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Outsourcing

Myths are still abounding about accounting business process outsourcing; particularly among small business entrepreneurs who are still not sure whether such step can really create value for their enterprise, as in their perception, only big business can benefit from these initiatives. Confusion still prevails on selection of accounting functions that can be outsourced to maximize returns. But, the fact remains that accounting business process outsourcing is absolutely viable for small businesses too and has tremendous possibilities of cost saving and value.
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Advantages of Outsourcing

Availability of better expertise and infrastructure

  • Service providers are specialized in their field
  • The outsourcing providers will have specific equipment and technical expertise
  • The tasks can be completed faster and with better quality output

Full concentration on core business activities

  • More time to strengthen core business processes
  • Organization save costs and can pick the best people to manage the core functions

Reduced costs

  • Reduced recruitment and operations costs
  • Reduced operating costs
  • Savings can then be diverted to the core functions and marketing

Risk mitigation/management

  • Sharing of responsibilities when the tasks are outsourced
  • The outsource providers can plan the risk-mitigating factors better

Developing new competencies

  • Ability to develop new competencies
  • Ability to develop new skill-sets that can be used as competitive advantage
Myths & Realities about Accounts Outsourcing

Myths

Realities

  • Accounting outsourcing is for big businesses only.
  • It applies for small businesses equally.
  • Outsourcing is only about transaction processing and accounting has no place.
  • Almost all non-core business activities including accounting can be outsourced.
  • Accounting outsourcing needs complex IT integration.
  • Just a secured server and internet connectivity can work.
  • Accounting outsourcing divulges key operating information.
  • The services are 100% reliable.
  • Accounting outsourcing cuts jobs, harms economy of outsourcing country.
  • It promotes growth and efficiency.

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