Recently, job creation has begun to influence everything from information technology to customer service. In fact, anyone whose work does not require frequent face-to-face interactions is a possible target of growing epidemics. Jobs involving low-skilled workers are not just concerned. He now also deals with highly qualified jobs, such as medical and engineering (high-skilled jobs in finance). It is expected that 200,000 work per year will be outsourced to the next decade (Outsourcing's long-term effects). What does this mean for the future of accounting?
Every company needs some accounting support to prepare their financial records. As companies are unable to completely eliminate their accounting, many have decided to outsource their accounting departments to offshore countries, mainly to India (highly skilled jobs in finance). These outsourcing companies are able to perform quarterly and annual accounting and accounting tasks, all they can do here for less money (Financial and Accounting Outsourcing). All areas included in the bookkeeping are currently outsourced, including financial statements, internal auditing, and account management (Financial and Accounting Outsourcing). In some cases only parts of the company's accounting sector are outsourced. In such cases outsourcing is used to assist the company's current staff (financial and accounting outsourcing). All Companies Need to Know the Pros and Cons of Outsourcing Before Deciding
The main reason for companies deciding to outsource is to save money on training and recruiting costs (Financial and Accounting Outsourcing). People doing overseas accounting work much less than those in America doing the same job and working longer hours. Outsourcing is also beneficial as it saves companies the process of creating and maintaining a separate accounting department (Offshoring Finance Jobs). This will help save the overall cost of such companies. As accounting and tax laws vary widely in the United States, it is much easier for CPA companies to outsource accounting services to other countries (Outsourcing Benefits). This saves companies the cost of unemployment and cost reduction every time the laws are changed (The Outsourcing Benefits)
Despite the benefits of outsourcing accounting services, it has disadvantages. The main problem is the confidentiality of issues (Outsourcing Benefits). Certain accounting information is considered confidential, so sending it to overseas sites such as India is a major threat. You never really know who is looking at financial statements across the globe and what types of security tools are used to review such issues (Outsourcing Benefits). Other things that prevent companies from outsourcing bookkeeping tasks include concerns about compliance issues and the necessary initial investment (Offshoring Finance Jobs). Companies are not sure whether the initial cost for outsourcing outweighs the potential benefits. Some companies expect others to outsource their accounting work before they do it; So they can try to assess the potential risks before moving on to outsourcing (Offshoring Finance Jobs).
Outsourcing of accounting is both good and bad. From now on, it seems that it has more advantages than disadvantages, mainly due to the savings of potentially large amounts of money. However, businesses should not base the whole decision alone on this fact. Companies that decide whether or not to outsource the accounting departments of their business should look into the benefits and disadvantages before making such an important decision
Source by sbobet