Ambit of Finance and Accounts Outsourcing
i. Transactional Functions
There are transactional functions which are covered under Business Process Outsourcing and can be outsourced with minimal transition efforts. These functions are being outsourced in beginning of 2000 when the technological advancement was yet to reach at its peak.
a) Vendor Management
• Managing of Customer master data
b) Invoice Processing and Payment
• Send invoices to customers
c) Order Processing
• Manage Sales Order
• Customer Query resolution
e) Billing and Invoicing
• Dispute Resolution
f) Credit Control and Corrections
• Authorize and manage credit
g) Cash Application
• Payment and Remittances
ii. Decision Support and reporting
(These are covered under KPO functions)
This involves day to day accounting and after the fact accounting for various business transactions.
a)General Ledger Activity
• Expense Ledgers
Software’s used for Accounting:
• Quick Books
b)Period End Closing and Financial Reporting
• Reconciliation of balances
C)Fixed Asset Accounting and Inter Company Accounting
• Maintaining records of fixed assets including location, classification and valuation.
d) Cost Accounting
• Management of Cost data
iii.High end Analytics
(These are specialized functions beyond KPO)
These processes are high end analytics for high end processing and act as a decision support system for the top executives.
a) Project Accounting
• Tracking project cost
b) Tax Accounting
• Tax planning
c)Statutory and Compliance Audit/ Reporting (SOX, Basel II, etc.)
>> Basel II Norms:
Basel II Norms are recommendations on banking norms and regulations for various countries.
Royalty Accounting helps in maintaining records of the books sold of a particular author. It helps in tracking the royalty accrued to the author and payments to be made.
• Research for new product
f)Legal Processing Outsourcing
Legal Process Outsourcing is yet another area where lawyers prepare notes for the practicing attorneys. Familiarity between the laws of host country and the outsourcing country helps in better legal outsourcing. Indian laws are derived from English laws and hence LPO is considered to be lucrative business opportunity for the lawyers.
g) M and A Support (Valuation, Research, etc.)
• Valuation of business/brand