For a while now there has been a global trend in outsourcing finances. As they say if it is popular abroad, it is imploding at home. Small businesses in Australia have joined the bandwagon for outsourcing their finances. As you are reading this, there are thousands of freelance employees online doing the exact same work.
In Australia, this trend started a few years ago as many small scale businesses realized the time and effort they save in outsourcing part of their operations and finances to a third-party provider or offshore. This trend is majorly because of the intensified competition and the rising demand for expertise and talent, typically in the field of finance, human resources and IT.
There are many advantages of outsourcing your finances:
- Flexibility – Businesses get flexibility, through means of outsourcing small businesses are actually able to make a business that is able to scale. Now that backend finances are handled by a third party, the owners can be involved in other important tasks like operations and marketing.
- Low Entry Cost – If a company follows a business model that is outsourced it is actually possible for a business to enter the market at a cheaper cost than before. Given that costs are low, even the risk is relatively lower. (Applicable if production and distribution has also been outsourced)
- Access to qualified professionals
- Assistance in decision making by provision of valuable reports
- Meeting compliance deadlines