In era of cloud computing, remote operations, majority of the work would move from onsite to the virtual environment. This would also result in work being transferred cross border in order to gain from the cost advantages between eastern and western countries.
It has been almost a decade for the Information Technology work (like software development ,web development) has moved to virtual world leaving back the barriers of location.
It is beginning of a new era for cross border accountancy just like the Information Technology Sector.
However there are challenges for Accounting Sector which needs to be addressed. Some of them are:
a) Network security
Bringing the data on network can have increased risk of eavesdropping and compromising on confidentiality of client information
b) Knowledge expertise
Accountants have specialized knowledge of certain definite national laws and regulations.
In order to go cross border new expertise has to be gained.
c) Legal requirements
SOX and other regulations have stringent requirements for outsourcing of accounts related work.
d) Professional and ethical conduct of accountants.
Local regulations of the CPA’s govern the professional and ethical conduct of the accountants.
e) Managing Cultural Diversities and knowledge of International Laws
There might be communication gap due to different cultures.
I would like to invite member’s comments who hold any view regarding cross border transfer of work.
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Outsourcing as a business strategy is considered mandatory for any business operation. The concept of accounts outsourcing is generally used for small and large business operations. Account Outsourcing is documented as the tool of effective management.
The question is regarding the need of outsourcing accounting can be addressed in following manner. Outsourcing helps the companies to manage the work in well mannered. Instead of hiring the staff for the accounting firm in the company itself, it manage the account section through outsourcing is cheaper.
Companies can get more benefit with less cost. By account outsourcing functions for non core business, the organization can give the better client service, create the best product and do its job in well mannered. In this way, Outsourcing of Accounting is proved as life saver because it reduces the risk of creating the problem in accounting department in the company so the chances of income tax red would be less.
It can improve the quality of the work in the business. The burden on the accounting firm decreases so that they can manage their work in peak season. Firm can create the long lasting sustainable business. Accounting records are handled by authorized persons who help in accountability of the same.
There are many key benefits the account outsourcing has and it is mentioned as below:
In Rayvat Account outsourcing, we provide you the accountant with full time duty as well as customized solutions. By connecting Rayvat outsourcing accounting, you can definitely get more and more benefits and it held you to reach your company at higher peak.
In the conclusion we can say that Prevention is always better than cure so to avoid the risk creating in accounting firm, the company should hire the outsourcing accounting service.
With Ongoing evolution of new technology and standardisation of the business practices the business across the globe are moving across various destinations.Moving across different nationalities helps business to arbitrage on the cost opportunities as well as get skilled pool of manpower.Hence now the game is changing from long term unsatisfied business relations to more dynamic and satisfied business relations.
Where the client asks for constant improvement in the present process and keeps on analysing different opportunities and constantly improving the present process.The game is going to be more exciting in coming years due to adoption of standardised accounting noems like IFRS and XBRL.There is a constant urge for standardisation of business practices as well as reporting for more transperancy and comparability.
Almost 90 countries have signed for International Financial Reporting Standards (IFRS) and still many countries have it on their cards.Many developing countries are joining the league and following IFRS.XBRL is developing fast as business reporting language.It standardises the reporting of various entities to ensure that every entity reports on one platform.
US securities Exchange and U.K’s HM Revenue & Customs already require the reporting on XBRL format. India has also adopted XBRL for financial reporting to ministry of corporate Affairs.Standardisation of reporting helps local talent to come to the global markets and work at an international level.This would inturn help in cross country funding of capital with increased transperancy.
Transition period might be a challenge for the business entities as well as regulators. Considerable amount of resources needs to be invested in people in order to transform from old systems to new ones.However the benefits of the change are much more relevant in long term and can prove to be worthy of investments.However free movement of information is a prerequisite for achieving this goals in a short term.
Various laws like PIPEDA legistation of Canda and EU data protection Act are preventing free movement of information across the globe.But that cannot be sustained for a long time and these challenges are to be overcomed in long term.The urge of business enterpreneurs to be more cost efficient would ultimately push towards free movement of information across globe.
As noted economist C.K Prahalad rightly said: now it is a vague question “will there be globalisation?” the question to this should be ” How arbitrage on the benefits of Globalisation?”A decade would make world a global village with equal opportunies for every nation and every individual. The competition would be fierce in the near future and
For More Information Visit Us : Accounts Outsourcing