The outsourcing of administrative functions is highly under-rated in the current marketplace but this can be an untapped resource for many small businesses. One valuable lesson the Covid-19 pandemic has taught us, it is that we need to change the way in which we do business. Recent surveys have indicated not only do more people work remotely, they actually prefer it and they are more productive. Although finding the right partner for your small business may seem like a daunting task, there are exponential benefits for businesses who choose to tap into the outsourcing model. Below we will discuss the big motivating factors why you should consider the outsourcing model as opposed to hiring permanent full-time employees.
OUTSOURCING SAVES YOUR BUSINESS MONEY
Direct Cost
The cost of employing a full-time accountant can range anywhere from R 20 000 to R 60 000 p/m whereas a monthly retainer for an outsourced accounting firm can be as little as R 2 800 p/m. It is evident that outsourcing comes at a lower cost, but there is also the added benefit of less responsibility towards employees insofar as it concerns:
- Tax liability,
- Provision of benefits,
- Performance management,
- Training,
- Provision of resources,
- Administrative burden.
Indirect cost
No business owner should be spending endless hours on administration. They should be spending their time doing what they do best. Outsourcing reduces the burden of managing employees, increases in-house productivity and it affords you more time to:
- Focus on your core activities,
- Strategise the growth of your business,
- Focus on building client relationships,
- Improving your product or service offering.
OUTSOURCING PROVIDES ACCESS TO SPECIALIST RESOURCES
Utilising the latest technology
Tap into the latest available technology accounting firms have in place to ensure financial processes run seamlessly. Making use of modern accounting software will provide you with access to your records at any time and any place. In doing so, it promotes transparency between you and your accountant.
Access to expert advice
You will benefit from your outsourced accountant’s extensive hub of knowledge at a fraction of the cost. You will also be updated on new legislation, regulations and trends.
OUTSOURCING PROVIDES IMPROVED RISK MANAGEMENT
South African businesses have a vast amount of legislation to comply with. Non-compliance can have dire consequences and negatively impact your business financially. Accounting firms devote their time and energy to ensure clients remain compliant in most aspects of legislation leaving you to focus on growing your business.
A solid accounting solution forms part of the essential building blocks of your foundation to guarantee success. If you’d like to find out how we can help you, please contact us.
Author:
Liza Moorcroft
SAIBA: BA (SA) & SAIT: GTP
