Small and medium-sized businesses (SMBs) face many challenges in their day-to-day operations. These businesses must compete with large corporations, while also trying to maintain quality and customer satisfaction. To overcome these challenges, outsourcing has become a popular solution for SMBs. Here are some reasons why small businesses are more successful with outsourcing.

Cost savings

One of the most significant benefits of outsourcing is cost savings. Outsourcing certain business functions can help SMBs save on overhead costs like office space, equipment, and salaries. Businesses can also access top-tier talent without having to pay for full-time employees. This gives small businesses the flexibility to scale up or down as needed, without the financial burden of hiring and training new employees.

Access to expertise

While SMBs often have limited resources, outsourcing can provide access to specialized expertise that would otherwise be too expensive. For instance, outsourcing accounting services can allow small businesses to work with experienced accountants who can provide financial advice and help manage complex financial matters. Furthermore, outsourcing tasks like IT support can provide access to technology experts who can troubleshoot complex software and hardware issues.

Increased efficiency

Outsourcing non-core tasks can help small business owners focus on their primary responsibilities, which can lead to increased productivity and efficiency. It can also help streamline processes and reduce the time and effort required to complete certain tasks. For example, hiring payroll provider can free up valuable time for small business owners to focus on growing their business. (Or if you are keen to complete this yourself at least use a great app like Wagepoint!)


Outsourcing provides small businesses with greater flexibility in terms of the amount and type of work they need to have done. Businesses can choose to outsource only specific tasks, or to scale up or down as needed. This allows small businesses to adapt quickly to changes in the market or customer demand.

Reduced risk

Outsourcing can help small businesses mitigate risks associated with certain tasks. Professional outsourcing companies typically have the skills and experience to manage risks effectively. For example, IT support providers can help businesses avoid website crashes or data breaches that could negatively impact their reputation.

Functions that small businesses can Outsource

  • Accounting and finance
  • IT support
  • Marketing and advertising
  • Human resources
  • Administrative support

In conclusion, outsourcing provides SMBs with a cost-effective and flexible solution to their business challenges. By outsourcing non-core functions, small businesses can focus on their core competencies and ultimately become more successful. With access to specialized expertise, increased efficiency, and reduced risk, outsourcing is a smart choice for small businesses looking to grow and thrive in today’s competitive landscape.


Virtual Heights Accounting is a CPA firm that operates in the virtual world. We provide virtual bookkeeping, payroll tax and advisory services. Contact us at or follow our blog on your chosen social media source. This blog is intended for general use and understanding and does not replace direct professional advice.