Why should a company’s strategic plan include using resources, which do not come from within the organisation, to perform functions which were conventionally the responsibility of internal employees?

When the task of managing a business leaves the owners or managers with insufficient time to attend to the filing and processing of source documents, preparation of monthly accounts and the tracking of financial data, then it may be time to seek external assistance. A company should consider the option of engaging outside help to ensure that income and expenses can be properly recorded and analysed, and the financial position of the business can be accurately determined and summarised at regular intervals.

By choosing the outsourcing business solution, a company can reduce its overheads as well as its employee costs while gaining expertise in the required field. This is achieved by utilising the services of organisations that have trained, professional staff that are experienced in the functions that are required by the company. The management team is then able to concentrate on the development of the business by applying their limited resources to activities which will promote growth and the enhancement of business strengths. Operational functions, such as bookkeeping and payroll management, are very important and require specialised knowledge but are routine and time consuming activities that do not really form part of the core business operation.

To be able to provide a successful and efficient outsourced service it is important to ensure that the business partner shares the same professional approach as the company, that the needs of the client as well as the objectives and goals of their business are understood, and that the required skills and knowledge resources are available to provide the services in an effective and proficient manner. A structured contract that details the terms of the engagement and the responsibilities of both parties must be settled to ensure all parties know what is expected of them and what is to be provided. Frequent communication with the clients is vital so that they remain informed and potential problems can be eliminated. The management of the business relationship will not only promote a better understanding of the engagement but also provide support to the client. Client data must always remain confidential and be regularly backed up so that information cannot be lost.

Let us not forget the famous saying that “knowledge is power”. Although most of us have the idea that we can do it all and should be able to do it all, we do tend to have our limitations with our strengths lying in certain areas of expertise. By outsourcing your company’s accounting and payroll needs to the right service provider, you can maintain a business that is powerful in all aspects, have the peace of mind that legislation is being complied with and statutory deadlines are being met. You’ll also be safe in the knowledge that the financial position of your business is correctly presented so that you are better prepared to make calculated business decisions.

Michelle Van Coppenhagen

Associate, Johannesburg

Read more about our Outsourced Accounting & Payroll services here or you can contact Michelle directly on [email protected].