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: 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: Edith Amituanai Artist
Acclaimed photographer and Arts Educator Edith Amituanai has been described by fellow photographer Haruhiko Saemshima as a “catalyst bringing art into communities and communities into art”. Her contemporary photography has won multiple awards including the Marti Friedlander Photographic Award 2007, the Trust Waikato National Contemporary Art Award and the Martin Hughes Contemporary Pacific Art Award.
Located in Auckland, New Zealand, much of Edith’s photography focuses on her local community and in particular the Pasifika community of which she is part of. Her work has been featured in many exhibitions around New Zealand and in 2018 she created a book Keep On Kimi Ora in collaboration with Kimi Ora Primary School in Flaxmere, New Zealand.
Art and Accounts
Like many artists, Edith’s business income comes from multiple sources and can be sporadic. She found herself with a growing business, needing help understanding both her financial position and her tax and GST obligations. She also wanted to develop long term financial systems and to prepare her accounts so she could apply for a home loan.
The importance of understanding
When looking for an accountancy partner, it was important to Edith to work with someone who understood artists and knew how to make them comfortable with their finances. Fellow artist, Nikau Hindin recommended that Edith talk to Diane and Spectrum Accounting who had first-hand experience working with artists as well as many other self-employed contractors in similar positions.
The Spectrum Accounting Experience
Diane and the team from Spectrum Accounting began working with Edith soon after. They started by setting up Edith’s accounts in Xero and establishing some financial systems for her business. They helped her meet her tax obligations and prepared her accounts so that she could successfully apply for the home loan she was wanting.
Edith still wanted to be involved in her accounts, so the team from Spectrum Accounting gave her training to understand and utilize Xero and the systems they had put in place.
“I feel very empowered by utilising the systems Spectrum Accounting has built for me.”
Now, Edith completes the parts of her accounts that she is comfortable with, while Diane and her team look after the rest.
“I now have a much clearer understanding of my finances, of how much revenue was made, expenses etc. It’s been life changing!
It means I know what I can say yes and no to, and what I areas I can develop further.”
Edith and her husband also own a rental property and Spectrum Accounting assists to manage the end of year accounts for this property.
Stamp of Approval
Edith has been very happy with the work and support she has received from Spectrum Accounting. She describes the team as prompt and great communicators and readily tells colleagues and friends about them.
“I tell many colleagues, particularly sole traders, about Diane as it has been liberating to know more about my finances, before it was very much guesswork!”
If you want to take the guesswork out of your accounts, talk to Diane and Spectrum Accounting today.
Going self-employed in 2022? Basic accounting terms you need to know
| Assets = | Liabilities + | Owner’s equity | ||
| Building | Vehicle | Cash = | Bank Loan + | Owner Investment |
| $40,000 | $20,000 | $20,000 = | $20,000 + | $60,000 |