Outsourcing

Source: Accounting Today

L. Gary Boomer, of Boomer Consulting in Manhattan Kansas, says of outsourcing: “Firms that do not want it to work make sure it does not work, and firms that do want it to work make sure it does.”

He does not believe tax preparation is the most valuable service provided by Indian accountants. Instead it is write-ups, data extraction, payroll preparation, and financial analysis.

Outsourcing is not so much a way to save money, but to:

• Achieve faster turnaround.
• Alleviate work pressures.
• Enhance leverage so partners can devote time to management and more profitable, value-added services.
• Improve workflow.

The risk of outsourcing has been diminished. Security is not a real issue, nor is work quality. Indian accountants are eager to take the CPA exam, having already passed the Indian Chartered Accountant’s Exam which is one of the most challenging in the world.

To implement an outsourcing strategy, firms should:

• Identify a champion for the outsourcing program.
• Create an outsourcing task force.
• Arrange for task force members to meet Indian sources through video conferencing, and other methods.
• Use an established outsourcing company with offices in the U.S.
• Join the digital world and use content management and workflow systems.

For more information, see also:

• Pros and Cons of Tax-Preparation Outsourcing - July 2005
• Is Outsourcing in Your Future? - September 2006

From Accounting Today, February, 26, 2007, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004, 800-221-1809. For the complete article, click on the following link: www.webcpa.com/current_issue.cfm?pub=ato, then select The Second Wave of Sourcing in the February 26, 2007, issue.