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.