| Outsourcing of business processes has acquired a | | | | foundation of an outsourcing process, optimum care |
| strategic importance in every company's menu, | | | | should be taken while drafting it. An outsourced |
| particularly in this scenario of economic slowdown and | | | | bookkeeping contract should cover the following areas: |
| escalating cost. But more than the decision itself, what | | | | > Minimum service levels. |
| matters most in outsource of critical functions like | | | | > Security of data |
| accounting is "How to get started"? | | | | >Roles and Responsibility of both the parties. |
| The following "best practices" should be taken into | | | | >Pricing. |
| consideration to ensure a better launch for the | | | | >Staff to be deputed, skill levels, hours of work etc. |
| company in outsourced bookkeeping process: | | | | >Exit Strategy. |
| 1) Deciding on what to outsource: The key precursor | | | | 4) Smooth Transition: A smooth transition process is |
| to enter into an outsourcing arrangement is to know | | | | the key to a successful outsourcing process. A |
| which aspect of the bookkeeping process needs to | | | | detailed project plan by both the vendor and the |
| be outsourced. Bookkeeping is a complex job and | | | | customer should be prepared outlining a list of known |
| involves much aspect. Companies can outsource | | | | issues, assumptions, constraints, risk factors, |
| process like account receivable, account payable, | | | | identification of personnel, assigning of responsibility etc. |
| reconciliation or the entire of bookkeeping process. | | | | Proper and secure method of data transfer and clear |
| Chief factors those should facilitate decisions are size | | | | service delivery models should be developed. |
| and stability of the process, availability of resources | | | | Companies need to open a two way communication |
| and skill and the savings company expect to garner. | | | | process to minimize mistakes that are bound to occur |
| 2) Finding a reliable service provider: The most | | | | in the beginning stages. In the initial stages, the |
| important aspect of the entire process is to locate the | | | | outsourcing relationship needs time and attention. It is |
| service provider. The simplest way to find offshore | | | | essential for the sake of advantage of both the |
| service providers is to go for search engine or relative | | | | parties to manage the relationship as a partnership, not |
| online directories. Once a prospective vendor is | | | | as a company-vendor contract. |
| located, time and efforts should be spent in checking | | | | 5) Evaluation of results: On the completion of a project, |
| their credentials. The process involves speaking to the | | | | a careful evaluation should be done for assessing |
| vendors, finding out about their management, checking | | | | whether outsourcing the bookkeeping project is |
| on the references provided by the vendor etc. It is | | | | proving feasible for the company. A proper evaluation |
| very important to establish that both the service | | | | will also dig out possible pitfalls in the outsourcing |
| provider and the company share the same corporate | | | | process. And steps can be taken to improve it. |
| culture. Companies that are culturally compatible viz. | | | | Off shoring of bookkeeping has it own advantage but |
| share the same ideals and goal is like to be more | | | | a company should always practice caution and |
| successful in eking out a long term outsourcing | | | | patience from selection of partner till the execution of |
| relationship. | | | | an assignment to make the entire process suit to its |
| 3) Contract Finalization: At the heart of every | | | | need . By following the afore mentioned guidelines a |
| outsourcing deal is a contractual agreement that | | | | company can get better start into the process and |
| defines how the client and the supplier will work | | | | definitely experience better outsourcing results. |
| together Since the documentation of contract lays the | | | | |