At some point, as a founder and young entrepreneur, you have to think about who will be responsible for your accounting over time. As long as you are alone or have only a few employees, you can certainly take care of it yourself. But when your business grows and grows, you not only need a lot of time, but also a lot of know-how for your accounting. Then it may be time to outsource parts or to outsource the entire bookkeeping to a provider of bookkeeping services. There are several outsourcing models available for external accounting to select. This means that you can design your external accounting according to your needs and requirements. The most important alternatives and design options for your accounting can be found here in a brief overview.
Visit also: Accounts outsourcing services
Model 1: Completely outsource accounting
Certainly the easiest solution for you, but also probably the most costly solution. You simply give all of your bookkeeping to an external bookkeeping service. For you, that means that you have nothing to do with accounting anymore. Book all business transactions, create monthly and annual financial statements, etc. the provider takes care of for you. You can take care of your core business completely.
Model 2: Complete cloud solution for your accounting
This is an outsourcing model that is still relatively new. You simply scan all receipts and documents into a cloud and an external accountant takes care of your bookkeeping. You do an important part with scanning, but you can also save some costs for your external accounting. When choosing the provider and the cloud, it is important that you make sure that everything complies with data protection guidelines.
Model 3: Do cloud software and accounting yourself
Software that can only be installed on one computer is becoming less and less. This also applies to modern accounting programs, which you can use directly in the browser. You have to do your accounting yourself here, but the software provides you with a lot of help and does a lot of things automatically. Such accounting programs can be completely adapted and designed to suit your company's needs. You invest the cost of the purchase once, but then you have peace of mind.
Model 4: Bookkeeping with offline software
If you are one of those entrepreneurs who trust technology and the Internet less, then offline software is the solution. You can choose between several accounting programs in retail and then buy them. You install this software on your computer and you can do your bookkeeping with the support of the software on the desktop.
Model 5: analogous accounting
This is the old school bookkeeping. Technology is dispensed with and the good old folder is still trusted. Certainly a manageable job for small companies. However, accounting knowledge is required here and the method no longer corresponds entirely to the current age. You also have to be meticulous here and keep all receipts neat and correct. The more documents there are, the greater the document chaos becomes.
What does an outsourcing process look like?
If you have decided to outsource the bookkeeping and one of the possible outsourcing models, there are other important tasks to do. First of all, you have to find a reliable provider and plan your accounting outsourcing accordingly. The outsourcing itself then takes place in several stages. These look like this:
- Conclusion of a service contract
- Handover of all relevant documents
- Work meeting
- Creation of the technical facility
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Necessary steps |
description |
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service contract |
For the drafting of the contract it is important that it is as detailed as possible. This is important for you, but also for the external accounting service. Above all, the contract must contain the following points:
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Handover of the relevant documents |
As the client, you must hand over all relevant accounting documents to the contractor. You should definitely log the handover and the integrity of the documents as well as the guarantee of confidential treatment of data. |
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Work meeting |
This can be one or more working meetings. These meetings are about naming the contact persons, defining processes and clarifying other important points. |
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Create technical facility |
The point here is that all required programs are set up if the same programs are used. |
For details, please visit: finexoutsourcing.com
Finsmart provides Account payable outsourcing services in India since 10 years We are leading invoice processing and accounts payable service providers in Mumbai and Pune.
