As in the title of the project itself, we have mentioned the different names of doing the same process. Overall, Financial outsourcing is the macro view of the project, where as either e-Accounting or Outsourced Bookkeeping & Taxation is the micro view.
The Business Process Outsourcing or the Back Office Process is catching up in every segment. The Finance or the Bookkeeping & taxation segment is no different from the other processes. The Indian company, acts as the Back office for either the Finance Department of a SME (Small and Medium Enterprise), or a CPA (Certified Public Account) Firm, or an individual CPA. In simple terms, we provide highly educated & skilled manpower (Accountants, Bookkeepers), offshore, to the SME and CPA in USA.
Note:
We don’t replace the CPA; in fact, provide Back Office Process to the CPA and SME.
To understand this better, here is a typical CPA’s office/Business:
CPA’s office having ‘N’ number of in-house Bookkeeping Agents.
The above figure shows typical operations of a CPA firm in USA. Each CPA firm has N number of clients and N number of Bookkeeping agents working for him. Each Bookkeeping agent handles a few of clients and the numbers of Bookkeeping Agents are based on or determined by the number of clients the CPA Firm has. For Example, if the CPA firm has say, 100 Clients and each Bookkeeping agent can handle say 20 Clients, in that case the CPA firm would have 5 Bookkeeping agents.
Now, consider the proposition that we offer to the CPA: Offshore Bookkeeping Services:
Offshore, Bookkeeping Services:
CPA’s office having ‘N’ number of in-house Bookkeeping Agents.
The CPA, instead of having in-house Bookkeeping agents, has not only offshore Bookkeeping agents, who are qualified Accountants but also gets his work supervised by a Charted Accountant (CA) who is equally qualified as a CPA.
What does the CPA get by outsourcing the Bookkeeping services?
- The CPA gets skilled, experienced, qualified accountants. A lot of bookkeeping agents in USA are not completely qualified accountants, sometimes the bookkeeping is done by house wives, who are neither qualified nor experienced in Bookkeeping.
- The CPA saves on:
a. Infrastructure (i.e., Computer, Table, Chair, Connectivity).
b. Space – he doesn’t have to accommodate the Bookkeeping agents
c. Money – Employee Taxes + Employee Benefits.
d. Salaries – The Salary he pays to the offshore Bookkeeping agent will be much less then the salary paid to the in-house Bookkeeping agent.
- The CPA Gets:
a. Piece of Mind: The complete process is managed and supervised by a Certified Charted Accountant (C.A).
b. Improved Quality of work: The Bookkeeping agents are qualified, experienced and skilled on US accountant standards and accounting software like QuickBooks.
c. Anytime Access to data: Online access to his client’s accounts & data.
- The CPA gets other support staffs like an administrator to oversee the smooth functioning of the complete process, a Quality agent to make sure that the data entered is double checked before the CPA or his clients access it. - Over all, improved services.
- Turn Around Time (TAT): The geographical time difference between India and USA can be utilized to provide very good TAT. Example: If the CPA leaves the data to be processed on the Fax machine in the evening, he can have his data posed by early morning when he comes back to office.
- The current trend in USA with regards to taking Accounting as a carrier is on a decline, which indirectly means that the supply of qualified and trained manpower is not available. On the contrary, India has very highly talented, skilled and trained accounting professionals.
- The CPA can also provide online data access facility to his client as well, i.e., the clients can access their books of accounts online.
- Digitization of Source Document: The documents of the clients of the CPA automatically get digitized as the source document is stored electronically.
- The complete process of acquiring of the source document from the client to the completion of entering the data in the relevant software like QuickBooks is made automated and completely secure. Please read the presentation on the software/ technology enabling Outsourcing.
- Overall the Bottom line / profitability of the CPA is improved.
To enable e-Accounting or Financial outsourcing, we need to have well planned & secured Software.
