Ever feel like your business budget is disappearing? You're not alone. Of the 33 million small businesses operating across the US, 82% struggle with managing their finances effectively. Overspending on in-house operations can often lead to major budget blunders and hinder growth potential. But what if there was a way to streamline operations and potentially save significant costs? Here's where exploring how much companies save by outsourcing their accounting can be a game-changer.
Although poor cash management is a common occurrence, a tactical solution exists that's gaining traction across industries: finance and accounting outsourcing. This isn't just a trendy buzzword; it's a strategic investment that can reduce costs and propel your business forward. The following are the top five ways outsourcing various accounting functions can be your secret weapon for budget mastery.
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Reduction in Labor Costs
Think of your payroll as a giant, unyielding boulder that's crushing your budget under its weight. Outsourcing turns it into a set of flexible building blocks. Entrusting your accounting and finance tasks to a qualified provider enables you to convert fixed salaries and benefits into variable costs. It allows you to scale your financial team up or down depending on your workload, saving you a significant chunk of change.
Case Study:
A leading North American supplier of fuel, lubricants, and chemicals faced high staff turnover, inefficient processes, and a need to control costs. Using our virtual accounting model, Personiv addressed the time and cost challenges by creating a highly scalable financial shared-services model.
This included automating lockbox operations, streamlining document handling, and facilitating a smooth system migration. The result? Reduced costs with a flexible team handling daily transactions, improved efficiency with same-day cash posting, and time for the client to focus on core business activities.
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How Much Can Companies Save in Accounting Overhead by Outsourcing?
While office supplies might seem like a minor expense, they can add up quickly. Did you know the average American business spends between $639 and $1,844 per employee annually on office supplies alone? Such an expenditure accounts for a substantial portion of overhead costs, especially for medium-sized companies with around 4 to 200 employees, says All Copy Products (ACP).
Outsourcing eliminates the need for dedicated office space, furniture, and mountains of printer paper. Once you unplug the overhead drain, you'll free up valuable real estate and watch your overhead costs shrink dramatically.
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Access to Global Talent
Imagine having a team of world-class financial wizards at your fingertips minus the exorbitant salaries often associated with top talent. Outsourcing provides businesses with access to a global talent pool without breaking the bank. Companies can tap into specific expertise at a fraction of the cost of hiring specialists in-house.
Whether it's tax compliance, financial reporting, or strategic financial planning, outsourcing firms offer services tailored to meet the unique needs of each client. Take a moment to reflect–what finance and accounting functions would you consider outsourcing to free up resources in your business? Share your thoughts in the comments below.
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Increased Efficiency and Competitiveness
Outsourcing firms specialize in delivering financial solutions with laser focus. They leverage economies of scale to optimize processes and provide maximum efficiency. Outsourcing repetitive and time-consuming tasks translates to faster turnaround times, fewer errors, and a substantial boost to your overall financial operations. Businesses can focus their internal resources on core strategic initiatives that drive growth and innovation.
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Streamline, Don't Scatter: How Accounting Outsourcing Helps Companies Focus on What Matters Most
Your core business is like a set of juggling balls you need to keep in the air to ensure success. Outsourcing activities such as accounting compares with handing off a few of those balls to a skilled juggler. Your management team has more time at their disposal to focus on core strategies like product development, marketing, and sales.
Parting shot: Remember, small expenses will add up over time, just like a tiny leak can eventually sink a great ship, as Benjamin Franklin famously cautioned. Every penny counts in today's competitive business landscape to maximize your financial efficiency.
Are you ready to reduce labor costs, eliminate unnecessary overhead, access global talent, streamline operations, and free your team to focus on what truly matters? Consider outsourcing as a strategic tool to plug those leaks and steer your ship toward financial success.
Wondering how much companies save by outsourcing their accounting? Fill our contact form to speak to an expert at Personiv today and discover how outsourcing can better your business.
