Eliminate Accounting Errors by Outsourcing Accounting Services

If there is one aspect of business operations that has to be accurate and precise in all respects, it is your accounting and bookkeeping functions. The reasons for this are obvious. A wrong output of figures will adversely affect balance sheet on which crucial future decisions like enhancement of credit limits largely rest on. Again based on the balance sheet important business decisions have to be taken regarding diversifications, new product launches and setting competitive prices to products and services. All these can go off track if accounting errors creep into its processing.

outsource accounting servicesThere is another side to it. Accounts that are accurate in all respects are proof that no scams and fraudulent transactions have crept into the operational side of the business. But it is not only scam that you have to worry about. Error prone accounts are often linked to system failures due to the excessive workload on existing staff, lack of advanced and updated hardware and software and trained manpower to maintain them. Putting these things in place requires large investments in infrastructure and recurring expenditure on high salaries. This is something that businesses would rather avoid if alternatives are in place. And the best option, in this situation is to outsource accounting services to professional accounting services provider.

If you are looking to outsource your accounting functions, do it comprehensively. Processing a few heads of accounts in-house and outsourcing others raises concerns in consolidation. But even if you do choose to keep a few minor heads under your direct supervision, there are a few facets of bookkeeping that you should compulsorily outsource to save yourself from grave errors when accounts are finalized. These include major heads like accounts payable and bank and credit card reconciliation which is tedious and requires a lot of software system support.

What then are the common reasons for accounting errors to creep in and why is it that hiring accounts outsourcing services can help in avoiding them

  • Lack of a common code of accounting policies – Generally in any business, different employees handle separate accounting functions – income and expenditure, petty cash, accounts payable and receivable amongst others. Lack of coordination in accounting procedures often results in wrong figures being posted. Outsourcing agencies, on the other hand, have a central processing system where data is fed and processed. This negates any possibility of errors.
  • Not following basic accounting principles – It is seen that there is often no clear demarcation between business accounts and personal accounts of the owner. This leads to problems not only in finalization of accounts but in tax preparation too. Outsourced agencies when contracted, will first bifurcate the two and process the business accounts separately. Bank and credit card reconciliation will be done independently of each other so that both entities can be processed in an error-free manner.
  • No backup of accounting data – Most businesses consider finalization of accounts as the end of the accounting year without backing up data. Hence any accounting error lingers on and remains undetected further compounding the problem. Outsourced agencies have software in place that processes data accurately and stores it for periods as laid down by law, irrespective of whether raw data uploaded to them is in paper or electronic form. Invoices and vouchers in paper form are scanned and stored while there is no problem with those in electronic mode.
  • No regular monitoring of accounts – It is necessary to regularly monitor and track your accounts position if you are to know the state of your financials at any given point of time. Your in-house team of accountants will only give you reports at fixed intervals, say quarterly, half yearly or annually. For that intervening period, there will be no monitoring of accounts and any errors will go undetected. Accounts outsourcing services, on the otherhand will give you updated reports almost on a real time basis so that you can monitor your accounts and know if there are any discrepancies. Updated reports are also an indication that all your accounting heads are balanced and tallied without any mistakes.

Accurate maintenance of accounts is the very foundation of good bookkeeping practice. You should definitely outsource finance and accounting services to ensure this.

Related article: TAKE CONTROL OF YOUR TIME AND OUTSOURCE ACCOUNTING SERVICES

If you are thinking to outsource accounting services get in touch with Cogneesol. Our team of accounts will ensure error free accounting functions for you. To know more visit www.cogneesol.com or call at +1 646 688 2821

What You Need to Know About Paralegal Services?

Before going into details of what constitutes paralegal services and what they have to offer, it will be relevant to know who a paralegal actually is and what his duties are. A paralegal is one who is trained in legal functioning and has knowledge of the various aspects of law and legal procedures. However, there is a subtle difference between paralegals and lawyers. Paralegals are prohibited from offering legal services directly to clients and must work under direct supervision of a lawyer. They can be employed by a law firm or the legal department of a company or even work freelance at the same places.

Lawyers more often than not are always short on time. This is because the bulk of work in preparation of cases is time taking backend tasks that prop up the main litigation on hand. Most of these are tedious, revolving around research and writing where no real interpretation of law is required. However, these are absolutely necessary with two options to have them done. The first is to hire lawyers at high salaries to basically do work that does not form a part of core activities. The second is to hire paralegal support services at a fraction of the cost but with the same level of competence and output.

Services Offered by Paralegal Agencies-

  • Secretarial Services Legal – These are services required by a client to constantly be in the loop about the progress of a case and comprises of Calendar Management, Mailing Services, and Transcription Service. It also includes data entry, proofreading and editing of important documents and court related papers and preparing presentations to be made to the client about various facets of a case.
  • Preparation of Documents, Contracts and Agreements – In many cases, agreements and contracts have fixed formats but in others, fresh clauses have to be incorporated that are specific to the case only. Drawing up loan agreements, retainer agreements and pre and post nuptial agreements are some of the examples in this regard where the law must be followed to the last letter and there is no discretion to interpret the clauses in any other manner. Framing employee manuals, preparing documents for divorce proceedings and Bill of Sales are some of the other tasks taken up by paralegals.
  • Litigation Support Services – Paralegals are well adept in offering EDD (Electronic Document Delivery) solutions that facilitate quick communication between the legal firm and client. Working on dispositions, ESI processing and most importantly reviewing all documents are some of the other litigation support services that can be had from paralegal services.

Beneficiaries of Paralegal Support Services –

  • Large Corporations and Legal Firms – Both these entities prefer to opt for external services to cut down on expenses and time. Any increase in legal requirements can be easily met by parceling off services to external agencies without having to hire lawyers for a short term. Again with a large bank of ready paralegals to back up work at short notice, there is no delay in preparation of cases even when there is a sudden surge in litigation cases. With overheads under control, law firms can structure their fees attractively for quality clients and thereby facilitate business growth and development. There is no need by legal luminaries to get tied down to such mundane tasks as legal research and drafting and preparation of documents.
  • Small Legal Firms and Solo Practitioners – For these sectors paralegals have a great role to play; in fact, it would not be wrong to say that they survive largely on the support of these services. Small firms need not be limited by the size of their staff strength to take on more cases; they can bank on the professional expertise of paralegal agencies to support them without scalability issues looming large before them. With such services being very affordable, small firms and solo practitioners can parcel out the bulk of support services while focusing on the very minimum that is, court appearances.

Read Also4 WAYS PARALEGAL OUTSOURCING SERVICES INCREASE CLIENT SATISFACTION

Hiring paralegal services is the best option for legal practitioners looking for exponential growth of business without a corresponding rise in overheads.

One of the industry leaders in paralegal services is Cogneesol. Our team of qualified and experienced paralegals is well conversant with the finer nuances of a law of most countries. To know more, contact us at info@cogneesol.com.