As a business owner you should be focused on your Core Business or the “Front Office”. Your Core Business is Sales, Marketing, Business Development and Customer Service. However, many business owners end up spending too much time and/or money on the Back Office. The back office is bookkeeping, finance, tax compliance, payroll, human resources and managing employee benefits. You should consider outsourcing these functions when you are spending too much time and/or money. 

The back office is a cost center – it doesn’t generate any income! In addition to the direct cost of salaries and benefits, there are indirect costs such as office supplies, recruiting/replacing employees, training and managing the accounting staff. It can also take away limited resources (time and money) from growth and profitability. In most businesses, it is the best place to look for process improvements and cost reductions. Outsourcing the back office can reduce the cost while significantly increasing operational efficiency. The owner can spend more time focusing on the core business, which is most likely the reason they started the business in the first place! 

 

Consider Outsourcing your Finance and Accounting when:

  • Finance and Accounting Costs (direct and indirect) are too high
  • Need to redirect F & A cost to improve profitability
  • Do not have internal expertise for bookkeeping, tax compliance and financial management
  • Need accountability with a trusted business partner
  • Operational inefficiencies that impact the front office
  • Your staff isn’t large enough to have internal controls in place
  • Need to focus on Core Business for growth

 

William R. Barefoot CPA, CGMA, is a Manager in WebsterRogers’s Business Services Group. His practice focus area is cloud based accounting systems and outsourced accounting services. He can be contacted at (843) 665-5900 or wbarefoot@websterrogers.com.