Business process outsourcing (BPO) refers to the business practice where one company engage/employ another company to carry out a particular/various business related activities of the employer company. For example, Company ‘ABC Ltd.’ hires a ‘XYZ Accounting Firm’ to perform accounting related services of the ‘ABC Ltd’.
Why You Should “Outsource” a Business Process?
There are variety of reasons why the corporations prefer ‘BPO’. A company outsource a business process to serve their back-office functions and/or the front-office functions. For example, Startup Companies always prefer to hire a BPO to carry out its back and front office functions due to the fact that it usually don’t have the resources (i.e. the number of employees required, the arrangement of space, equipment etc.) to perform all by itself.
Types of the Business Process Outsourcing (BPO)?
Business Process Outsourcing (BPO) can be classified into two categories:
i. Back-office business functions (e.g. accounting); and
ii. Front-office business functions (e.g. marketing and sales).
Apart from classifying BPO in terms of its services, it can also be categorized into different types based on the service provider’s location: “Offshore outsourcing” and “Onshore outsourcing”.
Benefits of BPO outsourcing?
- BPO affords businesses with greater operational flexibility;
- BPO is Cost-effective;
- BPO saves the costs of businesses of maintaining accounting staffs;
- BPO has no geographical barrier (offshore outsourcing);
- BPO providers are specialized in their field of work;
- BPO providers always stay updated with regulatory changes and ensure compliances;
- BPO greatly enhances the speed, accuracy, efficiency and quality of the work;
- BPO enables Businesses to focus more on its core business strategies.
Why your Business should “OUTSOURCE” Accounting Services?
Accounting firms, in the recent years, representing a big part of the BPO industry worldwide. Accounting, as an internal business function (i.e. the back office function), necessarily attracts the business owners to outsource accounting services from the expert accounting service providers (i.e. BPO) to lessen its burden and to focus on its particular business goal.
Reason for opting to an Outsourced Accounting Firm are led by various important reasons. An Outsourced Accounting Firm can serve companies’ with numerous services that includes, formulating strategies for the company about where to save up; presenting accurate financial reports; ensuring compliance with applicable laws, rules, regulations and accounting standards; recommending appropriate financial decisions for the company etc. Apart from this, an Outsourced Accounting Firm carry out all the necessary and required accounting related services such as, accounts receivable/payables, account reconciliations, cash management, financial statement preparation, tax preparation, tax compliance and so on.
Since accounting is not the core function of the companies, therefore, by giving the support of this back office function, an Outsourced Accounting Firm can greatly enhance the business performance of the companies. This is because, the companies can solely focus on its business without investing time on monitoring or supervising its internal accounting department.
FMCI Business Process Outsourcing Services in Bangladesh?
Today, the breadth of functions that can be outsourced from an Accounting Service Provider has increased to a greater extent. The services an Accounting Firm provides includes:
- Accounts receivable/payable management;
- Preparing Balance sheets;
- Daily Cash Flow Report maintenance;
- Payroll processing;
- Income Tax, VAT and other Taxation preparation;
- Financial reporting;
- Analyzing financial data;
- Billing and Invoicing;
- Making annual reports;
- Financial Risk management;
- Account reconciliation;
- Disbursement services;
- Audit support;
- Labour Cost Management;
- Vetting financial contracts.
Outsourcing accounting firms has become an integral part of every businesses. It dramatically helps in reducing cost and improving business performances. Moreover, an Outsourced Accounting Firm comprises of expert accountants always keeps the businesses up to date with ever-changing laws and regulations. Recommendations from the financial experts are vital in today’s economic world. Furthermore, an accounting firm as a BPO provider is capable of serving every accounting or financial related activities. As it has been discussed above that, by outsourcing accounting services to an expert accounting firm immensely reduce business operational cost, enhance accuracy and efficiency, provides appropriate financial advice, and ensures compliance with rules and regulations and many more. Therefore, the need for outsourced accounting services are inevitable for businesses.