Outsourcing Account BPO To India
March 20, 2011
In essence, the value of an enterprise lies in its capacity to book profits – this is particularly relevant in light of the recent downturn in the global economy and the impending recovery that is taking place. The catch-22 is that as a company and its services expand, which is often the case with successful firms, the accounting becomes a huge labor-intensive process. In the wake of frequent lawsuits, the necessity for accurate bookkeeping has taken a more significant role.
Recent scandals involving big name firms like Enron have Satyam have made scrupulous scrutiny of financial records even more important. In order to stay clear of fraudulent accounting and errors that might prop up from time to time, it is crucial that even small transactions are properly documented.
Accounting plays an important role in the operational function in that it is not just a reflection of the current state of a business, but it is also a vital factor in strategy formation and implementation. This translates into a fundamental principle that good accounting leads to a successful business. For instance, the data from accounting may be used to develop products, highlight strong points and weak points of a firm. Additionally, accounting figures reveal the credit score worthiness of the company. A higher credit score enables a firm to have an increased market value.
It goes without saying that the importance and the quantity of accounting information has led for big companies, in particular, to consider account BPO. According to analysts, India is the leading destination for account BPO because it has the skill to meet the demand. And of course, it is also true that the pay rate in India is considerably lower than those paid in the U.S. and Europe. Hence, a tie up with an Indian vendor ensures quick and efficient transmission of accounting data on a day to day basis via the web. This gives the company employees more room to focus on core competencies of the firm. Alternatively, it also provides a safe and practical way to get the accounting job done, reports choose4me.com