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Contracting for Fewer Headaches

contracting business administration services for fewer headaches

A popular way for employers to reduce their paperwork and compliance headaches is by contracting business functions such as bookkeeping and accounting.

In fact, more than 55 percent of American businesses are contracting some of their functions, according to a survey done by the Society of Human Resources Management (SHRM).

Among the reasons: Contracting cuts costs and reduces potential errors, and provides expertise the company does not have.

Among the functions being contracted:






Companies save money by not having to employ staff members with the experience and education required to handle all of these complex business needs. Employers are also concerned about accuracy and complying with changing laws and regulations.

Mistakes cost time and money and can result in penalties from the Internal Revenue Service and Department of Labor, as well as other federal and state agencies. With the myriad of red tape that most employers have to deal with, it’s not surprising they turn to professionals who specialize in these matters.

Entrepreneurs have long seen [contracting] as a strategy reserved for big business, but technology has made it a more accessible tool for small businesses–and for some small firms, [contracting] has made a powerful impact on their growth, productivity and bottom lines.

“More small businesses are [contracting] tasks these days because technology has advanced to the point of professionals being able to work from anywhere in the world, coupled with the availability and accessibility of extremely qualified professionals who have decided or been forced to leave the corporate world, [such as] virtual executive assistants, marketing directors, graphic designers, transcriptionists, paralegals, web designers, HR consultants, bookkeepers, PR directors, IT specialists, and the list goes on,” [Laura Lee] Sparks [of Legal Marketing Maven] says.

“These freelancers come on board as subcontractors and save the small business owner the burden of paying overhead associated with payroll taxes and expenses such as health insurance and worker’s compensation, as well as the space constrictions that growing a company in-house can present.”


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