Offshore Accounting of Small Business ? The realit

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Offshore Accounting of Small Business ? The reality Offshore Accounting of Small Business ? The reality by Malarvannan Mani

Today small business organizations are outsourcing their accounting job to increase their business efficiency and profitability. So now outsourcing is not exclusive for big business house. Outsourcing today is the latest tool for transformation of any conceivable business process. There is a myth that small business cannot make profit from outsourcing, only big business can make profit. However, the fact is, accounting business process outsourcing is absolutely viable for small businesses too and has tremendous possibilities of cost saving and value. This article explores them one by one: drunk

Myth: Big Business can only outsource their accounting jobs
Reality: False. It applicable for Small Business equally

Small business can outsource their accounting jobs. They are bound to get a good return from the offshore vendors. Only thing is that vendors should be good. Today in this global industry you have to save time and money. It?s very important. By outsourcing you are really saving time and money. Greatest offshore vendors are in India, China, and Philippians. This countries are cheap with quality work

Myth: Outsourcing is only for Transaction Processing and Accounting BPO has no existence there
Reality: False. Almost all Non-core Business Activities including Accounting BPO can be outsourced.

Big business houses mostly outsourced transaction processing activities using high-end technology platforms. The situation has now totally changed. Big and small companies routinely outsource Accounting, HR, Financial Services, PR and similar functions to cost-effective destinations like India. Accounting is particularly a domain that has witnessed tremendous growth over the past few years and has immense possibilities. Companies with a full-time bookkeeper can save about $30,000 a year by using outsourced bookkeeping services to highly competent service providers in India.

Myth: Complex IT integration is needed for Accounting Outsourcing
Reality: False. Just a Server and Internet Connectivity is only required
Outsourcing requires extensive IT integration .this is totally misconception. The outsourced service provider can use Remote Server model to access client?s computer securely to perform services like Bookkeeping, Accounts Receivables, Accounts Payables, Tax Returns, Account reconciliation etc. In the Secure File Transfer all the accounting records are transferred securely from customer?s computer to the outsource vendor to perform the work. After performing the work the offshore vendor will upload the files back into customer?s computer securely.
.A IDC study entitled US Finance and Accounting Outsourcing Market Forecast and Analysis 2003-2008 has predicted that the global market for finance and accounting outsourcing services, which reached over $30 billion in 2003, will reach $47.6 billion in 2008

Myth: Accounting Outsourcingis not reliable
Reality: False. The services are 100% Reliable
Through secure FTP software, offshore units transfer all the documents securely into the client server. Using customer specified accounting software, they perform all the work and export the finished accounting files back in to customer's server securely. The customers will import the accounting files into their Accounting Software. There is no possibility of any breach of data security.

Myth: Accounting BPO hampers economy by cutting jobs country
Reality:Growth and Efficiency increases with it

Small business outsourcing accounting services is a major budget-balancing act and a must-consider option for increasing business returns and lowering process time. This activity in particular and outsourcing in general does not call for job losses. There is no loss of employment opportunities. Moving away from non-core functions, jobs come to be more available in high-end sectors and to meet the requirements of such jobs, levels of professional expertise, skills and knowledge of the human resource base of the country increase significantly. The host country is the ultimate gainer from outsourcing.

Mani Malarvannan is cofounder of Cybelink, a company specializes in small business financial and accounting outsourcing like Bookkeeping, Tax, Accounts Payable, Accounts Receivable, etc. For more info visit www.cybelink.com

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