Is Outsourcing right for your business?
There are many different aspects and considerations when running a business, many of which take you away from the core reason why you got into business in the first place. If you find you are spending precious time and energy on tasks that take you away from what you want or need to be doing, you may wish to consider outsourcing.
Why Outsource?
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Financial
Outsourcing time-consuming tasks to a service provider who can perform those tasks more efficiently than yourself can actually save you money in the long run. When you factor in the lost opportunity to earn while your business is completing those tasks it often makes more financial sense to outsource. For example, consider a task that usually takes you 6 hours to complete, what if that same task could be completed in just 3 hours by an experienced professional? Yes, you need to pay for that 3 hours but can you earn more in the 6 hours you have freed up to make that worthwhile?
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Workforce
Many small businesses run on minimal staff. If you lack the manpower to get essential tasks completed, outsourcing is a great way to fill the gap without needing to commit to another permanent staff member. This is especially true when considering temporary or inconsistent tasks.
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Time
Time is one of the most valuable resources you have as a small business owner. Outsourcing can free up your time so you can focus on the more important tasks within your business. Often service providers can provide the service you require quicker than you would be able to do it in-house.
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Sanity
We all have our preferences when it comes to how we spend our time. Outsourcing can allow you to pass on tasks that frustrate you so you can spend more time doing the things you love.
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Increase Strategic Reach
Outsourcing can give you access to networks or customers that you may not be able to access on your own.
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Risk Reduction
Outsourcing can shift legal or technical risk from your business across to the service provider.
Choosing a partner to outsource to
All service providers are not created equal and there are some important aspects to consider when you are considering outsourcing
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Expertise and Reputation
Do they know what they are doing? Checking credentials and how many years of experience the provider has working with similar businesses to yours can give you some peace of mind. Checking reviews and case studies will offer insight into what the service provider is like to work with and where their strengths lie. You may also wish to speak directly to an existing client or two in order to get a good feel for what to expect.
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Pricing
How much and how often does the service provider charge? If your business has a consistent workload and steady income then a subscription model or retainer may work for you, allowing you to have certainty over how much outsourcing will cost each month. If like most small businesses, your workload fluctuates week to week or month to month it often makes more financial sense to “pay as you go” and only engage the services when you need them.
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Approach and Values
A good provider will act as an extension of your business and be invested in your goals and values. If they are customer-facing, they should represent your company to the same standard as you would. Again, reviews can be helpful here to determine if they are the right fit for you. Also, consider what their communication and support are like and what will happen if a problem does arise.
Spectrum Accounting has over 40 years of experience providing bookkeeping services to small and medium enterprise and self-employed contractors like Paula Apparel 2020 Limited. We know what we are doing, and we do it well. If you are considering outsourcing your bookkeeping, get in touch with us today.
Holistic Accounting and Bookkeeping
What is Holistic Accounting and is it right for your business?
Holistic is defined in the Cambridge Dictionary as “dealing with or treating the whole of something or someone and not just a part”. It’s a term most often associated with holistic medicine, the practice of improving overall health by going beyond treating just the symptoms and instead considering a person’s entire wellbeing. Likewise, holistic accounting and bookkeeping aims to improve the overall financial health for a business by looking at the big picture. Rather than focusing on a few individual aspects and how they affect the bottom line, a holistic approach takes the wider systems and operations of a business into account to help create a stronger overall business strategy.
Many small businesses scatter financial operations, with different parties handling bookkeeping, payroll and tax obligations. A holistic approach takes all the aspects into account and ensures communication across all parties so that all are working towards the same goal. Good holistic accounting and bookkeeping prioritises the overall growth of a business alongside compliance obligations.
What does the Holistic approach look like with Spectrum Accounting?
Communication and Alignment
Two of the pillars of holistic accounting and bookkeeping are communication and alignment. For Spectrum Accounting, this means taking the time to really understand what your business does and what you want to achieve. We’ll work with you to align all your financial operations to achieve your wider business goals while meeting your compliance obligations along the way. We’ll keep in regular contact with you and any other parties involved in your financial operations to help ensure everyone is working towards the same end results.
Compliance and Knowledge
Compliance can be frustrating, and some might even say ‘boring’ at times, but it is of utmost importance – getting it wrong can be catastrophic for your business and land you in hot water with the authorities. Out team are experts in the bookkeeping field and up to date with all the latest tax information in New Zealand. We’ll share our knowledge and expertise with you and help ensure that all your compliance obligations are met.
Technology
Great tech makes keeping across your financial position easy. At Spectrum Accounting we are entirely cloud- based, using top-rated accounting software that prioritises information security, visibility and efficiency. Our systems and processes are user friendly, and we can provide training to you and your team to get the most out of them.
Tailor-made Service Offering
Every business is different, each with its own unique strengths and challenges. Holistic Accounting recognises that a one-size-fits-all approach is unlikely to give your business the overall results you desire. That’s why at Spectrum Accounting we work with your existing strengths and resources and tailor our bookkeeping services to the level and extent that your unique business requires.
If you think a holistic approach could be a good fit for your business, we’d love to hear from you. Contact us today.
Customer Story: Pro Pour Concrete Systems Limited
Owned and managed by Dan Vessey, Pro Pour Concrete Pumps provide a concrete pumping service using a concrete boom pump. The truck mounted hydraulic pump transfers liquid concrete through a series of hydraulic powered articulating arms and pipes to locations that a standard concrete truck can’t easily access. Dan and Pro Pour Concrete Pumps have a reputation in the commercial concrete industry for being experienced and knowledgeable with well-maintained equipment. Dan prides himself on clear and effective communication, a crucial skill when working in fast paced and potentially hazardous commercial construction sites.
Playing to his strengths
When he set up Pro Pour Concrete Pumps, Dan was aware that accounting was not his strongest skill and planned from the start to find a reliable accountancy service provider who would be persistent, structured and ensure the financial side of his business was run the right way. He was looking specifically for a professional with experience in small New Zealand businesses who was engaged and genuine. Dan found Diane and Spectrum Accounting through a mutual personal contact and hasn’t looked back.
“What I have found with Spectrum Accounting is that I sleep better. I think more clearly and I can plan better. There is a whole section of stress removed from my day-to-day now that I have Diane and Jacquie helping me with my books and planning”
The Spectrum Accounting difference
When Spectrum Accounting started working with Dan and Pro Pour Concrete Pumps the first thing they did was to strip everything back and rebuild Dan’s financial structure and processes to ensure every element was as clear and easy to maintain as possible. Dan has been impressed by their industry experience, knowledge, structure, planning and exceptional communication.
“Spectrum Accounting work with an approach that is catered to the needs of my business. If there is anything that needs urgent attention, they are right there to alert me and help me sort it out. From transaction reconciling to extensive statistics and data collection to form an overview of financial health and performance – they have me covered, and I am very appreciative.”
Spectrum Accounting assist Pro Pour Concrete Pumps with:
- Tax compliance and GST preparation
- Day-to-day bookkeeping
- Financial planning
- Regular reports
“I feel as if I am their only client in the manner they work with me, I feel like my business is focused on, never forgotten or put to the bottom of the list like larger accountancy groups.”
If you need some help getting your books in order, talk to Spectrum Accounting today.
Customer Story: Paula Apparel 2020 Limited – How outsourcing bookkeeping has helped their business
Paula Apparel 2020 Limited manufacture, wholesale and retail the iconic PAULA RYAN Brand, which was established 25 years ago. PAULA RYAN is known in Australasia for its high-end womenswear and luxury fabrics. They have a strong and highly respected reputation in the New Zealand fashion industry for their premium, classic contemporary styling with a European flavour. The PAULA RYAN Products are sold direct to the public throughout New Zealand and Australia through online, independent retail stockists such as Smith & Caughey’s, Ballantynes, and their own Northwest flagship store.
Outsourcing made sense
In 2020, then General Manager Ben MacMillan bought the business and became Managing Director. Ben saw a need for an external contractor to offer the in-house team additional support as required. He wanted on-call access to expert accountancy knowledge and support to the day-to-day bookkeeping of the business, without the commitment of adding another permanent employee.
Ben also saw this as an opportunity to strengthen and streamline their financial processes, by focusing on accounts payable/receivable in-house and outsourcing the tax obligations, quarterly financials and end or year accounts. He also wanted the peace of mind which comes from an expert, independent financial oversight ensuring that all financial records are kept up to date and accurate. Outsourcing was the logical decision.
Enter Spectrum Accounting
Spectrum Accounting became involved with Paula Apparel 2020 Limited in 2020 after being referred by their previous accountancy company.
Since then, Diane and her team have
- Managed tax obligations and GST
- Prepared the annual accounts
- Provided quarterly reports
- Overseen the accuracy of records with regular auditing
- Offered recommendations and assistance streamlining current processes and implementing new processes
- Provided support and assistance for any queries that the in-house team might have.
- Assisted with transaction processing in Xero to alleviate pressure on the in-house team
Looking to the future
Ben describes the relationship of Paula Apparel 2020 Limited and Spectrum Accounting as “a very productive working relationship” and one that he knows will continue long term.
In his words, “Diane is an asset to the business, she works in very well with our needs and timelines, we find her trustworthy, reliable and accurate.”
If you think that outsourcing could be the right fit for your business, talk to Spectrum Accounting today.