Madhu Jain explains how outsourcing bookkeeping has become an increasingly growing trend.
Madhu Jain, the co-founder of BookkeepingMonster.com, explains the growing trend of outsourcing bookkeeping and accountancy processes and its impact on the global scenario.
The concept of outsourcing one’s work is not just about cost saving anymore. It has transformed into one of the most powerful tools that might just be the impetus required to power the 21st century global economy. Despite myths that outsourcing is a relatively new concept, it has been around ever since the 1970s.
Today, most manufacturers prefer to outsource approximately 70% - 80% of their product. However, what makes this concept even more interesting is that outsourcing is no longer restricted to the manufacturing sector. It has expanded its claws into most spheres of life and one can find all sorts of services being outsourced by organizations.
One such field that has experienced drastic changes in the past few years has been to outsource bookkeeping functions and services. More and more companies around the world are starting to outsource their bookkeeping functions in order to save on costs and valuable resources of the organization.
Outsourcing helps organizations to improve on their innovation levels and scalability and offer them with the competitive agility to match and outbid their competitors. According to offshore accounting expert Madhu Jain, the trends of outsourcing bookkeeping and accounting functions are likely to grow to new heights in the future. “The cloud based infrastructures have made it possible to reduce delivery costs”.
She also comments on the growing trends of outsourcing bookkeeping.
“The uptake for processes such as accounts payables and accounts receivables is increasing. This leads to a greater harmony for enterprise development in the long term, thereby increasing the propensity to outsource the processes”.
It has also been seen that a hybrid model has been emerging in terms of bookkeeping processes as many organizations prefer to opt for Global Business Services models. As Madhu explains, “Most late adopters are adopting a hybrid model which allows the suppliers and the customers to collocate the services for a variety of processes”.
In fact, such has been the power of the F&A outsourcing process that it equaled almost $200 billion by the year 2012. Madhu states that “financial and bookkeeping outsourcing is now seen as a globally accepted tool to minimize losses in the short run and increase innovative techniques in the long run”.
Many might believe that outsourcing bookkeeping and accounting processes are normally driven by crises within the organization. However, this is not necessarily true. In fact, outsourcing is often known to be an extremely sound business strategy as it allows the executives to channelize their attention towards what they do best – provide accountability to the board and services to the clients.
About Madhu Jain –
Madhu Jain, the co-founder and Team Leader at BookkeepingMonster.com, has also been associated with PwC Kolkata and PwC Sydney in the past and has been providing offshore accounting services for the better part of her adult life. Having completed her FCA from ICAI, Madhu channelized all her energies into specializing in offshore accountancy services. She is a XERO Certified Silver Advisor and an NBA Certified Bookkeeper as well.
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