Why outsource your accounting business? - PowerPoint PPT Presentation

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Why outsource your accounting business?

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  1. Grow your firm by leveraging technology and outsourcing www.qxas.us.com

  2. Agenda Outsourcing introduction Business processes that are outsourced Why do companies outsource? When to outsource Who is doing it? Top market How can you do it The technology behind outsourcing Benefits of outsourcing Outsourcing pitfalls Infrastructure Questions to ask when you consider outsourcing What next Team and experience – Ravi Kurani Questions www.qxas.us.com

  3. What is outsourcing “ “ Definition A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.” www.qxas.us.com

  4. Outsourcing history Textile industry work is outsourced to England Outsourcing accumulates $298.5 billion in global revenues Outsourcing is formally identified as a business strategy Computer companies outsource their payroll 1930s 1970s 1989 2003 1776 1960s 1980s 1990s 2004 Became common to outsource tasks with massive information handling such as data processing Outsourcing was one of the topics of debate between the candidates in the U.S. presidential election. Adam Smith, formulates theory of competitive advantage extracting the notion of outsourcing Accounting services, payroll, billing, and word processing outsourced Outsourcing becomes very profitable with the advent of the WWW http://www.brainstormmag.co.za/index.php?option=com_content&id=673:outsourcing-timeline www.qxas.us.com

  5. Common business process that are outsourced • Finance and accounting services (most common being tax preparation and payroll services) • Contact center services • Healthcare services • Human resource services • Software development, testing and maintenance • Web design • Manufacturing • Data entry services • Virtual assistance services • Market research and development www.qxas.us.com

  6. Finance and account outsourcing Specific business processes being outsourced in the accounting industry Source: ICAEW report

  7. Why do companies outsource? • Focus on core business • Reduce costs • Increase spend to market • Foster innovation • Conserve capital • Improve work quality www.qxas.us.com

  8. When to outsource Outsourcing decision matrix Retain Form strategic alliance High Strategic importance Eliminate OUTSOURCE Low High Low Contribution to operational performance www.qxas.us.com

  9. Who is doing it? Major global players in offshoring of finance and accounting These firms utilized the outsourcing model and experienced huge benefits Source: CPA Australia www.qxas.us.com

  10. Who is doing it? There is an increase in outsourcing contracts by the SMBs Source: FAO annual reports 2015 www.qxas.us.com

  11. Top market Asia Pacific is the top market for Finance & Accounting outsourcing Source: June 2015 PM Network Magazine www.qxas.us.com

  12. How can you do it? • Your worries: • Do not have the knowledge • Lack of experience • Do not have sufficient capital • Do not have enough time to set up facilities offshore Solution: There are a number of outsourcing firms that partner with small – medium size accounting firms such as yours to offer you the benefits of outsourcing with none of the management or internal worries www.qxas.us.com

  13. Technology behind outsourcing Secure server based solution 1 – SCAN & UPLOAD You scan and upload files to the outsourcing companies secure server 2 – RECEIVE The outsourcing companies team records all source items into their system and produces your accounts 3 – COMPLETE TASKS & REVIEW Work is completed and reviewed before it is submitted to you 4 – SUBMIT Following your approval the final working papers are made available to you www.qxas.us.com

  14. Technology behind outsourcing Remote access based solution 1 – INSTALL SOFTWARE Outsourcing company provides you with software to install on your system 2 – REMOTE LOGIN Using this software the outsourcing company remotely logins to your system 3 – COMPLETE TASKS & REVIEW Work is completed and reviewed before it is submitted to you 4 – SUBMIT Following your approval the final working papers are made available to you www.qxas.us.com

  15. Benefits of outsourcing • Increased efficiency • Lower operational costs • Improve margins • Save time • Reduced staff turnover/growth without overheads • Get a competitive advantage • Acquire flexible resources • Be compliant • Access best practices • Level the playing field www.qxas.us.com

  16. Benefits of outsourcing After Before www.qxas.us.com

  17. Benefits that work for you Save against current costs for accounting, VAT, bookkeeping and tax. Grow business without being bogged down with the bookkeeping. Cover the workload of staff who have left. Take on more business without the need for costly recruitment or investment in staff. www.qxas.us.com

  18. Outsourcing pitfalls ? Control How to avoid: • Pre-defined SLAs and KPIs with regular reporting gives you full control • Manage the workforce in your own way through a single-point-of-contact located offshore • With advances in technology, virtual communication in the form of face-to-face meetings is possible through video conference facility www.qxas.us.com

  19. Outsourcing pitfalls ? Security & Confidentiality How to avoid: • ISO 27001:2005 is demonstration of an outsourcing supplier’s IT security risk-management capabilities • Suppliers internal processes – if possible visit them • International Private Leased Circuit (IPLC) connectivity www.qxas.us.com

  20. Security Outsourcing companies take extra measures to keep your data safe. • ISO certification • Regular ISO audits • USB port, CD/DVD ROM disabled • Restricted printer access on all PCs • Defined computer access policies • Firewall for content filtering • 24x7 physical security www.qxas.us.com

  21. Outsourcing pitfalls ? Cultural differences How to avoid: • Evaluate the company background • Talk to existing clients • Evaluate the management team’s experience • Spend time with the team www.qxas.us.com

  22. Outsourcing pitfalls ? Poor quality output How to avoid: • Check for existing processes • Are they flexible to integrate with your processes • Process certification such as ISO 9001 • Reporting mechanism • Feedback internalisation www.qxas.us.com

  23. Outsourcing pitfalls ? Financial instability How to avoid: • Deal with an established company • Check the companies track record www.qxas.us.com

  24. Outsourcing pitfalls ? Infrastructure How to avoid: • Do not ship documents overseas • Look for an end-to-end service provider • Access to the scanned documents for back-up www.qxas.us.com

  25. Infrastructure Outsourcing does not mean you have a person working in his bedroom but there are companies with good infrastructure www.qxas.us.com

  26. Infrastructure Next room telephony Global connectivity • Internet Leased • International Private Leased Circuits (IPLC) via different trans-world routing. • IPLC leased lines ensure quality and desk-to-desk telephony with calls charged as local rates. Video conferencing Group service support • Finance, personnel, HR, marketing and IT support. • Virtual communication in the form of face-to-face meetings is possible through a video conference facility. www.qxas.us.com

  27. Questions to ask when you consider outsourcing Is there a high staff turnover? Is there a high capital cost? Is a process taking up too much of the managements’ time? Is the service not part of your Core operations? Are the technology demands high? www.qxas.us.com

  28. What next? “ Robotic Process Automation (RPA) “ RPA is the application of technology to automate processes in a company using “robots”. Any company that uses labor on a large scale for general knowledge process work,  will boost their capabilities and save money and time with robotic process automation software. www.qxas.us.com

  29. What next? Some of the areas where RPA can help organizations improve working capital and enhance productivity and efficiency. • Process having structured input source • Remote management of IT infrastructure • Customer service centres handling high call volumes • Data transfer across multiple systems • Data being collated from multiple sources Source: xchanging.com www.qxas.us.com

  30. What next? In Finance and Accounting Outsourcing, RPA is delivering multiple benefits. This will enable companies to improve response time to new markets. Cost savings Enhanced accuracy Scalability Increased compliance www.qxas.us.com

  31. Team and experience Ravi Kurani, Director, QX Limited Ravi Kurani is an MBA (Finance) from Australia and has over 15 years of experience in the outsourcing industry. He works closely with companies in the UK/USA to assist them to define their India strategy, to achieve efficiencies in the UK/USA and has responsibility for transition and implementation of QX services. He is a COPC ® certified professional. • Back Office & BPO Expertise (US & UK) • Phone, Email & Chat Support for • Two Largest Online Retailer (USA) • BNY Mellon Bank (USA) • DishTV • Deliverables & Achievements • Handling of over 1M emails and over 500,000 Inbound calls annually for two of the largest online retailers • Handling of over 3.8M transactions for one of the USA largest bank (BNY Mellon Bank) • Handling of over 100,000 inbound customer calls for DishTV towards order confirmation and cross selling of products www.qxas.us.com

  32. Contact us 248 Lorraine Avenue 3rd floor, Room 11 Upper Montclair NJ - 07043 Tel: 1-800-310-9312 Email: contact@qxas.us.com www.qxas.us.com