Most big companies do all their business tasks themselves. Some small businesses also manage all their activities within the companies. But how much can you save by keeping it in and how much by outsourcing it? Having a large company with all services done by internal employees could be suitable to some, but it is not so for all. Sometimes, trying to do everything in-house can backfire and there are definite advantages to be had by letting a specialist handle some things.
Be the best of what you are good at
Unless you are an accountant yourself, it is highly unlikely that you have a specialized accounting knowledge. If you are running a comparatively small-to-medium sector organization, how likely are you to end up hiring the best talent for accounting and financial management? But, you do know what you are doing in your own business, such as manufacturing toys or taking care of elders. So if you outsource the accounting and financial functions such as bookkeeping services Parramatta to an expert in it, you can spend more time doing what you are good at. You can improve it and bring in more revenue and profits.
Cost cutting is a famous topic nowadays what with the economic recessions hitting and the US dollar going up. It has been found out by outsourcing finance and accounting you can save up to 40% of the employee costs as opposed to the per head cost of an employee by not having to commit to a benefit package,equipment and trainingand insurance premium payments. It has also been found that hiring a new employee can cost up to 150% of one’s annual salary; hence by not looking to recruit anyone new, there also you are cutting significant costs. Needless to say, the lower the costs you have to incur, the higher the amounts you can use to reinvest.
Lessen the opportunities for fraud
Not to say it happens a lot, but employee fraud is a plausible scenario. Statistics goes on to show that organizations with less than 100 employees are most probe to this and the average fraud amount can go up to a loss of USD 155,000.00 annually.By outsourcing payroll services you can reduce the opportunities for scams. Another advantage is that accountants and other financial experts in these companies know a lot about taxes hence they’d know to pay the optimum amount of taxes and save your company a lot more money as well. There is an unnecessary and unfound fear in society about outsourcing. It is clear that there is nothing to worry about, it could be one of the best decisions you have made.