How outsourcing your back office functions such as Accounting and HR can benefit your startup
As Founder and CEO, you need a support team capable of scaling operations alongside the rapidly changing landscape of your startup. Outsourced solutions are often the most efficient and cost-effective way to go when starting your company. Mainly because you only pay for what you use, both in time and level of desired skill set allowing your startup to reserve capital for developing its core business.
- But how do you decide the level of skill you need?
- Then how do you find time in your schedule to continually transition less experienced contributors to more experienced personnel?
- And ultimately, how do you prepare for what you don’t know?
Quite simply, you can’t be prepared without having an expert on your side. You need a partner experienced in growing startups who is committed to seeing you, the Founder and CEO, succeed. At launch and during early stages of the business, you need a proven Accounting and HR team, not one trying to "reinvent the wheel" in the often unpredictable environment.
The right outsourced solution provides you with both a reliable, dedicated team of professionals and modern enterprise technology. To provide you measurable results, the team and technology should be high-quality, proven, and operate within industry best practices.
At times a single hour of CFO support is all that’s needed, and other times demand more effort and resources to facilitate the growth of your company. The right outsource provider can dynamically scale with your ever-changing needs.
A back office solution, whether for a five-employee company or a 100-employee company, must be agile enough to keep pace with the forecasted growth of the company. A costly mistake startups make is to hire full-time staff in these departments way too soon. While every startup grows and scales at its own pace, it’s important to hire at the right time. Until the workload necessitates a full-time internal staff, consider fractional staffing.
The amount of work seen in a high-growth startup environment can ramp up in tsunami type waves, overwhelming even the most experienced practitioners without support and automation. Outsourcing your back office provides a solution that can resize itself for your current needs without continually playing catch up as your business grows.
More importantly, outsourcing Accounting and HR allows you as the Founder to focus on more mission-critical initiatives—like raising your next round of venture capital or developing the latest technology for your product.