Why Outsourcing Makes the Most “Cents”
Business Capital in our New Normal
For a large portion of 2020, life has become a “new normal” of social distancing, contactless delivery, remote working, and virtual learning. The extent of the impact is unprecedented in our modern day, especially for small businesses. From restaurants, to hair salons, to construction companies, many businesses require human capital and interaction of some sort.
- Human = Consisting of People
- Capital = the wealth and knowledge, whether in money, people, or property, acquired or employed in business by an individual, firm, corporation, etc.
- Interaction = Reciprocal action, direct effect on another
Despite the uncertainty and mandates for following guidelines, most entrepreneurs are “people” people, focused on their core business, and accustomed to networking. With the need to maintain the financial jet stream of the business during challenging times, there are some things business owners can do to alleviate, or even eliminate, some of the day-to-day burdens and continue to focus on what they do best.
With finances at an all-time high on the list of concerns for small to medium businesses, conducting a financial analysis on where each dollar is earned, and where it is spent is more important than ever. Deep diving into primary revenue sources, cultivating these sources, and planning for various scenarios if something changes within the source are key components to keeping your business afloat. Similarly, having a comprehensive understanding of expenses, including fluctuating and fixed costs, allows for more leverage in the financial big picture to make necessary adjustments.
Adjusting your Expenses
If adjustments to expenses are required, outsourcing may make the most sense. Growing a business requires capital, specifically money, time, and people. Hiring a virtual accounting firm or bookkeeping service gives the business an immediate resource customized for the specific needs of the business, flexible to the workload, and more cost effective than a fulltime employee. By hiring qualified virtual personnel, business owners can offload some of the day-to-day administrative or bookkeeping duties, thus reducing overhead expenses through a dedicated outside expert.
Time. All business owners and entrepreneurs know time is money. Outsourcing accounting services and delegating everyday tasks can save business owners hours of number crunching or reconciling bank statements. With more time to focus on cultivating new customers or products, growing the core business, or refining best practice, the more the business grows. The more the business grows, the more money the business makes.
Managing your business in the new normal has created some new challenges…keeping your accounting records up to date doesn’t need to be one of them.
Ready to Learn More?
By Susan Amsler
September 16, 2020
Randolph Business Resources, LLC.
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