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Title : How Does Accounting Online Work
link : How Does Accounting Online Work
How Does Accounting Online Work
Accounting online is the process or BPO that accounting services use to provide outsourced bookkeeping. The objective is to reduce the overhead burden rate for a business that is associated with the bookkeeping department.Since we invented the online process in 1998 over 4,000 US basedaccounting outsourcingand bookkeeping firms have embraced the concept of doing your bookkeeping from their office using remote access.
Accounting online is the process or BPO that accounting services use to provide outsourced bookkeeping. The objective is to reduce the overhead burden rate for a business that is associated with the bookkeeping department.
Few business owners realize that the total burden rate for an employee is aproximatly $2.50 for each $1.00 of payroll. This includes rent, computers, hiring, benefits, vacation pay, management time and taxes. What that means to you is that a $15.00 an hour bookkeeper is actually costing your company around $75,000 per year.
Using online accounting this cost can be reduced to $20,000 to $30,000 per year on average. Online accounting technology makes an economy of scale available to the local business owner that until now was only available to companies doing 50 million in sales or more.
Here is how it works.
During the day when you are conducting business as usual, you simply throw all documents that come into your business such as invoices, checks or sales orders onto your scanner. Then several times a day hit the send to email button that all scanners utilize. Your scanning your documents to a document management system calledDelegation Magic.
Accounting services are then done in the back ground often overnight as a team of document technitions hand read every single piece of paper to name, organize, index for retrieval and set up work flow tracking. This document management service allows you to go paperless overnight and stay on top of all work being done by the outsourced accounting service.
The skill chain.
Now comes the great part. 80% of your bookkeeping service is easy to deliver and does not require a highly skilled person to enter a bill or set up a bill for payment. So the outsourced accounting provider will use low cost staff that speciallize in a certain type of transaction. For example one staff person focuses on accounts payable and another staff person is the receivables clerk while a third employee specializes in back reconciliations or payroll.
Any work that is difficult is bumped up to the ‘boss' through a process we call bottom up delegation. This allows your accountant to accomplish 80% or more of the work without the high expense of an accountant. Yet anything difficult is handled by the experianced and high price employee.
Technology
Using the ASP or application service provider your accounting software is ‘hosted' on a secure server so our staff can do your work 24 hours a day. This too, reduces your cost as we can spread our labor load across multiple resources and time zones allowing for further cost reductions.
Both the document management software called Delegation Magic, and the outsourced accounting service using online access, allows your local accounting firm to do your work in about half the time it takes your internal bookkeeper. So you end up paying less in total cost for better work that has been reviewed by a local accountant.
Thus the article How Does Accounting Online Work
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