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How outsourcing can save your business time, money and stress

Dr Biz • Aug 13, 2020

In recent years, outsourcing has become recognised as the main way for a business to save both time and money. From traditionally outsourced services such as accounting and employee benefits, to more cutting-edge digital solutions around IT services: farming-out the jobs that take the most time often makes good financial sense for a business.

This is especially the case for smaller businesses, for whom time really is their most precious commodity, particularly in the initial launch phase when getting ideas off the ground is so crucial. Not only can outsourcing save these early stage small and medium sized businesses time and money, but provide peace of mind at an important time.

IT outsourcing

One of the most popular areas for outsourcing today is IT systems, with a recent survey conducted by Udemy suggesting that up to 60% of businesses now use off-site hardware and software solutions. This is largely due to the significant cost savings associated with IT outsourcing: according to one US study, IT outsourcing can save a business up to 20 percent on its overall costs.

Network-heavy businesses that require a lot of server capacity stand to benefit most from IT outsourcing as maintaining large IT systems takes not only man power, but a lot of space. This means that a business that outsources their IT could choose smaller and more cost efficient premises while also avoiding all of the fire and security risks associated with storing servers on site.

Accounting

Accounting has traditionally been outsourced due to its complexity and the significant amount of time that balancing the books and filing tax returns can take. Surveys show that the majority of firms spend more than 41 hours per year - or a whole working week - on tax preparation, while 40 percent lose more than 80 hours per year. In-fact, four out of ten small business owners rank bookkeeping and tax preparation as the worst part of running a business.

At Dr Biz, we offer a full accounting service, taking the headache out of those dreaded tax returns. Having filed a few returns ourselves, we can also vouch for how technical and time consuming this process is, and so having an experienced partner is essential. Thanks to the advent of the internet, every-day accounting is also now much easier, with apps like Xero helping you to log and manage invoices and payments in real time. Dr Biz is a Xero Bronze Partner and Xero Certified Advisor, meaning we can integrate our services with the app for an even smoother, stress-free accounting experience.

Legal matters

Perhaps even more confusing and stressful than accounting are the many legal hoops a company must jump through. From incorporation to company secretarial services, ensuring that you have the right legal paperwork in place is essential to ensuring the smooth running of the company. Again, this is a service Dr Biz has plenty of experience in. We can help newly launched companies in Singapore with all of the paperwork they need, allowing entrepreneurs and business owners to focus on making the company a success.

Legalities don’t only matter when launching a business, though. As a company grows and expands it is likely that the positions of key directors will change, while shareholders may need to be added or removed from the company register. This is an area where a professional services firm like Dr Biz can really add value, helping a company to avoid making what can often be costly mistakes, both financially and reputationally.

HR and Payroll

For companies with a lot of staff, managing payroll and human resources can be a time intensive process, often requiring entire departments to manage. While big corporations may be able to justify these costs, smaller businesses may struggle to find the resources needed to ensure staff matters are managed effectively. This is somewhat of a bind, as looking after staff is perhaps most important for small companies.

If a full HR solution isn’t viable, businesses could consider simply outsourcing elements of the process. Payroll is often the best place to start as, not only is it the easiest process for an external company to manage, but is often the most important to the staff! Our payroll services cover monthly administration, including bonus and overtime; payroll reports; preparation and filing of monthly CPF contribution; and regular payslips.

Good advice

As many of us know, good advice is worth its weight in gold. As such, one of the most valuable targets for outsourcing could be decision making - particularly on areas relating to administration. A good adviser can also spot areas where risk can be managed more effectively in business operations, or where costs could be cut and output maximised.

Solid professional advice should also be sought-out before taking a big decision on the direction of a business. Almost every decision, from introducing a new product to changing marketing materials, may have unanticipated legal or financial consequences. Having a partner that can help you to navigate these potholes is another way to save time, money and potentially costly reputational mistakes.

At Dr Biz, we provide tailored and comprehensive solutions for our client's business needs. From incorporation to accountancy, tax and payroll, to professional advisory services, we help businesses in Singapore assess potential risks and become more cost effective and efficient.

To find out more, please feel free to contact us.

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