By MARION WILKE

Q: What is outsourcing? Would it be beneficial to me?

A: In a small business, unfortunately, you can’t do everything yourself and still plan to grow. If you’re not in a position to hire employees to share the work, chances are that sooner or later you’ll consider outsourcing.

Companies of all sizes can benefit from sending certain job functions outside instead of dealing with them in house. Some of those tasks may be infrequent or require special equipment; others may fall into the category of ongoing maintenance, such as accounts payable and receivable or janitorial services.

Regardless of the type of company you have—service, retail or manufacturing—not every activity involved in operating your business requires your expertise. In fact, it makes sense to outsource any critical activity that another individual or company on the outside can do better than you. As the company owner, you then free up your time and talent for the more profitable aspects of running your business.

Bookkeeping is an example of a job function for which a small business may not require a full-time employee. Unless you yourself have an accounting background, this is an activity that you may not enjoy and consequently put off doing. Even if you work on your own tax forms, you may not want to keep up with payroll requirements the way an outside payroll management firm must. Computer maintenance is another area where it may make sense to outsource, by buying a small amount of expertise and service that it would take you or other employees a long time to master.

There are also good reasons not to outsource. One is the possibility that the IRS will not view your outsourcing partner as an independent contractor but as an employee of yours. If that happens, you may find yourself paying that individual’s Social Security taxes and possibly other penalties.

In addition, the time may come when outsourcing a particular activity is no longer cost effective—because of increased business volume, for example, or a shift in the focus of the business that causes the outsourced function to warrant full-time attention on site. Or, outsourcing might be the right idea, but you discover that your first choice of contractors is not the right choice. That’s a situation that will cost you time (and perhaps other resources) to rectify before it saves you time.

Time and money are your two most important resources. Outsourcing certain functions may save you both. If you have a clear focus and a handle on your day-to-day management, you’ll know whether and when it makes sense for your company.

Marion Wilke is president of Custom Keyways and Machining.