Outsourcing essential functions like bookkeeping and HR can be a game changer for organizations aiming to improve efficiency and growth. We discussed all the benefits of outsourcing in the previous post, Signs It’s Time to Outsource Bookkeeping and HR Services. Next, selecting the right professional services firm is critical to ensuring that the partnership works seamlessly so your organization can reap all the benefits of outsourcing. The right partner could set you up for long-term success, but outsourcing to someone who doesn’t understand your business needs could set you back. In this blog, we are covering the key factors to consider when choosing a strategic outsourcing partner for your business.
The Consonance Group: Your Small Business & Nonprofit Bookkeeping and HR Services Firm
The Consonance Group is a financial, HR, and operations services firm specializing in nonprofits and small businesses. With over 50 years of staff experience, we have seen firsthand how businesses and nonprofits benefit from outsourcing HR and bookkeeping. Over the years, we have worked with organizations who are outsourcing for the first time, as well as organizations who are switching from a firm that didn’t meet their business needs. This article is informed by what we’ve learned in serving our clients.
What Makes a Good Professional Services Firm?
A good professional services knows their area of expertise extremely well, has successfully supported other businesses in growth in this area, and takes the time to get to know the businesses they serve in order to provide proper professional guidance. As your partnership matures, they should be seen as an extension of your organization, aligned with your vision and capable of supporting your long-term growth. Here’s what to look for:
- Expertise and Experience: The firm should have a proven track record of working with businesses like yours. Ask if they have worked with companies of a similar size, niche, or with similar processes. Their team should have a deep understanding of bookkeeping and HR processes, compliance regulations, and industry-specific challenges. You should be looking for someone who not only is well versed in their field, but also experienced in your niche of business.
- Tailored Service: Sometimes, a one-size-fits-all approach won’t cut it. Many larger firms have a strict menu of service offerings and try to fit you into their standard offerings, processes, and solutions without considering your unique needs. The right professional services firm will take the time to discuss your business, understand your specific needs, and suggest the right services to help you grow. Look for a firm that offers scalable services designed to meet the unique needs of your business. This may come in the form of add-on support services, executive consulting hours, scaling to support your growth, or referring to experts for additional support at the right time.
- Proactivity: The best firms don’t just react to your needs; they anticipate challenges and proactively offer solutions, helping your company stay ahead of the curve. In a sense, they become the departments you wish you had, acting as an extension of your business. In the areas of Bookkeeping and HR, you want professionals who will provide insight and guidance into your business, rather than just checking off to-do’s.
- Consistency and Stability: Onboarding a new firm into your business takes careful planning, lots of communication, and some time to learn to work together. In order for the relationship to be successful, the firm should have reliable processes and procedures and a low turnover rate to ensure a consistent point of contact for your accounts. Ask how the firm will work to ensure stability for your business processes.
How to Identify a Firm That Will Support Your Needs
To find a firm that will truly support your business, it’s important to conduct thorough research and ask the right questions. It can be overwhelming comparing seemingly similar companies. Consider the following:
- Compatibility with Your Business: As mentioned above, the firm should have experience in similar industries and be able to align its services with your specific goals and challenges. Familiarity with the business landscape in which you operate is essential. Ask if the firm you are considering has worked with similar companies.
- Cultural and Organizational Fit: Outsourcing involves a lot of communication and collaboration. The firm’s values, work style, and approach should complement your company’s culture to ensure a harmonious working relationship. Ask about their communication style and customer support processes.
- Technological Capability: In today’s digital age, it’s important to choose a firm that utilizes modern technology to streamline processes, collaborate in shared spaces, and ensure data security. Additionally, there may be reasons you want the firm to utilize some of the same programs you currently use. Some firms may recommend you change technology platforms or programs. Listen to the recommendations, ask questions, and ensure those changes are best for the longevity of your operation.
- References and Reputation: Don’t hesitate to ask for references or reviews. A reputable firm will be able to provide examples of how they’ve helped businesses similar to yours succeed. Companies may have more testimonials or references than are displayed online.
Key Contract Considerations
A great sign of a professional firm is that they provide a clear written agreement before services begin. You will have the opportunity to look over the contract and ask questions. Before signing an agreement, it’s important to think about the long-term aspects of the contract. You want the firm to serve not only your current needs, but also consider what you may need as your business scales. Here are some points to consider:
- Service Level Agreements (SLAs): Ensure the contract includes clear SLAs that outline the firm’s responsibilities, response times, and performance standards. This will help set clear expectations from the outset. Consider your business’s communication speed, working hours, and SOPs. Does the firm’s response time fit in with your current processes?
- Flexibility: Your business will evolve, and your outsourcing needs may change over time. Ensure the contract has provisions for scaling services up or down, depending on your requirements. Look to see what notice is required for changing service levels. If your business has seasonal elements, discuss with the firm what flexibility could be worked into your agreement to accommodate surge periods.
- Termination Clauses: While you hope for a long-term partnership, it’s important to understand the process and any fees involved in ending the contract, should the relationship no longer serve your needs. Also looks for information on how long your data, files, etc will be stored if you terminate your agreement.
- Data Security: When outsourcing bookkeeping and HR, sensitive information is at stake. The contract should include strong data protection clauses that comply with relevant regulations. In many cases, the firm will utilize technology programs that guarantee this for them, such as Quickbooks or an Human Resource Information System (HRIS).
A robust, scalable extension of your business
One of the biggest benefits of outsourcing is the ability to scale. A good outsourcing partner should not only meet your current needs, but also be capable of growing alongside your business. They become an agile department and extension of your business, handling the function for you. Before selecting a firm, ask yourself:
Do they offer scalable solutions? Ensure that the firm has the infrastructure and resources to expand its services as your business grows.
Can they handle increased complexity? As your business evolves, your HR and bookkeeping needs will become more complex. The firm should have the expertise and bandwidth to manage this increased complexity without compromising quality.
Will they integrate into your business well? The best outsourcing partners function like an in-house department. They should be able to align with your internal processes and adapt to your workflow, making the transition as smooth as possible. Experienced firms have their own SOPs, recommended processes, and systems to help build on the foundation you’ve started. They will recommend the right processes to support your business.
Size and Accessibility
While larger firms may have extensive resources, smaller or mid-sized firms often provide more personalized service. The key is to find a balance between accessibility and expertise. Look for a firm that is accessible and provides a dedicated point of contact. Clear and consistent communication is crucial for addressing issues promptly and keeping things running smoothly. Larger firms may have more sophisticated infrastructure, but smaller firms often provide more direct access to senior-level experts. Evaluate which structure best suits your needs.
Professionalism and Trust
Finally, your outsourcing partner should exude professionalism and be a trusted ally. Bookkeeping and HR functions involve sensitive, confidential information, so trust is paramount. These are core organizational functions that can make or break a business. A trustworthy firm will be transparent about its pricing, processes, and challenges. They should keep you informed and involved in key decisions.
Credentials
Look for firms with relevant certifications (e.g., CPA, SHRM, CNP) that demonstrate their expertise and commitment to industry standards. The best firms prioritize continuing education, staying on top of the latest advancements and best practices in their field.
Client Testimonials
What do past clients say about them? Positive reviews and long-term client relationships are strong indicators of trustworthiness and professionalism. Retention and renewal rate can also be an indicator that the firm is meeting or exceeding their clients’ expectations.
Trust your intuition
Some important factors are intangible. When interviewing potential service providers, take note of how they listen to you. Do they ask questions about your business, or are they trying to get back to the sales pitch? Do they seem to understand your frustrations? Do they seem genuinely interested in where your business is going and how to get you there? Are they willing to dialog about potential solutions for you? Take note of how these interviews make you feel. Your intuition will play an important role in making this decision.
Conclusion
Choosing the right strategic outsourcing partner for bookkeeping and HR is a decision that can significantly impact your business’s success. The wrong partner can hold your business stagnant, while the right choice could support you in this next phase of growth. You ultimately want to find a partner that not only supports your current needs but also grows with you, helping your business thrive in the long run.
Getting Started Outsourcing Your Bookkeeping and HR with the Consonance Group
The Consonance Group is a trusted financial services provider, specializing in bookkeeping, human resources, and financial management for small businesses and nonprofits. We understand that as a business owner, your time is valuable. You shouldn’t be bogged down by these tasks. We can help! Contact us today to get started with a free consultation.