Small and medium businesses possess the ability to outsource business functions to their significant advantage. Outsourcing allows work to be done at a fraction of the price of hiring an internal team, limiting precious expense of both time and money.
When implemented wisely, outsourcing can have a positive effect on revenue by lowering overheads and freeing up internal resources. The delegation of mundane and time-consuming tasks means more time is available to focus on core business processes, including risk mitigation, and allows for expansion and gained expertise in new market areas backed by strong business and financial advice.
Make outsourcing work for you
Think about the guidelines for selecting an outsource provider as being similar to hiring someone in person. It requires strategic planning on objectives, needs, comparison and review.
Define clear objectives
Determine what your company needs. Start by defining clear objectives and realistic expectations for what your company requires.
Compare and count costs
With clear objectives, you can consider the time and cost required for the transfer of information. Evaluate how the transfer of business will affect existing staff or procedures. When dealing with overseas outsourcing agents, be wary of the time spent dealing with cultural differences.
Select a provider
Be sure to invest time into selecting your virtual service provider. This will require you to be prepared for a lot of applications and allow time to review your options. Review profiles, skills, experience and portfolios, language and communication skills.
If applications from providers have testimonials and recommendations, take the time to call any nominated companies. Consider skillset and expertise - does the provider cover multi-dimensional facets of your business if required? For example, “How a CFO can help my business?” Interview your strongest candidates and uphold your regular hiring standards. After selection and engagement, you must invest time in onboarding your new outsourcing provider like a traditional employee/contractor. Don’t overlook training or handover of all required contact details, files and access required etc. This is essential information, and your virtual service provider needs it all to do the job well.
At Sequel VCFO, our outsourced CFO service has an in-depth onboarding process to ensure that both our teams are on the same page, working towards the same goal.
Track and manage benefits
The benefits of outsourcing some of your business functions outweigh the risks for many companies. Just like any project or staff they still need to be tracked and reviewed, ensuring the quality of service matches your business vision and values. However, the incredible cost-efficiency and time-saving capabilities of outsourcing will help your business to gain a competitive edge.
Future Trends in Outsourcing: the VCFO
Last year saw an increase in cloud computing, with shifts in the industry including the emergence of new multi-sourcing remedies and challenges with the significant expansion of the service provider world.
Start-up businesses and small-to-medium sized businesses are high adopters of outsourcing, recognising the potential to reduce operational inefficiencies and increase their time to market. As businesses move towards the cloud outsourcing, support and development will increase.
One innovative new platform that is providing businesses with a way to minimise stress and increase revenue is the VCFO (Virtual Chief Financial Officer). A Virtual CFO takes on the responsibility of your internal financial team, but for a fraction of the price. With capabilities for accounting and bookkeeping, performance management, business intelligence systems, strategy and cash flow management, an outsourced CFO service can be an incredible asset to your business.
Would you like to learn more about the benefits of a Virtual CFO? If so, you can do so here.