According to Statista, the global outsourcing market was $45.6 billion dollars in 2000. In 2018, the market value had risen to $85.6 billion. From research, much of the outsourcing revenue came from North America and Europe. Today, business owners can outsource back office process and services such as bookkeeping. Some of the benefits they can enjoy include:
- Focus on core business
- Financial savings
- Time savings
- Access to skilled and experienced professionals
How do you know your business is ready to outsource back office services? Outsourcing your back office operations can make your business to be more agile. Problem is, most business owners do not know when to outsource. Here are a few signs to help you know it’s the right time to outsource:
- You have been unable to achieve your business goals
- You have no backup plan in case you lose your accounting employees
- There are cash flow concerns
- You lack separation of duties which exposes your business to risks
- Your business is growing
In this article, we highlight tips to consider before selecting the right outsourcing service.
To ensure timely services, outsourcing vendors need to leverage the power of technology. As a business owner, you need to find a provider with premium infrastructure. That includes high-end servers, cloud computing, and online accounting software. With this technology, the company is able to back up your data and provide access even when on the go.
It is important to take into consideration the track record of the provider. For starters, verify that the service provider has invested in quality systems. These should meet international standards. You need to find industries the company has served as well as client testimonials. Also, make sure the service provider implements quality control and standards of excellence.
Stable Financial Health
Taking a look at the financial health of the provider is important. A service provider with stable financial health assures you that they will not go under. Also, they will be capable of handling your finances and bookkeeping services.
Before hiring a back office operation provider, ensure they have a license. A business license informs the state authorities that the business is legitimate. Also, having a business license informs clients that the operation is serious. With a license, the business has to file for yearly tax return. To find if a business has a license, check your state’s website.
Access to Important Reports
Access to reports from your back office service provider gives you an insight into your business. Accurate reporting allows you to set clear goals and have an insight into the back office vendor. The best service providers should provide access to important reports. To do this, they should set up a dedicated communication line.
Risk Control Framework
Due to operation failures, a back office provider can file for Chapter 7 or Chapter 11 bankruptcy. If this happens, your business will be shortchanged. To protect your business, it is important to check what plans the provider has to mitigate any risks. If you are unsure, you can ask for a trial run. This will allow you to spot any critical problems.
Choosing the Right Outsourcing Service for Your Back Office Process
Before choosing the right outsourcing provider, take time to assess your needs. Once you understand the pros to your business, you are ready to work with a back office process provider. This will help you grow your business. For more information on back office process, contact us today!