As a small business owner, you know how challenging it can be to run a business and handle all the back office responsibilities at the same time. There never seems to be enough time to manage everything effectively, and you’re constantly worried about missing deadlines, losing important documents, or even worse, making costly mistakes. That’s where outsourcing comes in.
By outsourcing your back-office support services, you can enjoy more time for revenue-generating activities while helping your business run more efficiently. But how much should you expect to spend on such services? Let’s explore the factors that affect back-office outsourcing costs and help you make the right decision for your business.
Which Types of Services Affect Pricing?
The cost of back-office outsourcing services is based on the services you need. For example, if you need basic bookkeeping and data entry services, you may only need to allocate a small budget, around a few hundred dollars per month. However, if you need more specialized services like tax preparation, financial reporting, phone answering, or COO guidance, the cost may go up. Additionally, the complexity of the services you need may also affect pricing, since it may require more extensive training, time, certification, or specific software to complete the work.
Some of the typical (and not-so-typical) services you can outsource to a back-office service provider include:
- Data entry and management: Save time and resources by outsourcing data entry tasks to a back-office support company. They can also help with data management, ensuring your information is accurate and up-to-date.
- Bookkeeping and accounting: Take the stress out of managing your finances with a back-office support service provider that can handle bookkeeping, accounts payable and receivable, tax preparation, and more.
- Human resources: From payroll to benefits administration to recruitment and onboarding, a back-office support outsourcing can help you manage your workforce more efficiently.
- Customer service: Keep your customers happy with help from a back-office support company that can handle phone calls, emails, and online chat.
- Dispatching and virtual assistance: Reach more customers with a more extensive team for when customers call. Get help answering common questions and support dispatching your team to the right place at the right time.
How Does Geographic Location Affect Pricing?
Another factor that affects back-office outsourcing pricing is your location. In general, the higher the cost of living in your area, the higher the cost of outsourcing services (IF you choose support in your same location). For example, if you’re located in a large metropolitan area like New York City or London, you may have to pay more for back-office services. On the other hand, if you’re located in a smaller town or rural area, you may be able to find more affordable services. However, keep in mind that you may also face challenges finding experienced or qualified service providers in these areas.
If your business allows, which most do, you should be able to outsource to back-office service providers located in less expensive markets. By sending these services to other locations, you can get access to quality back-office support at better rates no matter where you are physically located.
Specialist Services vs. General Office Support
There are two types of back-office outsourcing services you can consider: specialist services and general office support.
Specialist services offer highly specialized support for specific areas of your business, like accounting and COO guidance. These services are usually more sensitive and offer more targeted assistance.
General office support services, however, offer more general support for areas like data entry, phone answering, or administrative tasks. These services are usually more affordable but may not offer as much expertise in specific areas of your business. It’s important to consider the types of services you need and your budget to make the right decision for your business.
The Bottom Line
The good news is that outsourcing back-office work has become more accessible and affordable than ever. In general, small businesses can expect to spend anywhere from $500 to $2,500 a month for outsourcing services.
The cost will vary depending on the type of back-office work you need to outsource, the complexity of the task(s), and the experience and expertise of the outsourcing partner you choose.
For example, hiring a virtual assistant to handle your administrative tasks can cost you anywhere from $15-$50 per hour, depending on their experience and the scope of work. On the other hand, outsourcing your accounting and bookkeeping tasks can cost you anywhere between $500 – $1,500 per month on average. Certain clients with specialized needs or with heavier workloads could also expect to pay more.
It’s essential to do your research, ask for recommendations, and work with a reliable outsourcing partner to ensure you get the best bang for your buck.
Let’s face it. Running a small business can be challenging, and you will take all the quality help you can get. Outsourcing your back-office tasks can free up your time to focus on core functions that drive the growth of your business.
In addition, outsourcing can also reduce your overhead costs, such as office space rental, equipment, and employee benefits. So, what are you waiting for? Begin your outsourcing journey with TheOfficeSquad and watch your small business soar to new heights!