Final answer:
When the president of a small sporting goods store is considering outsourcing the accounting functions, factors to be considered include cost-effectiveness, quality of services, and regulatory compliance. Ensuring access to specialized expertise and a focus on core business functions are also key. It is crucial to choose a reputable service provider to ensure smooth and successful collaboration.
Step-by-step explanation:
The president of a small sporting goods store considering outsourcing the store's accounts should take into account several crucial factors. Firstly, the cost-effectiveness of outsourcing needs to be assessed, as it should lead to a reduction in operational expenses. Secondly, the quality of services provided by the outsourced firm must be scrutinized to ensure that the accounting needs are met proficiently. Lastly, the potential for regulatory compliance issues should be considered, as the outsourced firm must be able to adhere to the relevant financial reporting and tax laws.
Outsourcing may provide access to specialized expertise and can lead to improved focus on core business activities. However, it is important to ensure that the service provider is reliable and can deliver services that align with the company's standards and expectations. Securing a firm with a strong reputation and a track record of working with similar businesses can contribute to a smooth transition and ongoing success.