A Brief Overview of Accounts Service Outsourcing

  • From the outsourcing realm, accounting services are thought of as the domain that requires 100% accuracy for the simple reason that the balances of any company can't afford any discrepancy in the numbers or admissions and totals. Accounts payable is exactly what the company should cover, and an reporting accounts, is company earnings. It's just not affordable to allow any of them to suffer from any type of loopholes.

     

    But before getting into the specifics of various accounting procedures and analyze their outsourcing arenas etc., it is important to comprehend the various kinds of accounting procedures existent in almost any enterprise.

     

    Accounting procedures can broadly be classified into the following kinds:

    • Revenue Processes
      Disbursement Processes
      General Accounting and Bookkeeping Processes
      Fixed Asset and Capital Accounting Processes
      Price and Inventory Accounting Processes
      Financial reporting and investigation

    Let us examine these classes in brief and then likely in this guide or another we'll attempt to appear at the subclassification of those categories.

     

    Revenue processes, as their name suggests are associated with revenue. They are specifically associated with an inflow of cash in the organization. Accounts receivables, sales orders and customer invoicing - all fall in this range. To put it differently, revenue processes are about money which is to be earned.

     

    On the other hand, disbursement procedures are related to expenses. These could be related to several sorts of disbursements or payments such as - Accounts payable, travel and entertainment expenses (within the company), cash disbursement procedures, or processing the records linked to the letter of credit. To put it differently, these are all procedures related to the outflow of cash.

     

    General accounting and book-keeping procedures are about preserving overall ledger accounts. This also means that the book - keepers guarantee the accuracy of timely entrances and frequently take care of upgrading accounts chats. This procedure also includes generating trial accounts and final accounts as and when required. Additional bank reconciliations and account reconciliations together with preparation of financial statements such as balance sheets, income statement and cash - flow statements etc. are also taken care of in general accounting and bookkeeping.

     

    These processes are intended for companies to keep depreciation tables and programs, maintain the accounts which are a work - in - progress in addition to the accounts for write-offs and valuation adjustments.

    Price and Inventory Accounting Processes

    In inventory and cost accounting, the accountants take care of creating and upgrading costs, keeping inventory records and performing variance analysis. While I have attempted to cover as many accounting procedures as possible, one always must bear in mind that finance and accounting are not two disconnected branches of business.