01435-866650 Careers

Should You Discover the Joys of Outsourcing?

February 20, 2018 by Susan Brooks

Paperwork and accounting can drag down your business

Outsourcing has developed some negative connotations. Say the word “outsourcing” and many people have visions of layoffs and business suddenly abandoning a local community. There are a lot of reasons for that. When outsourcing makes the news these days, it is typically in conjunction with factories closing and families and communities in crisis.

The truth is, there are many types and levels of outsourcing and often outsourcing provides great benefit to companies and their employees. If your business has been growing, you are probably wondering if your business growth justifies adding more people. Are the workers you already have overworked and under strain from trying to do too many things at once? These could be signs that it is time for you to consider doing some outsourcing.

Ideally, any outsourcing will be focused on areas that are not part of your primary business. If you make widgets, accounting, website design, and other routine business functions are important but they don’t require the same set of skills and knowledge. Outsourcing can relieve your employees of work tasks that take them away from their core responsibilities. It also allows you to have specialists in a range of different areas of business, even if your business isn’t big enough to hire these specialists on a full-time basis.

Look at the parts of your business that aren’t within your core area of knowledge. Rather than spending your weekend trying to calculate payroll for your employees, you can outsource this work and free up your time to focus on managing your business. Logistics solutions can be critical to get your products to the right customers at the right time but how many contacts do you have in that industry? You can outsource that to professionals who will ensure that your customers are happy while minimising your shipping costs.

Are your employees struggling to keep your products up-to-date on your website? If this type of work isn’t their main focus, it can be easy for it to be pushed to the side. Your employees might also lack the right expertise to quickly and effectively add information whereas outsourcing this work could actually make sure that it is completed more quickly.

One area that can quickly cause serious problems for businesses, particularly small businesses, is accounting. Tracking accounts receivable can time consuming but, without this work, you can find yourself lacking the funds to continue operations. Falling behind on accounts payable can hurt your credit with your suppliers, damage your reputation in the community, and/or cause you to pay a higher rate for your supplies. Entering into disadvantageous payment agreements can leave your company vulnerable to delayed payments and poor financial stability.

Another reason for considering outsourcing certain tasks is this can reduce your legal liability. Failure to pay proper payroll deductions can create tax problems. Human resources issues handled incorrectly can lead to disgruntled employees, lawsuits, and other problems that could create long-term liabilities for your company. Keep all this in mind when you are considering outsourcing.