Technology renders speed, agility and efficiency to a small business. That’s why you will see that small businesses the world over are clamouring to systemize their business processes so as to achieve speed, efficiency, higher quality services and happy customers.
For small business owners though, the question remains whether they should develop business software like accounting software and deploy these accounting systems all by themselves? Does having a accounting software developing company do it make more sense? Let’s explore:
Accounting software, among other kinds of business software and Business Intelligence systems, is a core software system that any business – big or small – heavily depends on. Being the backbone of any business process, accounting software development and deployment is a serious aspect to look into. Here’s why you should never develop it yourself and you should instead let an accounting software developer handle this for you:
- The obvious cost factor: Pramod Bashin, The CEO of Genpact, India – a 20,000 odd manned back-office handling outsourcing work spun off by General Electric (GE) claimed in a Business Week report titled “The Future of Outsourcing” that outsourcing business processes can help in at least 20% to 30% of labor cost savings within the first year itself. With staff available in developing countries like India, Philippines and other such destinations, global outsourcing is happening for a very strong reason – cut costs, boost profits, enhance productivity. A recent McKinsey Global Institute study claims that about $18.4 billion in global IT work and $11.4 billion in business-process services are being outsourced to destinations mentioned above.
Of course, we were talking about big companies until now. Can a small business do something similar? Very much. By allowing business software developers to work on setting up and deploying business software for you, cost savings become very much obvious.
- Vendors can do more: Small businesses come with their respective expertise. What if they spend money, time and effort on having accounting software developed in-house but still lack expertise to use it, and implement it effectively?
You can save time and money and also obviate the need to hire professionals for accounting, book-keeping, payrolls, accounts payables & receivables, billing and invoicing, collections, vendor payments, taxation and much more. Say, how many professionals will you hire for these specific services? It could be mind-bogglingly complex and expensive, don’t you think? It is smarter to let business software end-to-end solution providers to handle this for you since they have requisite infrastructure in place – this is all they do, don’t they?
- You do what you must do: If you are the owner of a small business, you will do well to realize that core-competency is a must for a business to succeed. There isn’t any leverage if you had to do everything by yourself.
Small businesses tend to freeze in growth terms since they don’t seem to let go and have someone else to perform flanking business operations like accounting, finance, Human resources management, etc. Similarly, accounting software development is best handled by vendors with years of expertise in doing just the same; while the small businesses in question would do well to do what they are best at.
What other advantages do you see in letting accounting and other business software be developed by a software house, IT and software development firm rather than in house?