Whether you run a Fortune 500 company or a local non-profit organization, time and resources are always in short supply and high demand. Leaders are always on the lookout for process improvements that will save both and increase their bottom line. Outsourcing tasks that aren’t mission critical is common practice. By doing so, it frees up your team to focus to on mission critical tasks such as marketing, research and development.
Outsourcing accounting tasks has become commonplace among companies of all sizes as well as non-profit organizations. Although there is a cost associated with outsourcing, the benefit far outweighs it.
Accounting needs to happen every single day. By removing it off of your staff’s plate, their time will be freed up. That time can be spend on working on growth specific tasks that will ultimately grow your organization.
Crunching numbers isn’t as easy as it may sound. Often times organizations, especially small business or charities, use someone with limited experience in this capacity. A reputable agency that is staffed with a fully trained, experienced team, is focused only on handling receivables and not pulled in multiple directions. This allows them opportunities to improve business processes and help you collect your receivables in a timely, efficient manner with a lower risk of error.
Reduction in Staff
The agency that handles your receivables will need to be paid for their time and services which is likely less than the person you are paying to manage it in house. Not only are you saving the salary of this staff member, but also soft costs such as technology, office space and benefits. You may find there is a need for this staff member in another area of your business, otherwise, it is one less person needed on your payroll.
Checks & Balances
The company you outsource to will provide you with data you likely didn’t have access to before. Using this information gives you greater insight into your financial picture. This will improve the cashflow at your organization which for any, is a good thing!
Many companies have reservation about outsourcing this task for fear they are going to lose control. While this is a valid concern, it is one that, with research, can easily be put to bed. Openly ask potential companies what type of reporting they offer, how often it is updated and what level of access you will have if they are awarded your business. Establishing these expectations from the start will make for a smoother transition.
Since every organization is different, you will also want to look for a partner company that offers a customized approach and not just a cookie cutter solution. A company that is willing to invest their time in getting to your know your business model is one to definitely add to your short list of potential partners.
Outsourcing these functions can be a positive change for a company and could ultimately lead to increased client/donor satisfaction. Isn’t that what every business has as their number 1 goal?