| | | | | run in-to hundreds), scanning is definitely the better |
| Often it is considered that outsourcing requires a huge | | | | solution in terms of reliability, image quality and even |
| amount of investment in terms of human resources, | | | | time. |
| infrastructure, and technology making it a feasible | | | | Technology Options for accessing the accounting file: |
| solution only for the larger companies. This is a myth | | | | |
| that probably emanated from the fact that outsourcing | | | | Primarily there are four ways by which accounting |
| experiences of only large companies are covered in | | | | outsourcing is possible Server Based, Remote Access |
| popular media. This assumption has been proven | | | | Based, Hosted Software Based and Online Software |
| consistently wrong with fast multiplying instances of | | | | Based |
| small mid market companies outsourcing their back | | | | Server Based: The accountant works on the backup |
| end for fruitful results. Accounting outsourcing has | | | | copy of the accounting file and once the work has |
| gained rapid popularity (the fast growing sizes of | | | | been completed the file is uploaded back to the server. |
| BPOs is a testimony to this). Apart from the cost | | | | The client can download the files and save the |
| savings, organizations have seen benefits in terms of | | | | updated version of his books. |
| accuracy, reliability and proper maintenance of their | | | | Remote Access Based: The accountant connects to |
| accounting books. | | | | the clients’ computer using a remote desktop |
| This transition has been aided by rapidly decreasing | | | | access service like GoToMyPC.com, LogMeIn, |
| technology costs (computers, internet connections and | | | | Windows Remote Desktop or Secure VPN |
| email/data storage accounts) are so much cheaper | | | | connection. |
| now, rising reliability of remote access softwares, and | | | | Online Software Based: In this method, the accounting |
| ever falling communication costs(thanks to Voice Over | | | | software is a web-based version. So |
| Internet Protocol (VOIP) among others. In this article, a | | | | the accountant logs in to the Online Accounting |
| brief overview of the different technology aspects | | | | Software (eg Quickbooksonline.com, NetSuite) and |
| related to outsourcing is covered. | | | | updates the books and logs out. The client can login to |
| There are two basic data items involved in an | | | | the online accounting software via internet and see the |
| outsourced accounting process: | | | | updated books. This method is the best in terms of |
| a) Input Documents or Source data like bank | | | | processing speed and reliability, however the |
| statements, invoices, bills, check stubs etc. | | | | web-based versions of popular software like |
| b) Accounting file like QuickBook , Peachtree, and | | | | QuickBooks and Peachtree are stripped down |
| MYOB file | | | | versions and do not have all the features like inventory, |
| Communication between both ends is another | | | | sales orders , complete reports etc. |
| information item that needs to be managed well. | | | | Hosted Software Based: This version is a modified |
| However this article covers only the options for | | | | version of the Remote Access based version. The |
| handling source documents and acc. files. | | | | difference being that the accounting files of the client |
| Technology Options for accessing the input | | | | are hosted on a third-party hosting service provider |
| documents:a) Scanned Form | | | | such as Hence the service provider access these |
| Scanned documents can be uploaded by the client | | | | hosted files. This method may be more reliable and |
| staff on a website (usually of the service provider). | | | | useful if the clients’ current technology set-up is not |
| These are then downloaded at the service-provider | | | | robust or good. |
| delivery centre/office. Alternatively, they may also be | | | | All these options do not require a huge amount of |
| picked from the client server or just opened remotely | | | | investment or any major changes in your IT setups. |
| by the service provider’ staff. Accessing scanned | | | | |
| documents remotely though the best method in terms | | | | Data security is one of the most important factors that |
| of data security is the least productive method. This | | | | come into play while evaluating your outsourcing |
| reduction in productivity is because the scanned | | | | accounting needs. It is of utmost importance that |
| documents open very slowly over even the best | | | | necessary steps have been implemented for data |
| internet connections ( just do a simple test of opening | | | | security. Encrypted technology be used to make sure |
| a PDF file through your browser and compare it | | | | there are no breaches in your private information. The |
| against the time taken while storing it first on your PC | | | | remote access software should not allow for copy or |
| and then opening it). Also please note the transmission | | | | transfer files from client computer to service provider |
| security while you upload the data to the service | | | | systems. |
| provider’s website or while they download it from | | | | Certain other steps such as signing Non-Disclosure |
| your PC/server.b) Faxed – data can also be | | | | Agreements with the service provider, using 128-bit |
| electronically faxed to an e-fax number. These faxes | | | | encrypted servers for storing accounting data and |
| then get emailed to service provider as electronic | | | | having a paper-less office should be considered |
| images | | | | |
| Both Scanning and faxing have their advantages. The | | | | In sum, the plethora of different technologies- remote |
| first method gives clear and magnified images while | | | | access, scanning, communication and document and |
| the latter method is convenient and fast. Further in a | | | | wok-flow management helps in making outsourcing |
| high volume process (where the source documents | | | | work for small businesses. |