Outsourcing can purely be described as a systematic technique of designating some of in-house tasks of the company to the third party. It simply refers to the way things are done instead of what is done .Usually; companies are driven to outsource services so as to save money and employ expert professionals. Over the past few years, the outsourcing industry has flourished a lot with the number of companies employing outsourcing services increasing every day. As a consequence of this, the uncertainties arising from carrying out businesses are minimizing considerably.
Accounting operations of a company are equally important as its core operations. If a company plans to outsource accounting tasks to an accounting firm, company can carry out its major activities very smoothly. From the time the thought of setting up a business comes in the mind of owner to the time of setting it up and working forward towards its progress, accounting is present in every aspect of the business. An owner cannot afford to make even a single mistake while doing accounting process even for a moment as it may lead to suffering of losses by the owner. This is because it can lead to delay or restrict the investors to invest in the business or will have a negative impact on the relationship with the patrons and hinder the decision making for several years ahead.
Currently, numerous companies are outsourcing their finance and accounting jobs to offshore destinations. The company’s purpose behind taking this step is to reduce the costs. The costs are saved as the company does not have to maintain a separate accounting division. In addition to this, company can save on management of human resources engaged for the purpose of performing work of accounting .Accounting operations of a company are equally important as its core operations. If a company plans to outsource accounting tasks to an accounting firm, company can carry out its major activities very smoothly.
Another benefit accounting outsourcing gives to a business is that educated, skilled and well-qualified personnel is performing the task of catering to business’ accounting needs .Furthermore, business is also assured of utilization of latest world-class techniques and accounting software to execute this task.
There is an array of solutions provided by accounting outsourcing services, for instance, payroll, accounts payable, billing, bookkeeping, auditing and assurance and taxation. A company can choose any or all of these solutions depending upon its requirements.
Hence, it may not come as a surprise to readers that the complete field of outsource accounting has reached new dimensions. Lately on the onset of this year, on January 2012, a Norway based company, Aditro, which provides a full range of accounting outsourcing services, announced that an esteemed insurance company, Gjensidige Forsikring ASA, has signed a contract for 10 years with it for getting its payroll tasks done. So, one can see that accounting outsourcing has become a phenomenon in today’s world.
Author of this article is journalists who writes for the finance column of a popular daily newspaper and has written many articles on accounting outsourcing.