Find out why more companies are using outsourcing services to grow their business.
There’s no question the COVID-19 pandemic and resulting lockdowns were chaotic and disruptive for small businesses. This prompted organizations to change operations on a dime or face closure. From cost-cutting to maintaining staff, many outside-the-box ideas were implemented to keep the ships afloat.
While the effects of the pandemic continue to wane, some of the changes executed are here to stay – and for the better. One major shift was the use of outsourcing. Rather than take on a new hire, companies found that if they contracted with an outside party to take care of certain tasks, they could lower operational costs and streamline operations while still handling important functions.
Many indicators suggest outsourcing is not a short-term fix but rather one that businesses plan to use moving forward. Right now, 68% of U.S. companies have outsourced at least one business process – with only 37% reporting to do so in 2019. Keep reading to find out why more businesses are turning to outsourcing services – accounting in particular – as part of their future strategies.
The number one business process outsourced is accounting. As a small business owner, it’s understood how important this function is to the day-to-day operations, but it’s also listed as the top headache for running a business.
Outsourcing can lower costs by reducing the expenses associated with bringing on new employees. Working with outside firms rather than employees can minimize these costs, allowing your business to get the same amount done for less. White-label accounting firms can handle the outsourced accounting and bookkeeping solutions while providing back-office services you can present as your own.
Re-Focus In-House Resources
The back-office operations of a company tend to expand during periods of rapid growth. The expansion can tie up resources needed for other core activities, leaving behind tasks that made the company successful in the first place.
White-label accounting services are highly scalable, making them ideal for both tax and accounting firms that are on the rise and have hit a wall due to a lack of resources. The outsourced team can handle the additional clientele while the core resources are used appropriately without any disruption.
Boost Operational Efficiency
Small businesses can benefit from outsourcing certain aspects of accounting to an expert instead of inefficiently or incorrectly attempting it on their own, potentially leading to a cascade of misdirection and inaccurate numbers.
Because accounting typically guides the direction of the business, hiring a white-label accounting service can improve the efficiency of the business overall and help avoid a wrong turn resulting in significant loss of money and resources.
Offer Employee Flexibility
Outsourcing to a white-label accounting firm creates a much more flexible working environment for both you and the internal team. Projects can be ramped up or scaled back as needed, allowing you to manage your time and energy on a month-to-month basis.
Tax season is a prime example. Instead of overworking your in-house bookkeeper, you can ramp up or down as the season progresses.
Fraud is a particularly painful problem for small businesses. Research suggests organizations with 100 or fewer employees are much more susceptible to fraud because they more often must trust employees with more information than a larger business.
Outsourcing your accounting or bookkeeping services can mitigate this risk because their job is to perform these tasks with specialized expertise. Outsourcing provides a level of continuity to the company while reducing the risk that a substandard level of operation could bring, even over a short time.
Ultimately, all businesses have the same goal: innovate, grow, and rise above the competition. Outsourcing provides not only a cost-effective route to achieve this but can add expertise with minimal disruption and risk mitigation.