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Budget

Definition

What is a Budget?

A budget is a plan to balance income and expenditures to achieve the financial targets in a specific time. Creating this budget schedule helps you to decide in advance whether you’re going to have enough money to do the things you need or would like to do. Almost anyone can create their budget, whether an entity, a group of individuals, a corporation, a government, or just about anyone else that makes money and uses it.

Budgeting may include preparing a detailed list of expenses or concentrating on a few categories. Some people like to write their budgets down by hand, and others prefer to use budgeting software and spreadsheets. There is no standard way to create a budget plan; what works for one person does not work for another.

Keeping track of whether you make and invest doesn’t have to be complicated, doesn’t need you to be good at math, and doesn’t imply you can’t afford the things you like. It just means that you’re going to know where your money is going, you’re going to have better leverage of your finances.

Why creating a budget plan is important

Budgeting is crucial to control your monthly costs, plan for life’s unforeseeable activities, and be able to handle high ticket items without falling into debt. Budgeting allows you to monitor your money, and it ensures that you will always have enough money.

One of the most beneficial financial practices that you will adopt is budgeting. There are so many opportunities to survive on a budget, including helping you meet your financial goals, stopping you from being financially stressed, and even helping you escape or get out of debt.

 

What is a Budget?
What is a Budget?
Outsourcing FAQ

What is Business Process Outsourcing (BPO)?

What is Business Process Outsourcing BPO?

Business Process Outsourcing (BPO) is the engagement of services from a third-party provider. BPO uses various technology-enabled services to hasten the delivery of services. The business activities could be back-office such as, but not limited to, payroll, accounting, human resources, or front office jobs like customer service, sales, and marketing, etc. In the case of content providers, these business activities could mean hiring writers, remote editors, or virtual assistants.

BPO speeds up processes and enhances efficiency. Companies that outsource some of their business activities use their time on core services and competencies. With this shift in focus, companies improve their current processes that 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.

How does Business Process Outsourcing work?

When a business engages an external specialist to manage and operate some of its internal processes, it's referred to as business process outsourcing. 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, business process outsourcing 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. The common benefits include:

Cost savings: significant savings of up to 70%, leveraging the lower global salaries Global market: access to a bigger employment pool of talent Global presence: having operational across the globe increases trade opportunities Flexible workforce: reduces internal local labour and employment compliance obligations Leverage skill: leveraging the skills of other specialist companies Focus: enables the client company to focus on their core functions

 

Business process outsourcing examples

The business process outsourcing sector is a vast industry, generating over $200bn annually, and employing many millions of people worldwide. Some examples include:

Big enterprise

Facebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber

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

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

What are the different types of BPO?

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 generalist, in that they offer a full range of professional services, although some specialise in certain verticals (ie accounting, or animation).

Location

Business process outsourcing typically operates form 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.

Functions of business process outsourcing

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

Finance and accounting: operational, technical and specialist functions Healthcare: various functions of the backend of the healthcare and health-insurance industries Creative and content: everything from post-production of Hollywood movies to newspaper and website content Tech, IT and development: network management, web and app development and maintenance Sales & customer support: ongoing sales and customer operational support and delivery Marketing: ongoing marketing, communication and branding activities Talent and HR: externalising the management of company HR, recruitment and compliance Administration: general business administration and operational activities Top BPO companies in the world's top outsourcing hubs

A wide range of BPO companies in different parts of the world provide utmost services to their Western and local clients. Many of them have even earned awards and recognitions by award-giving bodies due to their performance on both the roles they take and on their way of taking care of 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

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 4,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with, business process outsourcing.

What is Bookkeeping?

What is bookkeeping?

Bookkeeping refers to the process of recording transactions to general and special journals and posting these transactions to their respective ledgers. This should be done by applying generally-accepted accounting principles (GAAP) the Financial Accounting Standards Board (FASB) for US companies. Bookkeeping is an important record-keeping function of financial accounting that is essential in a duly-registered business of any kind.

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 doesn’t do large volumes of transactions per day.

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 the best bookkeeping outsourcing companies in the Philippines, where you can save up-to 70% on staffing cost.

What is Offshore Accounting?

What is Offshore Accounting?

Offshore accounting refers to delegating accounting tasks and services to offshore countries. Accounting is one of the core processes of a business. Companies use this to manage their finances, monitor inventory, and comply with tax requirements. However, most of them have difficulties in looking for suitable talent for their role.

This is where offshoring enters. Companies delegate their accounting services to low-cost countries such as India and the Philippines. They either get a team for their on-demand projects or an entire department to manage their workload.

As a result, they get to enjoy several benefits such as better accuracy in recording, cost efficiency, and on-time compliance.

Offshore accounting services

Offshore accounting covers more than just managing and recording finances. Accounting firms and BPOs in offshore countries specialize in different services such as:

Payroll processing Billing management Invoice processing and follow up Tax compliance Inventory management Offshore accounting Philippines

Accounting, alongside customer service and information technology, is one of the most popular services to delegate offshore, particularly in the Philippines. With this, companies have the advantage of maintaining their compliance and submitting quarterly statements accurately. Accounting firms in offshore countries also assure the highest privacy and protection of their customer’s data, so businesses won't have to worry much about data breaches.

 

What is Financial Services Company?

What is a financial services company

A financial services company offers different economic services provided by the financial industry such as loans, insurances, investment options, and even credit cards. These companies include banks, insurance firms, credit and payment processing companies, tax and accounting firms, and real estate companies.

Some of the major financial services companies in the world are American Express, a multinational firm offering various credit card services, and Wells Fargo, the largest bank in the United States.

Financial services for small businesses

Small-and-medium enterprises (SMEs) and startups often need a little help, especially when it needs additional resources for their business. Most credit companies offer capital loans for SMEs with minimal interest and accessible payment terms. Real estate companies offer affordable office spaces for their office needs. Western banks offer virtual accounts as well for their overseas transactions. There are financial service companies that attend to their business needs whenever they need it.

Outsource Accelerator provides you the best outsourcing companies in the Philippines, where you can save up-to 70% on staffing cost. We have over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with, outsourcing.

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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 Philippines 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 900+ 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.