Cost savings are one of the most widely cited reasons for adopting outsourced services. And while it’s true that outsourcing can help to minimize certain budget items, it’s overall effect on financial health is much bigger than that. In the best cases, outsourcing helps companies save money now, drive revenue later, and build a competitive advantage for the future. Here are some examples illustrating how outsourcing directly affects the bottom line.
Optimize the Accounting Department
Decision makers have the option to outsource current accountants in order to cut labor costs. Alternatively, they could add outsourced accountants to the ones they already have at a fraction of the cost of a new hire. Either way, outsourcing helps accounting departments do more with less.
Access Economical Expertise
Large, complex, and specialized accounting workloads all take a significant internal investment to complete. Relying on an outsourcing firm to handle these things instead gives companies capabilities they wouldn’t have otherwise. Putting growth strategies in place becomes a lot easier when companies don’t have to cultivate everything within their own ranks.
Leverage Shared Assets
One way outsourcing firms provide value is by giving clients access to shared resources, whether that be experienced accountants or cutting-edge accounting technology. Companies get the same benefits of having these assets internally, just at a fraction of the cost. Therefore, outsourcing enables targeted improvements across accounting without mandating major new investments in something like enterprise software.
Avoid Unnecessary Costs
An under-powered accounting department creates unnecessary costs in multiple ways. Replacing accountants, for example, requires an investment in recruiting. Fines resulting from poor regulatory controls are just another example. Outsourcing helps accounting departments round out their capabilities so they can deliver value instead of drain resources.
Ensure Financial Stability
Anything less than perfect accounting is a liability. When there is not enough of the right kind of accountants on hand, it can lead to corrupt financial data, missed deadlines, overlooked opportunities, and ongoing uncertainty. Sustaining success requires financial stability. Outsourcing provides stability by ensuring that accounting departments always have the expertise and workforce to achieve peak performance.
After you consider the complete context of outsourcing it’s clear this is more than just a cost-saving measure, it’s a comprehensive business strategy. Companies don’t decide to outsource so they can slash costs to the bone. Rather, they outsource to become the best version of themselves.
A lot is possible, but it all depends on finding the right outsourcing partner. Some provide a service, but the best ones are invested equally in your success. Learn what that looks like by contacting Phil Lampugnano.