Interactions with people around the world are one of the true benefits of the internet. As many companies can attest, this often helps their businesses grow at a faster rate than ever before. There are numerous avenues that need to be explored before making changes to the current way that you are conducting your business. One of them is outsourcing. The truth is that many companies increase their revenue, decrease legal hassles and create better morale when they outsource bookkeeping and accounting services.
In many cases, outsourcing is a cheaper alternative than your current practice, but that is not the most vital reason to consider outsourcing. It is kind of like walking on a tightrope where one side represents too many people involved with the operation of your business, and the other side represents the cost of having an expert working directly for your business. While you may love your current Accountant, there are numerous long-term benefits to outsourcing. Here are ten reasons that you need to consider before making a final decision on keeping your financial services in your location.
Reason #1: Lower Overhead
There is a higher cost that comes with having an Accountant service in-house. Just as you can usually buy 100 of an item needed for your business cheaper than you can buy one when you look at the cost per item, the same is true of a Bookkeeping Service. These third-party providers scale their business so that they can offer you a lower cost than you can hire locally while still providing the same or better levels of service. You need every break that you can muster to keep your company competitive, and outsourcing to an Accounting Service provides greater institutional efficiency.
Chances are that you hired each member of your team for the skills that they bring to your total operation, and not for their ability to be your company Bookkeeper. Yet, they may spend a lot of their time on the mundane tasks of bookkeeping distracting their ability to be a real asset to building your company. Many small to middle-size companies find that when they outsource to a Bookkeeping Service, their top executives become much more creative because they have that burden lifted from their plate.
Reason #2: Dispense Surprising Savings
Many companies, especially startups, think that outsourcing to an Accounting Service will instantly save them money. While that is true in some cases, the real savings of outsourcing in Orange County is hard to put down on paper. Outsourcing helps manage employee resources in more productive ways, and it may help lower overtime costs. Changing fixed costs to variable costs is another benefit. Outsourcing to a Bookkeeping Service also help companies have more capital. Remember that each additional employee that you have in-house costs you in terms of technology, maintenance and square work footage. In most cases, outsourcing allows you to skip all the development costs bringing your company up to speed much faster.
Reason #3: Provides a Competitive Edge
Often, new and small businesses find it difficult to compete with well-established industry leaders because they do not have the funding to attract the best employees. Outsourcing eliminates this problem as several businesses work together to pay the salary of a top-notch employee. Many business owners also find that they love the flexibility provided by outsourcing as they can switch providers as their needs change.
Reason #4: Increases Flexibility
One of the most difficult things for business owners and managers to do is to figure out how many resources they need to allocate for a bookkeeping Service because some months you may have very little for them to do while other months there may be much more. Outsourcing your services allows you to be more flexible with plans that can change as often as your needs. Therefore, it is far easier to make the money coming into your business go further.
Reason #5: Improves Initiative to Start New Projects
When you are just starting out, it can be very costly as you bring your firm up to speed. Outsourcing with a specialized firm allows you to mitigate the risk that you are exposing your entity too while still making sure that important parts of the tasks still get done competently. This not only frees up the time of your executives to concentrate on more important tasks but can increase your speed as there is no training needed. Your competition may wonder how you got to project completion so quickly.
Reason #6: Increases Leverage
Outsourcing allows you an incredible amount of leverage. Stop for just a moment and ask yourself if there are aspects of your business that you are currently not pursuing because you do not have the ability to leverage it correctly. When you choose to outsource, you skip all the costs of training while getting experts in their field. Furthermore, accounting services like any other business have ongoing costs. You get to skip those costs when you outsource.
Reason #7: Focus on Your Strengths
If bookkeeping services are one of the tasks that you simply hate doing, then outsourcing it makes perfect sense. When you take that tasks off your plate, then you will be amazed how much more relaxed you become. Then, your creative juices will start flowing in new and surprising ways allowing you to make your business even stronger. You also get the benefit of more time off allowing you to enjoy your family, friends or hobbies.
Reason #8: Enlarges Security
Bookkeeping services deal with a lot of sensitive information that you do not want to be shared with the public. In fact, some of that information is illegal to share. An Accountant usually invests heavily in the latest security programs to make sure that the information you share with them stays safe.
Reason #9: Enlarges Profits
The more people that you have in a business, the less room that you have for your customers. In the United States, the average employee requires 151 square feet of working space. Now, if you are a retailer, consider what new products or services you can add with an additional 151 square feet of sale’s space. Averages for major retailers range from $1,560 to over $5,546 per square foot. Suddenly, outsourcing may make a lot more sense.
Reason #10: Adds Advice
An outsourced Bookkeeper is a professional, so they can provide an unbiased second opinion before you make costly business mistakes. Part of the service that you can get is updated knowledge on laws affecting your business. After all, the federal tax law is over 74,000 pages long and continues to get longer every year. They can help you organize your company’s finances in order to avoid cash-flow problems, especially in seasonal businesses.
Contact our professional accounting team today at 949-899-8667 to schedule your free consultation allowing you to learn what we can do to assist your Orange County company today and far into the future. Once you start to examine the entire picture, you may realize that instead of saving money by doing these services in-house, you are costing yourself the future of your company through increased expenses, legal trouble and decreased sales. We look forward to hearing from you very soon.