What are the advantages of outsourced accounting

Offshoring the entry of mundane accounting datadocument would be used for further referencing.
like voucher entry, statements preparation ofThird, make sure the data is stored on your
monthly or quarterly management accounts,server. All your passwords could be shared with
annual accounts, cash flows, year end returnsthe outsourced entity's employees strictly on a
such as P35, P11D, P14, invoicing sales, agedneed to know basis and these passwords must
debtor reports, creditor lists, payment picking lists,be regularly updated to maintain integrity.
bank reconciliation and others certainly soundsFourth, build quality control into the offshoring
nice. But is it practical?process as it adds another dimension to the
India might boast of experience and qualificationsoutput. Normally, when the accounting data entry
of personnel equal to or better than their Britishis done in-house, quality control is conducted only
counterparts. Accounting data entry companiesat the end of the period, during audits. Offshoring
might also harp on the extreme cost savings,would not mean losing control over the process
lower wages, zero recruitment and personnelor the data... rather, it would result in better
management costs involved, and lack ofcontrol by way of well defined SLAs and quality
overheads in outsourcing.control.
But wouldn't the main issues be about qualityFifth, look into the specifics of the company you
control and confidentiality? Here's what you mustare outsourcing accounts to. Ideally they should be
watch for if you are an overseas small andyoung and energetic and currently doing some
medium enterprise planning to outsourcework with a select few quality conscious clients.
accounting data entry work.They should be willing to give you a copy of their
First, make sure your outsourced data entryagreements with other clients. Also ensure that
service provider gives you 240 hours per monththe principal contact person is a Chartered
per head instead of the usual 160 hours perAccountant with over 20 years of experience.
month per head. This will ensure they doubleTheir former corporate experience will make sure
check their outputs as part of the SLA.he/she drives the team in the direction best for
Second, at the start of each assignment, set upyou.
training sessions with the provider (either online orAnd finally, prepare your organization for a new
on site or telephonically) to orient its personnel onway of thinking that transforms the way
the accounting software used by your company.accounting is done at the back-office. And you
This training must be adequately documented bycan be sure to enjoy the offshoring experience.
the accounts data service provider. This