Is it safe to Outsource your Bookkeeping ? | Is it safe to share your Accounting data ?

Is it safe to Outsource your Bookkeeping ? | Is it safe to share your Accounting data ? :

The word Outsourcing to cut the cost is a buzz word every where.  Most of the business owners wish to cut cost and save money. One of the best opportunity which comes up to our mind is outsource bookkeeping work as it involves lot of repetitive work and it can be outsourced to skilled countries with lesser cost.

This type of cost cutting may lead to give an impression as to many of the local works loose their jobs to other developing countries but it is false impression. In fact it will end up adding more high end jobs to professionals in their country.

Steps before outsourcing Book keeping:

• Don't outsource your Books of accounts if you don't wish to reduce your cost of operation.

• If the outsourcing partner don't have a secured workflow system to transmit the data securely don't outsource .

• Key to successful bookkeeping outsource is a well designed knowledge management system with the outsource provider . If they don't have this you will be wasting your time in train and re-training your outsourced bookkeeper.

• Security: Many of the small SMB's just in a hurry to outsource at cheaper price will compromise security of financial documents which is very crucial for future growth. Sending documents using publicly available email and free drop box is not safe. Any one can hack these account and your or your client's documents at security treat.

• Timer management is very crucial for any outsourcing activity. One should go with experienced bookkeeping company which will have an efficient training system of it's staff and time consumed to process will be lesser than if it was processed in-house which will have outsourcing benefit. The work flow system should have time tracking and should account for each of the seconds spent on each documents.

• The outsourced partner should have a very good training division working on the needed software training not only for existing staffs but also for new joiners. You cannot be assured of same staffs over the years. Staffs keep changing .

• Don't treat outsourcing only to achieved cheap pricing but concentrate on quality and consider safety of the documents and continuity plan with outsourced provider.

• Bookkeeping along mayn't fill the hours if you have taken the contact on hourly basis. You can use the spare hours of doing some mail merge, organizing v-cards, updating client data base, sending renewal notes emails and many more admin work which will add value to your business and helps to increase your customer base.

• One of the key question one should ask is Am I Paperless?  Going paperless will help SMB's to be organized and have control over documents in need. If you ask 1 year back bill you will not be in a position to dig and find it but in Paperless overnight system  . Going paperless will help you to transmit documents safely to your bookkeeper and get report of activity and any clarification request back.