Today’s business environment continues to challenge business owners as they search for new and creative ways to accomplish their goals, often with smaller budgets.
Outsourcing is a controversial topic associated with the displacement of people and jobs; however, not all outsourcing directives are performed offshore. Many local companies provide similar services.
Outsourcing is the delegation of one or more business processes to an external provider to maximize opportunities, reduce costs and minimize risks. It is a way to utilize best practices and not have to reinvent the wheel.
Processes to consider for outsourcing
In every business, there are processes that may not receive the attention they deserve due to other fires that need to be addressed. Time is money, and getting your business to run efficiently by doing what you do best results in adding dollars to your bottom line.
Beyond the following areas, there are many others within every manufacturing, distribution or service industry business that are not being addressed.
Accounting functions
* Routine daily activities
* Creation of procedure manuals
* Budgeting/cash flow analysis
* Streamlining and documenting processes
* Analysis/implementation/support of accounting software
* Controller or accounting manager function
* Substitute for employees on medical leave
Technology
* Routine support and maintenance
* Web design and maintenance
* Software design and implementation
Marketing and advertising
* Strategic marketing plans
* Market research
* Product strategies/pricing
* Promotional strategies
Human resources
* Payroll services
* Design, implementation and management of benefit programs
* Employee handbooks
* Job descriptions
* Compensation analysis
* Recruiting
Consider outsourcing
Outsourcing allows you to take advantage of best practices by leveraging proven practices that are in place and provided by an expert in a specific area. It eliminates the everyday challenges and the increasing and hidden costs of employees. Move the responsibility and free up time and money.
For small business owners, outsourcing is a way to accomplish tasks, and it provide time to focus on what they do best.
Identify a provider and implement the process
Begin your search for an outsource provider by discussing your needs with your professional advisers. Most can either provide some of the services or have contacts who can provide the services you are searching for. Once you’ve identified a provider, here are five tasks.
* Interview and evaluate the provider’s capabilities and qualities to make sure it is a good fit. Also identify with whom you’ll be directly working. The provider will fill the role of an employee, so not only do you need to trust it can provide the services, you also need to be able to communicate well with the person assigned to your project.
* Ask for references.
* Negotiate costs and identify in writing the scope of the project, along with deadlines and costs. Make sure the contract identifies cost overruns — how you will be notified and the associated pricing. Understand the terms for payment; often, retainers are required before a job begins.
* Understand the terms of the agreement related to terminating the contract and how change orders need to be communicated.
* Make a commitment once you have identified and agree with all terms of the contract.
Outsourcing can be a way to accomplish tasks and goals more quickly and efficiently, saving time and money.
LOUISE KIRK, CPA, is associate director in the entrepreneurial services group at Saltz, Shamis & Goldfarb Inc., the tax and accounting division of SS&G Financial Services (www.SSandG.com). Reach her at [email protected] or (330) 668-9696.
