Outsourcing

No doubt, your business relies on good people (team work makes the dream work, right?). But that means it also relies on you to build the right team of people. And to do that, you need to understand when to hire, and when to outsource.

There is no hard-and-fast rule for when to hire staff versus when to outsource certain roles and positions. To make this decision, you need to look carefully at your company’s unique needs and goals. You also need to understand the difference between outsourcing versus hiring staff, which we’ll cover below.

THE BASICS

First, let’s cover the basics.

When you outsource, that means you find an outside independent contractor to handle certain roles and responsibilities. Contractors are generally hired for a specific project or task, and/or for a set period of time.

Companies often outsource important duties that are essential to their success, but outside their expertise. This often looks like working with outside marketers, web developers, or virtual finance teams.
Because they’re independent, when you outsource to contractors, they’re essentially in control of how, when, and where they complete their tasks. That’s why you need to be upfront about your expectations when you take them on board.

Meanwhile, when you hire, that means you’re taking employees on board. In other words, you hire staff members, either full or part time.

Unlike with outsourcing, you have much more control over hired employees—you get to determine how, when, and where they work.

THE NUANCES

So what’s right for your business? The honest answer is that it depends.

When you hire staff, they have many rights, such as termination rights, the right to a final pay cheque, and sometimes severance pay. You’re required to comply with Labour statutes (PF, PT, ESIS, etc.), and most employees will expect certain benefits like health care and sick leave. When you combine this with associated HR and accounting costs, employees are usually much more expensive than contractors.

That said, employees are often worth the extra expense. That’s because good employees will be with you for the long haul, making up in loyalty, commitment, and stability what they may cost in strict dollar terms.

Outsourcing is often much cheaper, but it’s important to only outsource the right type of work or projects. Outsourcing is usually the right choice for shorter, one-off projects, or for bringing in outside expertise where you can’t afford to hire full time staff.

Outsourcing your finances is almost always the right choice for startups and small- to medium- size companies, or anytime budget is a concern.

This is because managing your finances well is critical to your business success. And handling your finances is incredibly complex, best left in the hands of expert accountants—but hiring a full time CFO can get expensive really quickly.

On the other hand, when you work with a virtual CFO who offers fractional services, you can get exactly the support you need, at a price you can afford.

Plus, a virtual CFO can help you with other strategic hiring choices. That means you can outsource this one position, and gain well-informed guidance into what else you should outsource (win-win).

Outsourcing refers to delegating certain company operations to a third-party agency to capitalize on previously untouched benefits. Most business owners don’t receive financial help on time from an in-house accounting team until before an audit or after being charged for Tax Fraud. Therefore, you must invest in outsourced accounting services.

Outsourced accounting firms have several advantages, a few of them being security, long-term cost savings, higher efficiency and industry-wide knowledge update. 

• Streamline Business Operations

As most tasks are repetitive and monotonous, they consume much time of your day. Instead of manually issuing cheques or calling after unpaid invoices, firms automate the processes. With outsourced accounting services, your responsibilities are performed efficiently. 

• Accurate and Reliable Financial Records

When you are a small to medium business, you find it difficult to manage financial transactions. You must always have up-to-date, accurate and quality records for your business. With our solutions, you can make informed business decisions for the future. Once done, you can identify and address the issues that negatively impact the cash flows.

• Minimizes Paperwork

Data entry, interpreting, and reconciling financial records and payments take time, which is why a virtual bookkeeper. You should outsource this time-consuming, tedious and repetitive task to evaluate the process, improve operations and customer service. Unlike conventional offices, our offices are devoid of physical paperwork but focus on technology.

• Maximum Productivity at Minimum Prices

Using our accounting services you can access present and past financial reports with specific business information. If you are working with virtual bookkeepers like us, we will efficiently and quickly record the information. This data can be later shared with financial advisors, legal counsellors, employees, and partners. As the business grows, you will find that these quantitative insights are invaluable.

• Full-Time Services

Bookkeepers track expenses and accounts as they view financial statements, which prevents business crises and promotes growth. With business financial intelligence backed by instincts, you can make well-informed decisions. In addition, virtual bookkeeping platforms and report analysis determine which clients you must invest more money, time, and effort in.

Virtual CFO services can benefit a wide range of industries, especially those experiencing growth, undergoing financial restructuring, or lacking in-house financial expertise. 

• Corporates

Virtual CFOs have been making waves in the corporate scene. They offer cost-effective financial management, reduce operational costs, and provide real-time decision-making insights. Businesses can streamline operations and redefine their financial strategy with virtual CFOs.

• Small Businesses

Real-life examples show how small businesses improved financial stability, decision-making, and overall performance by leveraging virtual CFO services.

• Startups

Startups often find virtual CFOs invaluable as they navigate early-stage funding, financial planning, and establishing scalable financial systems without the overhead costs associated with hiring a full-time CFO. Startups benefit from cost-effective access to high-caliber financial expertise. 

• Technology

Industries experiencing rapid changes or disruptions, such as technology, can particularly benefit from the agility and expertise virtual CFOs bring to adapt to evolving market conditions.

• Healthcare

Healthcare organizations, including hospitals, clinics, and medical practices, can leverage virtual CFO services to optimize financial management, streamline operations, and ensure compliance.

• Manufacturing

Manufacturing companies can benefit from strategic financial guidance to manage costs, improve efficiency, and enhance profitability.

• Retail

Retail businesses, especially e-commerce companies, can optimize inventory management, pricing strategies, and cash flow with virtual CFO expertise.

Note that, Many businesses utilize virtual CFO services to access high-level financial expertise. These services pave the way for success by aligning strategies with business goals, integrating technology, managing risks, and ensuring compliance.