Schools Training

Types of Outsourcing for Small Business

15 MAR 2013
Career Path : Accounting

A modern small business might be a few people or a one person operation. Regardless, there are certain essential services that the business needs that are usually outsourced to professionals, unless that is the focus of the business. A small operation generally has a busy workload to keep solvent and little time for things like bookkeeping or the accounts parable department. And this specialization means that it’s rare the small team are graduates of business colleges, so other administrative work is also outsourced.


In this particular case, the business might choose another small business or a large specialist company. When it comes to payroll, even midsize businesses have resorted to these services. They simply handle totaling up the hours of their workers, sent them off and get deducted the wages, which are in turn paid out by the payroll company.


It is also pretty rare that a business will do their own general accounting in house. Though some business owners roll up their sleeves come tax time, a mistake could have costly legal repercussions if they come up for an audit. Few business owners went to accounting school, and therefore there’s a thriving trade in hire-by-contract accountants. These professionals might even save their business money with their knowledge of tax law.


Similarly, a lawyer is another thing that is only in house when a company reaching a certain size has to wrangle complicated legal problems on a regular enough basis they don’t want to look outside the company. Just as the business owner has not usually invested in accounting school, four years for law school or retaining the full time services of a lawyer is usually and excessive stretch.


A company, unless it is in web design, will also need to hire someone from a web design program to do their website. Even a basic site with contact information is becoming as important as business cards were in the past, and this also shades into hiring someone to do their web marketing or regular advertising. While a small time contractor who can usually rely on referrals, most companies eventually need to work on their marketing strategy with someone who knows what they are doing. At the very least, they may be dependent on networking events, such as conferences, hosted by another party.


The trend here is that what gets outsourced is usually the things that a small business only needs on a temporary basis, or a number of labour hours that make it impractical to retain someone inside the company. And generally these are all things that take a specialized skill set, and are not the same as getting an employee to temporarily man the reception desk to greet clients or accept deliveries.



Visit Academy of Learning College for more information on outsourcing and business colleges.