Outsourcing refers to using contractors to perform tasks for your business. Outsourced professionals are not employees. Rather, they work for the outsourcing company that provides the services. Your business can outsource a wide range of tasks, including bookkeeping, marketing, accounting, IT, and human resource services.
Your business can benefit from outsourcing services in several ways, including the ones discussed here.
1. You could save money on the cost of in-house employees.
Hiring staff costs money. Your human resources staff must identify gaps in staffing and the qualifications required to fill those roles. They may need to pay to advertise these openings before conducting interviews to find the best candidate. New staff must receive an orientation and training. It can take several weeks of staff time to hire and train a new employee.
The U.S. Bureau of Labor Statistics (BLS) reported the median annual salary for an accountant was $71,550 as of May 2019. In the same year, the BLS reported that human resources managers received $116,720 in median annual income. Besides paying the cost of your employees’ salaries, employers are also responsible for paying for benefits, such as health insurance. Employers are not responsible for these costs when they outsource services.
Business owners also need to supply resources for each employee. Resources can include computers, desks, notepaper, printers, and designated workspace. You may need more extensive facilities if you hire new staff. In addition to the cost of supplies, you will also be responsible for paying for utilities and workman’s compensation insurance.
2. You can adapt as needed.
Human resources staff must take several steps before firing employees. It can be an emotional and complicated process, even for experienced managers. It is less complicated to suspend or change outsourcing services if your current vendor isn’t meeting your needs. Outsourcing offers you the ability to adapt to your business’s changing needs without incurring unnecessary expenses or losing operational time.
Your company can maximize the benefits of outsourced services by using objectives and key results (OKR) software from profit.co. OKR software enables companies and departments to set measurable operational goals and identify strategies to meet those targets. Profit’s OKR tool enables all parties involved in specific tasks to receive clear communication and relevant information about the department’s objectives, adapt operations to achieve business goals, and report progress.
3. You’ll maintain great service—no matter what.
Companies rely on employees to perform specific tasks. Some duties may not be performed when an employee is ill or injured. There may also be gaps or delays when employees go on vacation. An employee’s unexpected death may impact your business as well.
Outsourcing offers access to a consistent team of professionals who will look after your company’s needs. You do not need to worry about coordinating your marketing campaigns with your marketing teams’ vacation schedule. Outsourcing vendors will ensure an expert team is available to meet your company’s needs.
4. You’ll receive expert insights.
Outsourcing companies provide you with a team of experts for a fraction of the cost of hiring employees. Your business will benefit from the accumulated years of experience and training that the vendor’s team offers.
When you pursue outsourced accounting services from a professional accounting firm, such as the experts at FullyAccountable, your company will receive a free analysis of your business needs. Licensed certified public accountants (CPAs) work with eCommerce experts to ensure you receive exceptional service. These experts prepare regular financial statements and identify strategies for increasing cash flow. Your accounts will stay up to date, and you will receive insights that will enable your business to prosper.
5. You can concentrate on priorities.
When you outsource services, you do not need to worry about overseeing a large staff. Your business can avoid interpersonal conflicts between team members, and you can focus on your daily priorities without the need to manage several staffing departments.
You may also lack knowledge about some aspects of the business, such as financial laws or operational regulations. Lack of knowledge can make it challenging to oversee and manage those departments effectively. Small businesses can save time by outsourcing those services. You can also benefit by learning from the outsourced experts you contract.
Your company can also reduce its liability by outsourcing services. Vendors may be liable for the services they provide and required to financially compensate clients for failing to comply with regulations, meet deadlines, or complete essential tasks. Hiring outsourcing services will allow you to sit back and focus on the aspects of your business that you are expert in while allowing others to handle the rest.