Businesses are struggling to survive in today's economy. No matter when things are going to improve, your company has to make it through today. Business owners are facing hard choices, such as, "Should we cut loose outside contractors such as outsourced bookkeeping services?"
Are You Actually Saving Anything?
Canceling a contract for outsourced bookkeeping services doesn't make the work disappear. You are bringing the books inside the company to be done by your own staff.
Do you have people qualified to do this? Often the work is outsourced because there is no one in the company with the skills. This tough economic period is not the time to put your finances in the hands of an amateur.
Even if you have an internal bookkeeper, time is lost as the work is transitioned into the company. The work-flow changes and new systems have to be implemented to accommodate these changes. Every hour your employee works on the books is an hour not spent on other work.
Saving Today Can Cost You Tomorrow
Running a business means thinking about the future. Every decision should be made while considering the long-term implications. Inexperienced managers often make short-sighted choices, hurting the company down the road. When you cut staff or services, you are essentially gambling business won't pick back up. You are saying things are going to stay bad, so you cut loose dead wood that won't be needed later.
The problem is that most of the time, things do improve. You find business picking up again and have to bring new people on board, train them and get them comfortable with the company. The net effect is you have lost valuable and experienced talent that may never be replaced.
This is true with outside contractors as well as internal staff. Outsourced bookkeeping services have to get acquainted with your books from scratch. The transition period mentioned above is repeated as work is moved back outside the company.
Consider Other Cost Cutting Measure
Canceling outsourced bookkeeping services seems like an easy way to save money, but easy choices aren't always the best ones. Your organization may be able to cut costs in other, more strategically sound areas.
For example, rather than losing staff you might consider losing customers. This might seem counterintuitive, but most businesses know they have a certain group of customers who just aren't worth the trouble. They earn the company little profit and yet demand as much or more employee time as your more lucrative clients.
In the end, you the business owner are in the best position to decide what the best decision for your organization is. If that means terminating outsourced bookkeeping services, then so be it. Just be sure the decision is part of a comprehensive, long-term strategy for success.
Whatever you decide, revisit the plan in a few months and decide what needs to be changed. With ongoing attention to your finances, you will survive this downturn and be stronger for it.
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