*Article kindly supplied by Global Infosys
The term ‘outsourcing’ is generally a word that everyone knows of, but often doesn’t really understand.
Outsourcing is what happens when you decide to ask a business or individual who is not directly employed by you to complete a core task, responsibility, process or function which is normally done by someone employed directly by you. It really is that simple.
Interestingly, when you talk about outsourcing in this context, it produces a strong reaction – often one of fear. But it’s worth taking a step back and thinking about outsourcing more generally. Without realising it, many of us outsource in our personal life, fairly often.
In an accountancy context, outsourcing is where you employ freelance or outsourced resources to typically help you complete compliance type tasks, e.g.
- Preparing year end accounts
- Personal and corporation tax returns
There doesn’t need to be any fear around outsourcing. Outsourcing simply helps a company achieve its goals while allowing them to expand their network and clientele.
The Benefits of Outsourcing
Outsourcing can have a profound effect on a business but many are too fearful to look into committing to outsourcing, primarily because they don’t understand what it can do!
There are many benefits to outsourcing including:
- Your outsourced provider can typically process your compliance work cheaper than you can. Global Infosys find they can often help their clients increase their profit margins by up to 50%.
- It can free up time so that you are available to do the higher value engagements which your managers and staff often prefer.
- Given how hard it is currently to recruit accountants, tax and bookkeeping staff, using an outsourced resource could mean you never have to recruit a qualified or part-qualified member of staff again. (Unless of course you want to!)
The fear of outsourcing can simply be eliminated just by understanding how it can benefit your company.
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