6 Reasons Business Owners Should Consider Back Office Outsourcing
Updated: Jul 15, 2020
Growing a business is not for the faint of heart or for those seeking job security and a 9-5 work environment. The partners at The KF Group know this all too well and have the lumps to prove it.
The partners’ business experiences led them to build an outsourcing company to smooth the path for owners by providing solutions to the critical challenges’ owners navigate when growing a business. Outsourcing provides extensive benefits when contrasted with traditional efforts of managing back office functions with internal resources. The benefits of partnering together with an outsourcing company are outlined below.
1. You get business expertise without the extra costs. Outsourcing provides a portal to a broader range of expertise and experiences than owners can afford to hire internally. The combined contributions of a variety of professionals provides a complete solution to critical administrative areas like accounting and financial management and reporting, strategic tax and compliance matters, HR administration, IT management, and can even help with sales, marketing and data analytics.
2. You can scale your business worry-free. Partnering with an outsourcing company gives businesses the freedom to grow without the worry of adding additional employees and the flexibility to downsize without the added stress of losing employees. Everyone wins.
3. You get additional expertise in your C-Suite. Owners can dramatically increase the depth and expertise of their C Suite by adding an outsourced specialist. These partners can help owners better understand issues owners face, provide strategic direction and measurable outcomes as part of the strategic planning process. These same professionals also help owners by providing access to potential customers, vendors, investors and financing sources. Imagine tapping into the depth of resources the partners have from networking in the business world for decades.
4. You can finally have access to easy accounting. Outsourcing specialist can design easy to use and accessible cloud-based accounting and reporting platforms that provide timely and accurate information critical for decision making. Tools such as Bill.com and cash management applications can be added to increase accuracy and efficiency of processing. Redundancy is another advantage of the outsourcing process, allowing for better internal controls over transactions, reconciliations and operating continuation.
5. You have a roadmap when business goes off-road. Outsourcing also provides expertise as needed when an unexpected crisis comes up or a transaction outside normal operations arises. The Covid-19 crisis is a great example. Additional resources familiar with the business are available to assemble information, help with applications for emergency relief funding, develop crisis financial projections and cash management plans, implement daily cash tracking tools, design and develop IT solutions for alternative working arrangements and to manage large scale HR challenges. Financings or M&A transactions are another example of transactions outside of normal operations that require more resources.
6. You have more time to focus on what you do best. Perhaps the most exciting aspect of outsourcing for owners is freedom from managing a variety of complex and risk laden administrative functions for which the owner has limited to no technical understanding. Assigning those responsibilities to an outsource partner significantly simplifies the owner’s responsibility, freeing significant time to engage in growing revenue, finding and retaining talent, refining products and services, and assuring execution of the business plan. These are the functions that directly impact growth, profitability and thus value of the enterprise.
Outsourcing done well provides significant value to business owners. Whether you are in the initial stages of a business startup, contemplating the changes manifest by dramatic changes to your business environment, undergoing changes in personnel or just feel a need for a stronger support team, the benefits of outsourcing your back office operations (some or all) should be given strong consideration. We believe you will realize that a substantial ROI opportunity resides in that choice.
Reach out to the KF Group today to schedule some time and find out how we can partner together to free you to do what you do best and let us take care of the rest.