outsourcing work for chartered accountants
obox.accounting October 20, 2016 No Comments

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.