The article discusses Accounting outsourcing services businesses can assign to a third-party provider.
Accounting Outsourcing: What Accounting Services can I outsource?
There are many benefits to outsourcing which is why businesses decide to outsource. Businesses can manage the increase in the volume of transactions.
The outsourcing market is categorized in the following segments:
- Information Technology
- Supply Chain Management
- Human Resources
- Customer Relationship Management
- Finance and Accounting
In Finance and Accounting Outsourcing, business owners seek to hire outsourced teams to manage financial transactions that are non-core but important to the business. Accounting functions require a specific skill set which makes accounting related tasks among the top outsourced functions.
Outsourced Accountants in the Philippines are qualified in providing Accounting support and contributing to the overall efficient operation of the Finance and Accounting department.
What specific Finance and Accounting functions can be outsourced?
If you are a business owner who has just considered outsourcing Accounting functions, you can start with these functions:
Accounting Outsourcing: Functions you can outsource
Cash Flow Management
Business Process Outsourcing lets you work with Accounting professionals that have the right technical expertise and experience in aspects that can improve your cash flow.
Outsourced accountants can provide effective accounts payable management and ensure that suppliers a company works with are paid properly and on time. Outsourced accountants review outstanding or pending payables to ensure proper processing, documentation and timely payment. Outsourced Accountants also makes sure payments owed to the business are properly included and recorded. They provide necessary follow ups on Accounts Receivable collections by calling customers on payments on Accounts Receivable payment collections, making the necessary follow ups via inbound calling.
Business Process Outsourcing enables you access to delegating back-office and clerical tasks such as data entry. In Accounting, Outsourcing functions can extend to offloading bookkeeping and data entry services such as efficient recording of financial transactions, payroll management, invoice and billing management, processing of incoming payments along with the issuing of necessary paperwork, payment posting, and managing and reconciling balance sheets and financial statements.
Manage payroll transactions and establish an effective payroll procedure and transactions for a company. Outsourced Accountants who handle payroll management must have excellent attention to detail and ensure all employees are properly compensated in a fair, accurate and timely manner.
The functions of an outsourced Payroll Specialist include auditing payroll process, staying up-to-date on exemptions and salary changes, tax deduction, bonuses, expense reimbursements, and following guidelines for all procedures around employee compensation. Outsourced Accounting personnel can prepare reporting on compensation activities and forecasts, set up and maintain functional payroll systems, collaborate with Finance and HR to create payroll reports and forecasts, and ensure compliance with all payroll and tax laws.
Accounts Payable (A/P) Data Entry
Upon receipt of invoice from suppliers you already have a delegated team to provide the corresponding invoice data capture.
An outsourced accounting personnel or team can collate, identify invoice eligible for payment, categorize invoice for you for proper records keeping for documentation and audit purposes. Invoice scanning can be done manually via transcription, or automatically with the assistance of invoice scanning software or company-wide accounting systems or cloud-based collaboration tools with embedded machine learning features that allows for fast data extraction.
Accounting Outsourcing lets you work with outsourced accountants who will do a systematic review of all current accounts. Your outsourced Accounting team reviews and monitors outstanding or pending accounts receivable or accounts payable for proper processing, documentation and timely payment and avoid double posting or duplication.
Reconcile Accounts Payable
Similar to data entry, accounts payable reconciliation can also be done manually or with the use of cloud-based collaboration software. Accounts Payable outsourcing lets you delegate the Accounting Reconciliation Tasks such as reconcile all Accounts Payable & Retainage Payable, Reconciling Credit Card Payable, and preparing and executing other related tasks.
Purchase Order Matching
This process is a critical aspect of the accounting process for proper accounting. Upon receipt of the invoices, your outsourced team can review whether stated services in the invoice versus actual services provided match. Some parameters to check in the purchase order and invoice are the agreed terms, supplier’s invoice, original purchase order price, purchase order receipt, quantity ordered, and physical quantity received.
Depending on the setup, once invoice and purchase orders are matched, outsourced accountants can forward the invoice to internal staff for proper invoice review. This is to ensure the invoice subject for review has details that comply with financial policies and regulations.
AI and RPA
Accounting is a repetitive, technical and time-consuming process. There are functions that can be automated with the help of Artificial Intelligence and Robotic Process Automation (RPA).
Businesses can use Robotic Process Automation for fast generation of invoice, data syncing and management, and data extraction.
Outsourced accountants also need to generate an accurate financial report. This is a time-consuming process involving hardware, several cloud-based applications and software tools in order to generate the most updated financial reports.
At Connext, we have a dedicated team of experts in FinTech and Insurtech to automate key finance and accouting outsourcing related processes to improve the productivity, cycle time, accuracy, and scalability and user experience.
Accounting Outsourcing providers can ensure compliance with all federal and state tax laws. These providers make sure that businesses comply with standard operating controls, financial policies and regulations. They are required to stay up-to-date with labor legislation and any changes in employee insurance and tax regulations.
Compliance covers implementing and reinforcing financial data confidentiality, conducting database backups when necessary and ensuring timely bank and tax payments.
Connext Global Solutions Offers Cost-Effective Offshore Accounting Solutions
Connext Global Solutions provides offshore accounting and financial services support, standing IT support and Talent management and employee engagement with our cost-effective offshore accounting solutions.
At Connext Global Solutions we allow clients to start with as little as 1 full-time employee and scale as they see fit. Connext actively sources top talent required by the client. Businesses looking to offshore Accounting functions can tap from our talent pool of: Businesses looking to offshore Accounting functions can tap from a huge talent pool of:
- Senior Certified Public Accountants
- Certified Public Accountants
- Staff Accountants
- Accounting Techs
- Inventory Specialists
- Accounting Associates
- Junior CPAs
- Senior CPAs
Start building a scalable support team of Finance and Accounting experts. Learn more about Connext Global Solutions today.