Can Outsourcing Work be Effective? 


As a business owner, outsourcing administrative duties as a way of improving your work processes and making them more effective may seem like a very attractive option; however, you might also be unsure about how best to go about it. Keeping up to date with the administrative aspects of a business can be extremely challenging, and this can be particularly true for the self-employed or for those working as a contractor, especially if they are operating a one-person enterprise where time is at a premium.

The problem of paperwork

In many cases, the administrative duties associated with a business take up so much time that small business owners often find themselves unable to adequately cope with all the work that needs to be done to keep things organized and current. While the energy that goes into keeping on top of administrative tasks can be considerable, at the same time those duties – dealing with bills, regulatory requirements, taxes, invoices, and accounts payable and receivable – are essential to the smooth operation of the business. Without effective administration, a business will simply not function, no matter how talented the business owner is at what they sell – be it a product or service.

A cost effective solution

One potential solution for business owners who find it difficult to keep up with the administrative end of their business is to outsource these duties to what is known as an umbrella company. Particularly for a self-employed person or contractor, an arrangement with an umbrella company can often make excellent financial sense.

If you take one administrative duty – self-employment PAYE – as an example, the benefits of using the services of an umbrella company become clear. An umbrella company takes on the responsibility of an employer for agency contractors who have taken on a contract for a fixed-term, typically through a recruitment agency. The umbrella company forwards invoices to the recruitment agency or, alternatively, to the client the contractor is working on behalf of, and after the invoice has been paid the company will generally issue payment to the contractor using the PAYE system. The umbrella company will also deduct any claimed expenses, such as travel and meals.

Working with an umbrella company gives a contractor the flexibility required to move from one contract to another while, at the same time, a single employer assumes responsibility for processing taxes, freeing the contractor to focus on the work they have to do for clients. If you are a contractor, you will understand the importance of being able to focus on the work you have been contracted to do and how this helps you to build a reputation for reliability and effectiveness.

Making the right decision for your business

In order to better gauge whether your business would benefit from outsourcing its administrative tasks, weigh up all the potential advantages and disadvantages to determine if such outsourcing would improve the functioning of the business. If your company has multiple employees, it will also be helpful to discuss whether outsourcing might be advantageous to them or at the very least seek their input. If you are operating a business on your own, seek the advice of a family member or friend who is familiar with running a business to see whether they think you would benefit from outsourcing administrative tasks.

Running a small business in today’s economy is challenging enough without having to spend time and energy you often don’t have keeping the books up to date and ensuring that bills, taxes, and vendors are paid on time. Outsourcing these and other administrative duties to an umbrella company will free you up to concentrate on growing your business and delivering the best product or service to your customers.

Check out some interesting facts about outsourcing industry by clicking here!!!

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.

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