If you ask most people what they think of outsourcing, the majority of them will tell you that it’s a bad practice. Most of those people won’t be able to tell you precisely why they feel this way – just that they do. But the truth is, whether you’re an SMB or a large corporation, the decision tooutsource accounting services could actually result in the creation of new jobs, not to mention spurring growth in your company. How does this work? Read on to find out.
Businesses who decide to outsource accounting to third parties frequently do so because their internal bookkeeping could use a bit of help. Maybe their bookkeeper isn’t up to the task of keeping up with daily entries, or is delivering substandard performance. While the belief that outsourcing will bring improved checks and balances is one that’s founded on solid logic, handing over the accounting to a qualified third party can actually decrease overhead to the point where new jobs in different areas can be created – like expanding manufacturing, for example.
The natural consequence of expansion in critical areas like manufacturing or sales can then result in opportunities for corporate growth. Although outsourced accounting services aren’t free, they can be a lot more cost effective than employing an entire team of bookkeepers, especially when you factor into regular employment additional expenses like health care and benefits. There are also overhead cost to consider when you employ a team of accountants. Just freeing up a small percentage of the company’s physical real estate to make room for other endeavors can dramatically cut cost and spur expansion.
Reduced operating budgets and expanded growth are the kinds of things that help ignite stalled job markets. Think about it: if more companies were to take advantage of growth opportunities like these, maybe the country’s economic outlook wouldn’t be so dire.
