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Two Great Financial Benefits of Outsourcing for Your Company

By Russell KehoeOn In FinanceLeave a Comment on Two Great Financial Benefits of Outsourcing for Your Company

When you think of outsourcing, what do you think about it? For many people, they might picture a company that is not profitable and needs to cut costs. However, this couldn’t be further from the truth. Outsourcing actually has several financial benefits for your business! For example, you can simplify your payroll process if you hire a paystub creator to do the job. Let’s discuss the two ways that outsourcing can help improve your company’s finances:

Reducing Cost of Labor

outsourcingYour employees cost a lot of money. If you’re located in the United States, specific rules dictate how much your employees must be paid for their time and effort. There is also overtime pay to consider, which means if an employee works more than 40 hours one week, they must receive extra compensation on top of what they would typically get paid for 40 regular hours. You can avoid all of these costs if you hire someone to do the job for you.

Outsourcing is also an effective way to reduce your company’s expenses on health care and other benefits. For example, some companies that provide healthcare insurance may have a cap on how much they will pay out each year per employee or family member is covered. If someone in your company gets sick or needs a lot of medical treatment, then this cap may be reached, and you would have to pay the rest out-of-pocket. You can avoid these costs by outsourcing jobs requiring employees with specific skill sets rather than hiring an employee who will spend most of their time on customer support calls.

Reducing Operating Expenses

financesIt’s not just labor that can add up quickly; operating expenses for your company are constantly increasing as well! You might have to pay rent on your office space, utilities like electricity and water bills each month, physical inventory costs if you run a business with some sort of goods/products being sold directly to customers, etc. You can reduce all of these expenses by outsourcing jobs that are not core to your company’s mission or don’t generate revenue for the organization.

For example, suppose you sell products online but also have an office with cubicles and desks where people work. In that case, it might be more financially beneficial for you to outsource customer support rather than hiring someone in-house. Also, suppose you have a warehouse with expensive equipment to run your business and only ship out products once per day on average. In that case, it might be more profitable for you to hire an order fulfillment company rather than purchase the machinery yourself.

The Takeaway

meetingRemember that outsourcing is not just about cutting costs! In many cases, businesses can actually save money in the long term by hiring a third party to handle certain functions.

Outsourcing can help reduce operating expenses, labor costs and even cut into your bottom line when it comes time to pay taxes at the end of each financial quarter!…

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Tax accountants – How can your business prosper with their expert help

By Eva ColonOn In Accountant

Introduction

Being a small business owner carries some advantages. One of the most notable ones is the ability to create a DIY working environment, and organize the business according to your rules and ideas. However, it also carries its fair share of disadvantages, as well. One of these is the fact that, you will have to handle some different tasks and activities, simultaneously, and all by yourself. Doing way too many things at one time usually leads to the business suffering and, eventually, crumbling under pressure.

One of the most critical areas of any business endeavor is accounting, and, more specifically, tax accounting. For a business to be profitable, all the accounting tasks need to be handled with diligence and expertise. Even though there is a plethora of accounting software available nowadays, it can only provide limited help, and can only be useful for very small, start-up businesses. If you want your business to grow, expand, and be profitable, you will need professional help. The best way of getting it is to hire a professional tax accountant, who will handle all the activities and tasks, in regards to the tax accounting. In the remainder of this article, we will try to explain in greater detail, as to how can a tax accountant help your business. Check out Susan Becker E.A. to learn more about their services.

A tax accountant can save your time

calculator To boost your business, you should spend your precious time, doing the things you excel at. Tax accounting is probably not one of these. In case you do have some knowledge and experience, in regards to tax and accounting tasks, you will probably manage to handle most of them somehow. But the main question is, will you handle them correctly, and in time? Missing the deadlines for delivering important documents, including taxes, usually, results in severe fines and penalties. In the best possible scenario, an incorrectly completed document will be sent back, to be corrected and finished accordingly. In the worst case scenario, a tax inspector will show up at the doors of your office, with the incorrect document in his hands, wanting to painstakingly examine every single business paper and document you have. A tax accountant can help you avoid all of these issues, with his/her expertise and experience.

Tax preparation and obligations

Expert tax accountants are also specialized in handling tax preparations, as well. He/she will handle this task by obtaining all the necessary, important information, including expenditure receipts, bank statements, and income reports. Once this information is obtained and processed, an accountant will systematize it, and deliver it to the tax office without any errors and on time. This way, you will pay no more taxes than you are supposed to.

A tax accountant will also strive to lower your tax obligations. He/she will thoroughly pore over all the data and information, and look for anything that can lower your taxes. You can help your accountant with this task, by keeping all the receipts, which can be later used as proofs of your income and expenditure.

An accountant can help your business grow

accountingAside from preparing and minimizing your taxes, a tax accountant can be instrumental in providing sound advice, on how to grow your business. This is extremely important if your business is still in its infancy. Making correct managerial and financial decisions from the start will propel the business in the right direction. Making poor ones will ruin it. Always keep in mind, that an expert accountant is most likely much more versed in the financial side of any business than you …