Accountants are an example of an outsourced service. Businesses which either don’t have enough money to hire an accountant full time or simply feel that they don’t need one will outsource their bookkeeping, payroll, tax submissions filings, and so on to their accountant.
What can be outsourced?
Anything and everything can be outsourced. There are companies that will take care of your bookkeeping, IT support, cybersecurity, cleaning, and more. Businesses tend to outsource anything that they are unable or unwilling to do themselves.
With outsourcing, other companies step in and do the work that needs doing. Businesses, even the smallest ones, are complex organisations and, for this reason, there are many different services which can be outsourced.
What are the benefits of outsourcing?
First and foremost, outsourcing saves you time. If you spend too much of your time doing something that doesn’t improve what your business does and what it offers, then it makes sense to have somebody else do it for you. This frees up your time to focus on being the best leader possible, safe in the knowledge that everything else is being taken care of.
When you outsource, you are handing responsibility to carry out the work to professionals in those fields and you’re going to want them to do it much better than you could.
Let’s take accounting, for example. If you outsource your accounting, you will most likely save money in the long run. This is because your accountant knows their taxation inside-out and they’ll know all of the ways that you can reduce your tax bill like claiming on legitimate and allowable expenses.
Additionally, outsourcing is cheaper than hiring somebody full-time. This is especially true if you only need these services every now and again. A good example of this is your company’s IT support. When your computer systems go down, it’s much harder to share the information needed to make sales and to service your customers so it is important to get them back up and running as soon as possible.
If you have an IT specialist on-site, this can be done immediately but they’ll be getting paid for the 364 days in the year when your computer system is working just fine. The alternative is to outsource your IT needs to another company which you only need to pay when they do the work that your business requires to function properly.
Are there any drawbacks to outsourcing?
Of course, there are downsides to outsourcing.
The main downside is that it can become very expensive if you are constantly having to use outsourced services. Thinking about your computer system giving up the ghost again - if you are having to constantly to call your outsourced IT services in so that your staff can get onto their terminals, you might want to consider getting in-house IT support instead if there’s not a great deal of difference in the amount of money you’re spending on an outsourced service and what you’d on a full-time member of staff.
You should also be wary of people posing as professionals. Everyone is capable of lying and it can be difficult to tell who is the real deal online. Beware of contractors and freelancers who have faked their credentials because they may be charging the same premium rate as actual industry professionals but the results you’ll get from them will be considerably worse.
Which is better, outsourcing or in-house?
There is no one answer to this question. You will need to assess how often you are using outsourced services, how much value they add to your company, and how reliable they are. For some businesses, it makes financial sense, for example, to get an accountant in full time and on the payroll but for many smaller companies, outsourcing their accounting is the better and cheaper option.
We can help
If you are spending too much time on bookkeeping and not enough time working on your business, get in touch with our team. By outsourcing you accounting to us, you will have experts in the industry by your side as you consolidate and grow your business. For more information, call us today on 01623 559 362 or email us on [email protected] for business advice and guidance.
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