When to Hire a Human Resource Management Agency For Your Accounting Firm
Your accounting business can exploit the power of outsourcing to stay competitive in your cutthroat field and remain relevant in a fast-changing corporate environment.
Outsourcing has been around for years and continues to revolutionize the modern business environment, forcing companies of all sizes and from all industries to reshape their business models and procedures accordingly.
At first glance, it did not appear likely that accounting firms and outsourcing would go well together. Accounting is an old and established profession. Most of its practitioners are by no means young as well. Meanwhile, outsourcing is a relatively new business trend. Accountants thought that there was no way outsourcing could benefit their firms.
However, accounting companies have not been exempt from the drastic change made by outsourcing. In fact, more accounting firms continue to explore outsourcing opportunities today, especially for HR purposes. Before you consider doing the same thing, find out how outsourcing HR can benefit you and your company.
As mentioned, accounting is an old field. It has been around for hundreds of years, and many of its practitioners around the world are baby boomers who are now on the verge of retirement. Probably due to its age, this industry is also notoriously known for being a late adapter. In fact, nearly any office today has a running joke or two about their accounting department.
This is one of the reasons that make it necessary for your accounting firm to consider outsourcing HR. By letting other teams in other places handle certain functions of your company, you are able to gain fresh insight into matters and learn about new approaches to old problems.
Fear of Growth
One of the reasons you may be hesitant about expanding your client base is the costs that may be entailed. You may be dreading having to move to a facility bigger than the one you are currently in, purchasing new equipment and supplies, and having to employ more HR and administrative people.
However, company growth does not always have to be accompanied by physical growth. You can confidently accommodate additional clients and even offer additional services while remaining in the same small office you had when you started.
When you outsource, you can entrust the additional HR work to third-party vendors. That way, you can focus on growing your company without worrying about the upscaling of your HR department.
Your accounting firm naturally has in-house HR staff who keep the office going as your consultants take care of your core business. The problem with this setup is that, because administrative and HR duties do not generate income directly and are generally costly, teams assigned to them are usually kept lean. This is why there are times when these staff are overworked (such as month- or year-end).
Some accounting firms address this staffing issue by hiring additional people during peak HR work seasons. However, the issue there is that these additional individuals would not normally be needed during the rest of the year and do very little after peak period.
If you find yourself dealing with this kind of scenario at your workplace, it may be wise to outsource your HR functions instead. This way, your HR service provider will worry about staffing, and you are left to work on growing your business.
People have to rest, and “overtime” does not mean “overnight.” Even in companies offering 24/7 services, HR staff rarely work in shifts. Chances are, your in-house HR staff have this fixed 9-to-5 schedule as well. If a task is left unfinished at the end of a shift, you will have to wait until the following morning to get it done.
This is not the case when you outsource. Nearly 100% of the time, HR service providers are mostly staffed by top talent from countries under different timezones. It is quite simple. As you go to sleep, your HR vendor employees begin their work. Any job you submit to them at the end of the day is returned to your email inbox by the time you log in the following morning.
The most profitable (if not the only) function of your business is consulting. Everything else is a huge expense. If you notice that you are spending too much time, money, and energy on low-yield HR functions, then you are actively lowering your profit potential.
This is why you should consider outsourcing your HR functions, which consume a lot of resources but do not directly generate income, to a vendor. Let them profit as you yourself profits. This way, you and your accountants can focus more on your high-value-added consulting services.
Need for Improvement
As you are busy running your business using your existing HR procedures and solutions, you may be overlooking certain lapses and other imperfections that plague your business. If you see that certain processes or systems in your HR department are not working as expected or like they used to, then you may benefit from outsourcing your HR work.
Outsourcing, which is an entirely digital process, allows you to look at your existing HR setup and evaluate your existing systems and the ones that will be applied once you begin to outsource. This benefit is not too apparent at first, but you will appreciate it once you take a closer look.
High HR Costs
The HR department is one of the most expensive business areas to run. You have to pay considerable sums for software packages, payroll taxes, sick times, vacations, space, equipment, benefits, and so on. If you notice that your HR expenses are becoming too high that they begin to hurt your profits, then it is definitely time to outsource.
When you outsource your HR functions, you do not need to shoulder all of the abovementioned costs. The fee you pay your HR service provider includes those as their overhead (as yours is not the only company they use those resources for).
Outsourcing continues to blur boundaries and limitations in business. Your accounting business can exploit the power of outsourcing to stay competitive in your cutthroat field and remain relevant in a fast-changing corporate environment.