6 ways outsourcing benefits small businesses

14 August, 2024
2 minute read
Finance and Accounting

August is known to be the month of job news, meaning that some companies will be saying goodbye to key employees, whereas other companies will be spending the next few months on onboarding new team members. This also means that now is the perfect time to start outsourcing administrative tasks or utilizing interim solutions.

There’s a preconception that outsourcing is primarily reserved for larger businesses. Small business owners sometimes worry that outsourcing is too expensive – or that they won’t be a priority for the service provider.

But in fact, small businesses can have as big – if not bigger – a benefit of outsourcing some or all of their admin.

Here are 6 ways outsourcing can strengthen your small business and reduce overhead costs!

1. Cost efficiency

For small businesses, managing costs is crucial for liquidity. And where buying services from a provider might initially sound like a more expensive solution than solving things inhouse, it can actually reduce your overhead expenses significantly.

Because, instead of hiring full-time staff to solve bookkeeping, budgets, payroll, compliance, and the like, you can instead scale these expenses up and down on an as-needed basis.

And not only will this reduce costs to salaries and benefits, but it will also save you time and resources spent on software and training of employees.

Key: Reduced overhead expenses.

2. Expertise

By outsourcing, you get access to an entire team of experts whose expertise you can tap into whenever required. Imagine the costs it would entail, if you had to have this expertise inhouse or if you had to obtain that knowledge on your own!

Furthermore, these experts are likely managing the administration of other companies just like yours. This means that you – through them – are always up to date on the newest legislation, and new processes can often be implemented much smoother and plug-and-play-like.

Key: Your own always-at-hand expert team.

3. Doing what you do best

Let’s be honest, not many entrepreneurs highlight the admin desk-bound tasks when they talk about their passion and ambitions. Yet, it is a fact that many end up using 20-40% of their time on admin. That’s 1-2 workdays each week!

Imagine how much work that actually creates value for your core business you could get done, if you could allocate just 20% of work hours differently.

Key: Focus on the tasks that you get a kick out of and that actually generate value for your customers.

4. Scaling up and down

As your business grows, so do your administrative needs. Outsourcing offers flexibility not available when relying on inhouse resources.

Whether you need more support in peak periods, need a helping hand two times a week during a phase of change, or if you only need minimal assistance in quiet periods, outsourcing can be adjusted to match your needs. And of course, this means that costs to admin hours are kept to an absolute minimum each month.

Key: You only pay for the workload – something that can vary immensely throughout the year, which shouldn’t be a burden on your inhouse staff.

5. Compliance and risk management

Your administrative needs do not just grow in terms of more employees to manage, bigger budgets to structure, and more contracts to organize. While you grow, you will become subject to new legislative requirements such as mandatory filing and reporting, stricter controls, etc. – and it is up to you to stay on top of this; you do not receive a to-do list in your inbox from the authorities.

By outsourcing this, you have experts on board who have a 360° understanding of your business AND the current legislative requirements.

Key: No manager or founder has the time to be 100% up to date on all legislation – unless it’s their job.

6. Enhanced productivity and valuation

And now for a benefit that is visible in your day-to-day operations – productivity! Your employees can focus on their tasks without having to worry about extra administrative tasks or whether management has their ducks in a row.

Furthermore, a business that has ‘things under control’ is perceived better by investors, talents, and partners, making it easier to both attract and retain important people.

Key: People are more willing to invest their time and money in a company that has their administration well under control.

At mighty admins, we have bundled some of the most essential services for SMEs and startups at appropriate price points.

Finance & Accounting incl. accounting system, budgets, invoicing, reconciliations, VAT, and much more.

Legal & Corporate Law incl. governance health check, MitID, e-Boks, and much more.

Payroll & HR incl. salaries, tax cards, registrations, employee support, and much more.

Year-end packages incl. annual report, UBO, AGM, tax return and much more.

The Mighties

The Company

We Work With

Our Services