This rupture certainly isn’t helped by the many misconceptions surrounding the concept of outsourcing.

In this article, we want to clear a few things up by presenting some of the most common myths about outsourcing, then busting them with the facts so you can decide how outsourcing might help your business.

The myth: Outsourcing means you lose control of project management

Some people find the idea of working with external parties who aren’t part of the in-house team overwhelming.

You can see your colleagues sitting right in front of you. Why would you outsource to someone who might not even be working the same timezone?

For some, this suggests nothing but a loss of control.

The truth

Often, one of the most productive things you can do for your business as an owner or manager is open the door to others more proficiently skilled. Even if they are working six hours ahead or behind, from the comfort of their own home.

With technology working its magic, remote project management and collaboration between geographically distant teams in and external to the business has never been easier.

With the right systems in place, great communication, and the odd tool to help you out here and there, those you’re outsourcing to will simply become an extension of the team.

The myth: Outsourcing is something only big companies can afford

Plenty of business owners see outsourcing as a luxury that only big companies with lots of resources can afford. They see the cost of outsourced work as an added expense on top of the regular salaries and overheads – but what about ditching tradition?

The truth

Outsourcing skills or services can actually be a great way to spend more sensibly and help budgets stretch further.

For example: rather than employing a full-time marketing social media exec to write a couple of social media posts per week, dissolve the role in favour of a freelancer or agency who can do the same, for a fraction of the cost. Plus, you don’t need to pay any employer’s contributions for them.

The myth: Outsourcing causes risks with data and cyber security

Far too often we see businesses shying away from outsourcing due to fears around cyber-attacks and data breaching. We hear you, and you’re right to be concerned about the online security of your business, especially when working with external parties. Just don’t let that be what puts you off outsourcing.

The truth

Sure, if you’re not careful, working with external parties can compromise your data, but this is why contracts are useful. A freelancer or contractor is no more likely to result in a data protection breach than an employee.

The myth: Outsourced work isn’t as high quality as in-house work

Some believe that the best work can only be done by those operating from inside the business. Employers can find it difficult to process the idea that external professionals can do just as good a job as an employee.

The truth

Recruitment is important! This is how you hire, or use the services of, good people who are dedicated to doing the job well. People are motivated in different ways, so one employee might be just as switched on as the next freelancer.

When you outsource to somebody, you’re buying into a specific, fine-tuned skillet that’s been honed. Their expertise can take you to the next level.

Sometimes, full-time employees can become generalists spread thinly, with fingers in a number of pies. The experts you outsource to, however, are masters of their craft. Plus, they’re well-versed in getting to know a business’s brand, tone of voice, culture and identity at super-speed.

Wondering how outsourcing skills might impact your business finances? Use our handy tool to ask a tax-related question for free and let our experts give you a (generous) nudge in the right direction.

The post Dispelling Common Myths About Outsourcing appeared first on The Cheap Accountants.

Outsourcing can do more more than just save you money, though. In this article we’ll look at the benefits of outsourcing tasks, and how to find freelancers to do the work.

What is outsourcing?

Outsourcing work means specific business tasks or functions are given to external service providers (usually freelancers) to handle, rather than the work being completed in-house.

It often gives you more choice and flexibility, allowing access to specialist skills if and when you need them.

Different types of outsourcing

There are actually a few different types of outsourcing to be aware of, such as:

• Outsourcing key business-related functions like marketing
• Business Process Outsourcing (BPO) (for example, payroll or customer support)
• Information Technology Outsourcing (ITO)
• Knowledge Process Outsourcing (KPO) – usually highly specialised functions such as accounting or research

Why outsource?

Like anything, there are pros and cons to outsourcing. It can be more cost-effective than hiring a full-time employee, particularly if it’s only for a short-term project.

You won’t need to worry about additional costs or responsibilities (like making pension payments and National Insurance contributions, or arranging Employer’s Liability Insurance).

It can also be faster. Outsourcing a task to someone who specialises in that specific function is likely to mean they’re highly experienced and able to be very efficient.

More broadly, outsourcing gives you access to a large range of skills, many – or even most – of which may not be available to you in-house.

Can I outsource for long-term projects?

Lots of businesses outsource tasks on a long-term basis – such as accounting or legal services, or you might have longer projects which you need help with. Just be careful around the IR35 rules if you do hire a freelancer who comes to sit in your office every day as if they were a regular employee. It can muddy the waters around disguised employment, and that can have tax implications for both of you!

How do I find freelancers?

Most online job sites will simply let you advertise for freelancers, but there’s always the option of looking on freelance marketplaces..

For example, if you’re looking for project-based services you can check out Fiverr, or if you’re looking for a few freelancers that work in a wide range of fields, you might look at Upwork.

These can be a great resource, providing access to hundreds – if not thousands – of available freelancers looking for work.

Most freelance marketplaces even allow you to filter for the exact skills and experience level you’re looking for.

How do I choose a freelancer?

Even once you’ve found some potential options, you still have to make a choice between them. Generally speaking, it’s important to consider things like cost and flexibility.

The idea of selecting the right expert to work with can be daunting if it’s not an area you’re familiar with. After all, that might be why you’re hiring them! It’s usually worth looking at their portfolio or other examples of clients and work, and asking for any testimonials.

Check their portfolio

If you’re struggling to decide whether or not to hire a particular freelancer, previous examples of their work can be very helpful, giving you a tangible idea of what they’d bring to the table.

While a more generalised approach to freelancing may work for those with a diverse set of skills, you typically want to pick someone who specialises in exactly the kind of work you’re asking them to do.

In other words, you want a specialist, not a generalist.

A solid portfolio serves as proof that a freelancer knows what they’re doing, whereas an absent one may be a sign that they’re relatively new (and therefore lack experience).

Look at their track record

In a similar way, testimonials from previous clients are a good sign a freelancer can be trusted to follow through and get the job done.

Hiring someone obviously comes with a high degree of risk, and so any reassurance you can get is vital. If a freelancer is able and willing to give you past case studies to look over, that’s an even better sign.

Get in contact with them

This is a good way to test how responsive they are. Simply shoot them an e-mail and see how long it takes for them go get back to you.

If they take a while, that could be a sign they’re either too busy or don’t see freelance work as a priority. But be fair – they might be away, or this might be a one-off! Either way, it’s a window into how your communication could go if you were to hire them.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post How Outsourcing Can Help Your Small Business appeared first on The Cheap Accountants.

Nobody expects Mary Berry to be able to make waves with her mind, in the same way you’d never ask Aquaman to bake you a birthday cake. We’ve all got our own skills and superpowers but it’s crucial that we also accept our limits. One of the many myths of outsourcing is that the quality won’t be as good as doing it yourself, but this isn’t always the case.

Outsourcing can often help you hire in talent which you might not otherwise be able to afford (or need) on a long term basis.

We’ll share some tips on how to hire an expert if you need to outsource tasks from your business or as part of a project.

Decide where to look

The first step in looking for an expert? Look in the right place! For example, you might go to a freelancing platform like Fiverr if you need a content writer, or use Checkatrade for a roofing contractor.

It will help focus your search, which is a starting point.

Describe what problem you’re trying to solve

Giving the solution to the problem you’re hiring someone for can suggest you already have a very particular goal in mind. If this isn’t the case, and you need their expertise to work out what the best outcome could be, describe what you’re trying to achieve and any constraints instead.

That way, it becomes their responsibility to design the solution – which is exactly what you’re hiring an expert for!

How do you know you’re hiring an expert?

So, you’ve acknowledged a gap in your skillset, and recognised you need help from somebody more qualified or experienced. How can you identify a field expert when you aren’t one yourself? As a business owner or employer, this can become a bit of a stumbling block when it comes to finding the right person.

A common example of this is SEO. You know you need it to climb the search ranks and boost your small business marketing, but you don’t know where to start. When something feels like one big mystery or a foreign language, it can then be hard to work out whether the person you’re hiring knows what they’re talking about.

Fortunately there are several steps you can take to make sure you’re hiring the right person.

Ask for references and a portfolio

This is where it’s so important to do some research! Check out their portfolio, reviews, and reputation in as much detail as you can. You might not become an expert in the field within the hour but you will at least have a better understanding of the basics.

The best way to build a character profile and get a good idea about whether somebody is the expert they claim to be is to experience what they do first hand. Ask to see some examples of past work, case studies and testimonials from previous clients or employers before committing to anything. This is particularly useful for creatives like marketing experts.

Check their qualifications and professional memberships

In some cases it’s a legal requirement that the person carrying out a particular task is accredited or qualified by a professional body. For instance, gas appliances can only be installed by a gas safe engineer.

Some professions, such as accounting, aren’t a protected industry. Unfortunately this means that anyone provide accountancy services, so make sure they have the type of qualifications, accreditations, and experience that you need. Read our guide to hiring a qualified accountant.

Get a second opinion if you need one

Outsourcing doesn’t tie you to using one firm or person forever after. If you need to get a second opinion or several quotes, then you’re well within your rights to do so!

If you do end up using someone for a larger project, why not split the job up into smaller milestones – each with their own milestone payment? That way you can get out of there if you need to, without committing too much upfront or getting tied up in a contract.

Beware of sales patter

Most genuinely experienced and knowledgeable experts will be very honest that they don’t know everything – how could they? With that in mind a few potential red flags could include:

• An aversion of “not sure but I can find out”. This raises all sorts of questions about whether they actually know what they’re looking for, or what sort of value they might be able to offer you.
• Not giving you options, or explaining what the trade-offs might be to reach a particular outcome
• They use a lot of jargon without explaining what any of it means. Okay, so you’re hiring an expert – it’s their job to understand this stuff! They don’t need to dazzle you with science.
• They don’t ask any questions at all. You might have given a supremely detailed brief, but if they jump straight into sales mode rather than asking about your own unique circumstances, then they might be selling something more formulaic than the expertise they’re claiming to have.

 
Find more business guides and resources in our information centre, including help with finding a cheap accountant.

The post How to Hire an Expert When You Aren’t One appeared first on The Cheap Accountants.

More importantly, what’s the best way to go about it if you’re on a budget?

Well, more and more people are taking the route of outsourcing their marketing (as opposed to handling it in-house with a dedicated team). This can be a great, cost-effective option for start-ups though it’s not without its downsides, too.

Let’s take a look at the pros and cons, as well as what to look out for when choosing a marketing agency. But first…

What is outsourced marketing?

Outsourced marketing basically involves using an external agency to manage your business’s marketing activities.

You can either get them to oversee all aspects of your marketing, in which case they’ll likely develop a strategy for you, or just a few select areas that may require specialist knowledge (e.g. your social media presence or SEO and website development).

What’s the difference between in-house and outsourced marketing?

It’s important to understand how the two differ so that you can make an informed choice, and ultimately one that’s right for you and your business.

In comparison to outsourced marketing, marketing which is in-house typically involves a small, dedicated team – or even a single person. It might even be you, as the business owner!

This means you’ll either need to employ someone to do the job (yes, even if you’re a sole trader), or find time to fit it into your schedule.

What are some of the pros of outsourcing marketing?

One of the main benefits is being able to work closely with an agency that has access to the latest marketing tools and technologies. Your business will benefit from all this without you needing to purchase any of it yourself.

You’ll also get access to different perspectives than if you were to simply do it yourself. This can be really beneficial, as being too close to the business can mean you lose the ability to be objective and spot potential issues.

Outsourcing to freelancers or other companies also frees you of the duties and responsibilities you would have if you chose to employ a dedicated marketing team instead. These include things like recruitment laws, registration, insurance, various health, safety and equality duties, payroll and the legalities of sick and maternity pay.

What’s more, outsourcing allows you to adopt a more flexible approach, as when you start working with an agency, you have the benefit of being able to increase or decrease the number of services you require as and when you need to.

And the cons?

First and foremost, it may be hard to find an agency that understands the unique needs of your business. You want an agency with different perspectives, but, at the same time, these could actually cause them to try and take your marketing in a direction you’re not entirely comfortable with (or ready for).

Learning to trust their direction could take time – time that you may not have if you’re hoping to grow your business quickly.

You may also notice a lack of loyalty and/or commitment when working with freelancers or other companies, and this is because they (understandably) don’t feel the same level of investment as a permanent employee would.

If you’re hiring a freelancer, one other thing to watch out for is that they don’t fall under IR35. This is when someone is working for a client (you) on a supposedly self-employed basis, but the relationship is actually more like they are an employee, or an employee-in-disguise.

Failing to comply with IR35 rules can result in financial penalties.

What to look for in a marketing agency

Broadly speaking, you want to look for one which offers a diverse range of services, from digital and social media marketing to web design and copywriting.

Whether you have an immediate need for all of these right now or not, it’s still good to have the option – just in case.

A proven track record (and the accompanying experience) is also a crucial factor, as you’re effectively placing your trust in someone you don’t know, and so you need to see evidence they’re capable of getting the job done.

Otherwise, it’s a complete shot in the dark.

Good communication is also important, so that you’re kept in the loop and can track the progress you’re making (via things like monthly reports or meetings).

And, again, you ideally want someone who just “gets” your business, as this will make the whole process much smoother, allowing you to scale at a faster rate.

Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Should My Small Business Outsource Marketing? appeared first on The Cheap Accountants.

But how do you know who to pick? How can you tell that this freelancer is going to add value and be reliable? Below are some tips to help you decide whether the freelancers you’ve found will be good hires that add to your business.

Check their portfolio

This should be the first thing you look for, examples of their work. You need to know what their skills are like and whether they are a good fit for what you company needs. An absent portfolio shows that the freelancer is probably new to this which may something to be wary of.

How easy are they to contact?

So you like what you see on their website but what next? You throw them an email and they take a week to get back to you.

This is a bad sign that they’re either too busy or are not taking freelancing seriously. It’s a window into how your future communication will go. Poor communication will make a project stagnate and leave you stressed.

What are their specialities?

While a generalised approach to freelancing may work for those with multiple skills, it’s a better move to pick someone who specialises in the kind of work you need them to do. Knowing that they do this stuff all the time can only be a good thing and ensures you’re getting top quality from someone who knows exactly what they’re doing.

Ask about paperwork

If you can drop words like contract into the conversation and not be met with silence from the freelancer, this is a good sign. A professional will want a contract because it protects both of your interests.

Do they have a good track record?

Hiring someone online comes with plenty of worry and risk so reassurance is very important. Testimonials from previous clients on a freelancer’s website is reassuring and shows that they have a good track record.

If a freelancer can give you case studies, showing you how they’ve worked in the past as well as testimonials, this is even better. You’ll no doubt be in safe hands if this is the case.

Have you ever hired a freelancer? What do you most want to see on a freelancer’s website? Let us know your thoughts.

The post How to Choose the Right Freelancer to Outsource to appeared first on The Cheap Accountants.

Top Three Outsourcing Pros

Flexibility

Outsourcing tasks gives you the flexibility to have them completed when and where it suits you, at a price you can afford.

There may be tasks that requires expertise and time you don’t have, such as book-keeping, accountancy or web design, tasks that are too intermittent to warrant employing someone, or tasks that require time and attention you don’t have (or could better spend on something else), such as admin or answering queries. It can be a way to hire expertise which will help your small business.

Reduced Responsibility

Sometimes, recruiting an employee can be the right answer. But with your new status as an employer comes a host of employer duties; recruitment laws, registration, insurance, various health, safety and equality duties, payroll and the legalities of sick leave and maternity pay.

Outsourcing tasks to freelancers or other companies frees you of these duties. You don’t need to worry about how much annual leave these workers have left or whether you got their tax code right on their last payslip; that’s down to them.

Cost Cutting

I’m afraid those pesky members of staff aren’t cheap to employ, either. You must adhere to the law by paying the living wage – and you may have to pay well above that to get the right employee. And the costs don’t end there.

Sick leave, holiday and maternity leave; a well lit, adequately heated and ventilated workspace; the supply of work equipment, chairs and desks etc.; and a place for staff to have a break away from their place of work (a must, as this is a legal requirement). It all adds up.

But when you outsource tasks, although you may pay freelancers a little more than employees, the onus is on them to have their own workspace, equipment and furniture.

They pay the energy bills that keep their office heated and well lit; the cost of the water, the teabags and the coffee, the phone line, the Wi-Fi, the software – all down to them. They also take financial responsibility for those times when they’re unable to work (something to bear in mind when considering their rates).

Top Three Outsourcing Cons

Lack of Communication

If your employees are just a few steps away, it’s easy for both parties to communicate regularly about work and how it’s going – and those conversations in themselves can spark more thoughts and comments that help to ensure you’re all clear about what needs doing, when it must be done by and how it should be done.

Take away that ease of communication and it becomes something you must work at, particularly if you’re not only missing out on the body language and facial expressions of your employee, but their tone of voice too.

Instant messaging and emails aren’t the best way to convey tone or the finer details. You’re also dependent on your freelancer answering your mails and phone calls or contacting you when agreed or required; if communication stops, there may be little you can do.

Lack of Loyalty

Companies or freelancers you outsource work to may not feel the same sense of investment in your business that an employee would. Most employees have at least a vague awareness that their efforts are contributing to the survival and profitability of their firm, and a vested interest in rooting for the company to succeed; they want a good salary, the chance of a bonus and the security of continued employment.

If you recruit wisely, those you outsource too should provide a professional service and a dedicated attitude. But they’re unlikely to work unpaid overtime, take late night calls or do an absent staff member’s work on top of their own for nothing – unlike an employee. Nor are they likely to accept a drop in pay to keep your work and help your business recover or get on its feet.

Lack of Discipline

Although wise recruitment should help ensure this isn’t a problem, you may come across companies or freelancers that persistently let you down, either in the quality, quantity or timely delivery of their work.

Of course, just like your employees, those you outsource to are human beings. They will have bad days, equipment failures, illnesses and crises just like the rest of us. But a website that constantly crashes, a remote PA who is persistently abrupt with clients or an accountant who bungles your tax return and brings down the wrath of HMRC will add to your stress, vacuum up your time and potentially cost you money.

You can’t closely oversee the work of remote freelance employees and contractors, and you don’t have the back up of a formal warning system – referral to the terms of your contract with them is your only recourse, up to the point where you decide to outsource your work elsewhere.

Outsourcing can be a powerful business tool, but you need to go into it with eyes wide open, realising that it may take awhile to make it work for you.

The post Top Three Pros and Cons of Outsourcing appeared first on The Cheap Accountants.