How Corporate Services Providers Ensure A Smooth Operation Within SMEs
As a small-medium enterprise (SMEs), leveraging all expertise within the workforce is the best method to overcome limited financial and manpower resources. A well-connected and well-managed workforce would ensure smooth operation within SMEs. This can be achieved through the proper formation of essential departments every SME should have.
Essentially, there are five core functional units or departments that a business should have- no matter the size of the company. It includes administration, marketing and sales, research and development, accounting and finance, and human resources. However, it is common for smaller businesses with limited resources to have smaller departments or have employees take on multiple job functions or roles after the combination of departments. Nonetheless, for a company to have the best organizational structure, the five core departments must exist to help achieve its full potential.
What are the functions of each department?
For company recruiters and decision-makers to find the best fit in building the best organizational structure, they must first understand the key roles and functions of each department.
One of the roles required to be filled when undergoing corporate registration is the administration department. This department consists of company leaders and managerial positions that are heavily involved in making critical decisions for the company. As such, the job functions and responsibilities of the team vary vastly from individuals such as the chief executive officer and the president making decisions to managers overseeing daily operations while secretaries and assistants ensure proper bookkeeping. A company with a well-performing administration department would observe a highly efficient workforce with high communication skills across departments.
- Research and development
The quality assurance of the products or services provided is the bare minimum of what a business should do. Especially in a competitive economy, businesses hoping to succeed should invest in an R&D department to ensure they remain relevant and competitive. That is, team members within a highly functional R&D department would integrate both their strong knowledge in the field and their creativity to upgrade products or services. Occasionally, when there are unique product discoveries, companies would work to protect them by seeking patent rights.
- Marketing and sales
With the R&D department using a large number of company funds to produce the best products, the marketing and sales department ensures that the product is positioned in the best way possible to drive revenue for the company. With the help of the internet, connecting brands with their potential customers alongside marketing and advertising has been easier. As such, creativity, boldness, and the team members’ willingness to keep up with trends are the few requirements to ensure a distinctive and successful marketing campaign. Customer data platforms (CDP), customer relationship management (CRM), and the marketing department can understand their consumer’s behavior and needs through the rise of technology. They can also share information with the R&D department to further improve their products. Hence, the marketing and R&D department would work closely together to ensure customer satisfaction.
- Human resources
In recent years, the HR department is gaining more recognition due to their contribution to ensuring the employee’s welfare, engagement, and productivity. Their focus is to ensure all employees have a positive experience and environment to work in. HR has to be present for each employee throughout their lifecycle in the company. Big tech companies such as Google and Meta, emphasize the HR department to provide the best experience for their employees. The experience includes providing free meals and refreshments, having game rooms or activities for employees to distress, and constant training and development courses to enhance their skills, encouraging them to become a better version of themselves. A happier and well-managed workforce would drive higher productivity and commitment toward the company.
- Accounting and finance
The main goal of every company is to achieve high monetary returns. The accounting and finance department ensures that revenues and expenses are well-tracked so that a company is not spending more than it should. Additionally, the accounting department handles employees’ payroll and ensures proper documentation for end-of-year financial reports required for tax purposes. Due to the consequences of a poorly logged accounting report, including poor credit ratings and being fined for late tax payments, recruiting for the accounting department should be highly scrutinized.
Challenges faced by SMEs when establishing departments
SMEs do not have enough resources to hire the right talent for these positions and departments. Furthermore, there is the issue of a talent crunch- in 2022, a survey conducted by iHire found that hiring qualified and suitable talent to fit the company was the main challenge. Plus, 7 in 10 employers added that the application rate remains low among job seekers. Add this to the lack of financial resources, which is a common issue faced by young small businesses, it is almost impossible to find more experienced and knowledgeable talent. This is where outsourcing can help.
Outsourcing job functions to PikoHANA
Outsourcing departments or job functions to corporate service providers help SMEs overcome these challenges. PikoHANA is a corporate service provider that provides corporate secretarial services and enables accounting service outsourcing.
Their corporate secretarial services are there for companies throughout their journey, from company registration where they perform the duties of a corporate secretary in the maintenance of all the company’s documentation.
Outsourcing accounting services for SMEs would mean that PikoHANA would provide its expertise in anything finance-related which includes payment processing, customer invoicing, payroll & employee expense reporting, and the use of well-developed accounting software.
Hence, for SMEs that face the challenge of insufficiency in financial resources, lack of talents and expertise in the administration plus financial department, PikoHANA is an all-in-one concierge service that SMEs should leverage to drive a smoother and more effective operation within the organization.