Operating a business requires wearing many hats and you only have so much time and resources. Your finance team are critical to your business, but you also need to focus on customer service, growth and keeping ahead of the curve.
Why You Should Be Outsourcing Services
1. Improve business efficiency
When you outsource your finance team, your company gets maximum productivity with minimum of expense. The latest accounting systems and technologies are available at a fraction of the price giving you improved efficiency and more time to work on the more important aspects of running a business.
2. Reduce business costs
With the hiring of an external service to do bookkeeping and accounting you will be saving on staffing costs and the employee benefits that tag along with it. An outsourced partner on the other hand, will only charge for what you require. It also saves on the training and development of employees. Outsourcing finance team functions are a top priority for CFOs according to Forbes and are a key characteristic for well-run companies.
3. Eliminate fraud
Reduce the risk of fraud with an outsourced partner especially if you are a small business. Small businesses have a high incidence of fraud, because of the lack of oversight and transparency. They may be only able to afford one financial employee and this can lead to a greater chance of fraudulance. Having an external auditor can keep this from happening with more than just one expert keeping watch.
4. Get serviced by the highest qualified people
With outsourcing, you get an expert who not only knows accounting but the tax codes and laws well, they've also got the client breadth to see trends across verticals and opportunities your inhouse team might not even know about. You are getting the best team of finance-minds possible for the same amount as a part-time employee. Plus, external auditors are better at discovering and preventing fraud. With your in-house finance team, your financials are not getting the attention they need - or better put, too much attention on one specific type of task and not enough expertise on the broader picture.
5. Ability to scale your business
With an outsourced partner there are more flexible options. You only purchase what you need and you can increase the service level as your company grows. This keeps your budget lean and is something you just can't do as well with an in-house team.
Outsourcing finance team functions are a top priority for CFOs according to Forbes and are a key characteristic for well-run companies.
6. Improve business cash flow
Accounts receivable and collections can be time-consuming and outsourcing this function can make it more efficient. With the latest cloud technologies linked together with the outsourcing benefits listed here, you can speed up payments and collections. Have someone else chase invoices, without the staff expense to do it.
7. Manage your business better
With outsourcing you can manage your time better, spending it on projects that will grow the business. Outsourcing is good for taking care of tedious, time-consuming activities and frees you and your core team up to get more cash flowing in through the 'front door'. Make sure to choose an outsource partner that has the latest technology to keep track of your business with real-time analytics. You will be able to check all your important business processes with the tap of a finger, giving you up to date information.
8. Maximise government grants
There are a lot of grants available in NSW and Australia, that most internal finance teams don't know about. How could they? It has nothing to do with the tedious task of bookkeeping and the like. They're not focused on industry methods to fund growth, hiring and expansion. Unfortunately, when you've got an in-house admin person, they can tend to be on the generalist side. Outsourcing to an expert means you're tapping into a pool of brains with multiple spheres of expertise, often under the same roof! Take a look at some of the available grants here.
9. Outsource your everyday business services
You can start with something basic like reporting, or payroll. By paying for only what you need and getting the most relevant information in a timely manner, you will be getting the best return on investment. The market is more competitive than ever and outsourcing your finance team along with other key functions will give your company the edge to succeed.