AccountingSolutions*

*do what you do best and outsource the rest

I've heard the term "Business Process Outsourcing" - what exactly does it mean?

 

Business process outsourcing, or BPO, allows a business to focus on core business capabilities, by allowing an outside partner to perform non-strategic business functions. Some of these functions include invoicing, payroll, claims processing and customer support.

 

 

What should I consider when deciding to outsource finance or accounting services?

 

It is important to identify the core business processes that are essential to driving revenue. Non-core services should be considered for outsourcing.

 

 

Why outsource? What are the benefits of outsourcing finance and accounting services?

 

There are many strategic benefits from outsourcing including improved performance, profitability, and shareholder value. More specifically, these benefits include: 

 

-          Reduction of employment related expenses and issues 

-          Gained access to expertise in multiple fields

-          Free-up internal resources

-          Position the executives as a "user" rather than a "generator" of information

-          Receive accurate and timely information

-          Achieved cost efficiencies

-          Greater internal flexibility

-          Gained access to advanced technology, without the upfront costs

-          An increased focus on core business and competencies

-          Isolation from losses or interruptions resulting from staff resignations or absences

-          Turn fixed costs into variable costs

 

How can our company provide all of the above? We possess leverage, because our core business is accounting we are able to standardize the process and build economies of scale.

 

 

How will outsourcing affect my existing staff?

 

We can assist you in determining the skills, experience, and number of people needed to transition your Company to an outsourcing arrangement. We will then develop an action plan that will ensure a smooth transition to outsourcing. While implementing the action plan, it is important that channels of communication remain open and questions are answered, so that change can be implemented smoothly without disruption of your business.

 

With regard to those people currently performing accounting functions, and where the accounting function is predominantly or fully outsourced, the options exist for either:  

 

(1)      Employment by the outsourcer;

(2)      Redeployment to other activities within your company or;

(3)      Be one of the positions eliminated via an appropriate retrenchment or redundancy process

 

 

Where will the outsourced activities take place?

 

We can provide our service either at your location or remotely. After a careful evaluation of your needs, we will advise you on the most cost effective method of providing these services. Our goal is to be available and responsive to you, and to have your information readily available. Regardless of where the work is performed, you maintain control of the information and on-site personnel.

 

 

Why should I hire Outsource Accounting Solutions instead of hiring additional employees?

 

Outsource Accounting Solutions offers a depth of skills and multifunctional experience that is hard to find. We know what it takes to get the job done and offer a customized approach to your accounting needs. Whether you require the ongoing service of a total accounting department or short-term assistance on a special project, we are your source for accounting solutions.

 

 

How much will it cost?

 

This is the question that arises very quickly. The preliminary answer is generally that it will cost no more than it currently does and probably less. Comparative analysis of American companies who had outsourced their accounting function showed savings ranging between 5% to 25% over traditional in-house employment costs.

 

Finance and accounting remains an expensive function, costing the average company 1.5% of revenue. The low is 0.33% and the high is around 9%. The optimal range is between 2% - 4% (when all components and functions are factored in).

 

In the establishing of an appropriate cost structure we encourage open dialogue in the review of your existing systems and procedures so to enable us to develop a proposal that both implements efficiencies and economies of scale and reduces your cost.   

 

Outsource Accounting Solutions currently offers two pricing plans:

 

(1)   Fixed Hourly Charge Rate – commencing at $60 per hour (plus GST) for bookkeeping, payroll and basic accounting functions and scaling upwards to $120 per hour (plus GST) for specialized services.

 

(2)   For ongoing commitments with standardized reporting requirements, negotiation of fixed periodical fees, as dictated via our estimation of the resources required to fulfill that function.

 

In the initial stages of an engagement, we encourage implementation of the first pricing policy, as we believe this will provide the most accurate representation of the resources consumed in the operation of your accounting function.

 

 

You've sold me on outsourcing my accounting. Why shouldn't my existing CPA or CA do it for me?

 

Many CPA and CA firms do perform month-end accounting work for their clients, frequently referred to as "write-up work". We also offer this service. However, most of these firms are not set up to perform the day-to-day accounting for a business as we are. In fact, performing both the day-to-day accounting and the audit could be a conflict of interest.

 

In addition, most CPA and CA firms aren't staffed with personnel that have the industry experience, which Outsource Accounting Solutions offers. Having this industry experience helps us to know and understand the issues you face on a daily basis.

 

 

Will you perform the audit of our financial statements?

 

Performing your day-to-day accounting and an audit could be a conflict of interest. As such, Outsource Accounting Solutions does not provide independent audits. Instead, we provide the information that your auditors will find necessary to perform the audit. Therefore, we will not replace your outside accounting firm.


When it is time for the audit of your financial statements, we will have your financial statements audit-ready. By doing so, we make it easier for your outside auditor to perform the audit - which should result in lower audit fees and a quicker audit. We can also answer many of the questions your CPA or CA will have while performing the audit, which again frees you to focus on the more important things - your business.
 

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Outsource Accounting Solutions Pty Ltd   (A.B.N. 86 080 682 248)    38-40 River Street South Yarra VIC 3141 Australia    info@oas.net.au
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