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Why
outsource Bookkeeping?
Outsourcing business processes is
on the rise in recent times as companies
across the globe are increasingly
migrating their critical but non
value adding and non core functions
to low cost destinations to leverage
on the price differentials arising
out of better options of job transportability.
A recent study suggests that Outsourcing
jobs in India will increase seven
times by 2008 and the number of
workers in India performing computer
jobs for U.S. companies will increase
from 177,000 in 2002 to 1.2 million
in 2008. It is on the strength of
such statistics that one is bound
to corroborate the benefits; outsourcing
of key business processes like bookkeeping
has on Businesses. |
Bookkeeping is an
expensive but non value adding function
for businesses. Expenditures for
an in-house bookkeeper comprise
not only salary but direct costs
such as employer payroll taxes,
medical benefits, retirement plans
and other benefits. Additionally
sick days and vacations. There are
also cost involved in hiring and
training the employees for the job.
All these costs can be avoided by
a company once it begins outsourcing
its bookkeeping services. Estimates
place the savings that derive to
a company by outsourcing its bookkeeping
at an overwhelming as 50%.It thus
helps in keeping the capital expenditure
of a company well in control and
run the business well within limit.
Improved efficiency is also a part
of the benefits derived by a company
opting to outsource its bookkeeping
services. Usually work overload
is bound to take its toll on an
in-house staff accountant and his
efficiency is bound to suffer. This
factor is completely taken care
of by outsourcing companies. Accessing
the specialized services of outsourced
bookkeepers companies generally
experience a surge in the quality
and efficiency of their bookkeeping
process.
Companies also save upfront as the
cost of investing in infrastructure,
technology and other overheads like
maintenance & stationery is
avoided completely. The outsourced
bookkeeping companies charge nominally
for providing the services. So it
is always a win ?"win situation
for businesses.
In the case of small businesses
the advantages derived from off
shoring can be phenomenal. It's
a known fact that small business
owners are accustomed to handle
every aspect of business by themselves.
By diluting their precious times
to non core activities like bookkeeping
that hardly adds any value to the
business, they simply deprive their
business of the quality time that
could have been focused in relation
building and expansion of business.
An option to outsource bookkeeping
helps them in not only saving their
time and concentrating in capacity
building but also accessing expert
skills at very low prices.
Outsourcing bookkeeping services
give companies the option of outsourcing
what they want to outsource. In
case, a company doesn't want to
outsource all its services or the
entire project, it can outsource
a part of the process and still
enjoy the fruits of outsourcing
.
Then there is always the advantage
of leveling out cyclical seasonal
fluctuations. Outsourcing bookkeeping
gives the company immunity against
any attrition in its in-house staff
accountant apart from relief in
major seasonal fluctuations.
Last but not the least, outsourcing
bookkeeping services save enormous
amount of money for business which
can be invested in enhancing the
efficiency of other departments.
To sum up, if profitability is the
bottom-line of every company then
outsourcing is the answer they should
look at because in today's competitive
environment that is the best answer
available. |
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