Outsourcing work to skilled contractors saves small businesses time and money, allowing small business owners to benefit from skilled talent without the expense of full-time employees.
Some days, small business owners feel like superheroes, completing countless disparate tasks at the same time. However, sometimes there are jobs even the most accomplished multi-tasker can’t do on their own.
For many small businesses, this signals a time to start hiring. However, hiring can come with challenges of its own. In fact, according to one survey, 50% of small businesses reported hiring to be their top challenge. Hiring is a huge undertaking task. Especially for small businesses with limited resources.
So, what to do when your small business needs help? Outsourcing work to freelancers or independent contractors can help small businesses get the expert support they need to grow. All of this while saving time, money, and minimizing risk. From freelance bookkeeping and accounting outsourcing to on-demand support with HR, independent professionals can help small businesses run more efficiently.
Outsourcing Saves Time
Whether you’re still trying to do it all or you already have a staff. There are often more jobs to get done than there are hours in the day. Hiring freelance talent frees you and your staff up to focus on critical business needs.
Contractors often have a specific expertise that can be outsourced while you work on the industry-specific needs of your business. If you own a landscaping business, you’ll want to focus your time on beautifying outdoor spaces. Outsourcing back-office tasks such as bookkeeping and HR frees you up to get back to (professionally) smelling the flowers.
Some times of year are busier than others for small business owners. Outsourcing is an ideal solution for seasonal and project-based needs. For example, it might not make sense to hire a full-time accountant year-round. Working with a contractor during tax season can ensure that your business saves the most money on taxes.
Working with contractors rather than hiring also saves small businesses on the time it takes to recruit potential employees. Hiring can be quite an undertaking (although if you do need to hire full-time employees, we have some tips for you.) For many small businesses, it just requires too much time and money. Especially without a dedicated HR staff. It can take an average of 36 days for a company to fill a job opening, according to a study by the Society for Human Resource Management.
Even with all that time spent, it can be difficult to choose the right candidate. By working with pre-vetted professionals from FINSYNC’s Service Network, you can ensure that the contractor you hire is right for the job. Fill out a quick questionnaire about your needs, objectives, industry, and budget. Then we’ll match you with the right professional for your business.
Outsourcing Saves Money
Not only does hiring cost small businesses time, but also be expensive. The average hiring cost for the vetting and negotiation process in 2016 was $4,425 per hire. Hiring can be a full-time job in and of itself, and your time is money. If you have to stop working on your business to write a job description, figure out where to post it, monitor and sift through responses, screen candidates, set aside times to schedule and conduct interviews, you’ve already lost valuable time and money before even hiring.
Outsourcing work also allows small businesses to save money on payroll. Because contractors are generally not full time, businesses pay them for hours worked. This saves on the expense of a full-time salary. Small businesses are not required to pay taxes or provide benefits such as healthcare for freelancers. Their hourly rate is exactly what you pay. This is significant because with taxes and benefits alone, businesses pay 1.3 to 1.6 times the base salary for each employee.
Many freelance workers are also remote, meaning businesses can save on office space and supply costs.
Getting Expert Support Helps Businesses Grow
Working freelance or what is now commonly known as “gig economy” work is becoming more common. In fact, 56.7 million Americans freelanced in 2018, and that number is only growing. This means that by hiring freelance talent you can get access to expert advice without paying the expensive full-time price.
Small businesses that don’t need the year-round support of a financial professional can benefit from a yearly or quarterly check-in. This ensures that their books are in order and their business is optimized for growth.
Of course, tax time is another prime opportunity to get insight from a financial professional. Not sure which expenses you can write off? Curious if there are any recent changes or little known tax codes that could save you some money? Don’t bother wasting your time and money with guesswork. You can hire a freelancer to help you get the most out of your tax return.
Freelancers are hired on an as-needed basis. This way you can scale your workforce up and down to fit the demands of your business. Freelancers are perfect to fill in while you scale. Especially if your business is ready to grow, but you’re not sure you’re ready to hire more full-time employees.
Does your business no longer need the particular expertise you hired contractors for, at least for now? You can easily pause a contract, knowing that you’ll be able to re-engage a freelancer should you need them again.
Benefits of Outsourcing Tasks
Outsourcing tasks to professional freelance talent allows small businesses to save time and money and also to scale their workforce up and down to fit business needs. Bringing in highly skilled professionals also allows you to benefit from high-level expertise without the expense of hiring full-time employees.
Does your small business need help with bookkeeping, accounting, financial analysis, corporate strategy or human capital management? Get matched with a financial professional in FINSYNC’s Service Network that’s best suited to help your business grow.