Quickbooks outsourcing

By: Mani Malarvannan

Accounting firms in the United States have had to constantly evolve, revamp and reshape themselves. The reasons are numerous, the biggest being that every year the US government makes minor changes to tax and accounting laws, in addition every few years a new uniform CPA exam has to be retaken, to ensure that CPA's are in line with the newer Tax laws and regulations . This has made it difficult for US based accounting firms to keep up. It's simpler for accounting firms to outsource their book keeping service to offshore accounting vendors. By outsourcing CPAs can concentrate on other more value added work like auditing, marketing, and other accounting consulting work.

Although there are usually some security concerns involved when sensitive company information, or personal information is passed on to overseas BPO vendors. CPAs can find out the security infrastructure before finalizing the outsource engagement.

Benefits of outsourcing book keeping

1. The biggest reason more often than not is to save money, by outsourcing book keeping, accounting firms can make sure that they cut down on operating costs. Operating costs here include, investing on infrastructure like computers, furniture etc., money spent on software licenses for software like Quickbooks, Windows etc., the support staff required for managing computers and the software involved. Unlike small businesses, accounting firms have a massive advantage in that they can decide on exactly what particular aspect to outsource.

2. As mentioned earlier accounting firms can decide on which particular aspect of book keeping to outsource, there could be a variety of reasons why certain accounting firms do not want to outsource all their book keeping activities. There could be a security concern, or certain clients might require that the information not be outsourced (usually defense and government projects). In either case the advantage is that accounting firms can choose how much or how little of their book keeping they want to outsource.

3. Not all accounting firms offer 24x7 customer care, which is sometimes essential for companies that have branches the world over. Accounting firms can decide on outsourcing their book keeping to a BPO with a call centre associate with it. In fact there are numerous accounting firms that outsource for just this reason. They simply allow the BPO just enough privileges, while keeping the bulk of the work in the states, however in such cases the savings made by outsourcing are significantly lower.

4. By outsourcing the book keeping, CPA firms make sure that they do not have to spend thousands of dollars in retraining their staff. Whenever there is a significant change in the tax and accounting laws, or the CPA requirements, the BPO vendor is responsible for retraining their staff, and the best part is that services are usually uninterrupted, as the BPO vendor ensures that there is always a skeleton crew available till the entire BPO is compliant to US rules and regulations.

5. Not all companies can expand to keep up with growing clients, accounting firms are constantly looking for bigger clients. If a big client does agree to offer them services, it is not easy to get say 50 CPA's in a period of a month, such is the shortage of CPA's, however by outsourcing book keeping, accounting firms can get that 50 CPA's overnight not just in a month.

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Mani Malarvannan is the author of this article on Financial,Tax outsourcing. Find more information about Financial,Tax outsourcing here.

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