Do you wish to become a successful business owner? Do you wish to conquer new business frontiers and go beyond “just meeting” the targets? Do you want your venture to be profitable than ever before, but don’t know how to get there from where you are right now? Here’s what you have to do to make your business more successful, “Outsourcing”.
Making money in business today is not that easy and can be stressful. If often feels like there are 100 things to get done all at the same time. Outsourcing is a business practice to engage or contract an outside service provider to perform company’s business processes. It delegates a third party to execute tasks of the company.
Outsourcing is a fact of life, it always has been. Imagine a life where you are growing your own food, generate your own electricity, build your own home, and weave your own cloth. It will be a hard life to live, therefore, we outsource these activities to companies that specialize in those areas. Similarly, businesses could use strategic outsourcing to grow. There was a time when all business functions including marketing, finance, production, and workforce management and every single task within these functions were managed by in-house people of the company. But now outsourcing has made life easier for businesses as they can now focus on the core activities of the business while delegating support functions to skilled specific third parties.
Successful outsourcing requires four essential steps:
Almost every big company is doing tasks they should not be doing and the easiest way to identify these outsourceable tasks is to ask your team members to work out what their billable rate is. Ask them to make a list of tasks they perform day to day and place them into one of the three categories:
- Tasks that could be outsourced and done by a third party having a lower billable rate.
- Tasks that are core business function and are in line with their current chargeable rate.
- Tasks that take up the most time.
Once you identify the outsourceable task list, next would be to calculate the hourly savings that outsourcing them to third party vendors would give your team each month. Subsequently, it would become easy for you to evaluate how this extricated time could be utilized to the best possible use. Now let’s put more light with the points below on advantages of outsourcing:
- Access Skilled Expertise: outsourcing enables to focus on core functions and accessing skills of outside service providers.
- Cost Effective: outsourcing is more affordable than an in-house team. It will increase the profitability of the organization and reduce operating costs.
- Usage of Time Efficiently: outsourcing accounting services leads to time saving as the organization does not need to keep up with the new policies, procedures, and laws.
- Enhance Work Productivity: outsourcing enables growth in work productivity and handling risk appropriately.
- Flexibility & Scalability: able to meet uncertain demand and dealing with capacity constraints.
- Reduce Fraud: account handling lies with an outside service provider so the possibility of fraud declines.
- Reduces Year-End Work: general ledger and subsidiary schedules are managed by the outsourced accounting service provider; so, the year-end work decreases.
- Better Decisions: outsourcing will lead to improved business decisions by concentrating on core activities.
- Time Zone Benefit: outsourcing to a company in a different time zone, your business is always going on even when you are not online. A collaborative virtual team can work around the clock giving your organization competitive advantage of increased flexibility and productivity.
Veristrat provides a blend of functional expertise and process capabilities that span across diverse portfolio of valuation and financial services. We understand your unique business needs and strategically align processes and delivery to your business goals. Outsourcing tasks to our virtual staff help you save money and time, leading to enhanced profitability. We create client centric collaborative system of people to deliver outcomes that help you stay ahead of the curve. To give you some idea about what we do, here are example of tasks that our usually clients delegate to our team members:
- Performing valuations such as 409A, ASC 820, ASC 805, ASC 350, ASC 718, and ASC 815
- Performing SBA 7a loan business valuation
- Searching guideline comparable companies
- Searching precedent transactions
- Discount rate calculation
- Creating discounted cash flow model
- Applying market approach of valuation
- Creating real estate valuation reports
- Creating valuation model and reports
- Reviewing valuation model and reports
- Preparing narrative reports
- Carrying out primary and secondary industry and market research for reports
- Preparing company profiling reports
- Economic research reports
- Providing transaction advisory
- Buy-side due diligence
- Sell-side due diligence
- Commercial due diligence
- Inventory audit and valuation
- Providing financial data
- Extracting industry data
- Creating pitchbooks
- Creating Confidential Information Memorandum (CIM)
- Reconciling bank account data
- Creating and analyzing financial statements
- Executing account reconciliations
- Preparing financial reports
- Carrying out research, analysis of financial information for financial reporting
- Concluding audit by examining general ledger accounts
- Creating the statutory financial accounts
- Preparing investment reports
- Executing financial modelling
- Executing research for investments
- Updating bookkeeping services
- Maintaining data of customers
Veristrat is a strategic partner to global clients from wide range of industries including agriculture, automotive, capital goods, chemicals, metals & mining, pharma & healthcare, retail & consumer, IT & software, transportation & logistics, industrial products and infrastructure. We provide above stated and other related services to various businesses so that it moves smarter and closer to customers, respond faster than competitors, outmaneuver threats, and harvest opportunities.