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.
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.