Should I be outsourcing?

Have you ever heard yourself say “there just aren’t enough hours in the day"?

With no time to focus on your business, it might be time to think about outsourcing.

The 21st-century hustle culture has us trying to fit so much into the day that we are all quickly becoming hamsters on a never-ending spinning wheel, trying to master everything around us.

Outsourcing is when a company hires another company, team, or individual to perform a planned or existing task, and for modern businesses, this provides access to a whole army of people, technology, and companies to help run the business.

Imagine the time you could re-invest into building your business if you didn’t have to wear every hat – payroll manager, website and content creator, HR advisor, bookkeeper, management accountant, IT specialist, booking agent.

The list of skills a small business owner is expected to have under their belt is endless! It’s little wonder they are often working around the clock to keep things ticking over.

The reality is, you may not be the best person to wear all the hats, and that’s okay!

If you have the right people in your team to keep your business running, you can take your business to the next level.

Outsourcing is becoming the normal practice within most industries, including tourism and hospitality, and by embracing it businesses can establish better workflows and processes.

What about all the things that have kept you up at night, but you haven’t had the time to act on? Accounting is one of the many business functions that are increasingly being outsourced.

For example, have you ever thought about how much you need each customer to spend per transaction?

What happens if suddenly fuel reaches $2.50 a litre (this is feeling more real every day) – how will this affect your pricing strategy if you are a tour operator?

Or how do you provision and predict your cash flow for those quieter months in the season?

Accounting is one of the many business functions that are increasingly being outsourced.

Accountants are typically thought of as a once-yearly resource to maximise either your tax return or answer a few questions when a new set of tax rules are announced. Should I be outsourcing to save time?

However, with modern technology, we can interact with your business's data in real-time and step into the advisor role for your business.

A strategic partnership with RSM might mean outsourcing day-to-day business tasks SUCH AS:

Invoicing
Payroll
Bank reconciliation
Compliance lodgements (BAS, IAS, Payroll tax)
Reviewing your business data each month
Management reporting
The full finance function of your business and everything in between

An in-house management accountant may feel like a big step and a committed cost for a small business, however, outsourcing solutions can de-risk a business owner who is currently trying to manage tasks outside of their expertise.

It also means that strategic planning and performance tracking, something that is often neglected can now be prioritised.

A step into the advisory space with RSM will see you work with an accountant who is involved with your business at an outsourced level but will feel like a member of staff.

There are many benefits outsourcing can bring to your business beyond freeing up time, these include:

Cost savings
Business agility
New ideas
Talent sourcing
Reliable and timely data
Efficiency drivers and risk management.

The bottom line is often better business outcomes by leveraging external expertise that can be switched on and off at a lower cost.

If I can leave you with one piece of advice, let it be this – list everything that you currently do for your business, and then list all the things you could be doing if you embraced outsourcing.

You’ll reduce the time you spend on tasks and have more time to focus on the reason you started your business in the first place.

If you want to explore outsourcing options, including your accounting functions, contact your local RSM adviser.