Is outsourcing the right decision for my company?

Opinions expressed by entrepreneur Contributors are their own.

Time is the most important thing for a company. It’s the one resource we can never get back, and it often determines whether we succeed or not. Because of this, efficiency is critical to business growth.

Outsourcing has long been associated with cost savings, which is still one of the top reasons companies choose to outsource. But in today’s business environment, there are other compelling reasons for outsourcing.

Here are some of the most common benefits of outsourcing business functions:

Concentration on core competencies

Let’s dial in the big one I mentioned earlier – time. I often see executives stuck in non-core activities, especially accounting. This distracts them from their primary focus – growing the business – and puts them at a competitive disadvantage with organizations that have outsourced these functions.

Outsourcing accounting and financial operations is a gift to overworked executives. This allows them to focus on what they are good at and leave the rest to the experts – that’s the way it should be.

Related: Four Reasons Your Startup Should Consider Outsourcing

reduce overhead

Inefficient accounting and financial operations can put a significant strain on company resources. It’s more common than you might think – a company has a dedicated finance team, but leadership manages the team more than finances.

By outsourcing to a specialist firm, you can leverage their economies of scale and eliminate inefficiencies in your business. Outsourced services don’t require sick leave, annual leave, or even onboarding and training—you can use them whenever you need them, almost always at a lower cost.

Free your capital

An in-house team, of any type, generally comes with fixed costs – you would have difficulty moving those resources to another area of ​​the organization if circumstances changed. On the other hand, outsourced services are variable costs – you can increase or decrease usage of the service as needed without long-term commitments.

This flexibility gives companies much-needed leeway to invest in other areas of the business. It also allows them to be flexible in the face of change, which is more important than ever in today’s business environment.

See Also: 7 Things You Should Outsource Immediately to Scale Your Business

Real-time data and analytics

Seeing the technology these specialist financial services providers offer is a real eye opener and helps you understand just how much they can help your business. Access to accurate, real-time data and analytics is critical.

However, internal teams often struggle with data and analytics for a number of reasons: they’re too stuck in day-to-day operations to see the big picture, or the organization can’t justify the expense of the tools and technology required.

But cutting-edge, real-time data and analytics are generally built into the service when you outsource your accounting and financial operations. This gives you insight into your business like never before, allowing you to make better decisions about where to invest your time and resources.

Related Topics: How to use real-time data to fine-tune your business decisions

world-class talent

Imagine for a moment that your talent pool spans the globe. This is the reality for specialized service providers. There are teams of experts in every time zone, which means they can provide 24/7 coverage and support. They focus on a specific area to attract and retain the best talent.

This is a huge advantage for companies that outsource their accounting and finance. You’ll have access to world-class talent who can help you take your business to the next level without paying a premium.

Related: 4 things to consider when choosing the best Asian country for business expansion

Are there any disadvantages?

Many companies have doubts about outsourcing, but I think these are largely unfounded, especially when you look at the results. Let’s take a look at the two most common objections to outsourcing:

language barriers

English is the international language of business, so nowadays it is rare that outsourced talent is unable to communicate clearly with Western companies. But even if there is a language barrier to actually human handling your finances, the numbers matter most and there will likely be an English-speaking manager overseeing the work to ensure accuracy and understanding.

Different time zones

The time zone difference is often cited as a reason not to outsource, but I think it’s an advantage. Specialized service providers have teams in every time zone, which means they can provide 24/7 coverage and support – something that would be very difficult (and expensive) to replicate with an in-house team. And there’s nothing quite like waking up in the morning and seeing the work being done while you sleep!

Outsourcing accounting and financial services has been a boon for many companies I have worked with. My best advice is to get some referrals from your network and get in touch with potential outsourcing services over the phone. Talk to them and look for chemistry. Do they “understand” your team culture and values? Do they understand your business goals and objectives? If so, this is your winner.

If you find a good solution, you will be amazed how much these specialized service providers can help your business to grow.

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