Accounting Outsourcing - Fantastic Advantages For Your Business    by Amitaabh Saboo

in Finance / Accounting    (submitted 2010-03-11)

What is accounting outsourcing exactly? Outsourcing also known as contracting out refers to delegation of operations or functions not forming part of core business to a subcontractor, normally specializing in the function or operation. Accounting outsourcing decisions are often made with lower cost or competency concentration in mind. The process will involve a substantial degree of information exchange from both the business and the subcontractor, co-operation and trust.

Advantages:
The greatest advantages businesses can expect from accounting outsourcing are undoubtedly reducing overhead expenses as related to employment, accessibility to experts in multiple fields and experience, better cost efficiency and an access to technology advancement and flexibility. With these, better focus and concentration is diverted to business growth.
Reliable accounting outsourcing service provider:
Your business will only reap the benefits if a reputable, reliable and expert outsourcing provider is chosen. Its absolutely imperative to do research on provider you looking to partner with. Get in touch with a couple of the company's existing clients to get first hand knowledge on their experience, expertise and professionalism. Its recommended that you decide on a provider which is honest and precise in the services they provide. You will be giving your responsibility to communicate, measure and interpret your company's finances to another company, it is thus essential that you'll be able to trust the provider with the financial health and life of your business.
Outsourcing failure:
Outsourcing failure is a very real problem facing companies. The reason cannot be pin pointed to geographical distance or cultural gaps, but rather miscommunication in outsourcing functions. An organization, it's employees and employers need to follow a strict communication code of conduct, to ensure work is assigned to and follows the right channel of communication, but the problem with outsourcing is, no such channel exists. The instructions are passed down a chain of people who may have no expert relation to job at hand which will lead to communication complexity resulting in all kinds of adverse effects.
Limitations of Accounting outsourcing services:
Accounting outsourcing services include but are definitely not limited to VAT and taxation service, inventory and account recon, payable and receivable accounts, budgeting and payroll admin.
Software used by Accounting Outsourcing Services providers:
The accounting outsourcing services provider should be able to use standard accounting software in an experienced and proficient manner. These software packages include Quickbooks, Lacert and Pastel Accounting. Excel files and templates can also be used to prepare and generate financial reports and statements.
Popular outsourced business tasks:
Benefits management is regarded the most outsourced business tasks at a 51 percent frequency, Payroll number two at 49 percent, Human Resources number three at 26 percent and Internal auditing number four at 26 percent.
Today, accounting outsourcing has truly been working for businesses, as entrepreneurs see the benefits in outsourcing financial and accounting services. The motive behind is that it decreases overhead expense and focus is dealt on the core business.