Startups and small companies with less than twenty employees usually combine their administrative and financial tasks which include HR, payroll, bookkeeping, and accounting. For small enterprises the work is minimal, and the need to save money is considered.
Growing Company with Growing Needs
However, once the company reaches the 50-employee threshold, these tasks would need additional manpower resources. The daily transactions would take up more time each day than one person can handle. Timekeeping, keeping track of the finances, and managing operational expenses can be difficult to manage for one person.
With a growing company, there is also the need for security. Accounting, human resources, payroll and bookkeeping services can handle sensitive information, which require security and privacy.
It has become cheaper to outsource services which are repetitive and are not central to the company’s products and services. That includes tasks and roles which are part of the the company’s cost centers. These are the traditional administrative functions include payroll, bookkeeping, accounting, administration, office cleaning, logistics, and others.
There are also bookkeeping software that many companies can use to handle the finances of a company, as they would be more cost-effective for medium to large enterprises. These also require data certification. Without a certified accountant on staff, these reports from a bookkeeping software would not be accepted by regulatory bodies.
The Overall Benefits
But outsourcing these services can be a boon to any company. They can save time and money that would have been spent on additional staff. They can handle the needs of any company, whatever their size. They can scale well, and they can scale quickly. For companies that grow fast, cost and scalability are important factors for outsourcing services. For small companies, outsourcing services can help improve their bookkeeping processes.