Accounting

5 Statistically Proven Reasons Why Accounting Firms Consider Outsourcing

Posted on 26/10/2017

Not just accounting firms but even individual chartered accountants outsource bookkeeping, accounting, payroll, taxation and financial reporting to reliable firms. Around 80% of accounting firms prefer outsourcing against large in-house teams. But why? How does outsourcing help them achieve growth and benefits? You must’ve seen the benefits of outsourcing iterated, and reiterated in numerous blog posts. This post is going to give you hard statistics on why you should consider outsourcing bookkeeping and accounting as the next biggest move!

accounting outsourcing

SMEs: What are your competitors outsourcing?

  1. Outsourced payroll processing is at #1. Outsourced payroll processing helps companies uphold employee satisfaction with seamless and smooth processing. Outsourced payroll processing helps you strategically drive satisfaction levels of your employees – your biggest asset.
  2. Outsourced Accounts Payables falls next in line. A swift Accounts payables process can actually help you save money! Cash in on early-payment discounts and festive offers from all your vendors. As a business owner, it is an onus to follow up on such perks. But when outsourced, your AP works super smooth and helps you save money.
  3. Companies and organizations unanimously agree that Outsourced Accounts Receivables is a downright boon! Cash-flow-is-king goes without saying and timely AR is the key to maintaining bottom line!

CAs and Accounting Firms: Top 5Statistically proven reasons to outsource

  1. Increase in working capital: FAO (Finance and Accounting Outsourcing) has helped increase working capital by 25%
  2. Up to 40% costs savings againstthe cost of in-house accountants.
  3. An increase of 30% in timely & accurate delivery
  4. Outsourcing reduced review times for CAs and Accounting Firms by 60%
  5. 75% Accounting firms and CAs agree that they have more time to focus on their client relationships and business in general.

Have you Tried outsourcing?

A few of the prospective clients we approach, i.e. Chartered Accountants and Accounting Firms fall in the criteria we call “once-bitten-twice-shy”.

They’ve bitten the rotten side of the apple called outsourcing and hence can’t get themselves to give it another shot. Have you had a rotten outsourcing experience ever? Here’s where they (and perhaps you) have gone wrong.

There are 5 things you need to ensure before you outsource bookkeeping and accounting:

  1. Your partner company’s years in business: This matters! While we don’t mean to discourage you from liaising with new entrants to the FAO industry, the number of years in business and supporting testimonials is direct proof of the company’s reliability.
  2. Information security practices: It pays to associate with a company with established international standards of data security. Your clients’ financial data is highly private and you should demand that your outsourcing partner demonstrate their data security practices.
  3. Get a sample: Most companies do offer a free sample! Yes, so don’t stand back and just hand the contract without getting a taste of the quality of work being delivered.
  4. Setup an SLA: SLAs can work really well in determining the quality of the arrangement and association that ensues. Get comfy with your outsourcing partner and be transparent about the volume of work, expected TAT, error-thresholds, monthly retainer fees etc. This’ll eliminate unpleasant surprises.
  5. Cloud-ready: You must use EDI, so check whether your partner offers cloud-ready accountants. Check for QuickBooks Advisor level, XERO certifications and other such badges. In today’s modern world, it is in your best interest to hire accountants who have first-rate, hands-on experience with cloud-based bookkeeping and accounting softwares.

There are other great pointers that we’d love to add in here. But if you’re faced with a dilemma in terms of outsourcing bookkeeping and accounting, payroll processing or AP & AR, we’d love to connect with you and offer you a free 30-minute session with our advisor.

Even if there is an imminent roadblock in your line of business, our experts would be more than happy to assist you with your questions and inquiries. Whether about outsourcing or our service platter, feel free to  call us on  1-516-717-2049

Topics: Accounting


HAVE YOU TRIED SMARTSOURCING?

Posted on 05/10/2017

We keep iterating that running a business is nothing short of the 12 labors of Hercules. But if done right, you stand to attain an immortal business! Well not that dramatically, but certainly quite close. For CPA and accounting firms, it is easy to relate to the fact, that there are not enough hours in the day to do everything that needs to be done.

It could take eons for one man to build a tower, but leave 10 men to it and the productivity increases manifold! The key here is to find 10 men with the right skills – and that is what smart sourcing is all about! We present to you the top 3 areas in small business bookkeeping and small business accounting that can be smart sourced to positively propel your business.

small business accounting

Smart sourcing literally comes down to smart outsourcing. Instead of randomly hiring people for your small business accounting, you need to figure out the areas where outsourcing can add the most value. We’ve outlined 5 top skills that can add the most value to your small business accounting when outsourced to the right organization:

infographic crop

PAYROLL
Regardless of the size of your business, smooth payroll is the key to happy employees (your biggest asset). 90% businesses find that outsourcing payroll is a healthy alternative. Try it and find out today, why all your competitors are winning at employee relationships. Velan adeptly handles small business accounting, small business bookkeeping, payroll & taxation.

We offer specialized outsourcing services for CPA and accounting firms who handle payroll for their clients. Contact us to find out more! CPA and accounting firms at a global level, trust Velan to deliver quality coupled with quick TAT.

FINANCIAL REPORTING
The need of specialized experience becomes clear when looking at financial reporting. Hiring an efficient resource for financial reporting is the difference between getting by with small business bookkeeping or small business accounting and using bookkeeping to help your business grow!

Smart sourcing your financial reporting is not just another way to spend money on your business, but rather the right way to spend money on your business. Save money by hiring skilled resources from Velan Bookkeeping!

WE LOVE BOOKKEEPING
As a closing note, Velan resources are cloud-ready and well-versed with most cloud-based accounting software such as MYOB, SAGE, PeachTree, CSA, QuickBooks etc. So if you’re a CPA or accounting firm, we’re teeming with experienced and certified resources!

Small business bookkeeping and small business accounting are best left to experts and that’s why you need to entrust outsourcing to a reliable organization like Velan Bookkeeping. A lot of our clients are CPA and accounting firms who’ve reported significant savings and growth by outsourcing to us.

Call us today @ + 1-516-717-2049.

Topics: Accounting


Financial Softwares: What does Gartner’s MQ say?

Posted on 15/09/2017

Gartner has released its first-ever Magic Quadrant for Core Cloud Financial Software Management Suites! Concentrating solely on Cloud-based ERP which serves mid-sized, large and global organizations. At the onset, Gartner has excluded all players serving SMBs niche. This report revolves around the bigger ERP players.

Financial Software

While we’re waiting for the Critical Capabilities report which Gartner promised to deliver in the third-quarter of this year, join us in rehashing this first-of-its-kind report from Gartner.

Some surprising results

At Velan, we took a quick gasp when we first saw it. In the niche players’ quadrant, there lies SAP! SAP is not going to take this lightly especially considering the fact that ERP & Finance are its core strengths and S/4HANA is doing the rounds. I mean, when was the last time you saw SAP in the niche players’ quadrant? I can’t place a single MQ (except this one) where SAP wasn’t a visionary or more often, a leader. Can you?

Velan has served quite a few European clients who favor SAP over all others, while the Americans lean towards Oracle. For the record – regardless of the tools our clients use, we have the ability to dexterously handle GL, AR, and AP in an offshore model.

Oracle is way ahead in this game! Cheers to that license-ridden beast. Considering our experience with clients so far, we sincerely believe SAP should’ve been positioned right next to Oracle in the top-right quadrant, but here’s what Gartner notes as reasons for placing SAP in the lower-left:

  • Only SAP Business ByDesign fits the inclusion criteria set for this report. May include SAP S/4Hana is a possible candidate for future inclusion.
  • ByDesign targets SMBs with 1500 employees or lesser.
  • SAP Business ByDesign is primarily sold as a suite solution; SAP has limited focus on line-of-business finance marketing and sales.”+
  • According to Gartner, ByDesign risks being overshadowed by SAP S/4HANA Cloud since SAP is focusing considerable marketing effort in the HANA direction.

Gartner also notes that:

  • SAP Business ByDesign is most often used as a standalone financials system.
  • It can scale to support upper-midsize organizations.
  • Gartner is aware of organizations using SAP Business ByDesign that have revenue in excess of $1 billion+

Do you feel that Gartner never got around to dissecting the SAP ERP solution as a whole? Shaun from SCMFocus sure finds this “niche player” tag quite strange.

Some Expected Outcomes

It’s nice to see Sage Intacct reigning as a visionary, followed closely by Microsoft, FinancialForce, and Accumatica. We’ve not seen many clients using Accuamtica and this fact has been outlined by Gartner as well, in the Cautions section for Accumatica – Gartner notes that Accumatica lacks brand awareness and its marketing, focusses more toward the suite as a whole and loses out on the professionals and prospective clients in the financial realm.

With a good share of our clients using Workday, Intacct, and FinancialForce, we hope to see a lot more clients adopt these tools owing to their position on the quadrant.

The only two giants who’ve managed to position themselves in the leaders’ quadrant are Oracle and Workday. Between Oracle and Workday, the market footprint is oceans apart i.e. while Oracle boasts of a market cap of 209.97 billion and spreads across 7 continents, Workday only has an approximate market cap of 20.5 billion. Workday leaves behind giants like Epicor, Deltek, Microsoft and SAP (debatably, unless SAP wanted the industry to move on to S/4HANA & the upcoming quarter’s report may perhaps include it).

Intacct’s completeness of vision means this tool is in for the long haul – we can almost see it hitting the top right quadrant very soon.

Whatever the tool, rely on Velan

Velan offers exemplary outsourced accounting and bookkeeping services for CPAs and firms. Whatever be the ERP of your choice, Velan’s resources are adept and experienced in a wide range of Cloud-based ERP systems! We’ve worked with clients big and small. Whether you’re an SMB or a larger-than-life enterprise, Velan can offer you a team of accountants like no other.

For all your outsourced accounting & bookkeeping needs, all you need to do is call us @ 1-516-717-2049. Velan handles everything, right from bookkeeping to full-fledged accounting using any and every ERP software – General ledger (GL), Accounts Payables (AP), Accounts Receivables (AR), reports and analysis. Velan can help you cut down on your staffing, training & infrastructure costs by providing an extended cost-effective offshore team.

Reference:

  1. https://www.gartner.com/doc/reprints?id=1-43I9UCB&ct=170619&st=sb
  2. + marks direct excerpts from the report

Topics: Accounting , CPA , Financial Reporting


Improve Accounts Payable Efficiency: 15 Best Practices

Posted on 30/06/2017

Every organization witnesses a skills gap; 75% CEOs feel their in-house team isn’t adept enough to keep up.Keeping that in mind, it is always helpful to define clear, precise and well-defined workflows and practices in every business process. Here are some tips and best practices to Improve Accounts Payable efficieny. A better Procure to Pay process will not only benefit your working capital, cash flow, and vendor relationships but go the extra mile help you to identify areas of savings and compliance. If you’re looking to strengthen your bottom line performance, what better way than to improve liquidity?

Services for Accounts Payable

So read on, as we enlist 15 best practices to improve accounts payable efficiency (in no particular order), keeping in mind the organizations where the AP function primarily relies on paperwork submissions. We know some companies have already adopted EDI and we’re going to keep this as generic as possible.

  1. Defined Roles and Responsibilities: Assign access rights, or assign specific employees the capacity to add/delete/modify vendors in the vendor master files. Especially in systems that lack the ability to print changes made to the files, this practice can be pivotal in avoiding theft.
  2. Use default settings to your advantage: It is recommended that you default the AP master file configuration to a Vendor Type used most frequently. If your system allows for multiple vendor categories, set access rights in a way that users only above a certain security level are allowed to change the GL code.
  3. Avoid batch entries: Entering each invoice individually, allows for a separate audit trail and that would greatly help in keeping track.
  4. Check the Invoice Dates: Do not let your AP clerks use older invoice dates. Try and understand how your system assigns GL month/year as well. When you generate reports on financial reports for a time period, correct dates will alleviate unexpected results.
  5. Review and reconcile: Compare charges to purchase orders while paying out and perform a monthly reconciliation.
  6. Automation is better: Manual processes such as expense reporting, data entry should be automated for better utilization of your accounting resources. This will also minimize risks and errors.
  7. Try an ERP system: Most of the auditor’s time is consumed in reviewing manual postings owing to an elevated risk factor. This can be eased with the help of an ERP system.
  8. Always compare with original: It is advisable to try and pay against the original invoice but if paying from a copy, compare the invoice number and charges indicated.
  9. Verify W-9: In the year’s end when you organize 1099s, you don’t want to be stuck in a rut. Before initiating payment, verify the vendor has a W-9 file for them.
  10. Invoice number rules: If all your clerks starting entering invoice numbers in the format they please, you’ll be lost for eons; especially if you don’t have an invoice number in hand. Instead, have a policy and educate your clerks on how to enter invoice numbers.
  11. Accountability: Assign and authorize separate people for entering the invoice, approving the invoice and signing the check.
  12. Logging is key: All invoices should compulsorily be addressed to the Accounts Department – this way they can be logged.
  13. Define Budget: It is safer to know your AP team know what the declared budget is, if you are among those who run a lot of cash transactions.
  14. Audit trail is imperative: Even if you don’t plan on paying the entire invoice amount, it would help the audit trail to mark it as billed. At these instances, use credit memos.
  15. Free is good: Discounts and free goods being offered by your vendors is something that could greatly help your accounts. Watch out for these festive promotions and make the best use of them.

Go the extra mile with these best practices, and watch your AP process go above and beyond maintaining operating margins. Velan is a trusted and seasoned Accounts Payable services providers. Velan AP process takes extra care on available free credits, payable days, purchase order mandates, and Accounts Payable cycle efficiency. Accurate Accounts Payable reconciliation plays a vital role in clearing unpaid bills within the stipulated time. Outsourcing your Accounts Payable management to Velan will help you effectively mitigate fines for late bill payments and ensure that you have a streamlined Accounts Payable process flow leading to optimized of profit for your business. Call Joyce @ +1-516-717-2049 to know more.

Topics: Accounting , Accounting firms , Accounts Payables , Financial Reporting , Outsourcing Accounting


Why Should Businesses Outsource Real-Time Financial Reporting And Accounting?

Posted on 04/04/2017

Real-time Financial reporting basically means that an event must be reported as and when it occurs rather than in the later stage. In this same context, real-time accounting means retrieval of information that is stored in the accounting system by reducing the lag between the recording time of accounting and the time of availability. Real-time accounting is used to make accurate information available as soon as possible.

cashflow

Some benefits of Real-time accounting and financial reporting:

  1. Removing batch processes: Real-time accounting often ensures that information is updated at one point in time. For example, when an approved invoice gets posted, the vendor accounts must be posted, and the same should be updated on the expense account and in the general ledger. Simultaneously, inventory and other activity costing should be kept updated. This will ensure that errors are minimized and all updated information will be made available to all the stakeholders.
  2. Syncing different books: Most businesses today distribute some part or all parts of their accounting operations. This means data redundancy is high. Now, applying real-time accounting can eliminate the need to replicate the data and it also helps the postage of data in more than one database simultaneously.
  3. Informed decisions can be made: Real-time accounting ensures that information is being updated on a regular basis, which is best for the needs of the organization. This availability of the financial information in a timely fashion will facilitate the management to be highly agile in their dynamic business environment.
  4. Information centre: Real-time accounting makes the creation of information hubs possible, thereby allowing access to many users at a given point in time. It also provides the facility for the information to be presented in any format desired.
  5. Enhancing productivity: Visibility to financial information is more with real-time accounting. This helps the organization in being dynamic and re-prioritizing the tasks based on need. This had been found to enhance the compliance, productivity, and accuracy.

So, why should you outsource real-time accounting?

The one challenge that organizations face in implementing real-time accounting is the burden it would place on the existing resources. Outsourcing real-time accounting provides access to a whole new level of the trained and expert team in all aspects of finance and accounting. You can also get access to the latest technology available. All these not only ensure accuracy of data, but also cost efficiency. You will not have to invest on infrastructure or the resources. Plus, when you outsource real-time accounting, paper based reports would become obsolete, which means data can be made available anywhere at any time. By and large this will help the company to stay proactive.

To enjoy all the above mentioned benefits of outsourcing your real-time accounting, do contact Joyce at +1-516-717-2049. We can help you figure out the ways to improve your productivity and profitability.

Topics: Accounting , Cash Flow Management , Financial Reporting