How Outsourced Bookkeeping Works
Overview of outsourcing
Currently there are different outsourcing models operating in the market and with every passing day more are being introduced. Each of these models have their own pros and cons but at the day end what matters is what suites you the most. Some of the most commonly used outsourcing models are explained below with their respective pros and cons:
Freelancer: This is a low cost approach where you list a job or task and outsource it to anyone who bids for the job and whom you find economical and competent to perform this job. This model is cheap, quick but there may be a compromise on quality. Secondly, this kind of outsourcing works for the person or entity who understands and can supervise bookkeeping / accounting work.
Project / Assignment Nature Work: Where a one off project is outsourced to a specialized outsourcing centre e.g. development of finance policy and procedure manual. The pros of this approach are that you get your project done without hiring staff, looking after their training requirements, and creating work back log. However, there could be a comprise on the quality of work due to lack of awareness of outsourced service provider about local laws and regulations. Different time zone and language could also pose additional headaches.
Business Process Outsourcing (BPO): In this model, a complete function e.g. finance is outsourced to a BPO firm. They provide staff, office space, equipment and manage HR and payroll related matters. You may only need to take care of the training part of the staff. Some of the benefits of this approach are that specialized BPOs understand your business, you don’t need to get into the administration of staff, its economical, flexible, and easy to implement. But this may not suite where your staff requirement exceeds a certain threshold and where the BPO partner doesn’t understand your business requirements.
Build Operate Transfer Model (BOT): In this model an outsourced partners helps you to establish a setup offshore and then transfers it to you when you are able to control the whole offshore team and their culture. Good thing about this model is that you can create your own environment, its cheaper than BPO if staff number exceeds 15 and you oversee the whole process. Flip side is that it looks easier than it is, there is a long learning curve involved, setup costs could be high with a requirement of constant offshore facility supervision.
How outsourcing works at Devanch
Devanch has come up with a hybrid solution and provides you the flexibility to outsource any segment of your bookkeeping or accounting work that you feel is time consuming or is beyond your capabilities. The biggest advantage in engaging Devanch is that it has an onshore as well as offshore presence. Work is executed at offshore at low costs under the supervision of managers who have Australian qualifications and experience. In return you get an Australian quality at offshore cost. Moreover, we are not just providing a resource rather a service unlike other outsourcing companies which are just providing a resource with no corresponding responsibility for deliverables. By engaging us, you can significantly save cost up-to 70%, depending on the type of services outsourced. Generally, the process revolves around few simple steps outlined below:
- Preliminary discussions around scope of work, methodology, timelines, and deliverables.
- Signing of an Engagement Letter and Non-Disclosure Agreement (NDA).
- Provision of client documents for processing at our end either by dispatching hard copies or uploading directly to cloud using agreed protocols.
- Scanning of documents (in case hard copies are provided) at onshore facility and uploading to cloud.
- Arranging read only access for clients and our Offshore Team [OT].
- Transaction processing by OT in to the relevant accounting application.
- Review of OT work by qualified and experienced supervisors both offshore and onshore.
- Communicating a list of missing documents and outstanding issues to client.
- Closure of outstanding issues and preparation of agreed deliverables.
- Submission of deliverables by us for acceptance by the client.
Contact us today to discuss your business requirements. We believe in transparent pricing with no hidden charges. We can tailor our services around your budget and operational requirements. We can work from your premises or offsite, whichever way suits you !
If you want to know more on how we support businesses in their accounting and bookkeeping needs, read more here.
If you are an accountant or a bookkeeper yourself and want to know more on how we support accounting practices, read more here.
Contact us today to know more about our outsourcing services and how it can benefit you
Queensland: Brisbane, Cleveland, Logan City, Beenleigh, Gold Coast, Ipswich, Sunshine Coast
New South Wales: Sydney, Paramatta, Bayside Council (Rockdale), Shellharbour