Fidel Castro once said, “I began revolution with 82 men. If I had to do it again, I do it with 10 or 15 and absolute faith. It does not matter how small you are if you have faith and plan of action.”
I think this statement fits into our current business environment. The sustainability of any business is dependent upon focusing on your customers’ needs and ensure that the contribution margin (sales price minus variable cost) of the product is maximized. And to keep your fixed costs minimum.
Artificial intelligence and technological advancements have increased the complexity of businesses. As a business, you need to continuously analyze the data to make sure that your product meets or exceeds the customers’ expectations and their needs. This effectively means that small to medium-size businesses should pay attention to their core operations without worrying too much on what is happening in the back office. For the back office, you should have “Faith” and “Plan of Action”.
For instance, accounting and bookkeeping services is a back-office job and can be outsourced to others. But before doing that, you may need to make sure that the service provider is reliable (professionally competent) and they give you a plan of action (process and reporting). If you are somehow able to manage these aspects of the service provider, you may get a competitive advantage over your competition.
I have listed down some of the advantages of outsourcing accounting and bookkeeping function to the firms providing accounting bookkeeping services.
- You can pay attention to what you do best
By outsourcing accounting and bookkeeping services from the mentioned firms, you will have more time to focus on the other aspects of your business such as ways to increase the efficiency and growth of the business.
- Reduce cost
By outsourcing, you can reduce cost by 30% to 60%
- Quality of service
Hiring qualified professionals who understand all the accounting and laws and rules reduce the chances of making error thus improving your business image. And provide you with accurate information to make informed decisions.
- Reduces the risk from the situation in which employees suddenly leave
Businesses might experience a situation in which most of their employees or staff suddenly leave. This can be catastrophic for small businesses as a backup staff is needed in such incidents and this can be costly. Outsourcing your accounting or bookkeeping services enables you to a qualified and professional team which provides an effective backup to your business. Rest assured, you can expect that the team will make sure that the quality of the work will be the same or even better.
- A more disciplined and unbiased view
Accounting and finance department plays a key role in making unbiased (free form office politics) and accurate information can be very useful for small to medium size business.
- Gain an edge over other businesses in the competitive market
Outsourcing firms have many years of experience working with different businesses. These firms have a professional and experienced staff that will make sure that you get the best hands-on experience. Outsourcing your accounting and bookkeeping services to these firms can provide you with these benefits that can provide your business an edge in the competitive market.
- Easily add or cut back on resources
Businesses usually have operating cycles affect accounting and bookkeeping workloads. During those specific times, adding more resources to the team is difficult to manage. Outsourcing such services allow you to easily cut back or increase the staff working for you, depending on what time of the business year it is. It enables you to enjoy the flexibility that is otherwise pretty hard to achieve.
My CFO Portal (www.mycfoporatl.ca) can provide accounting, bookkeeping, Tax and CFO services to small and medium-size businesses at a very reasonable cost. We have highly qualified staff members with experience in a verity of industries. We are based in Mississauga and have developed a very efficient system which can deliver service to anywhere in Ontario.
There’s another hidden advantage of pre-audit for business by outsourcing their kkaccounting functions, since, the accounting experts are up-to-date on all the latest regulatory requirements. They are attuned to what is happening across the industry and carefully monitor relevant laws and regulations to stay current on processes. Hence the business, by teaming-up with an such firm can gain the peace of mind in knowing that their accounting tasks are meeting all compliance requirements and are being done properly by a qualified expert in the field.
Very Valuable Analysis.