Local Outsourcing of G&A functions White Paper , B. Joe Rosa, CPA
There are many reasons why a business may be savvy to outsource locally
certain functions. Especially when it comes to the accounting, bookkeeping
and payroll functions, (G&A).
And, like most business decisions the first consideration often weighed is –
does it make economic sense?
And, generally for most start up businesses it is economical because of
working capital strains, especially now, when capital acquisition for startups is
scarce to none existent.
But you say, that is not a factor because “I’m doing the books myself, to save
money and keep a pulse on the money being spent and collected.”
Sounds good and prudent, however, it may not be the best use of your most
precious resource – Time. Because the time you spend doing the important
record keeping functions, keeps you away from your passion – growing you
Outsourcing, also allows you to Focus on the things that you do best which are
essential to the success of your enterprise.
Outsourcing will reduce your cost in the short and long run because the firm
you choose is expert in general and administrative tasks. They will catch the
math errors, making sure that you pay only the bills you approve. Likewise they
will help you collect every dollar coming to you on your sales invoices. You are
also less likely to be dinged by the IRS for unattended to notices from payroll
mistakes as this routine task for trained accountants, is bewildering for most
others not trained in this field.
Importantly, you will receive timely financial reports and analysis of key
Also, the ability to chat with an expert in financial management about Your
situation on a current basis is indispensable.
How is control over outsourced G&A functions, affected? Control would suffer if
you or someone in your firm stops performing the essential tasks necessary
to maintain control. These tasks will be clearly explained to you or others in
You will find yourself spending less time on the unimportant and dealing with
the exceptions, which really require your attention because most of the G&A
functions are routine. While G&A functions are important and require the
attention to every detail by an expert, they are routine, and the exceptions are
few, that require your personal attention. And the expert will bring those to your
attention to be dispensed with efficiently.
Outsourcing will also free you from the problems of employee hiring, training
and turnover, as your firm grows, because the experts you use are in
business, just like you, and are prepared to handle those circumstances
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