Under the right circumstances, outsourcing saves time and money. This doesn’t mean it’s always the best option. Ann Irons, CPA shares tips to help real estate lawyers choose whether to outsource important business functions, such as outsourced accounting in Bellingham, MA.
Commonly Outsourced Business Functions
Until recently, accounting and bookkeeping were the only functions that business owners and practice managers considered appropriate for outsourcing. Today, there are far more opportunities to outsource, including:
- Web design and social media
- IT and tech support
- Risk management
- Reception and secretarial
Questions to Ask Before Outsourcing
Before you commit, ask yourself the following questions:
Could someone else perform the same task more efficiently or for less money? A solo lawyer can sometimes get away with keeping only one or two part-time employees; this reduces payroll taxes and expenses for employee benefits. As caseload increases, however, most find that they must take on the added expense of paying for a full-time employee, if not several. At this point, it becomes economical to consider outsourcing. Think of it this way: It wouldn’t be cost-effective to pay one of your attorneys to wash the windows and vacuum. You could do it, but wouldn’t your time be better spent on more specialized tasks? Instead, you hire a janitor.
Does our staff have the requisite experience needed to perform this function? If none of your employees has specialized knowledge in a given area, and if you don’t want the expenses of hiring a full-time employee, outsourcing may be a good fit. Escrow accounting is a perfect example, says Irons. It’s more complex than the basic accounting used in most small businesses.
What is our core business?
Once you’ve identified your core business, you’ll find it easier to identify which functions are suitable for outsourcing. To define your core, take a close look at your clients, your services, and how you deliver these services. Which segments do you target? How do you acquire new clients? What are our strengths relative to those of other firms? Now, think about the activities that directly impact your core business. Consider the business development function. You and your partner are the best candidates for this job; outsourcing wouldn’t be helpful. Web design and IT functions? These are not your core business.
Is your real estate law firm considering outsourcing in Bellingham, MA? To learn more about outsourced accounting, payroll, and administrative services, or to schedule a meeting with Ann Irons, CPA, LLC, contact us at (508) 966-0700. We serve individuals, businesses, and foreign investors based in Bellingham, Worcester, Woonsocket, and the surrounding areas.