How outsourcing administrative tasks improves profitability for companies of all sizes.

The Virtual Company

As small companies grow, their need for administrative support grows with them. This is often challenging for small business owners who prefer to focus on managing their product or service rather than performing administrative tasks, or hiring, equipping, and managing others to perform those tasks.

Outsourcing offers a smooth transition to increasing administrative burdens compared to the distracting task of hiring staff and setting up their offices.

a word cloud using "outsourcing" as the main word

Here are some benefits of outsourcing for small companies you may not have considered:

  1. Hiring contractors to perform specific tasks gives you access to higher quality staff at a lower overall cost because you only pay for the specific hours you need at a given skill level.

  2. Recruiting employees requires significant time and expense due to advertising, interviewing, and post-hire training.

  3. Hiring staff creates the potential for employment-based law suits.

  4. The influence of emotion is removed from your employment decisions, freeing you to only use staff as your business needs.

  5. Outsourcing requires no additional benefit plan requirements, holiday pay or overtime considerations, or employee handbooks and legal notifications to manage.

  6. Outsourcing removes the need for awkward incremental increases in administrative overhead to accommodate the new hire, such as office space, furniture, computers, phones, network and internet access, etc.

  7. The reduced administrative overhead and emotionless decision making can substantially reduce your loss in a business downturn. Properly designed, a flexible or virtual business model can allow a business to be profitable at almost any size; a key advantage for a ‘job’ oriented consulting firm.

An ideal area to begin outsourcing is administrative functions, such as:

  • Accounting

  • Tax Compliance

  • Bill payment

  • Payroll processing

  • Records retention

  • Accounts receivable management

Let MRO show you how outsourcing these functions can offer a higher level of service at substantially less cost than the salary of a single administrative employee. After a company realizes the benefits of outsourcing administrative tasks, many will begin to use freelance marketplaces such as,, and to outsource specific tasks more central to their product or service.


Brian Murray

Brian has been in public accounting since 1997. Prior to that he was in finance at Kimberly-Clark Corp., audit at M&I Bank Corp., and accounting manager at Browning-Ferris Ind. Brian’s areas of specialty are estate and trust tax and business valuation.

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