While business process outsourcing (BPO) has become commonplace among large corporations, an increasing number of small and medium-sized companies are appreciating the benefits of contracting out routine office functions. One good place to start outsourcing is the accounting function.
Accounting data is easy to transfer and does not require complex interpretation, so outsourcing this essential business function offers attractive returns on low levels of risk. Small business owners who are serious about protecting and exceeding their profit margins are outsourcing to reduce in-house operation costs.
A decade ago, the rationale for BPO was strongly related to reduction in labor costs, but giant companies, such as GE, Microsoft, and Dell, demonstrated that there are wider benefits to be obtained. Today, CEOs are looking for improvements in processes and efficiencies, and topping the list of reasons is a gain in profitability.
If American businesses, small or large, do not achieve profitability, they will fail. A strong accounting system helps identify where the best pockets of profitability lie, so they can crack the code of the business game.
GO Global offers a complete range of accounting services for small and mid-sized companies. We are based in the U.S. and have a highly trained staff in Guatemala where we do the day-to-day data processing and accounting functions. Legal and accounting professionals in the U.S. review the information before and after it is processed. We help our clients identify information that will enable them to grow and become more valuable to their shareholders and stakeholders.
Visit GO Global at www.goglobalbpo.com or call 877-462-7680.
Thursday, November 29, 2007
Monday, October 8, 2007
To Outsource or Not to Outsource: That is the Question
Key Issues to Consider in any Strategic Decision to Outsource
1. Outsource business functions that do not have to be done internally so you can focus on your core competency and grow your business.
2. Outsource specialized skills, such as accounting or graphic design, that are necessary, but not core to your business; however, where you need technically skilled workers that cost a lot in the U.S.
3. Outsource rote tasks, such as data entry, that can be done by trained personnel more efficiently and more economically outside the U.S.
4. Outsource finance and accounting to a specialist in those areas. Many times a business can not find competently trained people in their geographic area to perform these functions, but other countries have many competently trained employees with those particular skill sets.
5. Outsource a portion of a certain function as a backup system and to spread risk.
6. Communicate regularly with your outsource provider.
7. Make sure that your outsource provider has security in place and backup systems.
8. Negotiate and select the right outsourcing model to achieve your business objectives. Not all outsourcing is the same! Not all models will achieve the intended results. Use a consultant to assist you if you are not sure!
1. Outsource business functions that do not have to be done internally so you can focus on your core competency and grow your business.
2. Outsource specialized skills, such as accounting or graphic design, that are necessary, but not core to your business; however, where you need technically skilled workers that cost a lot in the U.S.
3. Outsource rote tasks, such as data entry, that can be done by trained personnel more efficiently and more economically outside the U.S.
4. Outsource finance and accounting to a specialist in those areas. Many times a business can not find competently trained people in their geographic area to perform these functions, but other countries have many competently trained employees with those particular skill sets.
5. Outsource a portion of a certain function as a backup system and to spread risk.
6. Communicate regularly with your outsource provider.
7. Make sure that your outsource provider has security in place and backup systems.
8. Negotiate and select the right outsourcing model to achieve your business objectives. Not all outsourcing is the same! Not all models will achieve the intended results. Use a consultant to assist you if you are not sure!
Thursday, September 20, 2007
Data processing and data entry
Many companies outsource data entry and data processing, certainly to lower costs and to free up time for more core business activities that generate revenue. We are finding, however, that many of our customers will show inaccurate data entries on their books. Over time, errors and inaccuracies can erode financial statements and reduce the value of the company.
If at some time in the future you want to sell your company or need investors, you most certainly want to be able to present sound and solid income statements and balance sheets that reflect the true worth of your business.
In searching for an outsourcing provider, bear in mind that you want references and experience in this area. Find out where the data entry takes place and ask: Do you have professionals overseeing the data entry workers? Can I call these professionals if I want to check up on the entries? Does the data entry provider have a U.S. presence?
Outsourcing data entry is less difficult than most other business processes, but it is a crucial part of the accounting/bookkeeping puzzle, which directly affects the value of your company.
If at some time in the future you want to sell your company or need investors, you most certainly want to be able to present sound and solid income statements and balance sheets that reflect the true worth of your business.
In searching for an outsourcing provider, bear in mind that you want references and experience in this area. Find out where the data entry takes place and ask: Do you have professionals overseeing the data entry workers? Can I call these professionals if I want to check up on the entries? Does the data entry provider have a U.S. presence?
Outsourcing data entry is less difficult than most other business processes, but it is a crucial part of the accounting/bookkeeping puzzle, which directly affects the value of your company.
Thursday, March 22, 2007
Inside the Outsourcing Industry
Cheryl and I attended the International Association of Outsourcing Professionals conference in Las Vegas. Cheryl is the CEO of Global Outsourcing, Inc., which is a new company providing financial services to mid-sized growth companies.
When we arrived in the gambling capital of the USA, we realized the conference was 30 miles outside the city at Loew's in Henderson. We stayed one night at the Venetian Hotel and took in the Blue Man Group, a startling piece of oddball entertainment. Believe it or not, we did not play one slot machine. Neither of us are gamblers. We like a sure thing and the outsourcing business is that. It's growing and moving into every aspect of business.
It was Cheryl's idea to start Global Outsourcing to provide finance and accounting services to mid-sized companies that want to free themselves from these tedious tasks. Cheryl is an attorney and CPA and is constantly on the outlook for opportunities and trends. While outsourcing has been around forever, it is taking new shape.
We learned a lot at the conference which was attended by representatives from major corporations, all of which outsource some of their departments, such as payroll and IT. One of the things we learned was that our name is too generic, as Global Outsourcing is the name of the industry itself. We have since decided to use our tagline as our name: GO Global, which has been trademarked by our company.
Company names, as are website domain names, are tough to come by these days. There's almost no name--Greek, Latin, French--that hasn't been taken. For days, I walked around with names swirling in my head -- eVolve, Ascend, Panoply, Rhionne -- and all were taken. I realize now why people use their children's names or initials or a combination thereof to name their businesses. Finally, we decided to stay with GO Global because prospective clients need to understand right away what our business is about; otherwise we will lose their attention.
We decided to name our roster of services Panopy Pro, so when we create brochures and marketing pieces, we can apply this name as a way of labeling or remembering our program and make it stand out. In marketing, it's all about presentation, use of words and design, and repetition to create recognition and brand appeal.
I will tell you more later about the evolution of GO Global. It is going to be an exciting adventure. Just one more thing. We are opening our first business process outsourcing (BPO) in Guatemala. It is so close to Miami and beginning to emerge the way Costa Rica and Panama have. Central America is the next frontier for outsourcing.
When we arrived in the gambling capital of the USA, we realized the conference was 30 miles outside the city at Loew's in Henderson. We stayed one night at the Venetian Hotel and took in the Blue Man Group, a startling piece of oddball entertainment. Believe it or not, we did not play one slot machine. Neither of us are gamblers. We like a sure thing and the outsourcing business is that. It's growing and moving into every aspect of business.
It was Cheryl's idea to start Global Outsourcing to provide finance and accounting services to mid-sized companies that want to free themselves from these tedious tasks. Cheryl is an attorney and CPA and is constantly on the outlook for opportunities and trends. While outsourcing has been around forever, it is taking new shape.
We learned a lot at the conference which was attended by representatives from major corporations, all of which outsource some of their departments, such as payroll and IT. One of the things we learned was that our name is too generic, as Global Outsourcing is the name of the industry itself. We have since decided to use our tagline as our name: GO Global, which has been trademarked by our company.
Company names, as are website domain names, are tough to come by these days. There's almost no name--Greek, Latin, French--that hasn't been taken. For days, I walked around with names swirling in my head -- eVolve, Ascend, Panoply, Rhionne -- and all were taken. I realize now why people use their children's names or initials or a combination thereof to name their businesses. Finally, we decided to stay with GO Global because prospective clients need to understand right away what our business is about; otherwise we will lose their attention.
We decided to name our roster of services Panopy Pro, so when we create brochures and marketing pieces, we can apply this name as a way of labeling or remembering our program and make it stand out. In marketing, it's all about presentation, use of words and design, and repetition to create recognition and brand appeal.
I will tell you more later about the evolution of GO Global. It is going to be an exciting adventure. Just one more thing. We are opening our first business process outsourcing (BPO) in Guatemala. It is so close to Miami and beginning to emerge the way Costa Rica and Panama have. Central America is the next frontier for outsourcing.
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