| Before we launch into the specific choices available | | | | specifics of the business and the dynamics of the |
| to business owners, let's take a moment to | | | | environment better. When the employee needs to |
| recognize the value of accounting. | | | | analyze the conditions impacting the business, this |
| There are typically three principal reasons anyone | | | | is invaluable. |
| endeavors to start a business:a) Generate profitb) | | | | (ii) An in-house accountant could be asked to |
| Expand to globallyc) Grow employment and | | | | provide assistance in other areas besides |
| income through taxes and duties as a way to | | | | accounting whenever the need arises. |
| give back to their community | | | | An accountant who is outsourced is not employed |
| Regardless of the motivation, businesses are | | | | by the company. Instead they have a contract |
| helped by accounting. Accounting shows the | | | | with the business limiting their duties to supplying |
| business owner where their enterprise stands in | | | | accounting services. They may be located within |
| relation to its goals. It also shows the business | | | | the same country or they may reside outside the |
| owner what steps to take to accomplish goals | | | | country where the business itself is located. The |
| more quickly and efficiently. | | | | outsourced accountant can provide these benefits: |
| But how are these things accomplished through | | | | (i) An outsourcing accounting firm is staffed with |
| accounting?a) Ensuring that every transaction is | | | | adept experts. These accountants provide |
| recorded in a timely manner.b) Guaranteeing each | | | | immeasurable assistance to businesses. |
| transaction is placed under the appropriate | | | | (ii) Unlike the in-house employee who needs to |
| account heads.c)Securing the timely creation and | | | | take time off or go on vacation, service providers |
| updating of the Cash Flow Statement, Debtors | | | | offering outsourced assistance have enough |
| Aging report, and the Funds Flow Statement as | | | | employees to cover the business accounts when |
| well we the balance sheet and the profit and loss | | | | the regular professional needs to be out on leave. |
| account are presented to the owner. This ensures | | | | (iii) Most outsourced accounting firms service |
| corrective actions can be taken if needed. | | | | clients in different countries. Thus, they have |
| In light of the critical nature of accounting in | | | | accountants available around the clock. A |
| relationship to running a business, it's no wonder | | | | company cannot expect an in-house accounting |
| that business owners throughout the world regard | | | | professional to be accessible 24/7. |
| accountants as vital. This is the primary reason | | | | (iv) Should the outsourced accountant live in a |
| the CFO stands side-by-side with the CEO within | | | | country such as India, there are additional |
| a company. | | | | advantages such as:a. The difference in time |
| Given the importance of accounting and the | | | | zones between the U.S. and India means that |
| accountants who provide the service, let us turn | | | | when it is nighttime in the U.S., it is standard |
| our attention to understanding the distinction | | | | business hours in India. Thus, people in India are |
| between an accountant who is in-house and one | | | | working. This means that labor can be easily |
| who is outsourced. | | | | completed overnight by an accountant located in |
| An in-house accountant refers to an accountant | | | | India.b. Additionally, the foreign exchange |
| who has been hired as a full time employee. This | | | | differential allows services performed in India to |
| person manages the finances of the company | | | | cost much less than what the company would |
| and keeps the books accurate and up-to-date. | | | | have to pay an in-house accountant. |
| In-house accountants provide these benefits: | | | | Due to these reasons, it is far more |
| (i) The in-house employee resides in the same | | | | advantageous to outsource accounting needs than |
| area as the business. They, therefore, grasp the | | | | to hire an in-house accountant. |