13 July 2018
The benefits of outsourcing – free up time to make your business a success
There are only so many hours in the day and you/your team probably are probably too busy running your business to have time to do everything. What you really need is someone who can help you with functions like accountancy and tax issues – the very things you probably put at the bottom of your to-do list every week.
The good news is that outsourcing functions such as payroll, bookkeeping, VAT returns or reconciling expenses can help save you time and money.
Take your accounts to the cloud
Xero is fast-becoming the essential online tool for small business owners who want to keep on top of their incomings, outgoing and general accounts through a handy cloud-based app. It lets you work seamlessly with your bookkeeper or accountant. Direct bank feeds ensure your accounts are always up to date, whilst software such as Receipt Bank uses “optical character recognition” (OCR) technology i.e. a scan from your mobile phone, to take all your invoice or receipt information and put it into your accounts, literally with the click of a button.
From 1st April 2019 all VAT registered businesses will have to have compliant software to comply with Making Tax Digital. Moving your accounts into the cloud makes this transition more simple.
Control capital expenditure
Cost-cutting may not be the only reason to outsource, but it’s certainly a major factor. Outsourcing converts fixed costs into variable costs, releasing capital for investment elsewhere in your business, and allows you to avoid some large expenditure. Outsourcing can also make your firm more attractive to investors, since you’re able to pump more capital directly into revenue-producing activities.
Use a virtual assistant
If you want to shave hours off your working week, then using a virtual assistant can help. VAs are professionals who look after those administrative tasks you never seem to get on top of because you're out chasing new business, winning new projects or contracts or simply tending to the day-to-day running of your business. If this sounds like you, then it could be time to delegate those time-consuming admin jobs to someone who can turn their hand to everything from chasing up payment to sending out thank you cards to clients. What's more, most virtual assistants work on a contract or freelance basis, giving you more flexibility over your workforce costs.
Let a bookkeeper take the strain
It's very easy to push your accounts to one side if you're a busy business owner. Most of your time is taken up making sure your clients are happy as well as wearing several other different hats, including HR, marketing and operations. Hiring a good bookkeeper will help you analyse your monthly performance. They can highlight parts of the business which are working better than others, drill down into your figures to give you a comprehensive forensic report on how you're doing - and identify how you could be doing better.
There is a degree of risk inherent in any type of business. However, you can outsource certain risks to the balance sheet of an external provider. For example, payroll, tax returns and compliance can largely be outsourced, thereby moving that risk away from your people and putting it on the shoulders of the outsourcing firm’s team.
Outsourcing can allow smaller businesses to benefit from the economies of scale, efficiency and expertise enjoyed by larger firms. If you choose the right outsourcing providers, your business should be able to benefit from the latest systems, technology and processes. This could give your firm that all imprortant competitive advantage.
Want to thrive rather than just survive?
Find out how outsourcing can help your business not only survive, but thrive by contacting our expert team today on 0115 964 8888 or email email@example.com to chat through your options. RWB is a Xero Platinum Partner, so you know that you're in safe hands.
The views provided in this article are for general information purposes only. Nothing in this article represents advice of any nature whatsoever. Accordingly, RWB CA Limited does not accept any liability or responsibility for the information contained in this article or any decision or other action that may be taken in reliance upon the information contained within it. RWB CA Limited accepts no responsibility for any errors of fact or opinion and assumes no obligation to provide you with any changes to its assumptions.