Accounting is a set of rules or method which records, complies and reports the financial status of an individual or organization. Basis of accounting is to maximize profit and minimize losses. This scenario has changed drastically over the years. The very word "Accounting" brings into our mind heap of accounting books, with some one wearing spectacles maintaining the whole accounts sitting behind. With the technological changes the computers and accounting software's started replacing accountants or bookkeepers even though not completely but certainly to an extent.
Now we know what accounting is all about. Most of the companies use multi various accounting software's that can be installed in their computers. Almost all these software have easy to use screens to enter data, have facilities to get graphically enhanced reports that can be stored or transferred in different formats. Even then the required accuracy in accounts cannot be completely achieved.
So are many companies that outsource their accounting to other firms or even to other countries. First reason is simple the level of expertise of the manpower working in these firms are much more than the manpower employed in companies
Most important reason is the rising cost for infrastructure to have a full fledged accounts department. Once outsourced the companies don't have to worry about the taxes for the company as well as for the employees that can otherwise lead to legal issues with the government.
Right from payrolls to financial budgets can be got from the outsourced companies. Some issues related to accounts cannot be solved by the manpower employed in the company itself that is when these outsourced firms can act even as consultants in recruitment, other policy matters of a company. Anyways the expertises of these outsourced companies are in different area of business based on the companies which outsource accounting to them, so can provide useful business ideas to companies. Even some of these companies provide legal help in case of any litigations.
With more manpower the accounts can be processed very fast within the time limit required by the companies or it can allot more manpower as when required to complete an accounting assignment, which is not possible with the in house accounting department.
Online Accounting and Bookkeeping Software