Consider this:
A CEO of a multinational company after reviewing his quarterly results, comes to following conclusion:
- Growth is stagnant
- Fixed cost is on the rise, contributed by rising expenses on Finance and Accounting Department.
He mulls over this, and decide to outsource his accounts to third-party on the grounds that he will be saving 20% on his current costs.
Typically cost reduction is a major factor in outsourcing the accounts, but as the old saying goes if something appears to be good to be true, probably it is not. Same goes with outsourcing. Wrong choice of accounting service provider, will entail more cost.
You can check following before selecting accounting outsourcing provider:
- What’s the PLAN-B.? Outsourcing brings the benefits of flexibility, no worries on transition, recruitment cost as the service provider is responsible for delivery. But here is the reality, most of the small to medium providers do not have the backup team if there is any movement in the team responsible for delivery
- Storage of Information: Most of Control standards prescribe that data has to be stored in a specific way so that your data is safe, secure and confidential. Lot of service providers, do not have infrastructure to support the data storage in a robust manner
- Beyond bookkeeping and Accounting: Most of the provider’s only focus on the transactional recording rather than looking beyond the numbers. At the end of the day accounting numbers have to provide business intelligence to make informed decisions.
If you are looking to outsource your books in India or Bangalore. Click here