The best use case for an outsourced core function is efficiency. It seems backward, or counter-intuitive, that a company could do better with its internal resources like money if it were to send out key functions to a higher-priced agency. While there have been fads of “right sizing” over the years, this transition away from a corporately held employee/hostage situation seems to be sticking more than it has before.
1. Leaving it to the pros
The trend to get the risky and unpredictable people off of the books lets companies look leaner. There are fewer variables for health coverage and 401K involved. It also helps companies to truly be a customer of the outsourcing firm, instead of feeling a little bit shuffled to the side by an in house accounting team.
To break these advantages down into more specific points, let’s take the liability challenge that so many companies are feeling. When they have a data breach or a leak, or they suffer from social hacking, they do not want to point to their own employee when they say the screwed up.
They would much rather point at someone else. To outsource to a large enough organization, that group is outsourcing, too. And so on. So the insulation is thick around everyone and there’s enough plausible deniability to go around.
3. Cost Effective
There are also considerations of additional costs that they’re putting on this year. The Affordable Care Act is a lovely act. However, it’s not proving to be very practical. When companies are not sure that a legislative action will not cost them money, they can send every minute thinking about possibilities that don’t involve closing sales. Because the company is vulnerable to a cost shift, and in some respects the employee is as well, this is just an unknown.
Escaping from the unknowns is appealing, some days. Having the sweater and jeans on, and big glasses? It would be gorgeous! Almost as nice as knowing that, as a business owner, I don’t have to pay for insurance, or dental, and I don’t have to contribute to my employee’s retirement savings account or IRA.
We also recommend that you take a look at this 30min presentation published by Journyx on their YouTube channel:
The bottom line is that no matter what you do, you can still be fooled. But by following this system, you get a good feeling about the people who are able to walk along with you.
- Written by: Eleanor Doyle
- Category: Accounting, Online Accountants, Outsourcing
- Published: October 27, 2015
Looking for an accounting firm for your small to mid-sized business can be very challenging. The directive to find someone who knows their stuff, does math their sleep, and understand how to work with other human beings is a lot to look out for. Fortunately, there are some excellent tips and tricks from experienced people who visit this site and have become Friends!
Interview three different companies, and only discard one at a time
This tidbit of complex mathematical wisdom is from Shelby. She recommends doing a bracket approach to interviewing service providers, and going beyond the bare minimum.
The job market has changed and will continue to change over the next coming years, and being a little bit more competitive is only smart. If none of the three make the cut, that’s absolutely OK too, Shelby says. It’s better to have interviewed and lost than never to have interviewed at all.
Ask your accountant friends for recommendations. Do not interview your accountant friends. Seriously.
Per Robert, who says there’s an excellent story about this which he will one day tell me, the business services community runs on a lot of scratch mine and I’ll scratch yours.
When there’s business to be had the scratching can quickly turn to clawing and leave some bruises. So keep your friends and keep your work, and happily take recommendations.
Our recommendation is these chartered accountants serving Kingston. They will surely help your business as they are qualified accountants who serve startup entrepreneurs, contractors as well as established SME.
When you’re looking for accountants online, don’t think math.
Assume (which I know, I told you never to do) any accountant can do basic math skills. You’ll need to do some skills testing, but unless you’re hiring for a C level strategic role, there’s no real need to discuss theories of cash handling. Make sure you thoroughly test out their handling of a customer service situation, since that skill set is so opposite to the analytical one.