Traditional Bookkeeping Versus Outsourcing Bookkeeping

Even in a fast changing environment where companies have shifted their entire operations online, there are still a large number of small to medium sized businesses that rely on the traditional way of bookkeeping.

Being unaware of the rapid developments made by the outsourcing pattern and the several advantages that come with them such as synchronised accounting, global delivery standards at a lesser cost makes outsourcing an added leverage. They fail to realise the difference in the competitive benefits they would enjoy over their nearest business rivals.

Most business enterprises that resist a change to the newer technologies and systems in place in the accounting and bookkeeping sectors justify their actions in different ways. Some argue that they already have an old employee who is doing the job just fine. Others maintain that they may incur a much heavier expense in doing so. The fact, however, is that outsourcing service providers give more than companies expect and that too at 40% of your estimated cost.

The traditional manner of bookkeeping uses a 'write up' model to maintain their accounting needs and would be no different from the outsourcing model. All through the years gone by, whenever a new revolutionary product or service was launched, most people would be sceptical about their performance and would prefer to adopt a rigid approach. Change was always never easily accepted. IBN Technologies Limited changed this concept for many of its clientele with its flexible approach and offering additional solutions the client was not well acquainted with but were extremely time and cost effective.

Companies that use the traditional bookkeeping practises usually have an in house department or they may employ the services of a 'write up' firm to cater to their requirements. On the other hand, IBN Technologies Limited has an outsourcing model that also provides the 'write up' model if the client so desires, but, can bring a lot more to the table that can benefit the enterprise in the long run. Besides, these techniques are much more reliable, accurate and qualitative.

In the traditional format, very often the entire onus of bookkeeping may lie with a couple of employees or the entrepreneur itself. All tasks like writing checks, maintaining inventory, taking care of the payrolls and accounting for tax are managed by a few who may be ill equipped for the expertise necessary to do justice to the demands of accurate book keeping.

Also, very often the entries are made at random and may be reviewed just once or twice a year, leaving plenty of scope for substantial errors to creep in and result in erroneous business decisions leading to severe losses and may even result in the demise of the enterprise.

IBN Technologies with the help of its qualified staff and updated procedures ensure that all the above shortcomings are taken care of and that the client need not worry about the menial tasks they employed earlier.

With the outsourcing model, all the transaction data is maintained in house at the company premises itself and through cloud computing is processed by IBN Technologies Limited. All the accounts are maintained on a daily basis by receiving all the transactions that have taken place in the previous day. Generally, these are received by an email sent by the enterprise. This reduces the risk of unwanted errors. Besides, this bookkeeping model is far more technically advanced and is extremely beneficial to the financial health of a company.

In addition, IBN Technologies Limited has the foresight to plan for activities well in advance and permits you to focus on the core competence of your business operations. All these processes are streamlined priority wise and save company's valuable time. Apart from the cost advantages that your company will benefit from, IBN Technologies ensure that there are no hidden or misleading fine prints.

Related Service: - Virtual CFO Services

IBN Virtual CFO Services India provides client with professional and experienced team of financial experts to perform client company's financial control services when they are required. Our scalable business model allows you to leverage Accounting Controller and Financial Controller services when needed during key periods and then scale back this service during non-peak periods, at your discretion. Many businesses may not hire a Financial Controller because the salary is cost prohibitive. With this function missing, many businesses lack the expertise to prepare, forecast and analyse operating budgets.

Related Service: - Payroll Services

IBN renders payroll processing services to corporate clients from the UK and USA as an independent third party service provider. Our team also works in liaison with CPA firms in USA and Accounting firms in UK to render these services as outsourcing partners, to their clients.

September 28, 2015