Your Time is Money, Start Saving It By Outsourcing Efficiency is critical for business growth. In today's dynamic business environment, there are numerous reasons to outsource your business functions to an expert.
By Eric Chin Edited by Micah Zimmerman
Opinions expressed by Entrepreneur contributors are their own.
Time is the most important thing for a business. It's the one resource we can never get back, and it often dictates whether we succeed or fail. That's why efficiency is vital when it comes to business growth.
Outsourcing has long been associated with cost savings, which is still one of the main reasons companies choose to outsource. But in today's business environment, there are other compelling reasons to outsource.
Here are some of the most common benefits of outsourcing business functions:
Focus on core competencies
Let's dial in on the big one I mentioned earlier — time. I often see executives bogged down in non-core activities, especially accounting. This takes them away from their primary focus — growing the business — and puts them at a disadvantage when competing against organizations that have outsourced these functions.
Outsourcing accounting and finance operations is a gift to over-burdened executives. It allows them to focus on what they're good at and leave the rest to experts — that's how it should be.
Related: Four Reasons Your Startup Should Consider Outsourcing
Reduce overheads
Inefficient accounting and finance operations can be a significant drain on company resources. It's more common than you might think — a company has a dedicated finance team, but leadership manages the team more than the finances.
By outsourcing to a specialist firm, you can take advantage of their economies of scale and remove inefficiencies in your business. Outsourced services don't require sick leave, annual leave, or even onboarding and training — you can use them whenever you need them, nearly always at a lower cost.
Free your capital
An internal team of any type is generally a fixed cost — you'd have difficulty shifting those resources to another area of the business if circumstances changed. On the other hand, an outsourced service is a variable cost — you can increase or decrease your use of the service as needed without any long-term commitments.
This flexibility gives organizations much-needed breathing room to invest in other business areas. It also allows them to be nimble in the face of change, which is more important than ever in today's business environment.
Related: 7 Things to Outsource Immediately to Scale Your Business
Real-time data and analytics
Seeing the technology these specialist financial service providers offer is a real eye-opener and helps you understand how much they can help your business. Having access to accurate, real-time data and analytics is critical.
However, internal teams often struggle with data and analytics for a few reasons: they're too bogged down in the day-to-day to see the big picture, or the organization can't justify the expense of the necessary tools and technologies.
But cutting-edge real-time data and analytics are generally built into the service when you outsource your accounting and finance operations. This gives you visibility into your business like never before and helps you make better decisions about where to invest your time and resources.
Related: How to Use Real-Time Data to Fine-Tune Your Business Decisions
World-class talent
Imagine for a moment that your talent pool stretches around the entire world. That's the reality for specialist service providers. There are teams of experts in every time zone, meaning they can offer 24/7 coverage and support. They're focused on a specific area, attracting and retaining the best talent.
This is a huge benefit for organizations that outsource their accounting and finance operations. You have access to world-class talent that can help you take your business to the next level without paying a premium.
Related: 4 Things to Consider When Choosing the Best Asian Country for Business Expansion
Are there drawbacks?
Many organizations have doubts about outsourcing, but in my mind, they are largely unfounded, especially if you look at the results. Let's take a look at the two most common objections to outsourcing:
Language barriers
English is the international language of business, so these days it's rare for outsourced talent not to be able to communicate clearly with Western companies. But even if there is a language barrier with the actual human processing your finances, the numbers are most important, and there will likely be an English-speaking manager overseeing the work to ensure accuracy and understanding.
Different time zones
The time zone difference is often cited as a reason not to outsource, but in my opinion, it's a benefit. Specialist service providers have teams in every time zone, which means they can offer 24/7 coverage and support — something that would be very difficult (and expensive) to replicate with an in-house team. And there's nothing quite like waking up in the morning and seeing work done while sleeping!
Outsourcing accounting and finance-related services have been a boon for many businesses I've worked with. My best advice is to get some recommendations from within your network and get on the phone with prospective outsourcing services. Talk to them and look for chemistry. Do they "get" your team culture and values? Do they understand your business goals and objectives? If they do, that's your winner.
If you can find a good fit, I think you'll be amazed at how much these specialist service providers can help your business grow.
