Outsourcing accounting data entry services for offshore SMEs. A challenge?
Offshoring the entry of mundane accounting data like voucher entry, statements preparation of monthly or quarterly management accounts, annual accounts, cash flows, year end returns such as P35, P11D, P14, invoicing sales, aged debtor reports, creditor lists, payment picking lists, bank reconciliation and others certainly sounds nice. But is it practical?
India might boast of experience and qualifications of personnel equal to or better than their British counterparts. Accounting data entry companies might also harp on the extreme cost savings, lower wages, zero recruitment and personnel management costs involved, and lack of overheads in outsourcing.
But wouldn’t the main issues be about quality control and confidentiality? Here’s what you must watch for if you are an overseas small and medium enterprise planning to outsource accounting data entry work.
First, make sure your outsourced data entry service provider gives you 240 hours per month per head instead of the usual 160 hours per month per head. This will ensure they double check their outputs as part of the SLA.
Second, at the start of each assignment, set up training sessions with the provider (either online or on site or telephonically) to orient its personnel on the accounting software used by your company. This training must be adequately documented by the accounts data service provider. This document would be used for further referencing.
Third, make sure the data is stored on your server. All your passwords could be shared with the outsourced entity’s employees strictly on a need to know basis and these passwords must be regularly updated to maintain integrity.
Fourth, build quality control into the offshoring process as it adds another dimension to the output. Normally, when the accounting data entry is done in-house, quality control is conducted only at the end of the period, during audits. Offshoring would not mean losing control over the process or the data… rather, it would result in better control by way of well defined SLAs and quality control.
Fifth, look into the specifics of the company you are outsourcing accounts to. Ideally they should be young and energetic and currently doing some work with a select few quality conscious clients. They should be willing to give you a copy of their agreements with other clients. Also ensure that the principal contact person is a Chartered Accountant with over 20 years of experience. Their former corporate experience will make sure he/she drives the team in the direction best for you.
And finally, prepare your organization for a new way of thinking that transforms the way accounting is done at the back-office. And you can be sure to enjoy the offshoring experience.
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