3 WAYS OUTSOURCING CAN HELP REDUCE OVERHEAD AND PAYROLL
Many owners of small and mid-sized businesses are finding themselves in a Catch-22. Their businesses are doing well, and the recession has become a distant memory. Revenues are up, profits are back and for many, there’s a growing need to increase headcount.
You would probably say that this is all very positive, but perhaps, not so fast.
Things are good now but there were lessons learned in 2008 such as increasing headcount and associated overhead is something that many business owners are loath to do. There is a remaining sense of vulnerability and the confidence that was so prevalent in the “boom times” is still slightly shaky. The new normal? Perhaps, but one thing is for certain, business owners are increasingly looking for more cost-efficient ways to operate their businesses.
Because of this many companies have turned to outsourcing as the single best solution to reduce overhead and payroll. There are many important benefits for the business including:
We live in such an amazingly fast paced world, executing more work in an ever-shorter amount of time, responding and reacting to questions, problems and issues at warp speed because that is what our customers demand. And if we don’t or can’t move fast enough these customers will simply go elsewhere, and let’s not forget that their ability to identify another “vendor” requires just a simple Internet search. By outsourcing some of the mission critical aspects of the business, employees can concentrate on their core competencies and on business building initiatives.
We live in a highly complex world with ever more regulations, tax implications, compliance issues and more. Staying abreast of these matters can be overwhelming for a small business and there is always the risk of making a mistake based on lack of experience and information. Outsourcing can provide the business owner with the confidence and peace of mind that all their financial and accounting functions are being executed expertly, efficiently, and according to current regulations.
Certainly, there is a cost associated with outsourcing any parts of a business BUT it is a fraction of what it can cost to bring in full-time, experienced employees. Salaries and benefits and all the other associated expenses (training, office space, etc.) are more than offset by executing these same functions on an outsourced basis.
Please reach out to us here at The CFO Squad if you have any questions about what we do and how we might be able to help you make the important decisions regarding your organization’s financial future. We can be reached at: [email protected] or by phone at +1 (845) 613.3399