What Processes to Outsource as You Grow Your Business
Aug 07, 2023 | 7 Min Read
Jump to Sections
Stay updated
with our Blogs
We will keep you updated about our latest blogs
Share This Blog
Operational complexities are directly proportional to business growth. Although opportunities increase with business expansion, challenges also arise in managing increased workloads and maintaining efficiency.
Entrusting certain business processes to specialized companies can enable businesses to focus on their core competencies and achieve sustainable growth. In this blog, we will discuss the main processes that can be outsourced by small businesses.
Evaluating Your Business Needs
While there are many processes a business can outsource, the initial stage in the outsourcing journey is to identify areas where outsourcing can bring additional value and result in the streamlining of operations. Some key factors to consider during the evaluation are:
Existing Workload:
Businesses should assess the team’s current workload and determine whether they can handle additional tasks. Outsourcing can be viable if the team lacks the flexibility to adapt to changing needs.
Core Competencies:
These are the areas where the business’ expertise is, and internal resources should be allocated to such areas. All other non-core activities can be considered for outsourcing to concentrate on value addition.
Cost Efficiency:
Businesses should conduct a cost-benefit analysis to determine whether the benefits of outsourcing outweigh the costs. Some factors to be considered are labor costs, investment in infrastructure and technology, as well as potential economies of scale offered by outsourcing partners. The efficiencies of outsourcing should also be evaluated, such as quicker turnaround times, improved quality as well as access to technology and expertise.
Administrative Processes to Outsource
Administrative processes are key for business operations but can be burdensome for team members. By outsourcing these processes to external service providers, businesses can free up valuable time and resources. Some administrative tasks that are commonly outsourced include:
Payroll Processing:
Payroll management is a very complex and time-consuming process, involving a range of tasks such as the calculation of employee wages, tax deductions, and benefits. Payroll can be outsourced to a specialized provider such as Accountimize that can ensure accurate, as well as timely payroll management, tax filings, and direct deposits. Outsourcing companies such as Accountimize also make use of the best software and technology such as Gusto for efficient management of payroll.
HR Management:
HR management is essential for businesses, especially in maintaining accurate employee data and complying with labor laws. Outsourcing this process can assist with maintaining personnel files, tracking employee data, implementing efficient HR procedures, and minimizing the risk of legal issues.
Employee Benefits Administration:
Managing benefits such as retirement plans and health insurance often involves complex calculations. By outsourcing benefits administration, external service providers can streamline this process by providing professionals who can handle time-consuming tasks such as benefits enrollment and employee inquiries. Thus, ensuring accurate record-keeping.
Expense Management:
Outsourcing employee expense management can streamline the tracking, recording, and reimbursement of employee expenses. Outsourcing service providers make use of automation technology for seamless reporting of detailed expense analytics, facilitating approvals for quick reimbursement and offering better visibility into spending patterns.
By outsourcing administrative tasks, businesses can focus resources on activities that ultimately contribute more towards effective financial management.
Want to learn about the next steps for growing your business ?
Financial Processes to Outsource
Financial management can be a challenging task for small businesses. Accurate financial management is crucial for business success. Therefore, financial processes are advised to be outsourced to experts. Some key processes to outsource are:
Bookkeeping:
Bookkeeping is the process of recording financial transactions, maintaining ledgers, reconciling accounts, and producing financial statements. Online bookkeeping services for small businesses such as Accountimize can ensure accurate and up-to-date records, therefore, freeing up businesses from this time-consuming and complex task.
Tax Preparation:
Tax Filing is amongst the most difficult tasks for a business due to the ever-changing laws and regulations, the stress of meeting deadlines, and subsequent audits or penalties that may arise due to errors. By outsourcing the tax preparation and compliance process to professionals such as Accountimize, businesses can benefit from timely, as well as accurate tax filings, identification of tax credits, and deductions with experts handling any potential tax audits.
Financial Reporting:
Outsourcing the financial reporting process can provide a competitive edge to small businesses. Online bookkeeping services can prepare periodic financial statements, ensure compliance with accounting standards, and provide valuable insights in real-time, with the help of accounting software, on the financial health of the business.
Accounts Payables and Receivables Management:
By outsourcing this process, businesses can hand over invoice processing, payment tracking, and reconciliation tasks to the outsourcing firm. This can assist small businesses in not only improving cash flow management but also relationships with vendors or customers as well. Outsourcing providers may also implement AP and AR software for automated invoicing, payment reminders, and timely payment processing.
Financial Analysis:
Online accounting service providers can provide comprehensive insights into the business’s financial health through ratio analysis, budgeting, and variance analysis. Through dashboarding technology, businesses can have access to their financial performance in real time, enabling managers to make informed decisions. Outsourcing partners can also identify trends and assist in developing effective financial strategies to drive growth.
When outsourcing your business processes, it is essential to select a reputable partner with a proven track record and robust security and data protection measures to safeguard sensitive financial information.
In addition to the above, several other business processes can be outsourced. These include tasks such as customer service, marketing, advertising, public relations management, supply chain management, IT support, employee recruitment, and training. By outsourcing, small businesses can focus on core competencies while gaining access to specialized expertise, advanced technology, and cost efficiency.
Your Outsourcing Partner: Accountimize
Accountimize is your trusted and reliable outsourcing partner specializing in a range of functions such as online bookkeeping, payroll management, AP and AR management, financial reporting, and management. Our team of experienced CPAs and automation technology experts provides businesses with streamlined operations, ensuring accurate bookkeeping, financial reporting, and proactive tax planning.
Call us to begin the journey toward unlocking your business’s true potential and paving the way for long-term success.
Book a Discovery call
Stay updated
with our Blogs
We will keep you updated about our latest blogs
