Monday, April 21, 2008
Advantages of outsourcing Accounting services
Ask any firm providing accounting services or tax preparation and they shall tell you about the benefits of outsourcing the jobs. The prime reasons behind bookkeeping firms preferring it this way are:
• Reduced labor costs
Since outsourcing involves the third world countries (chiefly, India and China where every dollar is multiplied several times in their currency), the amount to be paid to a couple of accountants in the first world country can remunerate a large team. These people are also very much proficient in their own fields; hence, it’s less for more.
Since the work is outsourced, the people doing them doesn’t require being on the payroll of the company that is outsourcing. This takes away the burden of granting employee benefits and the related legal responsibilities to the company.
• Lower fixed costs
A bigger benefit for the outsourcing bookkeeping firms comes in the form of cost advantages; it saves big time on the costs that would have been spent otherwise on the operations and the overheads. Investment on an infrastructure can thus be ruled out including buying the expensive software and the respective licenses, employee training and support; all these add up to big time financial benefits for the outsourcing accounting firms.
With all that understood, firms into accountancy need to find a service provider who is reliable and costs less. That way, Respond can help; with a roster that’s virtually endless and a customer base exceeding the three million mark, there is a service provider awaiting every accountancy firm of every budget and every type of accountancy related job; all that is required now are just a few clicks of the mouse.