There is nothing so sweet as surpassing your goals.
Whether we are talking about sales goals, profitability goals or project goals, achieving each of those individual targets takes you one step closer to reaching your overall organizational objective.
And owners and directors are always trying to achieve their organizational objectives!
Why is it then that some organizations put in twice as much effort but only get halfway to the target? What could be responsible for this inability to get results equal to the effort?
Certain factors limit the capability of organizations, whether small or medium scale, to maximize their potential. The good news is that outsourcing can helps address these issues.
1. A distracted and overwhelmed owner or director:
Company owners and organizational directors are expected to be strategic decision makers focused on top level strategy. When leaders start completing administrative tasks, the person who is supposed to be laser focused on the big picture becomes distracted and overwhelmed by day to day work.
These distractions are clogs in the wheel of progress, inhibiting a smooth workflow and limiting productivity. It is difficult to stay focused and effective when your to-do list is overwhelmed with administrative tasks.
The benefits of outsourcing: Outsourcing administrative tasks like bookkeeping means your leader can focus on just that – leading. Rather than spending time preparing reports, they can analyze the reports and refine their strategic plan based on numbers and data.
2. Lack of adequate resources to run a fully functional back office:
Running a functional back office requires resources:
physical resources (space, equipment);
technological resources (computers, applications, etcetera); and
human resources (staff and training).
A gap in any of these areas can lead to a disruption in the flow and functionality of an organization. An organization will require the right employees that are duly trained to be able to act effectively and efficiently as support staff. Those employees will also need to be provided with office space, computers and other equipment to be able to carry out assigned tasks and duties. These resources come at huge costs such that small and medium sized organizations find themselves unable to meet.
The benefits of outsourcing: Outsourcing back office functions will give any organization the best of all worlds. Whilst it is expensive to hire, train and retain an employee to work for example as an accountant in a start up small or medium sized organization, a bookkeeping/accounting firm will get quality accounting done at a very reasonable price.
3. Difficulty in Meeting up with Compliance Deadlines:
Most small and medium sized organizations struggle to meet regulatory/compliance deadlines. This is highly understandable, but not to the authority! There are penalties for late filing of tax returns; there are consequences for not filing correctly; and not meeting deadlines wears on the organization’s “self-esteem”.
The benefits of outsourcing: Charitable organizations, for example, are required to prepare a list of receipts for all of their donors. Engaging an accounting firm will give such organizations access to professionals with technical capabilities; outsourcing gives access to a pool of resources, more than one person at a time. That way, organizations can be sure that there never will be any difficulty in meeting up with compliance deadlines!
We would be more than happy to talk with you about how STAR Company can support your organizational goals!
Ademola is an accounting and finance professional holding over 15 years of experience with over 11 in full-cycle accounting in the FMCG, media, financial services, utilities, and real estate sectors. He is a Certified Xero Advisor; he holds a bachelor’s degree in Economics and an associate membership with the Institute of Chartered Accountants of Nigeria.
He also has a video series on YouTube tagged “One Minute with Me” where he discusses accounting and finance related topics.