obox.accounting January 13, 2017 No Comments

Bookkeeping Company

Bookkeeping Company: Outsourced bookkeeping services might sound new to a lot of people but it has been trending from more than a decade now. Outsourcing is when you contract out some part of your business to an outside company rather than performing it in-house. This is mostly done as a cost saving technique, but sometime it might involve paying higher costs just to get better services than you can manage within the company. Bookkeeping outsourcing is one of the examples of outsourcing.

Bookkeeping seems really easy at times, but if these invoices are treated wrongly, they can mess up your company’s accounts as well as your company taxes. To handle such complications bookkeeping companies hire very professional bookkeepers for their firms. These outsourced bookkeepers are the masters of their wok. They carefully enter each and every invoice to their systems. These are invoices are then checked by a senior person, before they are ultimately sent to client.

When you outsource your work to a bookkeeping company, you are not just transferring your work to them, but also the hassles and worries related to doing this work. When you maintain a bookkeeping department inside your company, you incur a lot of overheads like heating, light, electricity, their food, utensils and many more. These overhead costs combined with the salary given to a person just for taking care of bookkeeping can outweigh the benefit being received from it. The bookkeeping outsourcing service provider will be incurring all these costs at his end. The second thing this bookkeeping services will be doing for you are to take all the headaches related to hiring of employees to the necessary job. Not only they will be hiring staff at their end, but they will also be training them according to their client’s needs.

Another benefit you will be getting by bookkeeping outsourcing is that you will be able to save a lot of time. Not only because the work is being done from someplace else, but also because of the specialties these outsourced bookkeepers have. While within the business one man works for bookkeeping department, there are many deployed at the same time to finish the work quickly in a bookkeeping company. Let us take another example here. You are single owner company and Deadline is approaching near. You have to finalize the accounts before they are submitted but you still haven’t finished the bookkeeping. One way of getting this completed is to work 24 hours a day and maybe mange to get it done before deadline. But this doesn’t sound very healthy and plausible. In such circumstances you can take help from a bookkeeping company. They will make sure to utilize as much as resources to get your work done before time.

Some people might ask why they should trust such companies. The answer is simple. With every coming day accounting bodies all across the world are coming closer to each other and setting up safeguards to avoid frauds and scams. These bookkeeping companies are governed by these accounting bodies. A fraudulent activity will cost them their practicing license and thus loss of business. So such outsourcing companies take extra care in protecting their client’s data and hold high level of integrity. This makes bookkeeping outsourcing not only cost and time effective, but also safe.

obox.accounting January 13, 2017 No Comments

Accounting Firms Outsourcing

Outsourcing is when you give a portion of your like a part of your manufacturing or your marketing work to another company to do it for you. Similarly when you go for accounting firms Outsourcing you are either giving a portion of your accounting function or outsourcing the whole accounting department to them.

Benefits of outsourcing can vary from company to company and depend on one’s own self. Some seek it for cost saving whereas others might outsource their work for getting better results. Outsourcing accounting function is usually done to get both better results as well as saving cost at the same time. Accounts Outsourcing Firms Work in areas where there are lower living cost. This makes it easy for them to hire professionals at lower cost as compared to the countries outsourcing the work to them. Not only this, these firms get the benefit of economies of scale. They are catering a large amount of clientele which gives them advantage of dividing their cost easily over each of them.

These accounts outsourcing firms work with online software mostly. This makes it easy for their clients to review their work at the same time as it is being done. Online software are a great help in outsourcing business.

Management can check the work as soon as it is done and make the required reports. Accounts outsourcing firms work on hourly as well as contractual basis. You can choose whichever way of billing you want to choose. A new type of outsourcing is where an outsourcing firm provides you with a full time employee. This is a virtual employee that works under your company’s supervision and is available to you 9 to 6 or as contracted by the outsourcing company.

When you outsource your accounting work, you are not only outsourcing accounting function but also problems related to it. These problems being the hiring and firing of people working in it. Starting from hiring to training and further retaining the employee is all on the head of outsourcing service provider. It is their responsibility to train the employee according to their client’s requirement. Similarly you don’t have to worry about the fixed cost related to maintaining an in-house accounts department.

Accounts payable outsourcing is the perfect example of how accounting firms outsourcing work. When you outsource accounts payable to an outsourcing company it is their responsibility to take care of all the aspects of accounts payable function. They check which creditor is pending for a long time and needs to be paid urgently. The outsourcing company keeps a close eye on each creditor so that their client don’t lose business because of paying late. All the legal actions and response of emails are the headache of the outsourcing service provider. The outsourcing company also bargain with your suppliers to get the maximum credit period. Thus when so much is being done by the outsourcing company the owner of the business has all his energy to focus on expanding his business.

obox.accounting December 20, 2016 No Comments

Payroll Outsourcing Companies in India

Accounting outsourcing in India is becoming quite common these days. A typical example of this is payroll outsourcing companies in India. Another example is accounts receivable outsourcing. First let me explain you the concept of outsourcing here. Outsourcing is when you hire an outside company to provide you good or services.

Payroll outsourcing is also a part of accounting services that are outsourced. For larger companies, where the number of employees is quite a lot, it is very difficult to manage an Innhouse payroll accounting function. Such companies usually tend to outsource their payroll function to accounting service providers. Accounting service provider maintain their payrolls for them. They calculate each and every employees pay, their taxes and social securities. They are also responsible to manage any advances that an employee might have been given. Deductions are also calculated by these accounting outsourcing service provider.

Payroll outsourcing companies in India are particularly expert in such kind of services. They have ages of experience in managing payrolls of offshore companies. Companies from all over the world tend to outsource their payroll functions to such outsourcing companies in India. Such companies use online software to maintain their payroll information. This makes it easy for both, the outsourcee and the outsourcer to review all employees’ information in real time.

In contrast to online or cloud payroll software, some use bespoke accounting software. The benefit of using a bespoke software is that such software can be tailored according to need of client. This helps them make more client specific reports. It can fit a large amount of information in a very precise and yet more meaningful report. Such software if purchased by company might get very costly, but for outsourcing companies it is economical due to scale of work. The cost of whole software is divided into all the clients that outsourcing company is using that software for.

Another important part of payroll is pensions. Large companies spend a lot in pension schemes. Pension schemes can be really tricky and someone can easily make a mistake in it. Outsourcing companies hold specialize departments for such schemes. Not only this, they maintain their own pension schemes in which outsourcer can spend. They maintain all the information for where they are investing the pension money and make sure that they get the most out of their investment to cover the pension payments at end.

Some companies also give their employees share options. Valuation of these share options is a complex task. Payroll outsourcing companies in India have the right expertise to perform these valuations when and where needed by the outsourcer. These Accounting outsourcing companies in India take confidentiality very seriously so the outsourcer does not need to worry about their data being divulged to irrelevant places. Data protection is implemented in all such accounting outsourcing companies. With the accountancy bodies becoming more global and interconnected, high standards of integrity and confidentiality are maintained by all accounting outsourcing companies, thus making them a safe place to outsource your work.

obox.accounting December 20, 2016 No Comments

Accounts Receivable Outsourcing

In recent times, there has been a significant increase in offshoring accounting services. These services range from simple tasks like accounts receivable outsourcing and Outsourcing accounts payable to complex tasks like payroll and share option schemes. All tasks related to accountancy, starting from Bookkeeping to finalisation of accounts, all can be outsourced to offshore accounting service provider.

Although accounts receivables and payables might seem an easy task to manage, but for some companies it can be really stressful. When you are selling your services or good in cash it is quite easy to manage the accounts and cash flow. When you start making these sales on credit basis, it gives rise to accounts receivables. These accounts receivables can be easy to manage when small in number. But with growth in business, accounts receivables also start growing.

It is a good strategy for growth of business to give credits and discounts. But managing the accounts receivable is another job. If you fail to recover money on time, you will fail to maintain your cash flow. For any business to survive, a healthy cash flow is much more important than its profit. A business with losses can survive few years, but a business with defaulting cash flow will crash within months. To get away from this headache of always thinking about the cash flow, businesses tend to go for accounts receivable outsourcing.

Now the question is how you benefit from this type of offshoring accounting services. When you go for accounts receivable outsourcing, you also transfer its headaches with it. It becomes the responsibility of the service provider to manage the accounts receivables on day to day basis. These service providers keep record of all the outstanding receivables. These records are maintained on online or cloud accounting software usually. This makes them readily available for the outsourcee and the outsourcer. At any point in time the outsourcer can view reports on their receivables. It is duty of the accounting outsourcing service provider to alert the outsourcer if there is any customer that has gone beyond the agreed credit period. It is also their responsibility to pursue such customers on regularly basis and ask them for payments. If a customer is not responding to their emails or phone calls, they can also take legal actions on behalf of the company.

Another major responsibility of these accounts receivable outsourcing service provider is to closely monitor the cash flow of company. They calculate the turnover period, compare it with companies own performance and the industry average. If something alarming is seen, it is reported to the outsourcer. This in turn helps them to tighten credit terms and pursue their customers more vigorously. Accounts receivable outsourcing is interconnected with Outsourcing accounts payable. If receivables are being managed well only then the company will be able to generate enough cash in time to pay off their creditors. Thus accounts receivable outsourcing can be an effective tool for growth of company. Not only you benefit from professionals taking care of your receivables and cash flow, but now you will have more time to focus on other key areas for your business growth.

obox.accounting November 30, 2016 No Comments

Outsourced Bookkeeping Services

Outsourcing bookkeeping services enables to create value of non-value adding activities if handed responsibility to the right people at right time.
Now first thing which come in your mind and it storms heavily as to whether why should we outsource. Why should we provide our financial data to someone who is not the part of our company? The most comprehensive response to this question is “Net Results”.

If the cost incurring those activities exceed the benefits of generating it .And significant expenditure are required to incur to hire professional knowledge & expertise to undertake these activities and most importantly “The Opportunity cost”. Aren’t your customer and vendor management activities has been compromised in order to manage your bookkeeping outsourcing activities.Then bookkeeping could be outsourced to yield rational & informed information which can be used to make strategic decision in long term prospects

There are numerous benefits you can get while outsourcing virtual bookkeeping services which includes

  • Books of a/c’s maintenance
  • Taxation
  • Advanced reporting
  • Analysis
  • Advice
  • Freedom

If books of accounts are outsourced, then you can obtain meaningful & rational information through these books which will be helpful in assessing where our business exists today and which strategic steps should be opted in order to achieve strategic objectives. But the climax of story is that, bookkeeping is done by competent and proficient accounting professionals.

Taxation is most sensitive area for entrepreneurs and this matter most importantly is required to be handed over by those people who first of all are tax professional and above that are tax-savvy. And you can find both bookkeeping of accounts as well as tax assessment under one umbrella. Outsourcing these information enables them to save time as well as money.
As far as report writing is concerned, you get more comprehensive and understandable reports regarding different elements of financial statements which provides clear picture how to utilize their funds, to what extent & for how long.
As far as analysis is concerned, outsourced bookkeeper service provider will take care of this area. Book-keeping service providers clearly understand your requirements. They provide complete and summarized information about your financial performance and financial position of company.

Financial & tax related advice will be available which provides additional guidance which enables the business to continue for foreseeable future. But most importantly, all this is not happened at significant cost which are ought to be incurred by entrepreneur. Simply by smarter thinking and taking rational decision in favor of accounting professionals to manage their financial data. Moreover their tax liability is managed in order to reduce it as low as possible staying within statutory framework.

Last but not the least, Outsourcing book-keeping enable you the freedom, peace of mind and effectively utilizing maximum time to achieve their strategic objectives along with taking steps to improve their operational activities. Peace of mind does exist because you had outsourced bookkeeping services to those who are highly professional in their respective discipline & are keeping an eye on generating meaningful information from financial data.

obox.accounting November 29, 2016 No Comments

The Outsourced Accountant

The Outsourced Accountant is your perfect resource to solve all your accounting needs. The question is how? From some time now, there is a general trend to outsource non-core operations to service companies to other countries where they can find cheap labor. An example would be outsourcing to call centers. Following this trend, companies have started outsourcing their accounting functions to outsourced accountants.

Outsourced accounting service providers hire professional accountants from recognized accounting bodies like ACCA, ICAEW, CIMA, CPA etc. Due to low wage rate of certain countries work can be outsourced at a much cheaper rate. This not only helps in cost cutting but allows the owner of the business to concentrate on core activities of the organization. It gives them more time to build relationship with old and tentative customers for a healthy growth of the business.

Another question arises here is that what can you outsource to these accounts outsourcing companies. Outsourced Accountants can work on a lot of different types of services. For start they can help you with maintaining your books of accounts. A simple task like raising of invoice or adding a bank payment might not take much time when in less quantity. When the business starts growing and these transactions become repetitive, it becomes a lot more hectic for the business owner to do everything on their own. This is the point where they start thinking of hiring an accounts personal to do the book keeping for them and look at their accounts. The other much cheaper alternate for this is to hire an accounts outsourcing service provider.

You can also outsource other services like cash flow maintenance, final accounts preparation, management accounts, payroll and other legal & accountancy services. Another major service that is outsourced by large companies is payroll process. For large companies maintaining an Innhouse payroll can be very hectic, especially if they have pension schemes and other benefits attached with payroll. Outsourced accountants have separate departments to handle such kind of extensive and attention to detail matters. They make sure that every penny is accounted for, as well as saving the most for company.

By outsourcing for accountants, you also eliminate the headaches related to hiring new resource. All the recruiting is done by the outsourcing company. They are responsible for finding a right man for the job, training them with time and also handling the problems related to retention of these employees. If an employee leaves, it is their responsibility to find another resource for you.

Outsourcing services are not only for business, but accounting firms can also benefit from it. Accounting firms can also outsource to other accountants, from countries with lower wage rate and save a lot, not only in monetary term but in time as well. They can outsource, if not all, majority of work to Outsourced Accounting firm. This way they are only left with reviewing task. The Outsourced Accountant will do the book keeping, make VAT returns, do management accounts and in the end produce final accounts for you.

obox.accounting November 11, 2016 No Comments

Offshoring Accounting

Offshoring Accounting is the new trend for SMEs and sometimes large companies to save money and be more efficient. The question is what is offshore accounting? Offshore accounting is when you outsource your accounts and finance to an offshore company i.e. to an accounting outsourcing service firm.

Offshoring Accounting work to Chartered Accountants consists of a lot of types. It can include internal auditing, taxation, advisory, payroll outsourcing, book-keeping outsourcing and accounting i.e. year-end accounts preparation, monthly management accounts preparation, cash flow statements, Balance sheet, profit and loss statements, customizes reports, budget analysis and prepare forecasts from one country to another.

Outsourcing reduces the complications related to hiring of employees. All the responsibilities related to finding, recruiting, training and retaining of employee is on the head of outsourcing service provider. This also means that the resource you will be getting will not only be qualified, but he will also be trained to do the tasks assigned by you. A trained individual will be able to do your task in lesser time, thus saving you ample time to do more.

Outsourcing can be seen as a complex thing, but it is actually a great way of saving both money and time, thus allowing the owner of the business to focus all its energies on core activities of the business. For example they can work on relationship building with potential clients and making old relationships stronger.

Outsourcing of accounting services not only works for small companies, but also large companies tend to outsource as well. Some of the government institutes also tend to outsource their accounting needs from time to time so that they can benefit from cost cutting. Outsourcing not only benefits the company but it is also beneficial for the outsourcing work for chartered accountants provider. These service provider benefit from higher pays as compared to what they are offered in their native countries. Outsourcing accounting services could be of great help in saving time and money. Jobs can be simply outsourced on unbelievably low rates to the experienced accountants anywhere, anytime in the world.

Offshore accounting is actually a way to streamline the accounting process of the companies as well as attaining flexible terms to accommodate the business current situation, budgeting and forecasting. Accountancy practices can also benefit from outsourcing. With the option of accounting outsourcing companies, you can quickly grow your accounting practice. You can get much cheaper Full time recourses from offshore countries. Globally recognized Educations like ACCA and CIMA has made it quite easy to find accountants across the globe, who are up to date in their knowledge. An accountant can save an incredible 50% or higher of their employees’ cost by outsourcing their work to offshore outsourcing companies.

Outsourcing may sometimes be considered risky as financial data is being shared which is of high value to the company. With passage of time this has been overcome due to strict policies of accounting governing bodies. If an outsourcing firm breaks and law or rule set by these governing bodies, they are banned from practicing and their license is revoked. This makes offshoring accounting not only safe but also saves money and time.

obox.accounting November 8, 2016 No Comments

Finance And Accounting Outsourcing

Talking about finance & accounting outsourcing, whether you deal in manufacturing of plastic, fabrication of metal sheets or cleaning on commercial level even if it is any kind of online business, your company has to manage its books. Some businesses maintain an in-house accountant or an accounting department, depending on their company size. But for others, it means finding a qualified accounting firms outsourcing. Finance and accounts outsourcing is one of the first processes that companies outsource. According to a research in 2012 number of finance and accounting outsourcing projects increased by a value of $1 million or more as compared to previous years.

Finance and accounting outsourcing mainly includes companies to outsource their accounting books thus saving time and money, as well as attaining high quality of finance outsourcing, and minimizing the risks that are typically involved with the in-house department. By Outsourcing Financial Services, not only you can match work hours with the number of projects you need, but also you can avoid employee expenses like payroll taxes, employee benefits, insurance coverage, as well as you don’t have to deal with the headaches that are involved with recruiting, hiring, training, retaining and overseeing the work of staff because that’s what the service provider will do for you. This means you’re free to focus resources on key factors to the business.  The company also don’t have to provide work space, furniture, computers or any kind of software. Finance outsourcing is normally less costly because you only fee for the hours worked. These kinds of financial savings are significant in running a business. The time, money and effort saved by outsourcing Financial Services can be spent on relationship building activities to directly benefit and align with the company’s mission. Outsource Financial Services providers specialize in the work they do. These service providers keep their employees skills up to the mark to keep up with the current times competition. They are dedicated on getting project done, hence they are the perfect resource for the business.

Accounts and financial outsourcing is naturally the most sensitive subject in a business. While outsourcing, all financial information and valuable records pertaining to the company has to be shared with the outsourcing company, which makes the company’s security vulnerable.  Having said that, these accounts outsourcing service providers are governed by most ethical and well esteemed governing bodies. Due to high standards of governing bodies and the rules enforced by them, outsourcing companies have to apply data protection and high level of confidentiality clauses to protect their client as much as they can. If on one hand the company becomes vulnerable to security, it is on the other hand protected by high standard of privacy, thus making it safe for them to outsource their financial side of business.

Accounting firms outsourcing is not only limited to outsourcing of company books, it also covers other prospects like payroll of a company. Companies who have large payroll data and it makes it difficult for them to manage it Innhouse, usually outsource such jobs to accounting outsourcing companies. These service providers have more expertise and can help company save taxes as well as manage their finances.

obox.accounting October 20, 2016 No Comments

Outsourcing Work For Chartered Accountants

Outsourcing Work For Chartered Accountants: Accountancy is a well reputed Profession from the beginning although it passed through some ups and downs. Modification and Innovation is the key to success for this profession. When the way of doing business is changed then, automatically it also demands the change in Accountancy Methodology. Earlier, there were some local standards for different regions and countries then gradually this practice was changed with the effort of IASB (International Accounting Standards Boards) and GAAP (Generally Accepted Accounting Practices). Now, there are many

Now, there are many treaty signed and Accountants are agreed to implement same nature of standards all over the world. For this purpose IFRS (International Financial Reporting Standards) have been introduced these standards made accountancy more Transparent and Portable. Now a Chartered Accountant can prepare and analyze Accounts under one Umbrella because all accounts are homogenous worldwide.

Now, there are many treaty signed and Accountants are agreed to implement same nature of standards all over the world. For this purpose IFRS (International Financial Reporting Standards) have been introduced these standards made accountancy more Transparent and Portable. Now a Chartered Accountant can prepare and analyze Accounts under one Umbrella because all accounts are homogenous worldwide.

Outsourcing and Chartered Accountants

There are many Accountancy Institutes in different countries some operates locally and some operate worldwide Like; ACA (UK, Pak, India, Australia), ACCA etc. But they all have made up their course according to one Accounting Framework. As the trend of bpo outsourcing is adopted by a large number of companies then there is more stress on Accountants to produce quality Accounting. On positive end it is also very useful when one company can hire accountants from any country at lower cost and there will be not an issue of familiarity with its accounting framework.

Accountants can offer different services which starts from the basic. If a newly form company wants to maintain their accounts at outsourcing company then all the incorporation information and important deadlines could be very helpful for a layman. Accountants can attention new clients whenever they will pursue to make a bad move.

Accounting Outsourcing Services are very beneficial for the Accountants and as well as for the companies because they don’t need to hire people at more price and training could also be avoided. Many Chartered Accountant firms which have large number of clients may face workload and could affect their quality of service. For the avoidance of such scenario these large accounting firm further pass on or outsource their work to a small or medium sized firms. Again decision will be made according to the nature of work to be transfer.

That is how Workload of large firms will be transfer to small or medium sized firms and balance of the economy will maintain. Otherwise, there will be no balance and this could result into Monopolistic environment. On the other hand it will negatively affect the accountants in industrial sectors because more outsourcing could result into no work and no work means idle staff. Idle staff will be made redundant and there will be unemployment which will ultimately demolish the reputation of accountancy body.

Accountants working in outsourcing company deals with different nature of businesses and they also have more problem solving skills because they can think through different perspectives. There can also be a problem when it comes to the responsibility, Accountant are responsible for the preparations of accounts according to applicable standards and they should be true & fair. If there will be any falsification firstly, it will be asked to the accountants whether they were objective when they’ve made up these accounts and this error is intentional or unintentional?

Now, Accountants need to keep themselves familiar with the new changes in Standards and they also have the liability to report if there is a chance of ambiguity in the accounting standards. Many businesses involves in illegal activities they route their money through offshore companies to avoid taxation and for this its accountant’s responsibility to report whether there is any chance of Money laundering or any other illegal activity. Outsourcing made the operations more portable and it became possible because of online soft wares which are being used by many companies and it also introduced more ways of reporting which helps businesses in decision making.