exclusively with businesses like your own, they are aware of the constant changes in the tax code & accounting polices that apply to your specialized circumstances.