- October 15, 2013
- Posted by: Rayvat Accounting
- Category: Accounting
i. Transactional Functions
There are transactional functions which are covered under Accounts 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
A list of Authorized vendors is created and managed from time to time. It would be integrated to an accounting application as well as the web portal to provide seamless access to the data.
b) Invoice Processing and Payment
• Send invoices to customers
This is more of an Accounts payable function which is done as per the set rules for invoice processing.
• Maintain receivables ledger
Receivables management is aimed at management of receivables and timely collection of receivables to optimize the cash flow of the organization.
c) Order Processing
• Manage Sales Order
Orders are processed as per the requirements of the customers and are executed within the turnaround time.
• Manage Contracts
It involves management of various contracts and timely review for improvements.
• Customer Query resolution
• After Support services
e) Billing and Invoicing
• Dispute Resolution
It is a Para legal function which helps in recovering of bad and doubtful debts.
• Manage Receivable Ledger
o Accounts Receivable Software’s which can be used are:
f) Credit Control and Corrections
• Authorize and manage credit
The function involves delegation of various powers to management at various levels.
g) Cash Application
• Payment and Remittances
It is more of Accounts Payable task concerned with making timely cash payments to avoid penalties.
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
• Travel Expenses Claim
• Payment Accuracy Controls
Software’s used for Accounting:
• Quick Books
• Business Vision
• Simply Accounting
• Case Ware
• Net Suite
b)Period End Closing and Financial Reporting
• Reconciliation of balances
• Reporting according to applicable accounting framework
• Regulatory Reporting
• Management Reporting
• Tax Reporting
• Tax Preparation Software’s
o Intuit’s Lacerte
o Creative Solutions’ Ultra-Tax
o Intuit’s Pro-Series
• To know details on Tax Return Preparation Visit: http://www.sandmartin.com/ustaxreturnsaicpa.html
c)Fixed Asset Accounting and Inter Company Accounting
• Maintaining records of fixed assets including location, classification and valuation.
• Reconciliation of Accounts and balance confirmation
d) Cost Accounting
• Management of Cost data
• Facilitating data for cost Audit
• Cost analysis
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
• Report of actual vs. budget
b) Tax Accounting
• Tax planning
• Preparation of year end financials for tax purpose
• Filing of tax returns
c)Statutory and Compliance Audit/ Reporting (SOX, Basel II, etc.)
Sarbanes Oxley Act has many compliance related aspects related to internal audit and internal controls. Companies incur huge cost in compliance with SOX Act ,2002
>> 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
• Bank Fee Optimization
• Alternative Investment Accounting
• Lease/Real Estate Accounting
• Services and Store Accounting
• Bank Guarantee Management
• Letter of Credit Accounting
• Commissions Processing
• Joint Venture Accounting
• Royalty Accounting
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.