OUTSOURCE! TO MAKE LIFE EASY
There is an increased trend now a days for businesses that they are outsourcing their processes which are not main revenue generation activities i.e. non-core activities. This concept is referred to as outsourcing. Let us explain outsourcing.
Basically outsourcing means you make a long term contract with an outsourcing company to do one or more of your business processes, this helps you to minimize your expenses of functions which are not core to your business. Outsourcing is quite old concept. Since long ago companies are outsourcing their IT, marketing, publishing and law-related services. This results in getting a professional expert service and reducing overhead costs, because outsourcing companies charge less because of their economics of scale.
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Below are some of the useful links related to this page. You may like to explore them to know how we ensure confidentiality of your data, how it all works, which accounting softwares we support, and why we claim to be most preferred, among clients, outsourced accounting services provider.
IS IT FOR EVERYONE?
There is an increased trend of outsourcing particularly in following situations:
- It takes you much time to manage your ledgers and books and you find less time to expand or run your business.
- You are not satisfied with your accounts function because there are complex issues which sometimes are not understandable for you, or it costs you much time to reconcile items.
- You are not able to afford a qualified and professional accountant or you think this is not going to be in our benefit.
- You can have an idea about progress of your business by overviewing financial statements.
- You want to get more understandings of items appearing you your accounts which are confusing you.
- You want your accounts department to be so efficient that it is able to generate you multiple reports at anytime alongwith assurance that reports are presenting true and fair views.
UNDERSTAND OUTSOURCED ACCOUNTING BEFORE AVAILING IT
Outsourcing is simply defined as, If a firm render you services to do functions of your business, it is called outsourcing.
Business Process Outsourcing (BPO):
BPO or business process outsourcing is a specific type of
outsourcing, this term is used when a business outsources a
specific function or process of its business e.g., taxes,
accounts, employee matters etc. The firm to whom business
process is outsourced is specialized in that type of process and
the business who outsourced is confident that its processes are
being carried out by professionals of that field and now we are
able to focus on our core activities.
Is this a new concept?:
Outsourcing is not a new concept at all. This is a centuries old
concept. In ancient times, businessmen were used to acquire
services to persons who were expert in selling items in other
destinations, businessmen provided them goods and those
travelers/marketers travel to other countries and sell those
goods, they were paid fee for their services and businessmen
used to earn profits by their expert services.
Offshoring or Overseas Outsourcing:
Outsourcing to offshore, or overseas outsourcing means you
outsource your business activities to companies which are in
foreign, this helps in getting benefit of low labor cost. Low
labor costs are mostly in countries with developing economies.
These are particularly in Asia, where wage rates are low, so
professionals demand less than what professionals demand in
developed world.
Offshore outsourcing as political issue:
In developed countries offshore outsourcing is being blamed for
joblessness, particularly in IT sector. IT experts did lose
their jobs because in developing countries IT experts did the
same work for much less price. There being no effect of
boundaries. Governments in developed countries are concerned
about this issue that their IT and accounting experts are being
defeated by the same of developing countries. however this is in
overall benefit of economy because of reduced cost and improved
quality of service.
OUTSOURCING PROVIDES RELIABLE DATA FOR DECISION-MAKING
Advantages of outsourcing:
Reduced burden and expenses at the closing of the year:
We maintain all ledgers and related schedules along with data
entry, this results in decreased burden at the end of the year.
This also means that you'll have to pay less costs and give much
less time to prepare final accounts, submit tax returns and to
coordinate with auditors.
Put Off Activities that are not core:
Accounting is much easier to outsource than other business
processes, this also results in increased benefits. Today
companies providing accounting outsourcing have become so
efficient that you don't need to place your accountants in your
office. This allows you to save office space, utility charges,
dumping costs, and employees costs related to accounts
department, and your accounts department is converted into a
more cost-efficient and value adding to your business.
Availing expert services:
You may believe it or not that outsourced accountants give you
an expert and better professional services as compared to
in-house bookkeeper. The main reason for the difference in
quality is, you in-house bookkeepers are at a secure position so
they do not face any direct competition from other providers,
which results in their slow professional growth and expertise.
However outsourced accounting firms keeps on facing immense
competition with their market competitors and in order to
survive they need to maintain their quality of services with
continuous updation in their professional expertise to stay in
the business.
DOES IT SAVE MONEY? YES!
Outsourcing is cost effective
For sure outsourcing would cost you much less than your in-house accountant. Remember you are not paying just salary to your accounts department, you are also paying their NIC, medical costs, pension contributions, traveling expenses.
There are other factors like burden to hire and retain your
employees, placing advertisements, taking their tests,
evaluating each employee and interviewing, despite the fact that
there is no guarantee when that employee would leave you. You
are also providing them office equipments, like computers,
printers, stationary and office space, this costs you much than
it would cost you in outsourcing. As you pay monthly or weekly
to employees rather than on work basis, you'll pay your outsourcing
firm on the basis of no. of hours actual worked. They wont
charge you for any tea breaks, lunch, idle time, there is
also no increased rate in case of overtime.
Check our cost-effective rates!