Here are the key factors to consider while identifying the best accounting outsourcing company
Reducing operational costs and improving the bottom lines of your business is the purpose behind outsourcing. So you need to see whether accounting outsourcing service providers will reduce your operation cost significantly or not. If outsourcing does not reduce the cost then you will end up spending more than saving.
If you will manage accounting in house you need to see that carrying out this function in-house is costlier than the outsourcing.
It is very essential to identify the quality standard of the service provider. So before signing an outsourcing contract, you must verify all the certifications, achievement, infrastructure, safety and security process, data back-up, downtime, and the availability of the staff.
This will ensure and give confidence to you that everything is on the floor. Also, make sure that the service provider should have the mindset to see your success in the market place.
This is the most important factor to be checked before outsourcing. It is essential to know the experience of the accounting outsourcing solution provider in accounting services. The more the experience the more accurate and correct services they would be able to provide.
The advantage with an experienced service provider is they will be able to anticipate the bottlenecks while performing the accounting function and take appropriate decisions accordingly.
Pricing is the main decisive factor while selecting the best accounting outsourcing company. So you need to see the pricing offered by the service provider but along with the price you also need to ensure that they should be able to maintain a balance between the quality and quantity of services.
The best option would be to check their quality by giving a sample or paid pilot project to the service provider.
It is required to check the track record of the service provider. The service provider should be in business for years and should be reliable and trustworthy.
If the service provider is new then you need to look for the quality of management.
Data security is the most critical factor since accounting contains a lot of sensitive and confidential information. So leakage of any such information to the wrong hands may end up the business being bankrupt.
Therefore service can only be availed from those firms who are reliable and practice all safety measures for protecting the client’s data and record.
Enquiring from other companies, business partners, or friends and gathering the data is also a critical factor in deciding the service provider.
In the same regard, checking the reviews of the service provider online will also help you to understand which firm is good or bad and take decisions accordingly.
Accounting is a multifaceted job so when it is outsourced, it is essential for the outsourced company to have 24x7 accessibility of the team engaged in their accounting work at the service provider end.
The company might require specific information at any point in time, so they should be accessible, else it may result in the downfall of the company. Thus the amount of information provided and the analysis of the same by the outsourced company is also a critical factor in choosing an accounting outsourcing company.
Identifying the expertise level of service provider helps you to understand what kind of accounting tasks they can handle. Based on their capability you can plan to outsource accounting tasks. Most of the service providers offer standard accounting tasks such as book-keeping.
If you have to outsource complex tasks such as financial analysis for decision support then you have to look for other service providers of that expertise level. Thus knowing the expertise level of service providers helps in identifying the best accounting outsourcing company.
Timeliness is the most important factor along with the cost and quality of selecting the service provider. If they do not meet the deadlines it can lead to major hurdles for you. So you need to ensure that they stick to the committed quality and deadlines.
To avoid slippage in delivery service provider should have a backup plan. If they have a backup plan you can hire them else you can drop them.
Whether you own a large business or small, irrespective of your industry type accounting plays a significant role in your day to day operations.
Do you know what type of industries prefers to outsource their accounting tasks rather than managing the work in-house? Let’s dig deeper into the industries...
Accounting in the manufacturing industry is totally different from other industries. They deal with inventory calculation and the cost of goods sold. Thus accounting is much more detailed in the manufacturing industry rather than the industry that maintains no inventory. That’s why accounting in the manufacturing industry is not a cakewalk. It needs expertise in accounting and a good amount of time.
Manufacturers concentrate more in their production department rather than on accounting functions. Here accounting outsourcing service providers come into play! and help them in keeping track of inventory and raw material, providing accurate financial reports. That’s why manufacturers consider outsourcing services to save costs as well as time.
The real estate industry deals with large transactions and contains a lot of moving parts therefore accounting is a tedious task. Preparing financial records and reports include property sales, rentals, leases, and time-sharing.
Real estate owners are always busy in client handling, property document management and a lot more. They could not focus on accounting tasks therefore they outsource accounting services to stay focused on their core business activities.
The health care industry handles complex accounting transactions. Therefore a person handling accounting should have a firm hold of financial accounting that is expensive.
Doctors mainly focus on a patient’s health and account management is neglected. This creates a lot of issues for experts during tax season. That’s why healthcare professionals outsource accounting services to keep focusing on the most important tasks at hand in bettering the quality of life for your patients.
An industry that is full of hustle and bustle is the restaurant industry. Restaurant owners focus more on interiors, table cloth, an arrangement of the furniture and serving delicious food. Their main focus is to satisfy customers.
They miss to administer accounting but to be successful in today’s restaurant industry your day to day financial administration must be managed.
In such scenarios, outsourcing accounting services is the best option for them. The service provider manages all the bills and keeps track of everything proficiently. This helps restaurants owner to save time and focus on customer service.
The insurance industry is a customer-centric industry. This industry is a risk saving sector for people. Most of the time insurers are involved in writing policies claims settlement, and neglect finances.
Insurance agencies pay their employees commission, tracking of it is very difficult. That’s why insurance industries prefer accounting services as it helps to maintain accurate transactions.
The retail and wholesale industry
Managing inventory is nothing but maintaining available items and the monetary value of it. This is a critical part of retail accounting. The inventory cost impacts the overall profitability of the retail and wholesale store.
An inventory is considered as an asset for taxation. Retails find accounting as the most intricate process of all. This is the reason they outsource accounting services to manage the inventory proficiently.
A single mistake in the legal industry enforces them to lose their reputation in the market. Legal firms are busy handling cases of their clients along with additional tasks like contract drafting and management. Due to this reason they overlook accounting functions and decide to outsource accounting services to stay focused on revenue-generating tasks.
Consider these factors while identifying the best accounting outsourcing companies in India.
These factors will help you in deciding the service provider from multiple aspects. If you are still in a dilemma but made the mindset to outsource accounting services then contact paysquare at Pune which is the leading accounting outsourcing firm in India.