Offshore Accounting BPO - Myths And Realities

There is a myth that efficiency and profitably of offshore business can only be seen in big business. But that’s not true. Today small business organizations are taking to outsourcing to increase their business efficiency and profitability. With IT based transaction processing has expanded to accounting, HR management, public relations consultancy, financial services etc, outsourcing today is the latest tool for transformation of any conceivable business process. Small businesses are still not sure whether offshore vendors can really create value for their company.

Myth: Outsourcing is only and only for Big Business only

Reality: that’s not true. It has equal value in Business

There is a myth that business with abundant wealth can get good return from account outsourcing. But the fact is this is absolutely wrong. Small business can also get good return. In today’s fiercely competitive industry, every thing your save whether it is wealth or time is very important for your business. India, China, Philippians are the front runner in the offshore vendors. Here you get quality service in fewer prices than the money required to do it in the country of origin.

Myth: Only Transaction Processing can be outsourced but Accounting BPO.

Reality: False. Almost all Non-core Business Activities like Accounting BPO can be outsourced

High-end technology platforms were used by big business in last decade for outsourcing. Now every thing has technology. Big and small companies routinely outsource their work to cost-effective destinations like India. In last few years accounting has taken a tremendous growth.. 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 in Accounting Outsourcing

Reality: False. Just a Server and Internet Connectivity is enough

Extensive IT integration is required in outsourcing – this was a misconception.. the offshore vendors only require just server and Internet connectivity is sufficient to procure value-added services. The outsourced service provider can use Remote Server model to access client’s computer securely to perform services like Accounts. In case of Secure File Transfer all the accounting records are transferred securely from customer’s computer to the outsource vendor to perform the work. Then the vendors upload the files back into customer’s computer securely. The technology for outsourcing is changing day by day as concept of offshore is increasing everyday. 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 Outsourcing is not reliable

Reality: False. The services are 100% Reliable

There is no chance of unauthorized use of your resource.. 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.. Small business outsourced accounting services do not ordinarily involve handling of business critical data. Even if they are there, a reliable service provider with proven experience and credentials can handle the assignment with trust and confidentiality to secure efficiency and cost saving for small business units.

Myth: Accounting BPO cuts jobs, indirectly harming economy of outsourcing country

Reality: False. It promotes Growth and Efficiency

Small business outsourcing accounting services is a major budget-balancing act and a must-consider option for increasing business returns and lowering process time. The efficiency gained through fast and less expensive outturn makes end-price competitive. Ultimately, there is no loss of employment opportunities