Outsourcing your back office functions.
These days, many businesses employ the use of outsourcing, not only to make things run smoother but to potentially reduce costs. Outsourcing is when a business enters into a contract with another business to provide services that might otherwise be performed by in-house employees. Jobs such as bookkeeping, payroll and accounts payable & receivable reconciliation are commonly outsourced. Outsourced jobs are handled by separate businesses that specialise in a particular service.
When considering your business needs, some key questions may arise to support the need for outsourcing. For instance, are you thinking about setting up a subsidiary in Australia and want to save costs? Or perhaps you’re thinking of setting up a new company in a cost effective manner? Or do you have an existing company and want to save costs and the hassle of the back-end processing and compliance work? Are your skills better utilised in growing your business in other ways?
There are many reasons why businesses outsource various jobs, but the largest advantage seems to be the fact that it often saves money. Many of the companies that provide outsourcing services are able to do the work for considerably less money, as they generally have fewer overhead expenses to worry about. The business that outsources its work does not have to pay for the time and effort it would take to train employees or hire a new person to get the job done.
By outsourcing a business can focus on other issues while having the details taken care of by experts, outside of the business. This means that a large amount of resources and attention, which might fall on the shoulders of management professionals, can be used for more important, broader issues. The specialised company that handles the outsourced work is often streamlined, highly capable and will have access to new technology that a business usually couldn’t afford to buy itself. If the business is looking to expand internationally, outsourcing is a great cost-effective way to start building foundations in other countries.
Some key areas that may be suited to outsourcing:
• Choosing a business structure
• Registering a business name, trade mark, company
• Creating a business plan
• Creating contracts
• Skills and training
• Accounts payable and accounts receivable
• Payroll issues including workers compensation and OH&S
• Making payments: managing cash flow
• Documenting systems and procedures
• Credit and debt recovery
• Inventory management
We can help you with outsourcing as we already provide these services to some of our overseas and Australian clients. The Quinn Group is an integrated accounting, legal and business advisory firm, offering professional advice to help you achieve your business and personal goals. Our goal is to provide all the advice and information you will need to help you with the key aspects of planning and setting up a successful business. For more information submit an online enquiry or call us on 1300 QUINNS (784 667) or on +61 2 9223 9166 to book an appointment.