What Is Outsourcing And Why Should Your Company Consider It?

Outsourcing is the procurement of services from an outside supplier in order to minimize business risk and cut costs. Outsourcing allows management to focus on decision-making and business growth rather than on managing accounting staff.

Exploring the various outsourcing options available can ensure that your partnership with Stanfield & O’Dell generates the most efficient use of your financial and personnel resources, thereby improving performance and results throughout your organization.

Firms considering outsourcing their accounting functions may neglect to consider all the costs that can be saved by outsourcing. The following is a breakdown of the potential cost savings:

Annual salary of ookkeeper $32,000

Payroll taxes (8.1%) 2,600

Other employee benefits (12.5% used, may be much higher) 4,000

(insurance, workers’ comp, profit sharing, etc)

Annual bonus and other incidental expenses 500

Temporary agency help during employee vacations 1,000

(40 hours x 2 weeks x $12.50 per hour)

Miscellaneous office supplies 300

Education and training 500

Cost of new computer and software every 3 years ($2,250 divided by 3 years) 750

Equipment and Office Furniture (average annual cost) 300

Total annual cost of $32,000 bookkeeper $41,950