BPO Accounting Defined

We all know that Business Process Outsourcing or BPO is now an accepted practice in many businesses these days. Even micro entrepreneurs have turned to BPO companies with the intention of acquiring quality service without having to spend too much time, money and effort on acquiring it.

BPO services range anywhere from booking flights, to web development, to information technology enabled services or ITES, etc. Some popular examples of ITES include medical transcriptions, back-office accounting, company financing, some aspects of telecommunications, insurance (i.e. insurance claims and inquiries,) credit card processing, and many more.

Accounting / Financing Outsourcing

BPO companies offering accounting processing provide valuable service to many of their patrons. It should be noted that in some instances financing and accounting services among BPO companies almost always work as one. Accounting / Financial experts from these aforementioned companies provide their clients with accurate and timely financial information; not to mention analysis critical to strategic decision-making functions. Of course, the main objective of the BPO companies is to provide exactly the services its clients ask for, including possible work in one or two transacting areas such as accounts payable processing, account reconciliation and analysis, billing and collections, cash application, financial and operational reporting, fixed asset accounting, general accounting, project accounting and vendor management.

Although these aforementioned services are generally the crux of what BPO companies provide, they are not limited to these. Some companies have more specialized needs and the BPO company that can best adapt itself to its customer is by far, the leaders outsourcing in the race.

A good example of specialized needs is the introduction of accounting and financial assistance in schools and universities. Educational institutions from different countries are now seeking BPO companies to handle the bulk of their financing and accounting workloads. Outsourcing processes can cover electronic processing of alternative funds certification, disbursements or refunds, lender follow up, loan follow up, loan certification, and title grants, to name a few.

Short term contracts among BPO companies and clients cover wide areas of finance and accounting; and these short term contracts seem to be more popular among clients than long term ones. Some of the contractual short term services include: account balancing, account reconciliation, audit support, financial analysis, financial reporting, policy and procedural documentation, process assessment, process re-engineering, Sarbanes Oxley compliance, transaction processing efficiency review, etc.

Part of accounting work of course, entails a great deal of book keeping; and some of the most primary areas of book keeping include: accounting data entry, accounts receivables, accounts payables, auditing, bank reconciliation, preparation of ledgers, and the preparation of financial statements.

On A More Detailed Note

On a more detailed note, some clients may prefer to know what exactly will they be getting when they hire BPO companies to do their accounting and financial workloads. It should be noted that discretion and privacy are two of the greatest elements offered by successful BPO companies, beyond that, accuracy and timeline follows a close second.

Here is a more detailed look as to the general idea (but certainly not limited to this alone) that covers accounting and financing outsourcing services.

With accounts receivable, services may include: bank advice clearance, client billing, client settlement, correcting encoding errors, and suspense clearance. With accounts payable, services may include: bank payment entries, bookkeeping, cash allocation, cash application, cash payment entries, credit balance refunds, credit card accounting entries, journal entries, payment research, statutory dues, and third party settlement. With accounts reconciliation, services may include: assets and liabilities, bank, branch accounting, general ledger and third party settlement.

With reporting and analysis, services may include: financial statement analysis and statutory reporting. With payroll processing, services may include: Form 940 federal unemployment tax return, Form 941 federal tax return, general ledger posting report, next day processing, quarterly local tax return, quarterly state unemployment tax return, W-2 Forms for all employees, W-2 state withholding recap, W-3 federal withholding recap, and year end local tax reconciliation.

The Difference Between Accounting Jobs And Finance Jobs

People are often confused between jobs in finance and accounting jobs. However, the differences are quite clear when you look at them individually.

In accounting jobs, the employee may be employed by an accountancy firm, where they will oversee the financial accounts of more than one company, or by a single company in their accounts department.

Accounting jobs involve handling and providing data relating to the financial performance of one or more companies. This includes preparing financial statements, such as income and expenditure statements, balance sheets, cash flows and such like, as well as income tax issues. Since most of the work is involved with the preparation of forms and financial statements, it is a good option for well organised people who prefer a passive, but independent role within a company.

Jobs in finance are concerned with decision making and are best suited to those who enjoy a leadership role. For example, finance managers use financial statements drawn up by accountants, to make decisions on how to minimise loss and maximise profits this may include decisions on stocks and shares, or trading on the Forex market.
Companies offering jobs in finance expect employees to analyse how the company is performing financially, and make decisions based on that information. However, there are numerous jobs in finance that involve far less risk taking for example, financial consultants are widely used within the banking industry.
Broadly speaking, therefore, accounting jobs are analytical and passive in nature, producing data which those taking jobs in finance then act upon.

Accounting And Finance Schools Prepare Business Leaders

Accounting and finance schools are in the business of preparing leaders in financial accounting, from office administrators to professors at business colleges. Those with advanced skills in finance and accounting will have exceptional employment opportunities with major businesses, government agencies, schools, banks, tax services, and more. You can learn to be an accountant in two to four years from some of the best schools for accounting and finance.

When we think of accountants, we might think of those who simply audit financial accounts for various businesses, but there is a bit more to it than that. Those with even a few months of training in accounting and finance will have expertise that encompass much more than financial bookkeeping. Accounting and finance schools will impart in-depth education in finance and accounting that can include such skills as financial management, planning and executing financial ventures, analyzing investment schemes, understanding accounting technology, developing financial initiatives, and other important skills.

Some of the classes you can anticipate from a typical accounting and finance course would include preparing balance sheets, statements, journals, and ledgers; computation, classification, and verification of financial accounts; and accounting technology and software. Accounting and finance schools may also include instruction on banking, inventory management, cash flow and debt, business and personal tax preparation, payroll, accounts payable, accounts receivable; and much, much more.

The level of accounting and finance training that you should strive for depends on the position you will seek upon graduation. There are several levels of college degrees in finance and accounting, as well as certificates and diplomas. You can gain an entry-level education in accounting and finance with a certificate or diploma, but advanced positions will require at least an Associate of Science degree (AS). Naturally, employment and salary improvements will move up incrementally with associate and bachelor degrees in accounting and finance.

If you plan to go into teaching, or if you would like to become an expert in one specific area of business administration (such as e-commerce, education, estate planning, personal finance, insurance, investments, employee benefits, or income tax, for instance), you should seek a graduate degree from a good business school. Advanced degrees in accounting and finance would be the Master of Business Administration (MBA) and the Doctorate of Business Administration (DBA). However, if you just want to brush up on your finance and accounting skills, you will be pleased to know that many vocational accounting and finance schools are willing to provide professional certificate studies in accounting and finance.

So, if you think you would enjoy keeping track of other people's money and working in high finance, a course in finance and accounting might be just right for you. The best part is you can anticipate lifelong employment and an excellent salary range. Ready to start now? Find Accounting and Finance Schools on our website and submit a request for more information today.

DISCLAIMER: Above is a GENERAL OVERVIEW and may or may not reflect specific practices, courses and/or services associated with ANY ONE particular school(s) that is or is not advertised on our website.

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