Things You Should Know While Outsource Your Accounting Services
Many companies are outsourcing their accounting services and so should you. Not really! Deciding whether or not to outsource the accounting can hold you up in a big dilemma. Cost is not just the only thing that must be considered; there are other things to.
Here are some of the things to know before outsourcing the accounting services.
Outsourcing is not for every company
Outsourcing account service is highly beneficial to many companies especially the companies have bulk of accounting work to do. But, does that mean it is for everyone? It is best to evaluate the benefits before thinking about outsourcing. For example, you may save some time by handing over the accounting job to another company. But does the time saved equate well with the money spent? What would you do with the time spared to you? If you have some really big plans to utilize that time, go ahead and outsource it. Also, remember that there is a minimum business commitment you need to make to the outsourcing company. So, you may need to pay them even when there is little or no work. Consider your accounting volume and outsource only if it saves you money.
Evaluate the outsourcing company
There are many things to consider before you actually outsource the accounting work. Make sure that the vendor, whom you are giving the job to, has the required skills to take care of it. Find out if they have the required qualifications. Some of the qualifications you should be looking at are:
- Institute of certified bookkeepers (ICB)
- Chartered institute of management accountants (CIMA)
- Association of chartered certified accountants (ACCA)
- Association of accounting technicians (AAT)
They must also have appropriate knowledge of the accounting tools and software programs such as:
You will need to divulge wealth of information to the outsourcing company
It depends upon the type of service you are outsourcing (bookkeeping or credit control). There is a wide variety of information you will need to provide to the vendor. The information could be related to your credit control, debtor, bank statements, invoices, and more. If you are looking for thorough outsourcing service, here are some details you will need to provide:
- Loan (if any) and bank statements
- Invoices for purchases and sales
- Smallest of the cash details
- Cheque books and pay-in books
- Employee details
- List of the creditors and debtors