With a competent service provider and good management control, companies of all sizes can obtain the advantages of outsourcing. If you’re still not convinced with the benefits of outsourcing that we have previously shared, here are five more that you should know:
- Risk Management
Companies are exposed to risks resulting from changes in the market. Outsourcing reduces these uncertainties as your outsourcing provider will be sharing the costs. It becomes a joint responsibility of the company and the vendor.
- Increase turnaround time
Having specialized systems provide more efficiency, allowing a quicker turnaround time, but still achieving high quality. Also, you’ll get access to highly skilled workers who specialized on tasks that are not your core competencies.
a. Business Goals
It is important to consider your outsourcing service providers short and long-term business goals in order to determine if they are the right partner for your business. You can also ask for references from their customers so that you can get first hand feedback.
b. Financial Stability
Identifying your outsourcing partner’s stability helps you determine it can survive in the long run. You can use fundamental analysis to measure the value and performance of a company relative to other companies in the same industry.
1. Get the team together and map out the process from the first contact with a client, to the ongoing relationship and what you deliver to clients.
Once you have the client process mapped out, put it into a workflow mapping software so you can see the map of workflow and your client journey with your firm. Once you have done this, every step of the process needs a training video and written instructions.
2. Get the people doing the work to document the process
The easiest way to do this is to set-up an office or quiet space within your firm for staff to go to and record themselves doing their work. What we mean by this is screen capturing (recording their computer screen as they do the work) and talking through what they are doing.
100% more capacity, meaning they could double their revenue without any increase in staff (and or less than $30,000 per month) Some of the most common roles to outsource include:
- Corporate secretarial and ATO correspondence management and work
- New entity set-ups
- Client service roles – from engagement agreements to ethical letters to database management and tax lodgments
- Executive assistants
- Marketing roles (one firm has 7 marketing roles)
- SMSF tax and compliance
- Personal tax returns
- Business tax returns
Shortage of Accounting Staff in Australia
Attracting and retaining staff these days can be quite difficult. The loss of a team member at the wrong time of year can have significant effects on productivity or billings. Setting up a team offshore can solve this problem, as there are significant numbers of qualified CPA and administration staff available, and ready to commence employment with you.
High Wage Cost in Australia
As an employer, you already know the costs of employing staff for your practice is expensive, causing margins to be squeezed, and this isn’t getting better. A benefit of employing staff with The Outsourced Accountant is you can employ a full-time dedicated employee for between 15,000-18,000 AUD per year. This low wage cost allows you to employ three staff offshore for the cost of one staff member in Australia or New Zealand. This also allows you to increase your firm’s capacity by 200% for the same cost.