When most people think of outsourcing they think of people moving their company or product to another country to have it cost less so they can make more money. I will be writing about the outsourcing of financial documents. This is about a company having another company somewhere around the world look over their documents for a cheaper price then bringing in more employees to do it for a higher price. This is a part of globalization that I believe most people don’t know about and I feel like they should know about how it affects businesses in a good way.
There are many reasons for companies to outsource their financial documents. Most of the companies that our outsourcing, are the smaller business men and women. They are doing so because it is a cheaper way then having your employees use up their time instead of focusing on how to grow a business. Some of the other ways outsourcing is useful according to HRWorld.com are accuracy, accountability, worry free, and reliable. These items are things a company looks for to help their business. They can rely on an outside company to be accurate with their statements and paychecks, but also the company who is looking over the documents must be accountable. If they mess something up they are the ones who have to fix it. This will help the small business be less worried about their financial documents and can help make them a better company who can focus on growing. Also they can lower their risk of interpreting tax laws incorrectly which could cause fines or the taking away of income.
One company that is doing the financial work for these smaller businesses is Beijing Foreign Enterprise Human Resource Service Co. Ltd. or (FESCO). They are a company which is helping other company’s balance their books and help to let the other company have peace of mind. FESCO can help companies HR departments stay more focused on handling hiring, firing and appraisals. This can help a company make better sound decisions. Companies like FESCO can help lower risk and cost so that company’s can grow and focus more on improving other aspects of the business other then worrying about their financial documents. Outsourcing financial activities may help a company spend more money on growth so that they may not have to outsource their business instead. This can help company’s look better, so they our able to keep their company in their own country instead of outsourcing it and having a bad reputation throughout the media.
According to outsource2india.com, one of the biggest country’s that is getting all of these companies who are trying to outsource is India. According to this site India is a place where they can help you make better financial decisions to help your business grow. Countries around the world are able to work quickly and efficiently with companies who are using their outsourcing skills.
One company that is doing the financial documents for a lot of companies is API. This company offers all of the benefits that I listed above, and many companies partner with them for this peace of mind. Companies are able to focus more on enhancing their product and managing transactional challenges. They can focus on these items instead of worrying about financial services and accounting problems such as payroll or cash flows. According to API’s site, API also provides a full cash flow management capability by linking its accounts payable automation services with its billing services to allow accrual of accounts payable from the point a purchase order is generated to receipt of a non purchase order vendor invoice.
Globalization is a factor in the world that affects mostly every big business around the world. Globalization is a good thing for all business since it helps to grow everyone who is affected by it. It is a process that can make a company move in ways they didn’t know they could when they first opened their businesses. Globalization helps out in many ways, but to some people they think that it can hurt. For instance outsourcing people think is a bad thing that is ruining business, but they only think about when a company moves to another country because they can get their products cheaper. What they don’t know about is how outsourcing a company’s financial document’s frees that same company up to grow and become a better company. Globalization is a good thing that helps this world grow, and outsourcing of financial documents is one of the ways that globalization can help.