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New technology makes this possible. The
acceptance of the ASP (application service provider) technology
allows the outsourced bookkeeper/accountant to 'reach' into
your network and do the accounting tasks from their office.
The owner uses the ASP to look at their books at any time from
any connected laptop or computer. This allows the business owner
to review in real time the progress of their operation at home
or on the road. Some owners log onto their ASP and review the
business health and progress daily rather then waiting a month
for financials.
In most cases outsourcing will save you money as well. The most
common pricing structure for outsourced bookkeeping/accounting
is to charge 10% to 20% less than the current bookkeepers salary.
Not only do you save on salary but also you have no overhead,
management, hiring or training cost when using an outsourced
service.
The reason a bookkeeper/accountant is able to take over an existing
process and deliver it back more cheaply is due to leverage,
the most common of which is economy of scale. If the supplier
does not have to significantly alter the way its current business
function is set up and standardization has occurred, the opportunity
for both supplier and buyer to benefit is great.
Technological advances have taken the cycle times in a business
from several months to several hours, and our competitors no
longer have geological restrictions or the hindrance of large
bureaucracies. To remain competitive, it is imperative that
a company rethinks its strategies, take a hard look at where
they are creating value for their customers, then focus on those
processes. The most successful businesses of today have gone
to outsourcing and now have time and money to spend on differentiating
themselves in the marketplace.
The most common reasons management chooses to outsource certain
business processes are to reduce operating costs, improve company
focus, improve quality, free up capital, increase capabilities
not otherwise available and to reduce cycle time.
The decision to outsource can be an easy one. If there is a
company or individual that can do it better, faster, and cheaper
than you, then you do not want to keep the work in house. Outsourcing
has become an accepted business tool worldwide. By turning over
business processes to companies that consider these tasks their
core competency, organizations now have the ability to become
more profitable, more efficient and far more competitive by
focusing on the tasks that are most important.
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