Offshore Accounting Bpo - Myths and Realities

There is a myth that efficiency and profitably ofExtensive IT integration is required in outsourcing -
offshore business can only be seen in big business.this was a misconception.. the offshore vendors
But that's not true. Today small businessonly require just server and Internet connectivity
organizations are taking to outsourcing to increaseis sufficient to procure value-added services. The
their business efficiency and profitability. With IToutsourced service provider can use Remote
based transaction processing has expanded toServer model to access client's computer
accounting, HR management, public relationssecurely to perform services like Accounts. In
consultancy, financial services etc, outsourcingcase of Secure File Transfer all the accounting
today is the latest tool for transformation of anyrecords are transferred securely from customer's
conceivable business process. Small businesses arecomputer to the outsource vendor to perform
still not sure whether offshore vendors can reallythe work. Then the vendors upload the files back
create value for their company.into customer's computer securely. The
Myth: Outsourcing is only and only for Big Businesstechnology for outsourcing is changing day by day
onlyas concept of offshore is increasing everyday. A
Reality: that's not true. It has equal value inIDC study entitled US Finance and Accounting
BusinessOutsourcing Market Forecast and Analysis
There is a myth that business with abundant2003-2008 has predicted that the global market
wealth can get good return from accountfor finance and accounting outsourcing services,
outsourcing. But the fact is this is absolutelywhich reached over $30 billion in 2003, will reach
wrong. Small business can also get good return. In$47.6 billion in 2008.
today's fiercely competitive industry, every thingMyth: Accounting Outsourcing is not reliable
your save whether it is wealth or time is veryReality: False. The services are 100% Reliable
important for your business. India, China, PhilippiansThere is no chance of unauthorized use of your
are the front runner in the offshore vendors.resource. . Through secure FTP software,
Here you get quality service in fewer prices thanoffshore units transfer all the documents securely
the money required to do it in the country ofinto the client server. Using customer specified
origin.accounting software, they perform all the work
Myth: Only Transaction Processing can beand export the finished accounting files back in to
outsourced but Accounting BPO.customer's server securely. . Small business
Reality: False. Almost all Non-core Businessoutsourced accounting services do not ordinarily
Activities like Accounting BPO can be outsourcedinvolve handling of business critical data. Even if
High-end technology platforms were used by bigthey are there, a reliable service provider with
business in last decade for outsourcing. Nowproven experience and credentials can handle the
every thing has technology. Big and smallassignment with trust and confidentiality to secure
companies routinely outsource their work toefficiency and cost saving for small business units.
cost-effective destinations like India. In last fewMyth: Accounting BPO cuts jobs, indirectly harming
years accounting has taken a tremendous growth.economy of outsourcing country
. Companies with a full-time bookkeeper can saveReality: False. It promotes Growth and Efficiency
about $30,000 a year by using outsourcedSmall business outsourcing accounting services is a
bookkeeping services to highly competent servicemajor budget-balancing act and a must-consider
providers in India.option for increasing business returns and lowering
Myth: Complex IT integration is needed inprocess time. The efficiency gained through fast
Accounting Outsourcingand less expensive outturn makes end-price
Reality: False. Just a Server and Internetcompetitive.
Connectivity is enough