In-House vs Outsourcing
Outsourcing certain aspects of your business can seem intimidating. Who should you choose? Will they perform better than an in-house team? Will outsourcing affect your internal company culture? Do you have to be a large business to actually benefit? There are a lot of myths and misconceptions about how exactly outsourcing can help your business succeed. We’re here to debunk those myths, clarify the misconceptions, and give you an overview of what outsourcing can and can’t do for an organization.
In our years of providing outsourced accounting services, we’ve heard quite a few objections that stem from misconceptions about outsourcing, here are the top five:
Misconception #1: Outsourcing is expensive.
Of course, there are expenses associated with bringing in an outsourced firm, no matter the department. But if you crunch the numbers, as we all love to do, outsourcing can actually save you money in the long run. Consider the cost of hiring one salaried employee, providing benefits, paid time off, sick time, the time it takes to train that person, and onboard them to get them up to speed with the skills you need. When you compare those costs to the cost of hiring an already-formed, fully-functioning, highly-skilled outsourced team, the math always points to outsourcing.
Misconception #2: Outsourcing is only for large companies.
Many people believe that large companies are the only companies to benefit from outsourcing services. In fact, small to midsize companies can actually benefit just as greatly from outsourcing their accounting services. At Turning Point we specifically choose small to mid-sized businesses to work with, as we believe that is where we can move the needle most. We’ve found that informing small to mid-sized business owners about their financials provides a great deal of value for our clients.
Misconception #3: An outsourced team won’t understand your business.
Outsourcing companies want to see your business succeed. We want to partner with your business to get a better understanding of how you run day-to-day. It’s a win-win situation, if you succeed, we succeed. We know how to implement strategies and processes to set you up to make better business decisions based on your financial data.
Misconception #4: Your data is being shared.
We understand how important your data is to your business, and we understand that as an accounting firm we are handling some of your most sensitive and important information. We take this extremely seriously and ensure that we are keeping your information safe. Not only do we keep your information safe, but we are also able to detect potential fraudulent activity from an outside perspective. If we detect discrepancies or vulnerabilities we are able to put processes and procedures in place to help protect you from future fraud.
68% of fraud targets small to mid-sized companies and is perpetrated by internal people whose controls got lax or who have little to no oversight.
An outsourced team looking at your finances every day ensures that fraud cannot go undetected.
Misconception #5: Your quality will suffer.
There is a common misconception that outsourcing means settling for a lower quality product. Rather, if you are partnering with a reputable outsourcing company, you are getting years of experience in one place. Outsourced accounting professionals come with various degrees of expertise to create a full-blown accounting team ready to help your business.
Outsourcing can be a great decision to help your business not only save money but gain expertise. Reach out to the Turning Point team to learn more about how outsourced CFO advisory can help you.
