As a financial leader of your organization, it’s important that you understand how your time works and what you are spending your time on. In today’s blog, we’re taking a look at when to outsource accounting or specific tasks and services and why outsource at all. Before we go into when, first, let’s understand, what is outsourcing? Many of you have heard the term, but don’t really know what it means.
Outsourcing is simply delegating and paying someone outside of your organization to do a service for you that you cannot do or do not have time to do.
Examining Your Daily Routines
For example, think about your daily routines. Think about what you currently do. The list may add up quickly if you’re like me and wear many hats.
Put a star next to the things that you struggle to find time to do in the first place.
In your personal lives, it could be mowing the lawn or changing your car’s oil or cooking yourself.
For example, I find myself as a business owner operating a franchise struggling to find time to really prep and cook dinner each night. So what we do often is go out and pick up food – essentially paying someone to cook our food for us. We could either dine there or take it home.
It’s all about time value. Are you spending your time on what you or your company values most?
When examining your daily routines, do you catch yourself saying “I don’t have time…”?
“I don’t have time to mow the lawn.”
“There’s no time to clean my house.”
“I don’t have time to close the books because I’m out there running my business.”
Whatever those time consuming tasks are, it may be worth outsourcing to another person or agency.
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When to Outsource Accounting
For example, you might have to hire a bookkeeper in your organization for them to come out and enter the transactions on a daily basis. For me, that’s important to outsource because I need to be thinking at a higher level as a Controller/CFO – not entering transactions. There will always be someone less expensive to do that.
So really when we say we don’t have time, it is because of one of several reasons. We don’t want to spend our time on something else if someone else can do it for cheaper (and if it energizes them more). Plus, it may be time to start outsourcing accounting when you want to:
- Make more money for you
- Bring you more value
- Do what you enjoy doing more
For example, entering transactions for month close is dry work and it wears on me. But I love coaching leaders how to be more effective in their roles and make their decisions more impactful. If I’m bombarded with transactions, I cannot coach leaders – which is more valuable to me and the bottom line.
On a personal note, when I do not have to cook dinner, I have an opportunity to spend more time with my kids. It also frees up my time to help my kids with homework and build memories with them. I can also read a book for personal growth or enjoyment. There’s so many opportunities out there for you to actually do things that you actually enjoy.
[box] Outsourcing accounting is just one area where you may add value to your company. Continue to do things that add value or free up your time so that you may add value. Click here to download our guide on how to be a trusted advisor to your CEO to help them improve your company’s value.[/box]
Why Outsource At All
One of the top reasons why companies outsource at all is that they may be more efficient. When I outsource, I am hiring someone that might be more knowledgeable. If I am a business owner who does not know how to record certain transactions, then consider the time it will take to learn that skill (and the time you are not spending on improving profits and cash flow). Even if you wanted to implement Quickbooks so that you can start recording transactions (a one-time set up), it may be worth handing that off to someone more knowledgeable in Quickbooks so that you can focus on other things you are more knowledgeable in.
Those are things you consider when to start outsourcing.
The goal is to create more time, more energy, and free you up to do something that can potentially make you more money.
Examples When Considering Outsourcing
To further explain the need to outsource, it’s important to consider roles outside of the accounting and finance departments.
If you are a good sales person for your organization, then you don’t want to spend your time behind a desk all day trying to enter your transactions. If you don’t have a lot of transactions, then that’s a perfect sign that you need to get out there and start making those sales for increased transactions for your business to actually record.
Outsourcing is a Key to Growing
I think that outsourcing is a key to growing. It is no different from a leader wanting to delegate the tasks that…
- You just don’t have any time to do
- You need others to do so that you can focus on what you are great at doing from a very high level
Now, at The Strategic CFO, we have several ways for you to tap into or start outsourcing individuals so that you can actually build on your business.
We have accounting managers, controllers, and CFOs that are ready to deploy and add real value where it’s not currently being optimized. In our consulting practice, we work in several capacities, whether it be an Interim CFO role, financial and operational reporting, mergers and acquisitions, pre-audit preparation, etc. Click here to learn more about our consulting practice.
For example, your accounting manager, controller, or CFO may
- Not exist yet (brand new hire)
- Be on maternity leave
- Take 3 months off to travel through Europe (I wish!)
- Need extra help because your company is going through an audit for the very first time
Life happens regardless of what you plan for. That’s why we’re here to step in when you need it. We will come in and help you with getting the helping hand you need to be more efficient with your current team. Need hiring and training? We do that too. These are all different reasons why you may need to outsource. We are here as a boutique firm to help you.
There are also opportunities for you to come in and take workshops at our office, in an online setting, or at your office. For example, you can learn about what your leadership style is. Are you a Type A person that can’t just let go of doing the little tasks? By learning about yourself, you start to outsource or delegate what you are not strong at and focus on what you are great at. As a result, you can continue to grow the business.
We offer a variety of workshops to…
- Coach you how to financially lead your company (Financial Leadership Workshop)
- Train your operations people to read P&L statements and become a P&L leader (From Operations to P&L Leader Workshop)
- Become a Modern-day Leader
- Plan strategically
- Think like a strategic CEO
Your CEO needs an advisor they can trust. Learn what they expect from their CFO and how to become the trusted advisor your CEO needs in this whitepaper.