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Bookkeeping

Definition

What is bookkeeping?

Bookkeeping refers to the process of recording transactions to general and special journals and posting these transactions to their respective ledgers. Bookkeeping is an important record-keeping function of financial accounting that is essential in a duly-registered business of any kind.

This should be done by applying generally accepted accounting principles (GAAP) and the Financial Accounting Standards Board (FASB) for US companies. 

The bookkeeping function consists of the first three steps of the accounting cycle: analyzing transactions, recording transactions in the general journal, and posting the transactions to the ledger. Most businesses outsource bookkeeping because hiring bookkeepers is expensive and most small-medium businesses don’t do large volumes of transactions per day.

What is bookkeeping?

Outsourcing bookkeeping

The bookkeeping function is best outsourced in order to keep administrative costs low while helping small businesses grow and become stable. Another advantage is that you are assured that you are working with a skilled and competent professional that has the appropriate experience and educational background for the job.

Outsource Accelerator provides you with the best bookkeeping outsourcing companies in the Philippines, where you can save up to 70% on staffing costs.

What are some of bookkeeping’s best practices?

Bookkeeping is one of the most important processes in a company. Here are some of the best practices in bookkeeping that you might want to consider:

Use the services of an expert

If you don’t want to perform your own bookkeeping for any reason, you don’t have to worry about it. There are a lot of vendors who can provide you with bookkeeping services.

If you choose to outsource your bookkeeping, you should look for a reliable and reputable freelancer or a company. Professional accountants can save you a significant amount of money in taxes because of their extensive knowledge of tax regulations.

Monitor expenses with accounting software

Your business budgeting should be thoroughly tracked down. Many companies document their expenses daily or weekly. They also save receipts to keep track of expenses.

Daily bookkeeping duties will take a lot of time if you don’t have good core accounting software. As your firm grows, this load will only get heavier if you don’t use technology.

There is a lot of time involved in daily bookkeeping tasks if you don’t have suitable accounting software. If you don’t employ technology, this burden will only rise as your company expands.

What are some of bookkeeping’s best practices?

Get your finances under control

You may monitor your business’s cash balances by comparing your bank account balance to the register in your accounting software. Use the software’s reconciliation feature each month to ensure that you don’t miss any duplications, circular reference transfers, or other irregularities.

Make preparations for taxes

The end of the financial year is a critical time to pay attention to your tax obligations. Your firm could be in serious tax trouble if you overlook business’s expenses.

Preparing taxes in advance avoids any unpleasant surprises during the tax payment period. Use an accounting system that properly tracks all loans and revenue streams to ensure that your company is paying taxes on time.

Outsourcing FAQ

What is Finance & Accounting?

What are finance and accounting?

Many businesses are looking for ways to manage cash flows and save on costs. One specific way to do that is by hiring somebody who has the foundational knowledge that can perform finance and accounting offshore. But what are they exactly?

Finance and accounting are two aspects of a business that work together. It is all about keeping track of financial statements, financial transactions, and financial reporting.

These financial transactions are recorded in a balance sheet using generally accepted accounting principles. The financial statement is where all the transactions can be found and are then presented to the management team or client for financial reporting.

These are all essential in any corporate finance reports about financial accounting because they will measure the return on investment, income statement, income taxation, financial assets, cash flow analysis, and even the liabilities the company has.

These are the primary reasons why most organizations opt to outsource finance and accounting. It is now one of the best digital resources expanding in the online world to manage an organization's finances.

Finance and accounting BPO trends

More and more companies are increasingly seeing outsourcing as a solution to every problem in business operations.

Whether to gain an edge in the financial market, perform finance coursework, or drive the company’s financial performance, outsourced finance and accounting can help largely.

Here are several accounting and financial trends that an outsourcing company could help you get in line with:

Real-time visibility

Updating your financial data and financial records every time a financial transaction occurs takes a lot of time.

Outsourcing firms can solve these business problems and deliver real-time, accurate, and top-quality data to all clients and investment firms.

Tax assistance

Most outsourced accounting firms include tax prep for government agencies and advisory among their core services. By relying on them to handle all your financial records, there is a developed synergy between your tax prep and accounting.

Planning and recording

For companies that lack the time and resources to handle complex financial concepts, financial planning, and recording transactions, outsourcing firms can put world-class accountants and financial analysts in charge of these efforts.

With these laid out properly, your accounting can start aligning your business operations with the financial market strategies.

Performance dashboards 

Dashboards compile and update your key performance indicators (KPIs) in one place so that business leaders can access any financial information anytime.

Investment firms can set up and maintain dashboards or general ledgers for clients eager to make business decisions based on business insights rather than intuition.

Cloud migration 

Shifting your accounting practices and services to the cloud is more important than ever nowadays. Outsourcing firms can handle technical, financial, and operational matters to make quantitative analysis easier and more reliable.

With the use of outsourced accounting technology and software, managerial accounting can be done seamlessly and accurately.

Outsource finance and accounting

This is the reason why outsourcing accounting has become a trend and a smart alternative for most organizations. It has become the go-to service to empower businesses in reaping the benefits of working with trustworthy and skillful finance and accounting outsourcing companies.

Most outsourcing companies have an experienced recruitment team that is capable of hiring certified public accountants and finance professionals that are adept and experienced in the field.

Outsource Accelerator provides you access to finance and accounting specialists that you can outsource from the Philippines starting from $6 per hour, where you can save up to 70% on staffing costs.

We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,500 BPOs… all designed to make it easier for clients to learn about and engage with finance and accounting outsourcing.

What is a Certified Public Accountant (CPA)?

What is a CPA?

A certified public accountant (CPA) is a designation for licensed professionals upholding the accountancy practice committed to generally serving the public interest. After passing the licensure exam and gaining the license to practice, a CPA must be committed to their discipline's prevailing laws and ethics.

Certified public accountants can either engage their profession in public or private practice. Those in public practice work in accounting firms that offer primary service lines: auditing and assurance, tax compliance, financial accounting and reporting, and management advisory. Aside from firms, CPAs in public practice also involve government work.

Engaging in practice means taking up the responsibility to perform their duties with adherence to the Code of Professional Conduct (CPC) and generally accepted accounting principles (GAAP).

On the other hand, CPAs in private practice work as accountants of businesses, accounting consultants, personal accountants, or teachers of accounting-related subjects in universities.

How to become a CPA-certified accountant?

States and nations have different certification requirements, and your local board of accountancy is in charge of enforcing and monitoring them. These prerequisites are divided into education, experience, and examination qualifications.

However, the basic steps to becoming a CPA are as follows:

Bachelor's degree. A CPA license taker must have at least a Bachelor's degree and 150-hour coursework in accountancy. While an accounting or business major is not required to take a CPA, it is highly recommended for applicants. Graduate degree. A Master's degree is not required to take a CPA license. However, it increases the applicant's chances of passing the exam. CPA Certification. Applicants must pass the CPA licensure exam to Licensure Continuing Professional Development (CPD) Certified Public Accountant (CPA) training

An accountancy profession encompasses more than simple bookkeeping and report preparation. CPAs handle many transactions involving compliances, planning, and even investigation of a public practice or a private company.

The following is the list of the most popular CPA-related training subjects.

Auditing

During an audit, an auditor examines various books of accounts and physically checks inventories to ensure that all departments adhere to a specified accounting system.

Financial Planning

The two main components of financial planning are estimating capital needs and assessing the competition. Put another way, it is how an organization's financial policies are formulated.

Financial Statements

It's a written record of its commercial activities and financial performance. Financial statements are frequently audited by government agencies, accountants, or corporations for tax, finance, or investment objectives.

CPAs usually apply the principles of the Financial Accounting Standards Board (FASB) in creating financial statements. These standards allow financial analysts, banks, and other institutions to better understand and analyze financial statements.

Fraud/Forensic Accounting

Forensic accounting involves accounting, auditing, and investigation abilities to examine the finances of an individual or a company.

Tax Prep

Most people who take tax preparation training courses do so to boost their own or their company's revenue. As a business owner, tax preparation is your primary or secondary focus. Customers and potential will be drawn in by it.

Government accounting

CPAs employed in government agencies are tasked and more aligned with public accounting services. They are trained to help agencies properly plan, budget, and allocate government funds.

Businesses can hire accountants directly or outsource through accounting firms. Outsourced CPAs can perform financial reporting duties such as preparing and presenting financial statements. Aside from that, they can also serve as financial advisors to a business regarding crucial decisions.

CPAs also perform audits and prepare tax returns following tax laws. Outsource Accelerator matches you with the best finance and accounting outsourcing companies in the Philippines, where you can save up to 70% on staffing costs.

CPA vs CMA: What's the difference?

CPA and CMA have distinct specializations in terms of accounting. Certified public accountants (CPAs) are responsible for financial accounting and start with public practice, as mentioned above.

Meanwhile, certified management accountants (CMAs) deal more with an organization's cost and financial analysis. They are experts in managerial accounting and delve more into private organizations.

In terms of auditing functions, CMAs deal more with internal auditing while CPAs are tasked with external auditing.

What is Payroll?

What is payroll?

Payroll can refer to three things: 1) the calculation and distribution of paychecks; 2) the record of wages, taxes, contributions, and withholdings of employees; and 3) the total amount paid to employees by the company.

Payroll is important in different ways. For employees, the payroll is important for living expenses, and a timely or late paycheck can spell the difference between good and bad morale.

For businesses, payroll is important to see the actual net profit for the fiscal period. For business owners, a properly done payroll is important for compliance with the law. For this reason, many businesses entrust their payroll to dedicated professionals who can process them with speed and accuracy.

Outsourcing payroll services

One of the more popular outsourced functions is the payroll process. Because of the importance of having an efficient payroll, companies that can afford to do so tend to outsource it to dedicated professionals.

Outsourcing companies in the Philippines are experienced with the Generally Accepted Accounting Principles (GAAP) that are being followed in the country they are servicing.

Outsource Accelerator connects you with payroll firms that have extensive experience with the regulatory framework in the US and have a proven track record in accuracy and timeliness in payroll delivery. We make it easier for clients to learn about, and engage with payroll outsourcing.

How payroll is processed

The payroll process nowadays usually involves utilizing payroll software for more efficient and accurate handling. Yet, most small business owners still handle their payroll functions manually, especially when they are starting.

Before the payroll processing begins, employers should prepare the requirements given by their employees such as their tax and financial information. They would also need to secure their employer identification number (EIN) to ensure that deductions such as payroll taxes and employee benefits are accounted for.

The following are the steps for payroll processing.

Choose an effective payroll schedule

First, choose a payroll schedule that can work best for a business. Some of the most popular pay schedules include the following.

Weekly. Businesses can pay their workers on a specific day of the week, regardless of the date. For instance, payroll can be given every Thursday or Friday. Bi-weekly. In another variation of the weekly pay, businesses can provide payroll on a specific day every two weeks. Semi-monthly. Semi-monthly pay is the most common payroll schedule used in most countries. Employers pay their workers twice a month on two specific dates. Monthly. Lastly, employers can provide employee wages every month on a specific date.

Pay schedules are usually affected by an organization's practice and the legal compliances for pay frequencies in a certain location.

Calculate employee's gross pay

Depending on an organization's practice, an employee's gross pay can either be fixed or based on their daily or hourly wages.

For the daily and hourly workers, employers should calculate the total number of hours or days an employee has worked in a pay period. A time tracking software can best benefit them for this.

Firms should at the same time consider overtime hours, late logins, leaves, and absences when calculating. Overtime calculations and other additional charges may depend on the country their employees are in.

Identify deductions

Gather knowledge of the different deductions that employees are subject to. In the United States, the different deductions applicable for employees include the following.

Federal taxes/tax withholdings State taxes Social Security 401(k) contributions Workers compensation

Different states and countries collect different taxes and deductions. With this, employers should be mindful of the policies of each country where their workers sit. This would be easier with a reliable payroll provider on their side.

Calculate net pay and process payments

Subtract gross pay to the applicable deductions for each employee. The amount left after deductions will be the employees' take-home salary for the specific pay period.

The most common ways to pay employees include direct deposit, prepaid cards loaded with salaries, and paychecks to be distributed to each worker.

Make necessary connections and keep records

Be sure to keep records for salaries in different pay periods through copies of payslips and payroll records. Make any changes and corrections to employee salaries in case of discrepancies and inaccuracies in their pay.

Remit deductions

Lastly, companies should make sure to remit the deductions from each employee as a part of their compliance. It's best to consult an accountant for the appropriate tax deductions and always report new hires to the Internal Revenue Service.

What is What is business process outsourcing??

Business Process Outsourcing (BPO) is the delegation of business processes to an external service provider to a nearby or farther location. BPO uses various technology-enabled services to optimize the delivery of services.

Some of the usual outsourced business functions are the following.

Payroll Accounting Human resources Customer service Sales Marketing

In the case of content providers, these could mean hiring writers, remote editors, or virtual assistants.

BPO speeds up processes and enhances efficiency. Companies that outsource some of their business processes use their time on core services and competencies.

With this shift in focus, companies improve their current processes which may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies.

Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. Outsourcing services can also help them save costs and resources in hiring suitable employees.

The definition of BPO outsourcing

In business process outsourcing, a company delegates their services to a service provider. It can be a local firm, nearshore, or offshore company.

Upon reaching an agreement, the service provider will then set up a team for their client. They will shoulder the costs and resources needed, including the office space, workplaces, connection, cloud storage, and IT infrastructure.

The providers are responsible for tracking the staff’s performance and progress. The clients, meanwhile, are responsible for providing the tasks, processes, and KPIs needed for their operation.

In some instances, they are also allowed to incorporate their culture and values to their team and absorb them as a part of their company.

What is BPO? How does Business Process Outsourcing work?

Business process outsourcing happens when a business taps a third-party service provider to operate some of its internal processes. Such ‘processes’ include customer service, accounting and finance, or sales.

It is different from hiring an agency to do specific tasks, as the outsourcing provider (BPO) is more concerned with the ongoing production of labour-intensive tasks, instead of the higher-level strategy and guidance.

Now, BPO has broadened and is more akin to staff augmentation, or staff leasing.

What are the benefits of business process outsourcing?

There are many benefits to outsourcing, as well as some downsides and risks. Outsourcing powerhouses like the Philippines and India produce high-quality talents at a lower rate due to their low operational costs and full government support.

Since outsourcing companies hire and produce experts in the field, clients can assure better results in their operations – whether in customer service, accounting, or marketing. Their staffs are trained to ensure that their clients achieve the outcome they expect.

Companies are able to scale their staff depending on the demand and availability of their tasks. This also helps them improve their operations by letting their service providers contribute in streamlining their processes.

Outsourcing poses more growth opportunities for businesses of all shapes and sizes. While there is still drawbacks to this practice, it is safe to say that its advantages outweigh its risks. 

To explain it further, below we have outlined the top benefits of outsourcing business processes: 

Cost savings

Companies can enjoy savings of up to 70% by leveraging the salaries and costs in offshore countries.

In the Philippines, for instance, companies can hire offshore staff with a US$500/month salary for starting positions. A team of 10 employees would only cost them as much as a single worker in the US with an equal position.

Global market

Small and medium-sized businesses find it most difficult to hire local employees that suit their roles. 

The widened skill gap in developed countries paired with economic crises affects their capacity to expand their teams as needed.

Businesses get to access a bigger pool of talent that can fit their requirements. They can have better options in hiring employees since they are not limited to what is available in their home countries.

Global presence

At the same time, outsourcing opens clients to global trade opportunities. They can establish their global presence and expand more easily to other locations since they already have operations in the area.

Flexible workforce

Outsourcing is a great way to establish a remote workforce, especially for companies looking to implement this setup for the first time.

BPO reduces internal local compliance obligations including providing additional office spaces to employees. Instead, organizations can hold their business operations on a remote setup, most usually having their teams in an office provided by the BPO firm.

Leverage skill

Companies cannot always do everything on their own. Burnout within entrepreneurs and teams are more common than everyone thinks, especially with everyone filling up the tasks beyond their skill sets.

A BPO company enables them to leverage the skills of other specialist companies on more complex tasks such as accounting and IT.

Focus

Lastly, BPO enables organizations to focus on their core business functions. This is since most of their non-core business operations are done with the help of a reliable service provider.

Business process outsourcing examples

The BPO sector is a vast industry, generating over $200bn annually, and employing millions of people worldwide.

As stated in the Market Analysis Report, the global business process outsourcing market reached over USD 245.9 billion in 2021. Thus, it is foreseen to acquire a compound annual growth rate (CAGR) of 9.1% this year, 2022 to 2030. 

The proliferation of the global BPO sector is utterly driven by several key factors that organizations take full advantage of: 

Improved efficiency and agility Focus on core competencies Decreased operational costs Adapt to the ever changing business dynamics

In general, when we speak of outsourcing, it always entails contracting out parts of business processes to an external provider either domestically or offshore. 

BPO can be seen in different forms and contexts, from hiring single staff to getting an offshore team.

Here we have listed some of the examples of business process outsourcing:

Big enterprise

Corporate outsourcing has been around since the industry started. The new breed of large companies are still taking advantage of its benefits and use it to expand their offerings further.

Some of the known enterprises that outsource their services today include the following.

Google. Google has been ramping up its outsourcing efforts since 2016 by delegating development and customer support. Facebook. Meta, particularly Facebook, outsources content moderation to the Philippines as a way to filter toxic content and keep the platform safe for its users. Wells Fargo. Wells Fargo has been outsourcing their operations to the Philippines since 2011. It has recently pulled out its functions in the country, though the company retained its BPO center in Manila. Medium-size businesses

A medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines.

Small business and entrepreneur

The recent Clutch survey stated that around 90% of small businesses plan to outsource their services in 2022 due to the efficiency and flexibility that companies get.

It is common for small business owners to have a Virtual Assistant (VA) working for them full time and remotely from the Philippines.

Aside from this, organizations can delegate other services such as development, IT, and digital marketing.

What are the different types of BPO?

Outsourcing can be executed in different forms, depending on the outsourcer’s needs. Truth is, not everyone are fully aware, and has an in-depth grasp of the BPO sector. 

For most people, BPO can simply mean farming out business processes to third parties located in another country, but this is just one type of BPO. 

As for businesses, it is always vital to be familiar with the various classifications and functions of BPOs. This way, they are able to opt for a business process outsourcing provider that is best suited for their type of requirements and industry. 

More importantly, outsourcing is not a one size fits all strategic approach, this is why it is not enough just know what outsourcing is and how it works. 

There are several types of BPOs that businesses can choose from. The type of business process outsourcing can be characterised by their specialisation, location, and size.

Generalist or specialist BPOs

Business process outsourcing is in the human resources and professional services sector. 

However, their services extend across all industries. The majority of BPOs are generalists, in that they offer a full range of professional services.

Meanwhile, some specialise in certain verticals such as the following.

Legal process outsourcing

Legal process outsourcing deals more with delegating legal processes and compliances to legal firms in another area.

Knowledge process outsourcing

Meanwhile, knowledge process outsourcing enables companies to outsource knowledge-related work including research and development, innovation, and creatives.

Location

Business process outsourcing typically operates from developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost-of-living and bigger populations. Different locations offer different advantages.

Size of BPO

The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people.

Offshore

Offshore outsourcing refers to the process of delegating a part of operations or a department to an offshore country.

To maximize profitability and efficiency, companies choose to outsource to a different region or timezone. India, the Philippines, and South Africa are some of the popular countries known for offshore outsourcing services.

Onshore

Onshore outsourcing or onshoring, meanwhile, is preferred by firms looking to delegate their services within their country.

Onshoring does not offer much savings as that of offshoring or nearshoring. However, clients prefer this as a way to maintain their branding and satisfy their local markets.

Nearshore

Lastly, nearshore outsourcing is preferred by companies that do not want the hassles of time zone and cultural differences in offshoring but still want to get the best out of their delegated services.

Through nearshoring, businesses can collaborate with their teams located in a nearby country. This gives them the opportunity to maintain their local compliance and save on costs since most nearshore locations are cheaper than their onshore counterparts. 

Functions of business process outsourcing

Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include:

Finance and accounting

Outsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss.

Healthcare

Healthcare outsourcing, meanwhile, organizes various back- and front-end functions done for the healthcare and insurance industries.

Creative and content

Creative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content.

Tech, IT and development

IT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries.

Sales & customer support

Some BPO providers specialize in sales and customer support for pre- and post-sales transactions. This helps companies meet the expectations and demands of their customers, keeping them satisfied even after their purchase.

Marketing

BPOs and marketing firms can help in ongoing marketing, communication and branding activities for their clients. This helps them attract more suitable leads in a cost-efficient way.

Talent and HR

Businesses can delegate HR, recruitment and compliance to professional employer organizations to maximize recruitment and workforce management.

Administration

Generalist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions.

Supply chain management

Lastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes.

The future of BPO outsourcing

We have gathered five expert opinions from renowned global business leaders. They shared how they perceive the future of outsourcing will be, including the trends that will prevail in the coming years.  

Meg Marrs, Safer Senior Care

Meg Marrs of Safer Senior Care strongly believes that entrepreneurs and business leaders should outsource their essential tasks. “Outsourcing certain roles has freed up my time to focus more on big picture strategy, rather than being completely meshed in the day-to-day tasks.” 

One thing is certain, outsourcing to support businesses growth is something that will never go out of trend. 

Sean Nguyen, Internet Advisor

As for Sean Nguyen, Director of the Internet Advisor, outsourcing to streamline processes is another essential trend that businesses will continue to apply. 

He quotes, “Outsourcing can be really helpful, even at the most incipient levels, because it allows you to streamline operations. If it’s not essential to have it taken care of in-house, there is no reason to do so.”

Elandas Miller, Kicking It Sports

Elandas Miller of Kicking It Sports, has been outsourcing back office and creatives since 2017. “I like to think of outsourcing as a tool to help me get to my goals faster and more efficient without burning myself out.” 

Outsourcing to support both organizations' short and long term goals is another trend that companies will practice in the foreseeable future. 

Tom Baker, Tom’s Projects

The founder of Tom’s Projects, Tom Baker, offshores his entire product and development. “Outsourcing means that we can scale the team up and down when need be.” Scaling workforce through outsourcing is yet again, among the trends that will remain prevalent. 

Bobby Reid, Capitol Tech Solutions

For Bobby Reid, founder of Capitol Tech Solutions “Outsourcing has helped our business by being able to provide expertise for a service quickly. While these contracts are outsourced, they are incorporated into our company culture when possible, since they are working full time with our firm.” 

Lastly, outsourcing to fill-in talent gaps and expertise is one of the key trends that more and more organizations will utilize in the coming years. 

The future of work is digital, says Outsource Accelerator Founder and CEO Derek Gallimore.

The world has moved on from manufacturing and creating products to providing services. And as we enter the post-pandemic world, he says we are “moving towards a single global economy.”

The concept of work dramatically changed with COVID, and things have changed for good. These changes made us realize that technology is available for remote and digital work interfaces.

Once showed an unsteady growth, the global outsourcing market spiked to US$245.9 billion in 2021. The sudden surge of demand brought by the pandemic along with the worsened talent shortage has led companies to increase their outsourcing efforts.

In a podcast episode, Derek explained, “There are eight billion people on the planet, and they are now all increasingly connected digitally.

There are [also] four billion people who are highly-qualified professionals sitting around the world, and they’re not just virtual assistants and basic roles. You can find [people with] PhDs, architects, accountants, or whatever you need for your business.”

To conclude, Derek believes that the global economy and a globally-sourced workforce is the future, and it is not going away.

Leaders all over the world also know that outsourcing is here to stay. Former US President Barack Obama says that jobs that have been outsourced cannot be brought back to the country. 

As a result, it is better to retrain and re-skill the workers who have lost their jobs on account of outsourcing.

Obama further suggests that community colleges could provide the necessary skills for a person to be gainfully re-employed in the workforce. He adds that this is a necessity that Americans look forward to in the future.

Looking back doesn’t always make people feel good, so it is essential that they retrain for the ‘jobs of the future.’

How to choose a Business Process Outsourcing vendor

Over the years, outsourcing has been the go-to strategic practice for businesses looking to scale their operations effectively.

But just like any other venture, companies should be wary of the possible drawbacks of outsourcing before selecting a BPO company. 

Risks of BPO outsourcing 

Despite its advantages, business process outsourcing done incorrectly leads to outsourcing risks that affect a company one way or another. 

Hidden charges

Some BPO vendors do not totally disclose the total fees they charge and their terms. Clients could experience “bill shock” upon seeing the hidden charges they get.

Compliance issues

Compliance is crucial, especially in handling financial information and dealing with intellectual property. BPOs that violate compliances could risk their clients’ reputation and branding.

Problems with security

Lastly, BPO vendors with loose security compliance could risk getting their client’s data exposed and used for malicious purposes.

Choosing the right business process outsourcing vendor

The key to successful outsourcing lies in choosing a suitable business process outsourcing vendor and working with them along the way. Here are some of the considerations to look for in a BPO vendor.

Expertise

A BPO vendor’s expertise can be shown primarily through their approach to their clients. Even without getting too technical, they can comfortably discuss the initial solutions to provide according to their client’s requirements.

Compliances

Especially when delegating functions involving sensitive information, a BPO vendor should be up-to-date and compliant with regulations relevant to their services. Check for ISO, HIPAA, and PCI certifications as much as possible.

Employee satisfaction

A good BPO vendor also places employee satisfaction to their priority. Check on employee reviews online to see how the staff feels about their company.

Technology

The tools and equipment a BPO vendor uses largely affect their performance in general. Check to see if they use updated technology at work and how they train their employees on using them.

Top BPO companies in the world’s top outsourcing hubs

A wide range of business process outsourcing companies in different parts of the world provide the utmost services to their Western and local clients. Many of them even earned recognition by award-giving bodies due to their performance in both their roles and their level of care for the employees.

Check out the top BPO companies in several outsourcing destinations below.

Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) services

With the rise of new offshore outsourcing locations, companies can have better options in terms of location and services they can delegate. However, finding a suitable BPO company can be a daunting task to be done on their own.

Good thing advisory services such as Outsource Accelerator is there to help them.

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 400+ podcast episodes, and a comprehensive directory with 3,000+ BPOs from different locations.

Outsource Accelerator’s offerings make it easier for clients to learn about, and engage with, business process outsourcing companies worldwide.

Want to learn more about outsourcing? Check out the Inside Outsourcing book as well as the Inside Outsourcing book review today!

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 3,000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.