Cliff Beacham CPA | email cliffbeacham@cpa.com |
California | Tel: (949) 813-1349
Outsourcing Accounting Work
Outsourcing has become a way of keeping costs to a minimum.
There are a few trends in the industry:
- sending work offshore and
- hiring a temp or a consultant.
A whole new business has established itself. People who stand in
the middle - resource finders.
Many companies have trimmed their regular workforce to a
minimum - the cheapest way to get the core job done. Then they
are hire consultants through agents - who typically double the
amount paid to the consultant. This does not increase the
‘headcount’ and the company gets an expert at the task needed.
However, there can be downsides. Work performed ‘offshore’ in
other countries, may be OK when you are dealing with non-
sensitive data or it is a generic service that can be performed with
little training but for sensitive data or a service that requires a high
degree of training it has proved to be more advantageous to deal
with qualified people locally.
There is a third alternative - outsourcing
Benefits by the Dozen
So here are a dozen benefits you will get from
outsourcing:
1. The job gets done
Since it is their business, an outsourced job gets done.
Correctly and on time
2. The Cost is Minimized
Specialization can help lower costs. A regular outsourced
service has both the local knowledge (that is gained quickly
and efficiently) and the depth of expertise necessary to use
advanced techniques to address problems
3. Always Successful and Quality is Assured
Problems do not appear or grow. The costs are linked to the
success. It is not like hiring a temporary consultant who is
paid by the hour - it is contracted and. therefore, the cost is
only incurred if the problem is solved
4. Efficient and Effective (with records)
It is in an outsourced firm’s best interests to ensure their own
efficiency. They can provide audit trails and records as
needed
5. Headcount
When a job is outsourced it does not increase the headcount -
this may be of advantage to listed companies
6. Flexibility
Outsourcing can be scheduled and managed with ease. It is
not like increasing W2 staff and does not incur the added
overhead - employee benefits, office space, equipment and
relationship problems
7. Lower Liability Risks
There are none of the employment risks involved or are very
little
8. Alleviate crises
Since it is their business, an outsourced job gets done
correctly and problems resolved
9. An Outsourced Service Provider (OSP) can
become a part of your team
You can form a relationship with a OSP and take them, as a
resource, to another job easily
10. OSPs do not carry the Overheads and Costs of a
Recruiter
Since it is their business, an outsourced job gets done.
Correctly and on time
11. Staying current
OSPs have to stay current on regulations, technology at their
own cost and in their own time. Not on your dime (or Dollar)
12. “Account Reconciliation Service”
Is licensed in California as a Public Accounting firm (CPA)
To discuss how we can provide you with the resource you need, call
Cliff at (949) 813-1349