Posted January 5th, 2013 by bbsadmin & filed under General Business, Motivation.
If you are running a small business, you may not have enough employees to make it worth hiring in house payroll or accounting personnel. You may not even have enough employees to make it worth hiring part-time personnel for these functions. If you do not have the time or experience to take on these tasks yourself and if your staff is inexperienced in these tasks as well, you may want to look into outsourcing these administrative tasks. Outsourcing can be a cost effective way of taking care of administrative tasks.
2. Risk of error
If you run a small business you probably spend a very small amount of time doing taxes, payroll, and bookkeeping compared to the amount of time you spend doing other business sustaining and value adding tasks. If the bulk of your training and experience is late nights searching Google to find answers, chances are you may end up with a mistake here and there or may miss something completely. If you are taking on these responsibilities in order to avoid burning cash, you may want to weigh your decision to the legal implications which may result from unintended errors. Outsourcing these responsibilities can help unload that risk by having experts take care of such tasks.
When you outsource administrative tasks you are relying on the expertise of people who do those tasks as their primary source of business rather than relying on yourself or another employee to do these tasks. By doing what you specialize in and allowing the outsource administration company do what it does best, both companies continue to develop their expertise. With such expertise, outsource administration companies may be able to have insights and industry knowledge that comes with time and experience.
4. Value of your time as the owner
Even if you do have the skills necessary to complete administrative tasks on your own, you should evaluate the costs associated with doing them yourself versus outsourcing these tasks. As the owner of your company, your time is valuable. If your time is taken from those activities which generate revenue in order to accomplish needed administrative tasks, you may need to take a look at outsourcing those tasks and see if it would be a profitable move for your company.
5. Time to learn the tasks
If you are not skilled in specific, and necessary, administrative tasks and if you are unable to hire those who can take care of these tasks, someone has to learn them, they have to get done somehow. This can add onto the time it takes to actually do these administrative tasks. Along with the time it takes to learn these tasks, one must also add in the time it takes to be up-to-date with any changes in regulations
6. Focus on adding value to the customer
Outsourcing your administrative tasks will give you more time to develop your expertise and add value to your customers. This is especially useful for small companies. If you are working on developing your client base and product, it will often be much more advantageous if you don’t have to try and learn how to do those little things, such as tax and payroll. It gives you more time to be the best at what you do.
7. Deadlines and changes in laws
Outsourcing accounting functions can help you stay on track. If you outsource your accounting functions, outsource companies are engulfed in the industry and are aware of the changes in laws and deadlines. This is another function that can help you stay out of trouble for late missing deadlines.
Not only do outsource administration companies have expertise in what they do, but they are surrounded by others in their company with this expertise. If you are taking on the responsibilities yourself, you may have greater limitations to your resources. Outsource administration companies may be able to more effectively pool their knowledge on issues than you can on your own.