123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Internet-Marketing >> View Article

Benefits Of Outsourcing Bookkeeping Services

Profile Picture
By Author: Kathy Higgs
Total Articles: 17
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

When Axe Networking Corp was sued for breach of contract, the result was so financially damaging that the owners had to seek refuge under chapter 11 and subsequently had to restructure their company.

During the restructuring process, they took a close look at staff that were really necessary and work that could be outsourced and got done cheaply. During the pre-chapter 11 days, despite extensive automation, they had eight people working in their accounting section. Half of these were simply recording daily expenses and keeping track of costing and inventory.

“Bookkeeping” or more commonly known as accounting is one of the easiest jobs for outsourcing.
The CEO Alex, of Alex Networking Corp (as it was renamed post chapter 11), began researching the possibility of outsourcing bookkeeping. Anything to reduce cost.

With the intention of Outsourcing Services the bookkeeping section, Alex began communicating with several Asian based companies that provided virtual staffing services and specialized in bookkeeping. One of them was staffcloud.biz; a company that not only offered awesome rates but offered to free Alex Networking Corp from any long-term contracts.

To outsource bookkeeping, Alex Networking Corp invested in an automated scanning machine. A member of their staff would feed it documents which it would automatically scan and upload to a storage account in the cloud. Virtual staff from staffcloud.biz in turn, would download the documents and punch them into the respective software modules.

The bookkeeping staff would generate various reports. They were not required to print anything because the outsourcing company Alex Networking Corp, was also using the same software and simply printed out the accounting statements and costing reports at their end. It was that easy.

Earlier, Alex Networking Corp would, on average incur roughly $20,000 to $45,000 annually per staff member in the accounting section i.e. total wage bill for that section was roughly $280,000.

After outsourcing the bookkeeping section, they now spend roughly $80,000 annually in salary for two accounts staff and another $32,000 annually for the Virtual Assistant staff. That’s a saving for over $168,000 annually. Moreover, post restructuring, they did not require the same amount of floor space as before and so gave up a large chunk of it thereby reducing their rent by over 45%. Add to this, the savings in office furniture, computer hardware, electricity and so forth. The total cost reduction by outsourcing the bookkeeping section alone, exceeded $450,000. Even the officials overlooking the chapter 11 restructuring were impressed.

These days, accounting is made fairly easy. One has to obtain the right software; the usual way is to have your CPA recommend the software. Any reasonably talented person with some background in bookkeeping can easily punch in the data and generate the reports. There are accounts software that also include costing and so forth and also generate various additional reports required by local authorities.

Visit here for more : https://www.staffcloud.biz/book-keeping/

Total Views: 31Word Count: 474See All articles From Author

Add Comment

Internet Marketing Articles

1. How To Generate Business Leads Through Seo?
Author: Ratnesh sharma

2. How Can You Increase Views On Youtube Videos
Author: Rohan Dhawan

3. 7 Reasons Why You Need To Hire A Best Website Designing Company
Author: Ratnesh sharma

4. Top Digital Marketing Agency In Hyderabad
Author: envizon design studio

5. 7 Step Guide For Crafting Evergreen Content That Dominates Serps
Author: Jamie Miller

6. Why The Digital Marketers Are In Demand For Every Business?
Author: Jane Austin

7. Taking Advantage Of Your Online Reputation | Orm Services
Author: Ratnesh sharma

8. Ultimate Guide To Ecommerce Marketing 2020 | The Best Tips To Follow
Author: Softpulse Infotech

9. Advertising Agency In Ghaziabad
Author: Ajay Rana

10. I Will Setup Your Fb Business Page And Ads Campaign For Your Business
Author: Shekh Robiul Islam

11. About Five Stages Of Successful Digital Marketing Strategy
Author: Vaishali

12. What Are The Best Wordpress Development Trends For 2020 And Beyond?
Author: Barry Elvis

13. What Makes Seo Services So Important For Your Business?
Author: Barry Elvis

14. Social Media Marketing
Author: navicosoft

15. Setup Gmail Account In Outlook
Author: Dtde services

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: