Why do companies like Apple, BMW, and Pfizer outsource? Is outsourcing something you should consider?
Most people who purchase a BMW have no idea their vehicle is not likely built by the company that claims to provide “the ultimate driving machine.” Much of BMW’s manufacturing is actually done by Magna Steyr, a contract manufacturer that builds cars for several other automakers, including Mercedes-Benz and General Motors Corp.
Today nearly all carmakers outsource a significant portion of their manufacturing…and today’s vehicles are among the most reliable ever built. They focus on their core competencies and leave the rest to others. Do you focus on your core competencies in your business? We at Ascent Multfamily Accounting work with many prominent portfolios to let their operators focus on their core competencies and leave the back office work to financial specialists.
Car makers believe that designing, marketing and selling vehicles are their core competencies. Manufacturing is better done by those that focus on just manufacturing.
Consider Apple, the world’s most admired brand. Does it make its products? Nope. And while it saves money outsourcing, Apple states that the main reason for outsourcing is speed and flexibility.
Harvard Business Review reported that “Outsourcing is not just a trend; it is an integral part of how smart companies do business.”
Additionally, in March 2016, Units Magazine reported that “apartment owners and management companies are seeing a trend in Outsourcing some of their accounting and back-office functions” and that they “expect more than 20 percent of multifamily operations to adopt outsourced Accounting in the next few years.”
Outsourcing your back office can save you a lot of time and money, not to mention peace of mind and get you back to doing what you love – managing. Ascent aims to make managers jobs easier and more efficient by taking your back office operations off property.
Outsourcing can offer you the following benefits:
1. You can focus on your core business
2. Cost reduction
3. Better service and increased agility
5. Accelerate engineering
Let’s dig in:
Focus On Core Business
Outsourcing allows owners and managers to focus their time and talents on their businesses core competencies, which are managing and marketing the properties and securing new business. This extra attention to their core business gives owners and managers an advantage over their competitors.
Outsourcing lets property owners continue to focus on their properties without worrying about staffing and the headaches that come from managing employees.
By outsourcing, many owners can often save 30 to 50 percent of the costs of Performing back office operations. Ascent Multifamily also helps its clients save on property and health insurance policies and payroll processing costs that normally could not be obtained without our economies of scale. Click here to learn how a Texas multifamily owner saved 55 percent on his management costs through outsourcing.
Better Service and Increase Agility
We focus on specific functions, not the multitude which you oversee. We also have more than 20 years’ experience in property management. Because of this narrower scope and our experience we provide efficient service real-time information and valuable insights.
Outsourcing reduces complexity, headaches, and risk. Bringing in specialists usually means faster execution and fewer mistakes. By outsourcing, management firms and property owners gain the expertise to handle complex applications and functions that are often a challenge to acquire or manage efficiently.
Companies often know they need to change but are at a loss as to how to go about it. These companies benefit from having an organization that is already reengineered to world-class standards.
To learn more about how outsourcing your accounting, payroll, and/or financial reporting to Ascent Multifamily Accounting can help your real estate organization achieve its business goals please contact us today!