Outsourcing can be defined as the process of assigning business processes to a 3rd party service provider. The outsourcing industry came to reputation as part of a business during the 1980s when several European airline companies started to transfer part of their back office function to New Delhi. This move resulted from the companies having to lower the costs of labor.
However today, outsourcing has a driving force far greater than just cutting down costs – of course it still part of the many reasons for outsourcing but the list of the benefits it provides has grown. And as companies around the world starting to realize this, the number of people and organizations providing outsourcing services has also boomed. This growth consequently requires companies to do better in choosing their partners when outsourcing. This principle applies when choosing an outsourcing vendor providing bookkeeping services.
The very important aspect when choosing is to identify the right outsourcing partner that will fit to your preferences as well as your bookkeeping needs. Practices and guidelines that the service provider follows impact your businesses directly. This is the reason why your potential partners should undergo the eyes of scrutiny to be able to choose that right one for you and your business. Be patient – do not rush.
Guidelines When Choosing Your Outsourcing Partner
Here are a few guidelines you may want to follow when choosing your outsourcing partner.
1) Experience is one of the greatest factors that make a company grow. This is the reason why if you want competitive companies to handle your bookkeeping functions, choose someone that possess the skills as well as the experience in this field. You can have an overview of the organizations total client base and the different kinds of project they have handled.
Information such as the two will give you an idea of their standing in the outsourcing market. It is a good habit to check on the references the company provides you.
2) Do a background check running the organization you want to partner up with. Get the profile of the head person as well as the profiles of other key personnel. You should also take into consideration their credentials and qualifications to know whether the people that will possibly handle your bookkeeping functions are competitive enough to do the job.
3) Feedbacks of other clients are always added information you can take into consideration when choosing your future partner. Check if the service providers indeed can meet the expectations of their clients. This is one way of gauging their ability in the field of customer service.
4) It will not be too much to ask to give them some kind of exam or test. Give files that already have been completed. You can then evaluate their skills in bookkeeping with the output they provide by comparing it previous work.
5) Compile all the information you have gathered and do your assessment. You should also not disregard your gut feeling. Even if they garner good results, if you do not feel comfortable working with the organization, then as much as possible, look for other service providers.
You should remember that even though bookkeeping is non-core business function, it is still very important for the company as whole. Thus, it is very important that you choose the right group of people to handle this delicate task so as to avoid complications in the future.