Small Business Resource

The terms “partnering” and “outsourcing” are thrown about so frequently …. and in so many contexts …. that it’s hard to nail down an exact definition for either.

These two practices are becoming ever so common among the business community, and although the distinction between them is becoming increasingly blurred, they do have distinguishing traits, which bear consequential benefits and risks.

It has been said that the practice of outsourcing should be looked upon not as a simple customer-vendor relationship, but rather as a partnership where the engaging parties mutually benefit from their agreement. While this may be a sound management practice, and while outsourcing shares many of the same characteristics with strategic alliances, outsourcing should be recognized as its own distinctive tactic.

Outsourcing is the contracting of services via monetary means in order to minimize or limit the resources that would normally be required to perform business functions internally, thus reducing costs.

A partnership, on the other hand, does not necessarily involve monetary payment from one firm to another, or a binding contractual agreement between two companies.

Rather, it is a partnership in which business entities collaborate with one another in order to bring about mutual benefits.

Writen by Margo Masri

What is the difference between a bookkeeper and an accountant? A bookkeeper handles the day-in day-out financial record keeping and reporting. An accountant specializes in the preparation and filing of taxes. Having a good bookkeeper is just as important to the growing business as having a good accountant.

Another big difference between an accountant and a bookkeeper is usually, “About $140 per hour.” For this reason it is very important that you allocate your resources efficiently. You do not want to pay your accountant to perform bookkeeping functions. It does not make business sense.

Smart Businesss allocate their resources based on their needs

Fact: Accountants do not have the time to handle day-in day-out financial record keeping and reporting. What do they do? They hire Bookkeepers.

Bookkeepers perform a critical function for the firms and organizations they serve. Regularly challenged to maintain precise and accurate records, bookkeepers produce the vital reports that keep management up to date on the financial condition of their company.

Bookkeepers are responsible for maintaining the “business checkbook”, much like a personal checkbook. They record routine money transactions like customer payments into a “cash receipts journal” and checks to vendors into a “cash disbursement journal.” They also process payroll.