Trying to do everything on your own is a common small business mistake. So it helps to outsource jobs that are routine, require specialised skill, little skill or are time-consuming.
Once seen as a strategy reserved for big business, technology has made outsourcing more achievable for small businesses: and for some businesses, outsourcing has made a mighty impact on growth, efficiency and profit.
When to outsource
Just as every business is different, the right time to outsource is different. Some businesses have in-house staff to handle daily activities, but may need outside help for projects that don’t necessitate a full-time employee. For us, a sure sign it’s time to outsource is when managing the day-to-day operations of your business becomes too difficult or standards begin to drop.
What to outsource
Highly skilled expertise
Avoid paying a CFO by outsourcing the role to a CFO-level person to consult a few times each month to provide financial analysis and work with your in house team.
Repetitive tasks
Accounts payable, data entry and inventory are all considered repetitive and easily outsourced
Specialised knowledge
The most common specialised knowledge to outsource is IT, marketing and accounting. These are the roles you may not have the budget or require a full time person for, so it makes sense to outsource.
Know when to call the pros
Though many business owners act as head of accounting, sales, and marketing to cut cost, hiring a professional can actually save you money in the long run. A qualified accountant can add much more value to your business, while you focus on other areas of your business.
Outsourcing to the right accountant
Getting the right person to outsource your work for your business. When finding the right accountant to outsource your financial management to consider the following checklist:
- What is their experience and qualifications like?
- How long they have been in business?
- How many other clients do they handle?
- What are their contract policies and fee structure?
- For example at 542 we offer a flat monthly fee structure to avoid nasty surprises at the end of the year.
- What technology do they have to make the process seamless?
- What do their current clients say about them?
- What type of service are you looking for?
- Transactional (like a bookkeeping service: managing bank transactions, accounts payable, payroll etc.) or
- Relationship driven (like an accountant high level CFO services and strategic advice)
- Or both?
Since finance is a critical part of running a successful business, you need to find the best outsourcing partner for your business. Not sure what type of value an accountant can bring to your business? Check out 4 things your accountant should do here.
Need to outsource your small business accounting?
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