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Foreign Vs. Domestic Outsourced Accounting Services-What's the Difference?

Apr 21, 2008
The export of jobs overseas has become a hot-button issue in newspapers, political debates, and business management. Strong feelings exist on both sides and many people simply cringe when they consider the possibility of outsourced accounting services.

However what many people don't understand is that outsourcing and foreign jobs are not the same thing.

Domestic Outsourcing Keeps Jobs In The US

When a company contracts for outsourced accounting services, this means the service is sourced out of the company not necessarily out of the country.

When those jobs are done be personnel in other countries it is called offshore outsourcing. However many outsourced bookkeeping services have all of their personnel based in the US. Contracting with such a firm is referred to as onshore or domestic outsourcing.

Some managers feel that jobs should be kept in this country. Others may just feel conflicted, seeing merit in both sides of offshore jobs arguments and reluctant to commit to either side. Still others may be concerned about public opinion if word gets out that they are moving jobs to other countries.

Whether you are in favor, against, or neutral toward the idea of offshore contracts, that is irrelevant to your decision to contract for domestic outsourced accounting services. Those jobs stay in this country.

What Can Outsourcing Do For Your Company?

Does your company employ the janitorial staff? If the copier repairman is not on your payroll or if you deliver packages using someone other than a company courier, then you are already outsourcing and understand the benefits of doing so.

Any time you hire another agency to do a job for you, from watering the plants to catering the Christmas party, you are using outside labor. That is a normal and cost-effective way of doing business that has been used as long as companies have existed.

There are a lot of reasons companies use outside labor. Cost is a big one, and one of the leading reasons for offshore contracts, but not the only one.

One advantage of outsourced bookkeeping services is expertise. Small companies in particular often can't offer benefits packages to attract the top accounting talent and have to settle for inexperienced bookkeepers who think accounting is nothing more than adding and subtracting. Outside contracting means your books are handled by professionals with years of experience doing nothing but company finances.

Another reason companies go for this arrangement is security. Hackers and viruses are one threat; natural disasters are another. But protection technology such as data encryption, firewalls, virus scanners, tape backups (plus the cost of outside storage) all add up to substantial expenses.
Outsourced accounting services means your data will be stored on secure servers and protected with frequent offsite backups. Your data is safer just like your money is safer in a bank vault than under your mattress.
About the Author
Author is a freelance copywriter. For more information on Outsourced
Accounting Services
, visit http://www.osibusinessservices.com.
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