Kenya’s economy is ailing. We cannot run away from that fact. In 2019 alone, it is estimated that at least 25,000 people lost their jobs. Within the period of three months to November 2019, at least 5,000 people had lost their jobs from various companies.
Many companies are opting to lay off employees as a way of cutting on the costs and remaining afloat as the economy continues to bite through the high cost of doing business and the continuous drop in the purchasing power of Kenyans.
The Small Medium Enterprise (SME) sector is among those hard hit with the biting economy. Stats from the Kenya National Bureau of Statistics indicate that at least 450,000 SMEs are closing down each year, 30,000 each month and at least 1,000 each day.
The best way to ensure that your business continues being operational during these tough times is to cut down on unnecessary costs that might be draining your funds. For instance, did you know that you don’t need a full-time accountant but can just outsource them on a need-basis?
Here are some of the benefits of outsourcing accounting and payroll services:
Outsourcing allows you to concentrate limited resources on your core business so you can be more profitable. Through outsourcing, you will have more time to focus on your deliverables to your customers and you will always have cash available, hence, profits. In other words, it is cheaper to outsource as compared to having someone on a retainer.
Outsourcing will help you cut down on costs. The work of an accountant, especially for a small business is not often regular. You only require the service once in a while, like when balancing books or filing for your taxes. If you have someone on retainer, you will have to, apart from their salaries, pay for the other statutory payments as well as training. You will be able to save all these costs. This will allow you to employ people who will focus only on your core business.
Outsourcing of accounting skills gives you and your business the ability to provide higher quality accounting information faster, more efficiently and with greater effectiveness. You will not need to spend time and money trying to keep up with an avalanche of new laws, policies, procedures, and technologies.
This article is courtesy of Zenuha Consulting.