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Truth in Numbers
Written by:Article Overview: Why Outsourcing your Bookkeeping Makes Cents Many people still associate outsourcing with manufacturing or global workforces, but it is much more. Outsourcing is an efficient way to manage special projects or overflow, expand staffing resources, and grow your business. Many businesses outsource critical business tasks that require specialized knowledge such as bookkeeping.
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Truth in Numbers
Why Outsourcing your Bookkeeping Makes Cents
Many people still associate outsourcing with manufacturing or global workforces, but it is much more. Outsourcing is an efficient way to manage special projects or overflow, expand staffing resources, and grow your business. Many businesses outsource critical business tasks that require specialized knowledge such as bookkeeping.
Outsourcing your bookkeeping is an effective way to manage a business critical function without incurring the expense of full time employees. Heather Villa, CEO of IAC Professionals states “Clients have found that they save money by outsourcing bookkeeping. They no longer have the challenge of growing and running a business and managing financial records, and tax deadlines. It is far more cost efficient to pay a trained professional for their expertise rather than try to learn the task yourself or manage it haphazardly.”
In a Fortune 500 company, you are unlikely to find the CEO working in the mailroom or the Administrative Team putting together quarterly forecasts. Companies hire people to do specific jobs based on their expertise. Each employee contributes to the success of the organization by performing their specialty.
Outsourcing Bookkeeping Services Can Save You Money
Small and growing businesses often make the mistake of failing to hire help because they don’t believe they can afford it. Every business must manage a budget and no one has infinite resources. But your budget is more than the tangible dollars in the bank; it’s also the value of your time. As a business owner, if you spend 15 hours per month on bookkeeping you have taken 15 hours away from other activities. Consider this example from a solo entrepreneur:
20 billable hours per week at $100 per hour = $2000
10 non billable hours per week (bookkeeping, admin) worth $45.00 hour = $450
If the entrepreneur outsourced the non-billable tasks she would gain 10 more billable hours or $1000.00. Even after paying $450.00 for outsourcing, she gains $550.00 and is no longer burdened with a task outside her area of expertise.
“In addition to the financial gains, outsourcing your bookkeeping provides a peace of mind that the task has been expertly managed. It is a critical area of your business and a missed deadline or accounting error can be costly” notes Villa. Outsourcing your bookkeeping can be the smartest investment you make in your business.
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Article Tags: administrative team, billable hours, bookkeeping services, business owner, business tasks, critical business, critical function, fortune 500 company, heather, infinite resources, mailroom, overflow, quarterly forecasts, running a business, solo entrepreneur, special projects, staffing resources, tax deadlines, time employees, workforces
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Me Too - So....
- I write. Its a form of 'pull' marketing that suits me, though I'm quite an outgoing person.
I know all the stuff about it not being me, 'they're just not ready yet'. Truth is I'm not good with rejection and will walk if I get too much of it - so I do it differently.
Each to his own I guess.
Still, I wish I had the guts to do those 500, just to say 'I did it'!
Will read that article!
Google schmoogle!
- [quote:5cpo5h9f]Google's update happened in the beginning of March and I tested out a few changes on my site through March and April before figuring out the right changes to make.[/quote:5cpo5h9f]
Well, I'm bummed. I started my web magazine (on SF) a year and a half ago. Numbers were truly absymal until about October, when hits graduallystarted to increase. Then, in December, all of a sudden they doubled - and my Adsense income doubled as well. From December to the last two weeks of April my hits and adsense income were steadily increasing.
Now in the last two weeks, things have been dropping off til I'm almost back to pre-October numbers!
Well, maybe SF aficianados don't do much web surfing when summertime rolls around, but it's discouraging.
Re: Cash up front ... or Royalties?
- There are so many amazing stories here.
Most my inventions were created on the job and are the property of my employer.
Cash up front if you are out of options is what some people must do.
These people may consider a 5 year contract.
This would allow them to renegotiate another license when they are stronger financially.
Truth is most people that are in financial trouble today are still in trouble 5 years later.
Discipline and control of your own life is priceless.
An example of cash up front versus royalties is "Star Wars"
Harrison Ford (Hans Solo) took cash up front. He needed the money.
Alec Ginness (Obiwankonbi) took royalties. I believe the force is still paying.
Business plans are a waste of time
- I really like what Shri said in a previous post about how the usefulness of a business plan depends on the individual.
However, after reading some of Martin Lindstrom's "Buyology: Truth and Lies About Why We Buy"... I'm beginning to think that all business plans and traditional market research (i.e. using focus groups, surveys, etc.) are a total waste of time. No joke, I'm serious.
Lindstrom says "That's because, just like market research, economic modeling is based on the premise that people behave in a predictably rational way", but "Most of the brain is dominated by automatic processes, rather than deliberate thinking. A lot of what happens in the brain is emotional, not cognitive." ("Buyology" pg 28). Basically, consumers will tell you one thing, and do simply do another with their unconscious minds.
Re: Women and Financing - It's Difficult!
- I found this paragraph of interest (in the article from Nana's link:
[quote="Nana":3r7womqv]Other studies show that women operate more service and retail establishments than men, which might explain their difficulty in getting financing since financial institutions often consider these two sectors more risky. However, although women are generally less inclined than men to apply for financing, when they do, they are more likely to get it. According to a study by Industry Canada on SME financing in Canada, in 2000 majority female-owned SMEs obtained a loan approval rate of 82%, which is slightly higher than the approval rate for majority male-owned businesses (80%). This suggests that when they do apply for financing, businesswomen submit excellent applications. [/quote:3r7womqv]
They say, "Women are more likely to get [financing]."
But the difference is only 2 percentage points! Big deal! And, that was only for one year, 2000. I'd like to know what the 10-year average is.
Numbers can be manipulated to mean anything you want them to mean...it all depends on what you want to show.
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