From simple bookkeeping, to management of your payroll, to analysis of your financial statements, outsourcing certain financial aspects of your company’s operations can make it easier to get ahead during your rapid growth years.
So let’s take an in-depth look at some of the benefits of financial outsourcing. You’ll get an idea of how having others take care of certain areas of your business can help you leverage your time and focus on making your company the best that it can possibly be.
Outsourcing for the Small Business: What You Gain
When you’re a small company just getting started with establishing a reputation, operating as efficiently as possible is one thing that you should be striving for.
And that’s what can happen with financial outsourcing.
More specifically, you stand to benefit in ways such as:
- Maintaining Focus – With everything that’s included in running your own company, it can be easy to get overwhelmed or distracted by activities other than those that have to do with your core purpose.
Outsourcing certain business functions keeps that from happening. You can put every bit of your entrepreneurial energy into making sure that your main mission is achieved while other tasks are handled off site.
- Access to Expertise – You want the best from your business and in some respects, you can only get that if there’s experience behind your drive to reach your goals.
With outsourcing, you’ll have someone who specializes in what they do at your disposal. That kind of expertise is invaluable to the smooth operation of certain areas of your business and can provide insight into issues that might arise.
- Expense Reduction – Small businesses like yours run with small teams and every one of your hires has some sort of skill that relates directly to your industry.
When you branch out into areas that don’t necessarily involve your industry, but are needed by your company anyway, you may be making unnecessary additions to your operating expenses.
One of the benefits of financial outsourcing is that you can get essential services while keeping costs as low as possible without the loss of quality. In some cases, the quality can even be greater than if you were to “do-it-yourself”.
When it comes to outsourcing parts of your business, this is just the start as far as the benefits of doing so are concerned.
But just what are some of the specific areas that you should be looking at?
Taking a Look at Your Accounting Practices
For many businesses, accounting is a bit of a double-edged sword.
Every business needs it, but few have a constant need for a full-time accounting specialist on the payroll. With that in mind, it’s no surprise that accounting is one of the most outsourced business functions.
The benefits of financial outsourcing, as they relate to your accounting practices, can extend to areas like:
- Bookkeeping – You need to know what’s coming in, where it’s coming from, and how it’s eventually going to be spent.
Financial bookkeeping is one area in finance that can make or break your company, so you want someone with experience overseeing this critical function.
- Payroll – It’s important that a strong protocol is followed for your company’s payroll practices.
With the myriad of items that have to be considered when calculating payroll, the job needs to be done by someone who can make sure that nothing is missed, while confidentiality is maintained.
- Maintaining Relationships – You probably don’t think much about the relationship you have with your lenders, do you?
One thing that an outsourced financial services specialist can do is keep open channels with entities like banks and leasing companies, so that you will always be on good terms with them and have access to them if needed.
This item can prove invaluable as your business grows because you will have one less thing to worry about if you will require financing in order to offer new products or services in the future.
With the right oversight through CFO outsourcing in these areas and others, you can ensure that your own mission critical operations are carried out with greater efficiency and productivity.
Freeing up your time to focus on sales, marketing, and enhancing customer relationships will make it easier for you to adjust your business plan as you move forward and reach your business goals a lot faster.
Remember, running a business successfully does not need to be complicated. Keep it simple!
For more information on business analysis, business planning, and ways to grow your small business profitably, please check out our website. Follow us on Twitter @portalcfo
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Manny Skevofilax is a consultant and speaker that assists his clients with successfully navigating the challenges of growing their businesses profitably. Since 2003, Manny helps businesses to enhance their financial results by using his experience in strategic planning, financial statement analysis, operations, and team-building. His consulting firm, PORTAL CFO Consulting, Inc., has attracted clients from diverse industries in the United States and abroad.
Manny can be reached at 410-808-3441 or via email at firstname.lastname@example.org.