Planners overlook outsourcing
Financial planners and accountants are ignoring proper business models and are losing the potential to increase the value of their business and capital at the time of sale for exit or succession purposes, according to a broker firm.
Connect Financial Services Brokers, chief executive, Paul Tynan said outsourcing was often overlooked as a solution despite organisations spending vast sums trying to keep up with business changes driven by automation and artificial intelligence.
“Practice owners’ profit margins are being eroded and fighting to retain clients in an increasingly competitive world has never been more difficult or challenging,” he said.
“Wage earner incomes are flat and employment headline numbers are coming down – whilst casual employment has seen tremendous growth resulting in an increase in underemployment.”
Tynan noted that while outsourcing was often met with scepticism, it created capacity within a business so that resources and employees could focus on value-adding/client focused activities rather than non-income generating administrative tasks.
“Outsourcing or contracting out business tasks, has the ability to provide efficiencies, best practice service and profitability as well as allowing organisations to keep pace with this new technological business environment and rapidly changing consumer expectations and demands,” he said.
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