Outsourcing has
become a catalyst for change and transformation in many service sectors,
including accounting and bookkeeping. It is safe to say that offshore bookkeeping services is seen as a viable option not just by big
corporations but even by small and mid-size firms. Medium sized firms and
start-ups tend to benefit from the time and money they save by outsourcing bookkeeping
services to India. In the last five years, growing use of cloud computing,
increased awareness and falling cost of communication has led to a rise in the
demand to outsource accounting services to India and other countries. Outsource bookkeeping services to India where you can receive services by some of the best
accounting and bookkeeping professionals with ample of experience and training.
Bookkeepers are essentially responsible for
entering data in the books and keeping their records up to date. Tracking of
all income and expenses, paying bills, invoicing, tracking payrolls and other
related tasks are all performed by a designated bookkeeper. If you are
wondering what difference it really makes when these services are provided by
an outsourced team and how that affects your day-to-day functioning, we will
share a few key points that will answer all your questions.
1. Cost savings – It is a well-known fact that outsourcing helps save
up to 40-70% as it provides you the option to hire resources or a team at a
reasonable cost. When you hire an online accountant, you can get all the
services from him/her that you would expect an in-house employee to perform.
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2. No overheads - It takes away a major chunk of your expense that
goes into maintaining an in-house team, providing work space and other
amenities. When you hire bookkeepers that are working for you remotely,
you have the option of scaling up and down as per your requirement. The
outsourced service provider usually deals with the resource management to
provide undisrupted services.
3.
Focus on core business – Outsourcing allows you to strengthen your
skills and focus on your core business strategies in two ways. Firstly, it
leaves a lot of time and room for your in-house team to focus on other tasks
that are growth-oriented such as expanding clientele, maintaining and retaining
business relations, etc. Secondly, an expert accountant can also provide you
with information and reports that reflect how your business is performing in
terms of cash flow in order to help you recognize the areas that require your
focus.
4. Expertise – A skilled resource or team will be available to
perform the accounting tasks for your firm. They have the training, experience
and dedication that is required to perform these sensitive tasks - like
managing your accounts with utmost care.
5. Good processes - An outsourced service provider assures quality
processing and understands the importance of this in accounting. It saves time
and helps avoid any confusion when the work is done accurately and with
precision.
A bigger talent pool to choose from, the availability of flexible paying options and excellent communication skills are some of the other key factors that make outsourcing of accounting services an attractive and successful option today. However, it is imperative that you maintain a healthy relationship with the outsourced accounting firm you wish to hire. It is the only way to ensure you can transfer some of your confidential data and information to a foreign team without any hesitation. Good rapport also contributes towards building a long-term relationship between the firm Outsource bookkeeping services to India and outsourcing service provider based offshore.
So, what can you do to create a successful relationship with an
outsourced accounting service provider?
Here are a few
simple yet impactful ways to achieve this:
1. Clarify your needs – This need to done at the very beginning of
your contract, if possible. You must communicate what your expectations and top
priorities are. Your outsourced team will then know the kind of deliverables
and reports you expect from them in order to make more informed decisions for
your business. Not just that, this
onboarding phase is also ideal for firms to open up about the current state of
their accounts. This is a crucial step and needs to be performed with sincerity
and honesty to receive positive results.
The idea is for both parties to understand their respective goals as
well as the direction they need to head towards.
2. Establish communication – It goes without saying that strong and
regular exchange of communication is imperative for this model to work
successfully. It allows regular check-ins, lets the accounting team feel
included in the overall business growth and provides a platform for all members
to exchange feedback and ideas.
3. Well defined roles and responsibilities – Once you have
the outsourced team you wish to hire, you will need to determine what duties
you need them to perform. Each firm works in a unique way and has different lifecycles
in terms of maintaining and evaluating accounts. It is important that your
offshore team is informed of their responsibilities and the roles they are
expected to perform.
4. Stay informed about your financials - To see some
major transformations in your business, you need to stay informed and aware of
all your financials. It is indeed your bookkeeper’s job to maintain all records
but it is for you to check those from time to time and make decisions
accordingly. Both financial reporting and management reporting help you make
changes at the internal and external levels to enhance growth.
5. Become more strategic – You can make the most of the management
reports provided to you when you outsource accounting to India. Management
accounting provides you with financial intelligence that enables data driven
business decisions. The expertise of your outsourced resources along with the
trust you put in them can pay off when used strategically.
6. Right pricing structure – Outsourced service providers usually offer a
flexible pricing option. If the volume of work is consistent, then choosing a
flat fee package or a dedicated option works well. On the other hand, if there
are short-term assignments, then hourly rates work well.
7. Pilot or trial project – It is always great to start off with a new
team of employees by assigning them a trial project. Since there is a lot of
anticipation at both ends, beginning on a trial basis proves to be a safe
option. It helps the two parties build a relationship with one another. It also
allows the outside firms to actually experience the quality of service on offer
before they make a long-term commitment.
8. Termination procedure - The termination clause should be clearly stated
in the contract. It becomes essential when you are not satisfied with the level
of services provided by the vendor. You must follow the standard industry
practice of a 30/60-day notice period before you can actually terminate your
contract. Make sure your vendor agrees
to transferring all files back to you and is willing to participate in the
handover process.
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