As an advertising, marketing or public relations agency, it’s your job to help your clients grow and ensure they are seeing ROI for the services you deliver. We know that the more you can focus on serving your clients and bringing in new ones, the more successful you’ll be. This is why remote bookkeeping and outsourced back office solutions can be a game changer for many growing agencies and firms.
Think about it: Accounting, bookkeeping, payroll and HR are critical parts of your company that can’t be ignored and at times, can make or break your growth as a company. Unfortunately, these critical tasks are also extremely tedious and time-consuming. Advertising and PR are extremely competitive markets, and every moment you spend on non-billable tasks, like bookkeeping or HR, is time that you could have been working for or acquiring clients. Fortunately, there’s an easy solution that can meet your needs and help you grow your agency.
Remote Bookkeeping and Back Office Solutions Provide Key Benefits to Agencies
Remote back office solutions allow you to leverage the same forward thinking that you utilize in your core operations while also taking them completely off your plate. This results in a number of other great benefits listed below.
Eliminate the Risks of Turnover
According to the Bureau of Labor Statistics, the current estimates for turnover due to quitting (including those headhunted by another company and those leaving the industry) in Professional and Business Services in the U.S. is 3.3%, which may not sound like much on the surface; however, it actually represents 698,000 people in November 2017 alone. It’s not uncommon for a bookkeeper or HR person to leave, and if they do, they take much of your processes, insights and information with them (whether on purpose or not). This includes passwords, how to keep key internal processes functioning smoothly, due dates, agreements with clients regarding pay, and more. This isn’t to say it’s done maliciously, but for a position in one of these critical back office areas, you can’t simply put them on hold or have someone in another department fill in while you hire someone else. Payroll still needs to be processed on time, invoices still need to go out and employee issues still need to be resolved. Having someone step in isn’t simple.
Furthermore, turnover can cost your company a great deal of money (which we touch on further in the next section). If the original person was fired, rather than leaving, you have to worry about severance.
You’ll then need to spend time, money and resources finding new candidates, training your choice to fill the position, and onboarding them into the company. Even once they’re in the position, it will take time to reach max efficiency as they adjust to the new environment and protocols. There can also be an impact on company culture that influences overall productivity, and the change may be reflected in higher error rates in those positions.
With outsourced HR and remote bookkeeping, however, you never have to worry about turnover. All of these concerns are managed by your partner, whether the bookkeeper who handles your account comes or goes, giving you seamless service that allows you to continue handling your core services without so much as missing a beat.
Save Costs, Increase Value
An oft-cited report notes that it costs companies about 20% of an employee’s salary to replace them. However, that study was done in 2012, and according to some experts, the cost of losing an employee in an important position can now cost as much as twice their annual salary. Again, with a remote partner, your agency isn’t exposed to any of these costs. You also don’t have to worry about the overhead costs, benefits or sick days and paid leave that come with hiring a full-time employee.
These aren’t the only costs that remote services can help you cut down on. For one thing, there’s not always a need to have full-time employees in back office departments, so outsourcing a firm that can handle everything seamlessly in the background means your needs are met when they occur for a much more affordable price. Not to mention, in most cases the equivalent to whatever your internal needs are compared to the price of outsourcing the same needs tend to be more affordable and efficient overall.
We believe saving money is great, but not the most important factor in making smart business decisions. This is why it’s important to take note of the other benefits that outsourced solutions could provide, and one in particular is an actual increase in the expertise and value of your bookkeeping, payroll, HR, and compliance needs which we’ll discuss in the rest of this article.
Room to Scale
As you grow your agency, you need to be concerned with whether or not your current back office staff is up to the challenge. For instance, if your bookkeeper isn’t prepared for the kind of growth you’ve had or plan to have, there could be costly mistakes when they’re confronted with new and changing needs, especially if your agency takes on new new directions. Am experienced firm like KYB allows you to scale accordingly and update your needs as you grow.
Save Time with the Right Tools and Processes
When your agency is turning to the latest and greatest technology and tools to best serve your clients, you deserve the same inside your company. Working with a remote bookkeeping firm like KYB, for instance, gives you access to cloud-based accounting tools and other pertinent technology that can save you time and increase efficiency and accuracy. Cloud-based solutions are more secure than storing your accounting data locally because it features bank-grade encryption and security tools; it also allows you to access your accounting data from anywhere at any time. With the right partner they’ll be independently responsible for upgrading to the best technologies and learning the latest tactics and best practices.
Access to Valuable Financial Reports and Insights
Financial reports are critical to running your agency and making solid decisions for success and growth. For instance, your cash flow reports let you determine if you have the money for operations, and forecasting can help you determine the health of your business at certain points in time to help you decide whether to expand or tighten your belt. You can determine whether you’re ready to take on bigger projects, or need to find new clients to sustain your agency. While your in-house bookkeeper should have the expertise to do this accurately what’s equally important is their ability to provide insights and interpretations on the data.
This can become even more important if you have investors or if acquisition is a goal down the road. A remote bookkeeping firm can be an invaluable partner that can scale with you and provide useful insights that help you maintain a healthy company.
Key Takeaway: What This Means for Growth
Remote back office solutions are a perfect way to give your agency room to grow. It provides a way to alleviate worrying about your agency’s ability to function consistently since you never have to worry about what will happen if your back office staff leaves, gets sick or needs time off. It also offers significant savings, since you don’t have to worry about overhead or costly mistakes, and that money can be reinvested into your company in order to gain or keep the leading edge in your market. Outsourcing to experts lets you apply your preference for forward thinking and advanced technology to your accounting and HR, and tapping into these experts gives you the information and advice you need to make the best decisions for your company.