Outsourcing has become a standard business practice in recent years, with approximately two-thirds of US businesses outsourcing at least one department. This can be incredibly beneficial for small business owners, enabling them to reduce stress and focus their attention on other areas of the company. Many business owners will outsource for this very reason.
However, it can be challenging to determine which departments should be outsourced. Small business owners need to be on top of the responsibilities and tasks that require in-depth knowledge. If there are aspects you struggle with or have less experience in, then outsourcing them could be a good option.
In this post, three of the most common departments that small business owners have outsourced are listed.
Accounting and Finance
One of the most critical – and often complex – aspects of running a business is managing finances. This is particularly the case if you have minimal experience in it. For many small businesses, outsourcing tasks related to accounting and finance can ensure compliance with tax laws, reduce costly mistakes, and save time.
Freelance bookkeepers and/or external accounting firms can handle a variety of responsibilities, from daily bookkeeping and payroll to tax filing and financial forecasting. Not only do these individuals bring expert knowledge, but they often use industry-standard software that enhances accuracy and efficiency. Rather than navigating constantly changing tax regulations in-house, you can rely on professionals who do this work every single day.
By outsourcing your financial management, you will gain peace of mind and free up hours each month to focus on growth and operations. There are numerous other benefits as well. For example, payroll outsourcing to Simply Counted & Tax can help you avoid IRS penalties and reduce direct labor costs.
Marketing
Marketing is crucial for driving awareness, engagement, and sales, but executing it effectively requires creativity, strategy, and time. Due to the high costs, it is often not feasible for small businesses to hire full in-house marketing teams. This is why outsourcing your business’ marketing efforts can be an absolute game-changer.
Agencies and/or freelance marketers can handle various tasks, including content creation, email marketing, paid advertising, SEO, and social media management. These professionals can offer you data-driven strategies, fresh ideas, and specialized tools to help you reach your audience effectively.
Plus, it is well-known that algorithms and marketing trends are constantly changing. An external team dedicated to your marketing efforts will stay on top of these changes, so you don’t have to. With this in mind, if you can find the right marketing partner, then you can create a specialized online presence without the costs of hiring full-time employees.
Human Resources (HR)
While HR might not seem like a priority for a business in its early days, it is an essential aspect when you begin hiring. Human resources are necessary for managing compliance, employee relations, onboarding, and payroll effectively. To handle this legally and smoothly, you can outsource this department.
Many HR service providers can help with benefits administration, performance management, policy development, and recruiting. These experts can also assist you with complying with employment laws, which vary by industry and state, and are frequently overlooked by small businesses.
To conclude, outsourcing can be a cost-effective way for small business owners to access expert support and reduce stress. Although many departments can be outsourced, the three detailed in this post are common and can help streamline business operations.
