How can outsourcing (BPO) help a startup business?

How can outsourcing (BPO) help a startup business?

Business, Human Resources, Legislation

If you are not used to it, starting a business in South Africa can be time consuming and costly. Unfortunately, we have a legislative environment which makes it complex for new businesses. At a time when your focus should be on getting your business up and running and attracting your first clients, the last thing you need as an entrepreneur is admin.

While it may seem like an unnecessary cost, using the combination of a good outsourcer and the right systems will make your startup journey far easier and make your business far more likely to succeed.

Feel free to contact us for more information on [email protected] . Either we or our partners can assist you with all of the elements in the checklist.

I have included below an indicative checklist of the various things an outsource partner can assist you with. Let’s call it the “Start-up checklist”. Note this is not an exhaustive list:

Area of Focus Things to do
Registrations & setup
  • Setup company with CIPC and register for company tax with SARS
  • Register for VAT (where applicable)
  • Register with SARS
    • PAYE / UIF / SDL
  • Register with the Department of Labour
    • UIF
  • Register with the Compensation Commissioner for workmens’ compensation / COID
  • Setup bank account
Ongoing compliance Company

  • Bi-monthly VAT returns (where applicable)
  • Company tax and provisional tax with SARS
  • Annual Financial Statements with CIPC
  • Annual return with CIPC

Employer

  • Monthly
    • Payroll
    • EMP201 with SARS
    • Declaration for UIF to DoL
    • Remittances to medical aid, provident funds, bargaining councils, unions (where applicable)
  • Semi-annually
    • EMP501 / IRP5s
  • Annually
    • WCA Annual return of earnings
    • Employment equity returns (where applicable)
    • Skills development returns (where applicable)
Human Resources
  • Provide policies and procedures and contracts of employment
  • Recruitment
    • Help prepare org structure and job descriptions
    • Advertise
    • Arrange interviews, psychometric and technical assessments
    • Make offer and get contract signed
    • Onboard
  • Grievances and IR
    • Assist with the “problem children”
    • Exit management
  • Work with you to grow the business
    • Training
    • Performance management and reviews
  • Assist in setting up time & attendance and payroll
  • Help design remuneration and incentive structures
  • POPI and data security compliance
Information Technology
  • Help to source necessary hardware
    • Laptops, printers, mobile devices
  • Cost effective access to critical software
    • Office 365 licensing and setup (email, word, excel, sharepoint, one drive etc..)
    • Firewalls and security software
  • Help with operational platforms
    • Web design
    • Social media and digital advertising
    • PoS and ecommerce
  • POPI and data security compliance
Accounting & Tax Over and above the compliance aspects:

  • Help drawing up a business plan
  • Tax advisory and support
  • Bookkeeping support
    • Customer invoicing
    • Customer collections
    • Bill payments and supplier management
    • Cash management
  • Dashboard development and KPIs
  • Real time and monthly management reporting (you can’t run a business if you don’t know what is happening)
  • Company valuation and modelling
  • Budgeting
Strategy
  • Facilitate strategic planning
  • Develop business strategy
  • Build five-year plan
Systems The real benefit of modern cloud-based systems is that you can setup all of the above areas on cloud-based platforms that communicate and interface naturally with one another. This means all your info is real time and available to you wherever you are. For example:

 

  • Xero accounting with a linked bank recon process, automatic client payment reminders and direct interfaces to inter alia:
    • Payroll and HR software
    • CRM platforms
    • Inventory management
    • eCommerce and payment platforms
  • Office 365 or AWS tools to automate processes and functions within the organisation (onboarding clients, document management, workflow management)