| Outsourcing today has evolved as a powerful tool | | | | accounting files back to the customer's server |
| which aids in the transformation of any conceivable | | | | securely. The clients then import the accounting files |
| business operation. However, there are a few myths | | | | into their accounting soft ware. Thus the possibility of |
| still present when one considers the different aspects | | | | any breach of data security is ruled out. |
| while outsourcing bookkeeping jobs to a specialist | | | | Myth : Complex IT integration is essential. |
| company. But the reality has dawned, even though | | | | It’s just a misconception that outsourcing requires |
| late, that it is absolutely viable for small businesses too | | | | complex IT integration. But just a server and internet |
| and presents tremendous possibilities in terms of cost | | | | connection will suffice. The service provider can use |
| saving as well as business strategies. | | | | Remote Servermodel to access client’s computer |
| Myth : Only big corporate houses can afford to | | | | to perform activities like Bookkeeping, Tax Returns, |
| Outsource. | | | | Account reconciliation etc. In the Secure File Transfer |
| Outsourcing the bookkeeping functions used to be the | | | | mode, all the accounting records are transferred |
| prerogative of big business houses. With the winds of | | | | securely from the client’s computer to the |
| change sweeping the world, small business too have | | | | vendor’s. The trend has risen sharply and more |
| joined the fray and are outsourcing their bookkeeping | | | | and more companies are increasingly outsourcing |
| functions in order to acquire increased efficiency and | | | | accounting jobs and the sector is growing rapidly. An |
| profitability in their respective business domains. | | | | IDC study has predicted that the global market for |
| Companies with a full-time bookkeeper can save | | | | bookkeeping outsourcing services, which crossed $30 |
| about $30,000 a year by availing bookkeeping services | | | | billion in 2003, will touch $47.6 billion in 2009. |
| of highly competent and competitive service providers | | | | Myth : Bookkeeping when outsourced, induces job cuts |
| in India. By outsourcing non-core business activities like | | | | and in the process harms the economy. |
| Bookkeeping to destinations like India, China and | | | | Small businesses, by outsourcing their bookkeeping |
| Philippines, small business organizations .In the | | | | functions, are witnessing an increase in their business |
| developed nations like the US and countries in Europe | | | | returns and less processing time. Everyone, from the |
| can save substantially by taking advantage of the | | | | manufacturer to the customer and the governments |
| difference in the foreign exchange rates. | | | | accrue significant benefits. This is particularly more |
| Myth : Bookkeeping Outsourcing is not reliable. | | | | relevantfor small businesses, since by resorting to |
| No offshore service provider would risk their business | | | | outsourcing, they too can save money without |
| prospects by unauthorized use of accounting data of | | | | compromising on the quality side. This benefit can be |
| the client company. Using secure FTP soft wares, | | | | channeled for the purpose of hiring people needed in |
| offshore companies send the documents securely into | | | | other operational areas to increase their production |
| the client server. Using customer-specified soft wares | | | | and sales. Ultimately, there is no significant loss of |
| the firm finishes the assigned tasks and send the | | | | employment opportunities. |