Business owners and executives focused on the financial aspect of the company are continually reviewing how to limit expenses without having their services or products suffer in any way.
Outsourcing services to specialists rather than hiring employees internally to complete certain tasks can improve bottom line company profits. Specialized tasks can be completed by an outsourced company for a fraction of the cost and more accurately as compared to internally hiring a specialist.
Here are five tasks that you should definitely consider outsourcing to free up time for your internal staff and better utilize them for improving your core business processes.
1. Legal Services
Instead of hiring an attorney, you should consider outsourcing legal services to significantly cut down costs. Legal process outsourcing (LSO) can result in quantifiable cost savings due to labor arbitrage, which is the cost differential between the in-house legal attorney and outside vendors.
Outsourcing legal services will allow you to gain access to highly experienced legal advice at a significantly reduced cost than hiring in-house. This will free up time for your internal staff that can be better utilized on processes that make a direct impact on improving business revenues.
2. Accounting and Bookkeeping
Most firms utilize outside accounting firms to complete their tax returns. This is a perfect example of how firms outsource and may not even realize it. Accounting tasks can also be outsourced to gain cost efficiencies. Outsourcing tasks such as ledger entry, bank reconciliation, tax preparation, and others can free up time and resources for performing core business tasks. In addition, it will allow your company to tap into the expertise and resources of the outsourcing company.
3. Payroll Processing
A considerable amount of time is spent preparing payroll records. Double-checking for any errors also takes a lot of time of the internal staff. Outsourcing the payroll function will help cut down costs and the time in processing salaries. Since it's not your core operating function, it can make sense economically to outsource the task.
4. Accounts Receivable Collection
Another task that can reflect positively on the profitability if you outsource is accounts receivable collection. Firms that specialize in collecting accounts receivable have a high degree of expertise that internal staff lack. They can collect overdue accounts quickly and with great efficiency resulting in improved cash flow position.
5. IT Tasks
IT professionals represent a cash drain for firms, particularly for small businesses. You should consider outsourcing non-core tech IT tasks such as data entry, cyber security, website optimization, and digital marketing. These activities are not critical to your business. Outsourcing them will help you divert internal staff time to absolutely necessary tasks.
Even outsourcing such simple tasks as emptying the trash can help reduce internal operating costs. Just think about it: why hire a staff to take personal trash to the curb when it could be taken directly to the dump by expert trash collectors- at a fraction of a cost.
For more effective utilization of your staff time, you can outsource accounts receivable collection to Credit Management Group. Our unique collection process has helped companies improve their cash flow position due to timely payments by customers. Contact us today for a free, no-obligation initial consultation by dialing 215-845-5040.