If your business is experiencing rapid or considerate growth, it may be time to expand your team. While this is an exciting time, it can also be challenging to find the right people and manage the financial risks that come with hiring full-time employees. However, there is another option: outsourcing.
There are a number of things to consider when choosing to upscale your team via insourced or outsourced staffing means, which is why it is important to consider your specific business needs and goals. We take a look at some of the benefits of employing outsourced services as an option when your business reaches its growth phase.
Outsourced Teams
Outsourcing business functions involves partnering with contractors such as external organizations or individual service providers to perform business-specific functions. These individuals typically complete short-term projects or longer-term assignments that require specific skills which may be too costly for a business to appoint in a full-time capacity. These could include skills such as IT, accounting, and project management services, or it could be more operational tasks such as hiring an outsourced business integrator, bookkeeper, and more.
These are some of the benefits of outsourcing business functions, specifically in finance:
- Outsourcing gives your business access to specialized skills at a fraction of what it would’ve cost had you appointed the same set of skills in a permanent, in-house role. This is because outsourcing allows you the freedom to make use of the skill for a specific duration of time and saves you the ongoing costs that come with hiring full-time staff members.
- With outsourcing, businesses have the freedom of trialing the skills of different experts as they scale their business. They can test if the skill is in fact beneficial to their business growth plan.
- Outsourcing offers improved accuracy as it gives you better control over the quality and speed of the outputs.
- It offers your business the opportunity to learn from an expert skillset as knowledge-sharing exchanges take place naturally between the outsourced service provider and internal staffers.
- Outsourced accounting services can help you scale your business quickly and efficiently. As your business grows, you can easily adjust the level of service you require from your outsourced accounting firm. This means you can avoid the costs of hiring additional staff without compromising on skills.
- Making use of outsourced accounting and finance experts offers your business greater efficiency as they grant you access to the latest accounting technology, automation services, and expertise in leading software management systems.
- It frees up time for management to nurture their core business focus, while the appointed outsourced expert focuses on specific, intricate, or non-core functions.
- It offers you peace of mind when it comes to security as reputable outsourced accounting firms employ high-end measures and make use of the most secure software to reduce the risk of fraud.
Insourcing vs. Outsourcing Services
There is a place for both insourced and outsourced staffers. Insourcing services refer to employees or teams that work within the organization. Deciding which would serve the specific functions within your business best would depend on the long-term growth plan of your business. The current size, revenue and revenue potential would also be factors that determine the recruitment approach your business should follow.
A good way to decide whether to insource or outsource a business function would be to look at whether the specific role you are wanting to fill forms a core function or is critical to the operations and nature of your business and whether or not your business has the muscle to carry the financial risks that come with full-time positions.
It is important to look at your business plan and set short term goals which you regularly revisit when embarking on a role recruitment strategy.
At Fusion CPA, we can help you look at the viability of outsourcing vs. insourcing roles for your business. We offer business advisory services that come with a thorough look into your business structure and the numbers. We also offer a number of outsourced tax, accounting and software solutions services. Speak to one of our experts today to dial in on the way forward for your business.
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This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.
