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Small business owners are accustomed to wearing several hats, but, at some point, your ability to move your business to the next level will become hampered by the finite number of hours in a day. One solution, of course, is to hire additional employees. Another solution that can save you time and money is to outsource various components of your day-to-day business operations so that you can focus on the service or good that is at the heart of it.
Employee Needs
Even if you’re running an at at-home endeavor, you might consider hiring a part-time or even a full-time employee to take on this role. Remember, though, that this may require you to have a workstation and computer available for the employee to use, as well as restroom facilities and a reasonable break area. You could make it a “work-from-home” position to get around this issue, but then you will need to be concerned with things like network security, productivity and supervision, and possibly how to control access to company funds.
Bringing on a new employee can significantly alter the dynamic of your business, whether through differences in personality or work style. Typically, a new employee needs some level of training in order to keep your business moving in the right direction, and you’ll need to develop a good system of feedback and the right level of supervision to ensure your vision for the future of the company comes to fruition.
On the other hand, if you were to use an outsource accounting service, you won’t need to worry about extra space, constant supervision, or the overhead costs such as benefits and vacation time. If your employee needs to go on vacation or take leave, the process may ground to a halt; when you are working with an outsource firm to manage your needs, you can expect relatively uninterrupted service (except for holidays).
Another aspect that makes sense for many business owners is to outsource things like payroll and HR functions; who has the time or ability to put together an Employee Handbook or calculate FICA? Depending on the nature of your business, you may also need to establish a relationship with either a Worker’s Comp firm or someone like a personal injury attorney in Jersey City, NJ in the event there is an injury or accident involving your business. The more employees you hire, the more time you will need to devote to employee needs; with outsource firms, you can stay focused on business knowing you have an expert team focused on administration.
Advanced Services
Every business can benefit from analysis of market trends, process efficiencies, and product analysis. When hiring a new employee to manage your accounting functions, you may likely be looking for someone who can get the basics done for a reasonable wage. Hiring someone with expert analytics skills might be out of the price range of many small business owners, whearas outsourcing can provide these types of services at a fraction of the cost of hiring a CFO or expert analyst. Naturally, there may come a day when your company will need a full-time CFO at the helm, but outsource firms help you save money by pushing back the timeline of more expensive corporate hires.
Balancing accounting and other costs has become a prominent issue in today’s world of increasing e-commerce, digital currency, and other new trends that can significantly impact your business. Staying abreast of the many advances in technology and finance can be a job in itself; it may not be reasonable to expect a typical accounting assistant to have time or even ability to perform the research and analytics necessary to help your business stay relevant in the ever-shifting world of technology and consumer habits. Working with an outsource company will also mean that you will have access to all the latest trends and techniques to help you stay ahead in the marketplace.
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