Consolidating Expenses Streamlines Resource Utility
When it comes to saving money organizationally, there are a lot of strategies that can cut off 10% of expenses here, or 20% there; but excising an entire unnecessary department from your organizational infrastructure saves big. There are modern options today facilitated via tech innovation that can help you cut departments like accounting and payroll entirely.
You may want to phase out a given department slowly to avoid subsequent recriminations, but it’s a very sensible choice when you consider the average yearly cost of a single accounting employee stripped down from any material, office, or other support expense. The baseline yearly earnings for an accountant range from $40k to $119k.
If you’ve only got one on staff, that individual still requires office space, which is a rental cost. They’re going to use your building’s energy. Electricity, heating, and plumbing will be yearly charges. Then you’ve got materials. The individual will need a computer of some variety.
They’ll also need access to information, which will require provision from another employee.
If an in-house accountant only costs you $500 a month before salary, you’re doing well. But it’s conceivable that a $40k/year accountant will cost you, ultimately, $46k/year or more. Benefits haven’t even been discussed here, and neither have stock options, company cars, or other “perks” generally associated with a career.
Of course, you could always outsource accountant services when you need them, and never use them otherwise. But that’s a great way to spend money and miss things like tax payments required due to new law. If your business is making any real money, you’re going to need some kind of accounting services that are dedicated.
A Considerable Solution
When you’re on the market for online accounting services for small business, you want a company with the right attitude, like Basis365, who is interested in helping your business consolidate resources and scale up: “Your accounting partner should have the right people, processes, and tools to help you scale to awesome!”
Scalability is a big deal for any business. You’ve likely heard the maxim that a shark who quits swimming, dies. Well, that’s only partially true. Only Great Whites and other sharks who have similar respiration biology will die if they cease to move; many other sharks are just fine remaining still as a rock. Still, a business is like those sharks that must swim to survive.
If you’re not expanding outward and upward, you’re stagnating, rotting, and tending toward gradual dissolution. It doesn’t happen overnight, until one night when it happens. Basically, your business steadily declines until it hits an event horizon, at which point poor decisions and profit lack combine to crumble your operations like a finger through ancient plastic.
When certain materials like plastic age, touching them makes them crumble like dust. They appear solid until you get right near, then the slightest disturbance implodes them. Many businesses hit a level of brittleness they don’t realize until some wind of crisis blows on them and the whole house of cards comes flapping down.
Build Your House On Solid Foundations, Not Cardstock
In order to offset potential losses through natural market exigencies, you must maintain your profitability continuously. This requires constantly examining service provisions and determining where cuts can be made, and whether or not there are hidden areas of advancement that could consolidate expenses allowing for more unencumbered growth.
Internal departments are often costly, and will regularly phase themselves out as technology expands. Today you can outsource your entire IT, payroll, and bookkeeping divisions in ways that are potentially much more cost-effective than in-house solutions. This could be the stabilizing agent your company needs to retain functionality as the winds of business change.