Accounts and finance is an integral part of every business. In case these departments are putting up a sound performance the entire company might have to face a serious monetary setback. However in most of the companies these departments happen to be support functions that assists the existence of the organization in addition to its core functions. As a result they often do not enjoy the prime focus or attention of the management. In this context many experts have opined that third party vendors offering online bookkeeping services are a better option for any organization. This suggestion has led to a debate where there have been many arguments regarding which setup is better for the organization as a whole. It seems that at the end of the day the school of opinion holders promoting these services have accumulated greater support. Let us see why.
Maintaining a full-fledged accounts department is an expensive proportion for an organization. Maintaining a complete department requires investment in recruitment and retention of manpower, meeting their salary expense, setting up an office room with office apparatus and so much more. If the organization hires a third party vendor who offers complete accounting solutions, the management can get the job done at much lesser expense.
Handling manpower is not an easy task. Training manpower, guiding them from time to time, motivating them all of this requires investment of time and energy. This is always an added burden for the management and the HR of the company. With a third party service provider, the management can do away with all this hassle. Both the management and the Hr can devote this time to other productive work that will enhance the core job of the business.
Deeper experience gamut
Professionals working in these accounts services providing companies often have a better experience and knowledge gamut. They work with several companies from different industries across the world. Naturally their experience level is of a much better level. You can expect better prowess from them on the domain.
Better for multiple branches
These accounting companies are mostly based online. They have their presence on the internet. This is one of the main reasons why they can handle the accounts related work of your company even from a remote location. This is why these service providers are considered to be the best solutions for organizations that have multiple branch locations.
Single window solution provider
These online accountants offer a wide spectrum of services. They provide general accounting, bookkeeping and taxation related services. These online tax accountants can act as your single window solution provider who can be reachable to you with support 24×7.
Availing VAT online services provides your business a stream of crucial benefits. You can stay ahead against your near rivals in a highly competitive environment. It is wise to install and properly integrate an accounting software product in this regard. Also, you may consider taking expert advice from an experienced professional. Have a read on the specific benefits of the online services associated with VAT.
Convenience of everything online
You will get the convenience of exploring and using all kinds of online accounting features related to VAT. You do not have to waste time in visiting the office of an auditor. You do not have to sit for meetings with an accounting service provider. You can access the requisite info online through the attributes of the integrated system of VAT online services without any technical hurdles. In this way, you would be able to save valuable time in favor of your business. Also, you can invest the saved time into the core activities of your company.
There are highly functional software products in the market that help you in flawless online bookkeeping services. Understand the attributes and utilize their power as per your needs. It would be simple and easy for you to create audit reports for your business in an effective way. The financial books of your company will remain clean. You do not have to spend heavily on auditing your business.
Linking financial details and credentials
You would find it very interesting to leverage the strength of a good accounting software product in linking the financial details of your company with its credentials in an organized way. This would surely enable you to improve the chances to streamline the revenue earnings. Also, your company would be able to gain more reputation in the ever-expanding market.
Accounting outsourcing has gained high acceptance today among all size of business houses and across industry verticals. With availability of online platforms and accessibility to distant locations through online communication channels, outsourcing of accounting and financial related processes has become a reality of today.
Benefits Of Outsourcing Accounting Services
Business houses have been realising fast that accounting being a non core business process coupled with availability of skilled working professionals from different low cost economies, has helped this drive of outsourcing accounting services pick up pace in today’s competitive business environment.
With outsourcing accounting and bookkeeping services to low cost countries like India, business set ups can at one end manage available resources better (both in terms of time and money) and also ensure quality service.
Today, accounting outsourcing is not limited to offshore bookkeeping, but slowly the entire accounting processes are being considered for outsourcing by business set ups across the globe. Business houses are looking to outsource the entire A/R – A/P – Payroll processing and other aspects of accounting processes including bank reconciliation, invoicing etc relevant for a business depending upon specific needs.
The other key element which is true for all outsourcing activities is the time-zone advantage which an outsourcing function carries. Accordingly, off-shoring accounting and bookkeeping function also helps having updated accounting records in real time by taking advantage of such timing differences.
Again, availability and increasing popularity of online accounting interfaces including Quickbooks Online, Clearbooks, XERO, MYOB Live Accounts including remote access to desktop packages like Quickbooks, ERP packages and SAGE etc has further helped channelize the accounting outsourcing services and its efficient management for effective continued support.
Accounting system the way it is called speaks about setting up the accounting logic and structure of the accounting financial statements relevant for the industry in which you business operates and more specifically to the individual need of your business.
Accounting System Setup
With cloud based accounting picking up the market acceptance and increasing popularity of outsourcing services for managing business finances and outsourced bookkeeping services, it becomes much essential for a business enterprise to properly document the business dynamics in which it operates and the transaction flow cycle relevant for the individual businesses as that may be a good input side for getting an efficient accounting system set up.
Setting up of an accounting system could either be a fresh system set up or a migration from an existing accounting system for the concerned business. (For example, a Business enterprise, migrating from one accounting software to another (like: XERO, Quick-books Online etc).
Outsourcing the accounting system setup would call for a proper communication of the relevant business logics so that the offshore accountant can carry out the set up of the accounts system more effectively as laying down a practical and relevant system is a major challenge and top priority to ensure an effective management of business finances for efficient business decision making.
As it goes, setting a new system is generally less complicated as compared to migrating an existing financial set up from one accounting application to another. However, such migrations could properly be taken care of by the right set of accounting team and availability of proper documentation of the business logic and access to the current account system.
Nevertheless, be it a fresh system or a migrated system, in all cases, they need to be built in such a way that it speaks about the business’s entire flow of transactions with ease and one should be able to make out the health and the pain points for a glance through of the key financial statements including Income Statement, Balance sheet or Cash Flow statements.
XERO is an online accounting platform and is gaining huge acceptance in all countries including New Zealand, Australia, UK, US and Canada for accounting and bookkeeping of small and medium sized businesses.
Accounting And Bookkeeping in Xero for Small Business
The key reasons which may have played major role in making XERO a huge success is the ease of use, access flexibility (being an online platform) and the support team.
Today, when the world is moving towards increased connectivity in all aspects of business verticals and cost cutting being a thrust for all business owners, there is no reason why off-shoring would not have gained the popularity and acceptance of today. This is why – availability of an online accounting platform like XERO and which is easy to use, is being accepted as a quick and flexible solution by small business owners to outsource accounting and bookkeeping to offshore accountants in India and other low cost economies where accounting profession is being considered as one of key career points by professionals.
Although XERO is not the only online platform available for small business houses to use for their accounting and bookkeeping requirements, however, it could be perceived that its growth is faster as compared to some obvious peers like Quickbooks Online, WAVE Accounting and MYOB Live Accounts, including others, in certain sections of the world.
The flexibility that XERO offers in terms of integrating add-ons particularly in respect of inventory management and payroll accounting interfaces, further add up to it acceptability in the market.
Quickbooks Online is another online accounting platform and is one of the biggest competitors to XERO. Quickbooks online is also seeing great acceptability in the world market and its recent foray into Asian markets including India, further spells out the overall need to have online accounting interfaces tailored to the use of specific country.
Needless to say, in days to come, we would come across may more online accounting platforms and it would be worth to see who finally emerges out as the Market leader in the online accounting platform segment.