?Outsourcing business processes is on the rise in recent times as companies across the
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.
Firms like APT Services,in India, specialize in providing specialized services like
bookkeeping services to overseas clients US. To know more about APT Services click
on the link/.