Among the popular outsourcing destinations, the Philippines has emerged as a hub for accounting outsourced services. However, choosing a reputable outsourcing partner is a critical decision that demands careful consideration. 

Here are my Top Eight “best practice” strategies for accountants when selecting a reliable outsourcing partner in the Philippines.

1. Assess Existing Accounting Experience:

One of the foremost factors to consider is the outsourcing partner’s expertise and experience in accounting and accounting-related services, ideally in Australia. Look for partners with a proven track record in providing accounting solutions to accounting firms. Evaluate their experience, client testimonials, and case studies to gain insights into their capabilities and approach.

2. Check the Quality of Talent and Workforce:

The quality of talent is the cornerstone of any successful outsourcing engagement. Investigate the provider’s recruitment and training processes inside the Philippines. Consider their commitment to ongoing training, professional development, and certifications for their staff. Like Australian accountants, Filipinos are looking for career development and opportunity. A motivated, well-trained, and knowledgeable offshore workforce ensures quality in the team, less rework and longevity of employment.

3. Look into the Provider’s Technological Capabilities:

In the digital age, technology plays a pivotal role in accounting processes. Ensure your prospective outsourcing partner employs up-to-date accounting software, security protocols, and data protection measures. Inquire about their approach to data security, disaster recovery, and business continuity planning. The outsourcing provider should be committed to the information security standards established in ISO27001.

4. Consider Scalability and Flexibility:

The business needs of Australian accounting firms change quickly. We have seen this with the talent shortage that has emerged during and since the pandemic. Your accounting outsourcing partner should be well-equipped and adaptable. Choose a partner with a scalable model that can accommodate the fluctuating demands of growth and contraction. Flexibility in terms of the service offerings and engagement model is essential to align with your specific needs.

5. Observe Cultural Compatibility and Communication Standards:

Effective communication is paramount in any outsourcing relationship, and especially in professional services firms. Assess the outsourcing partner’s ability to provide staff with high levels of English proficiency. This should be expected in the Philippines. Also, consider cultural compatibility and time zone alignment to ensure smooth collaboration and accessibility.

6. Review Regulatory Compliance and Ethics:

Compliance with international accounting standards and regulations is non-negotiable. A provider’s commitment to compliance and ethics comes from their background and their experience Thoroughly evaluate the outsourcing partner’s commitment to the Accounting Professional and Ethical Standards Board and compliance with other industry standards. A good place to start will be the provider’s understanding and adherence to APES GN 30 “Outsourced Services”.

7. Check Client References and Reputation:

Request client references to gain insights into the outsourcing provider’s performance, reliability, and responsiveness. Online reviews, testimonials, and personal references from other clients are all indicative of the partner’s reputation and standing in the market.

8. Consider Cost-effectiveness vs. Value:

While cost is a significant consideration, focus on value rather than just the lowest price. A BPO partner that offers a balance between quality services and competitive pricing will be more beneficial to the accounting firm in the long run.

Richard Croaker is an Australian Chartered Accountant who has developed a professional team of accountants, bookkeepers, financial planning staff and finance broking staff in the Philippines. The company operates in Clark, Pampanga with around 100 staff, many of whom are graduates from top-level universities in the Philippines and are licensed members of the Philippines Institute of CPAs. His Philippines firm services Australian companies exclusively. With more than 30 years’ experience in professional practice working with Australia’s largest accounting firms, he has been the Founder and Chief Executive of the international business of Profitmaster Global Outsourcing for the past 9 years.

• The customer is always right… even when they are wrong.
• The customer is always right… until they are wrong.
• The customer is not always right.

The answer is near the end of this article but, for now, suffice it to say that nobody is always right. Customers and clients are never always right, BUT…

Businesses want clients to feel they are right

Client expectations can range from the simplest to the simply impossible. There are times when expectations are valid, but sometimes they are unrealistic. When faced with the latter, the immediate options are: (a) plainly tell them it is not within the company’s power to fulfill the expectation, or (b) try to fulfill the expectation as best as one can.

The problem with the first is you risk losing that client. To some businesses, that is all well and good riddance, but that still means one less client. With the second option, the company could try everything in its power and yet still come up short in the eyes of the client – begging the question, was it worth it?

In whatever case, sometimes the goal is not in responding to a client’s issue to a T, but in keeping the client satisfied with the response or action taken. Often, a client wants assurance that somebody is taking care of their needs.

What are the proven ways of managing client expectations?

Remember that client expectations are not within the company’s control – but the response is. Even when the client is not right, never make them feel they are wrong. That is where effective client expectations management comes in.

Here are several effective practices used by various businesses to manage client expectations.

Be client-centric

Managing client expectations starts with creating a fantastic experience for them. Put your client front and centre. Let them know this and make sure to let them feel it as well, not just in word but also in deed.

Whether they are wrong or right, clients bring companies their revenues. This is why companies try their best to make clients feel satisfied even when they are not right.

Know every client

It is really not just knowing your clients but understanding them in every way. This is different from understanding your market and more about knowing each client. Find out where they are coming from in every instance. Answer questions such as:

• What does this client need?
• What does the client want?
• How has a particular client interacted with the company in the past?

A company that understands its clients will be able to anticipate their questions and concerns.

Communicate clearly

Be crystal clear and perfectly honest about what the company can and cannot do, will and will never do, right from the start, even before they sign up with the company.

Effective communication will avoid frustration for both the company and the client. It can also prevent unpleasant experiences.

Always relate positively

Exert efforts to build and maintain positive relationships with all clients. When a client feels only positive emotions when dealing with a company, they will trust the company with their business. This will also make it easier for the company to achieve client satisfaction.

Also, avoid directly contradicting clients even when they are not right. Instead of saying, “That’s wrong,” one can say, “What I’m hearing is so-and-so is not working for you. Can you tell us more about it?” Let the client explain, then shift to explaining how other aspects of the issue are also at play.

Understand the entire issue

Avoid getting boxed in with stereotypes. Every client is unique and every issue is unique. When speaking with clients, actively listen and never assume they have exactly the same issue as another client with a similar concern.

Listening is also a way to let a client know that the company sincerely wants to understand them. Take in every detail. Ask questions to clarify when needed.

Discuss solutions

Be upfront. Clients do not like feeling left in the dark and not knowing what is happening behind the scenes. Openly discuss solutions with them.

Let clients understand how complex a problem can be. This will help eliminate unrealistic expectations.

Train client-facing team members to become highly knowledgeable about client concerns and the company’s available solutions.

Have a realistic timeline

Nobody likes waiting, but worse than waiting is being given a turnaround time that is later not met. Provide clients with a timeline that is realistic both to the company and to the client. Businesses may control customer service expectations by explicitly expressing how long each given activity will take, to the best of their knowledge, from the time the client reaches out until the resolution is complete.

Give regular updates

Providing updates at each stage of the resolution process is much appreciated by clients. This is also a simple but effective way of managing expectations. Again, people would like to know what is going on rather than just waiting and not knowing what to expect.

What are the post-pandemic trends in managing client expectations?

Clients today are looking for more efficient service. Doing business has transformed as much as new technologies have accelerated the way everything is done.

People now have more access to information and influencer opinions. Social media has made mass communications instant. E-commerce and B2B are now more agile than ever.

Companies are now operating in fast-paced work environments. Those who are not able to keep up will surely get left behind in the dust. What can companies do to more effectively manage client expectations in today’s world?

Know your clients “personally” and accurately

It is no longer enough to know and understand clients. With the use of data management and analytics, companies are better able to have access to every client’s records. There is no excuse, for example, for not being aware of how a client had interacted with a staff member who may happen to be unavailable the next time the client makes a follow-up. Having a client repeat an issue every time they speak with someone else in the company creates a negative and frustrating impact on them.

Respond faster

Speed has never been a better equaliser than today. Clients expect faster response times and turnarounds. This is where the terms nimble and agile come into play. Fortunately, new technologies are allowing businesses to let AI and chatbots take over under certain conditions.

Set up 24/7 self-service options

Take advantage of available automation tools so clients can opt to find answers on their own. FAQ pages, chatbots, ticketing systems, or even interactive voice response (IVR) systems can spell the difference between keeping or losing a client.

Provide more channels

One reason clients expect quicker responses is the availability of different communication channels. It used to be just email, which now seems to have taken a backseat to ticketing systems and faster channels like chats, social media, and messaging apps.

Be careful, however, to be consistent across all those channels when handling a client concern. Clients should receive the same quality of service whatever the platform. Remember also that clients see all of those channels under one brand, not as separate entities.

Be mobile-friendly

Among the different channels, perhaps the most important thing to realise is that people nowadays tend to use those that are on mobile. Make sure you have at least one mobile-friendly channel and expect clients to be always on business mode even when they are on the road, while travelling abroad, or even when on vacation.

Be one step ahead

Be proactive. Stay at least one step ahead of the client and the competition. We cannot overemhasise the need to understand your client and anticipate their needs. A business that is one step ahead of the client is two steps ahead of the competition.

Build a caring culture

Beyond being client-centred, steer the whole organisation toward a culture of caring about what clients care about. When such a culture is established and well-ingrained across the entire company, putting the customer first becomes second nature. It will also result in sincerity in desiring to provide satisfaction even when dealing with a difficult client.

Get better and better

There is no one-size fits all approach to client expectation management. Just as every client is unique, every business is also one of a kind. Methods that worked in the past may no longer work today, and strategies that are effective now might not be as effective next year. It is therefore important to always keep updating and enhancing policies and processes for handling client expectations.

Which is true?

We promised to answer this at the start of the article: Which of the versions below is closest to the truth?

• The customer is always right… even when they are wrong.
• The customer is always right… until they are wrong.
• The customer is not always right.

Our answer: The client is not always right, but a company must still do everything within its means to provide client satisfaction, though never at the expense of having to bend over backward. Even when a client becomes dissatisfied with the company’s response to their expectation, never burn bridges and leave the door open for a past client to return.

How we can help

Profitmaster cares about the firms that come to us in the same way that they care about their clients. Do you want to know more about how we can help you handle your clients and their expectations? Send us a message today.

These terms were not used in the business world 10 or 15 years ago as much as they are today.

People were forced to work remotely, accelerating the shift to a global team setup. A SocArXiv paper shows that:

• 80% of global corporate remote work policies adopted virtual and hybrid forms of work collaboration by June 2020; and
• For 64% of organisations, remote working has become a permanent change.

TeamBuilding cites that remote job openings on LinkedIn more than tripled between 2020 and 2021.

Global business teams are here to stay. Business organisations must learn to manage them better and maximize their potential.

Challenges brought by global teams

According to FinancesOnline, working with a geographically dispersed team brings with it the following advantages:

• Increased productivity
• Better efficiency
• Reduced operational cost
• Better access to talent
• Higher degree of collaboration
• Elevated employee morale
• Lower employee turnover
• Decreased absenteeism
• Global perspectives
• More diversity
• More flexibility
• More creativity

Alongside those benefits come the following challenges:

• Language barriers/possibility of miscommunication
• Higher potential of misunderstanding
• Loneliness / Lack of social interaction
• Distractions in the home office
• Different time zones
• Lack of opportunities for motivation
• Lack of participation
• Sense of disconnection
• Cultural differences
• Cybersecurity
• Heavier IT workload

What can companies do to turn those challenges into opportunities for business growth?

How to manage a global business team better

Companies that want to thrive must learn to adjust to the challenges of global teams. Here are crucial insights on how to effectively manage a global workforce.

Sam Silverman, Managing Partner at EB5 Affiliate Network:

“To avoid misunderstandings that can lead to costly mistakes, clearly set out project objectives and deliverables from the outset. Don’t be tempted to micromanage the hours your team members keep; as long as they deliver the work by the due date and to the standard required, leave the rest up to them.”

Tammy Perkins, Chief People Officer at Pacific Market International:

“Steward your international colleagues with the same care as your local team members. As part of your meeting prep, make sure you have the right greeting prepared for the right time of day, so you’re appropriately wishing your team good morning, afternoon, or evening. Kick off meetings by sharing positive news, success stories, or team recognition highlights, just as you would if your colleagues were sitting with you.”

Tsedal Neeley, professor and senior associate dean of faculty and research at Harvard Business School:

“Team members located far from the leader require frequent contact with him or her. A brief phone call or e‑mail can make all the difference in conveying that their contributions matter. For instance, one manager in Dallas, Texas, inherited a large group in India as part of an acquisition. He made it a point to involve those employees in important decisions, contact them frequently to discuss ongoing projects and thank them for good work. He even called team members personally to give them their birthdays off. His team appreciated his attention and became more cohesive as a result.”

Steve Smith, Managing Director at SIAS:

“I build trust by being honest and keeping my promises, and by expecting my team to do the same. I also ensure that my team feels connected and part of day-to-day business as usual at HQ in the UK, despite being based remotely – making sure the team feels that connection with the head office base of the business is critical. And, most importantly, I make the effort to get to know my team, professionally, their strengths, weaknesses, but also to get to know them as people, what drives them, what is important to them. I believe more than anything else leadership and business ultimately are about people – numbers matter, technology matters, efficiency matters – but they don’t matter nearly as much as people do.”

Kristen Castillo, Execution Director – Marketing Strategy at AbbVie:

“I have been on numerous conference calls at 2 or 3 in the morning. I think that’s one of the biggest things that you learn: to be very, very flexible when you’re working with global teams. And my family understands that…. [A]t the end of the day, it’s a real give-and-take, I feel, with the cultural differences, with the language differences. We get something from our colleagues who are overseas and they get something from us.”

Vikram Ahuja, serial entrepreneur and co-founder of Talent500:

“Managers must refrain from constantly bombarding their team members for updates and indulging in micromanagement. A simple solution is checking in regularly and using productivity-centric tools. Task managers like Jira can track tasks as they are finished with Jira and include them in performance results. These tools provide a “quick peek” at current progress and assist you in compiling all of your significant outcomes in one location.”

Chris Baker, Executive Vice President and Global Head of Parexel:

“You also have to understand that on a conference call, it’s really against certain cultures to speak up and speak against the idea. And so if you really want their opinion, you have to ask them in a different manner.”

Pedro Faria, Founder and Managing Partner at Kamaroopin:

“Surprisingly, people are people anywhere, and when you go back to the essential elements of a culture, everybody has a willingness to belong to a group. Everybody has this feeling of being on a mission or accomplishing something. And everybody has the overwhelming need of feeling safe, and making people safe goes a big way.”

Learn more about setting up a global team

Profitmaster can provide you with additional information about setting up a global team. If you would like to find out how your business will benefit from having an offshore workforce, contact us today.

All things considered, poor recruitment is a huge cost to the business. Lost productivity, wages, revenue, and the cost of re-hiring are just the start. Not to mention the impact on team culture and the clean-up costs required to fix things.  

Recent indicators suggest a bad hire can cost an incredible 20 per cent more than the annual salary of that hire.

The effective outsourcing solution

A solution to this problem is to hire your staff through a third party who can recruit and manage the performance of staff for you.

It was not so long ago that companies were using outsourced staff solely for the cost benefits obtained. Other benefits were outside the management rationale to engage staff, especially from overseas. As the Australian labour market tightens, the reasons to engage outsourced staff are changing. Now offshore outsourcing is becoming increasingly mainstream as businesses struggle to keep up with their needs for good and capable personnel.

Benefits in outsourcing

The benefits of outsourcing are not just about cost savings. Our clients are regularly reporting their leaders’ and managers’ increased focus on the company’s core business ideology, as well as more efficient and better client service. However, whether you are recruiting onshore or offshore, one thing is certain. The cost of a mistake has an expensive impact on productivity, wages, revenue, as well as the cost of re-hiring and clean-up costs.

If you are going to look at outsourced staff, you must adopt the same mindset for offshore recruitment as you do for onshore recruitment. 

Too often I find myself in conversations with potential clients discussing how ‘cheaply’ they can find their next team member. I say “team member” deliberately because my belief is that all outsourced employees should be treated just like the other members of their team…not just a bottom on a seat.

Effective outsourcing saves staffing costs

Particularly if you are strategic in how you address your staffing needs and consider the long-term growth of the company.

From my experience, when businesses recruit locally, they are clear on what a successful candidate looks like. When that ideal local candidate is found, companies are often prepared to pay a considerable amount more than originally anticipated to secure that person. This is where the two strategies of in-house staffing and outsourced staffing become diametrically opposed.

At the moment, it is easier to source and secure highly skilled and experienced staff from the Philippines compared to sourcing in the current tight labour environment here in Australia. I know this because I have been active in the Philippines labour market for the past 8 years. Companies like ours are specialists in finding and engaging suitable candidates in the Philippines for vacant roles in Australia at significantly reduced rates compared to Australia. But this does not mean we compromise on quality.  

So, how does this reduce the cost of poor recruitment?

Understanding that there are substantial savings to be made by hiring through specialised offshore providers such as Profitmaster, your evaluation to engage offshore staff should be focused on; What value does this person bring? Where do I want to take my business? and, How will this person help me get there?

We are in the business of providing quality, seamless solutions for our clients. It’s not about getting the “cheapest option for now” solution. We proudly provide our staff with the highest quality working conditions and work experiences, as well as professional development and personal growth. We hire staff for our clients based on their personal traits such as loyalty, integrity, and attitude. When you combine these with capability and skill, the result is that we hire great people. There is no doubt about it. We even guarantee it. 

If you are thinking about your next hire, get in touch with us and discuss how we may be able to assist you to find the next member of your team.

The truth is, we can be productive in short as  5 hours  a day. How? I have been using a Virtual Assistant based in the Philippines for the past 4 years.

Virtual Assistants are dedicated to handle a myriad of tasks that are mostly administrative in nature, but one very important task is to manage your calendar.

Their core function refers to manage your day to day activities, allowing you to concentrate on the main enterprise of your business.

Virtual Assistants do things like :

• Set-up meetings with clients
• Setting appointments for prospects
• Event planning for seminars and networking events
• Power point presentations
• Email management
• Travel Bookings
• CRM Management

These are tasks and  activities not directly related to the main enterprise of your business but are critically important for you to keep your business stable and running smoothly.

• Administrative Tasks – documents, email, phone handling and appointment setting.
• Technical Tasks – social media, promotion, research, marketing and customer service
• Back Office Support – accounting, payables, human resources
• Personal tasks- bill payments

Are you able to manage all the core functions of your business and attend to all of the non-core functions?

The problem is that we cannot possibly get all their work done in the hours allotted to us and still give attention to the main enterprise of the business. Managing non-core functions consumes your valuable time, taking you away from the tasks that need most of your attention.

The solution is to hire an expert who can get these things done for you. A most cost effective way to do this is to get a Virtual Assistant who can organize your core and non- core tasks on your calendar.

You can read more about how to hire an awesome virtual assistant.

If you are ready to talk about it, please shoot us a message using our live chat or contact form.

Understand your Goal

As needed, they should clearly understand what they truly want to accomplish out of their marketing content, so they can move closer to their objectives.

Strategic Marketing Approach

What every business really needs to know is that a strategic marketing approach is not just posting haphazard items on their website or social media channels. 

Steps like identifying the best content form and format so content is delivered according to your target audience conveniently. 

It’s been said that in the marketing world – content rules! Why? 

Because it is the key to unlocking the highest level of engagement between you and your target audience. By nature, your web visitors are engaged by your website design, colours, themes, and graphics. 

Yes, they are undeniably essential for any website. However, to achieve a good and high-ranking website, you need to consider the most important part of your website – your content. This includes your menu navigation, interface, images, banners, blurbs, blogs and videos. And these also apply across all your social media channels.

As always, rich content creates a valuable foundation for your websites. They have to blend well with your branding platform and objectives. The best way to achieve this is to not only help your viewers understand and trust your product or services but to actually prevent them from navigating away from your site by making your content organically informative and useful. 

Thus, you are not only focusing on marketing your business but at the same time you want to influence them in a way that they cannot forget you.

Adapting this strategy takes effort and requires careful thinking to create and curate, and then get the most out of your content. When you draft your text content and infographics, you should think not only about what you offer but also about how your target audience will find you and how can you place your product in the minds of your consumers.

Go beyond your demographics and formulate content around what your target customer needs, what they want, what they’re fond of, what they don’t know, and what they are concerned about. And most importantly, think of the pain points of your prospect. 

How will you position your product or service in their lives? What can you offer them and how can you truly help them?

Answering these questions shows your expertise, so you can reach out to them with the right solution. Whether it be to inform, entertain or engage them in a meaningful way, you have to keep it valuable, relevant, and consistent.

Keep in mind that achieving a good-looking (or catchy) website is already a good ranking point, but if you can make sure that you are also putting good web content in it, it will make it even better.

People communicate through emails, mobile phones, texting services, video conferences, video chat rooms and social media channels anytime, anywhere and from any place as long as they have an internet connection.

This is what has made outsourcing so attractive to so many businesses. The insecurities that businesses have had in the past with not having their employees physically in the office have changed and technology has laid the path for this.

Effective communication with your remote employees is critical as it will keep you up to date with important matters, it will also help keep your online personal assistant accountable, feeling trusted, and able to reach their targets.

Here are the different types of communication channels that you can apply in your business to deal with remote workers, and how to implement them so well that your business can run even without you!

Video Calls

This is the best form of communication when dealing with remote workers. You can build rapport, and messages can be received correctly. 

Video calls can create a sense of focus between you and your remote worker. There is nothing better than seeing the person you are talking to.

Video calls do take more effort to do, so it is important that you schedule meetings in advance so that you respect each other’s time and effort. 

Simply send an appointment through e-mail to notify them of when you would like to schedule the meeting.

Make sure that you have rules when video calling. Ensure there are no distractions and make sure one person talks at a time. It’s all about promoting respect and focus to make the most of you and your remote worker’s time. Also using noise-cancelling headsets will help prevent unnecessary noises from taking over your call

Voice Calls

The same rules apply to voice call communication as to video calls. They are easier to set up, but you can lose the opportunity to gauge each other’s reactions from facial expressions, so calls shouldn’t be treated as an overall replacement!

When speaking on the phone, ensure that you remain focused on the person on the other end. They will know if you are multitasking while talking – whether you’re checking emails or on your way from A to B. A person’s distraction can be heard in their voice. Set aside time to make your phone calls to your remote workers so you can devote your whole attention to the conversation.

Emails

Emails are not always the most appropriate form of communication. It is a potentially sensitive message that may be misunderstood if relayed through email. 

The pros that emails bring are the history and memory that is stored through the conversation. Video calls may be interactive and engaging but emails tend to be more beneficial than lengthy messages. 

If you’re struggling to convey emotion or tone in your email, it might be better to pick up the phone. It’s now very rare to find a person writing a letter because that will involve posting it to a postal office and paying delivery fees, which is not the case when you use electronic mail. 

Text messaging services

Text messaging is a great way to gain a quicker response. Did you know that 90% of text messages are read within 10 minutes? And if you send a message that falls into that 10%, you’ll be happy to know that on average, people will look at their phones 150 times a day. With two-way text messaging, each remote worker can engage in multiple text conversations at once, and they’ll be able to reply to new conversations while the first users take time to reply.

It is also a great way to keep your remote workers informed about updates for your business, new services, and any information you think could be useful for them.

Social networking platforms

Social interaction networks are a great way to communicate with your remote staff. However, it is important that you have a good social media policy in place to maintain indicate of the use of social media in the workplace.

The good thing about social networking platforms is that most people have accounts and are active in using them. 

Some tips to help you with all forms of communication

• Remember that English may not be your remote worker’s first language. Speak clearly and carefully. You may ask them to recite back to you at times to ensure that the message that was sent was received accurately.
• Use Simple words to provide clarity and try not to use any slang words. This may be very confusing at times depending on where your remote worker lives.
• Keep your meetings short and stay on target. Having a clear agenda prior to starting your meeting will help.
• If there is more than one worker on the call, speak one person at a time.
• Be sure to spend some quality time talking and connecting with your remote worker regularly in order to achieve the desired results.
• Make sure you schedule your communications.
• Feedback is a gift so do ask for it.

As time goes on, more emerging technologies will continue to change the way we communicate, and it will be up to you to embrace them or not.

Find out more about offshore outsourcing here.

A good accounting system is a must for businesses of any size. A company that fails to keep an accurate record of its business transactions is more likely to operate inefficiently and may lose revenue in the long run.

Accounting system helps business owners and managers to accurately measure business growth in terms of profitability as well as identify areas that need attention and improvement.

Many business owners believe that a good accounting system starts and ends with the accounting software adopted for use in the bookkeeping processes of the business.

This overestimates the capability of the accounting software. Like anything, the output is only as good as the people who run it. You might need only one person to manage your accounting system effectively and efficiently.

Thankfully, today we have a wide range of accounting and bookkeeping software options available to help us manage our financial records easily, without the need to manually compute transactions, post on ledgers, and spreadsheets.

Accounting Systems Installation and Implementation

A business can choose from various accounting software systems, including Xero, MYOB, QuickBooks, Reckon, Sage One and Saasu. These accounting software are the most popular in Australia and perfect for small to medium size businesses.

These computerised accounting systems require a certain level of experience, so be sure your accountant had prior knowledge of these accounting tools. Some of these offer free trials that will help you decide which one works best for your business. You can always upgrade if you need more features and functionalities that will streamline your business.

These systems are available in different configurations, such as the traditional desktop installations, while others have already launched their cloud accounting software, similar to the growing business model of most online applications called SAAS (Software as a Service).

Often, management has little understanding of the suitability of accounting packages and as a result, the business uses software installed at the recommendation of the company accountant. This can mean that while the software is quite suitable for the requirements of the external advisor in the preparation of the end-of-year financial statements and tax returns, it is inadequate for the broader requirements of the company itself.

A good accounting system is much more than the accounting software used by the bookkeeper and administration officers processing accounting transactions from day to day, month to month and year-end.

Besides the software, accounting systems include the purchases and creditors system, the sales and accounts receivable system, the payroll system, cash receipts and payments, and the general ledger.

In addition to the input into the accounting software, processes need to be developed from the very commencement of a transaction to its conclusion. For example, a purchase transaction not only has the invoice and payment as its components but also a purchase order, delivery docket, monthly statement and reconciliation, payment requisition and approval documentation.

For the accounting system to be operating correctly, processes need to be developed that describes how the individual components of a transaction are dealt with by the bookkeeper, factory staff, receptionist and whoever else is involved in the administrative process relating to the transaction.

For example, a payment should have evidence of what is being paid-such as an invoice. An invoice should have evidence of its validity-such as a purchase order and delivery docket. To be even more granular, a delivery docket should be signed by an approved company representative as evidence of receipt of goods, and so on.

This process not only provides accuracy for the transaction but also provides a form of internal control giving management a level of comfort that only the right transactions are being processed by the accounting software. Thus, the office staff operating the system need to be trained and competent in using the system and be capable of reporting flaws as and when they occur.

By developing good subsystems of the accounting system, the accounting process conducted via the accounting software produces accurate and informative reports capable of being read by management, the external accountant, the tax agent and other stakeholders such as the bank.

Good Accounting Systems Keeps Track of Every Financial Records

From a management perspective, good accounting systems provide specific details of the financial condition of the company, its operating results, its cash flows and its net worth. This is critically important information used by management to make decisions about the company’s direction.

It is well recognised that failure to keep proper books and records is one of the key factors of business insolvency. Business owners need to keep accurate records of income and expenses and often do not have a developed process or system that allows them to do that. As a result, owners may not know whether they are even making a profit. Even more concerning is that they are unable to identify types of expense or indeed, whether a payment is an expense at all.

In smaller businesses, they tend to rely on the internal bookkeeper as the person who should know the answer to these types of questions. Unfortunately, in many cases, the bookkeeper is underqualified or inexperienced to be able to provide this advice.

In larger companies, this work is overseen by the financial controller or senior accountant. This usually results in better systems, although the cost of operating the system can be considerable compared to alternatives.

Financial Records Must Be Reviewed to Maintain a Good Accounting System

If you are one of those business owners who has not been keeping good financial records, the new year is a great time to start establishing good financial systems for your company. If you have a financial controller or you are concerned about the value of information coming from your systems or the strength of your internal controls, the new year is a great time to review. Good financial systems will not only help your business grow but they also identify problems before they get out of hand.

Does your company have a strategy to develop, adopt and review accounting processes? If you have a financial controller or external accountant, call him/her and arrange a time to sit together and explain your accounting information system. You may be surprised at the information your systems can provide including tax deductions and incentives that you did not know about. 

If you are paying too much in accounting fees your accountant may just be able to show you how to reduce them by keeping better records in your accounting system.

Do It Right the First Time, Accuracy Is the Key to A Successful Accounting

Of course, your accounting system is only as good as the information provided in it. It is most important to have accurate data in the form of receipts, delivery dockets, purchase orders, timesheets and the like. Once you have this part of the system right, the data becomes the evidence to confirm the accuracy of what is being entered into the system. This is where good accounting software comes in.

You can avoid errors in calculation with manual accounting as accounting software itself, performs all calculations accurately. Most accounting software these days will give you complete financial statements after uploading all the necessary information. 

Stay Ahead of The Competition by Outsourcing Your Accounting Operations

An alternative to engaging an internal bookkeeper is to outsource bookkeeping tasks to a properly qualified provider. Outsourcing bookkeeping is a way of ensuring you have an operator who is competent in providing the bookkeeping service. Outsourced booking can be provided by onshore bookkeepers or offshore bookkeeping providers based in countries like the Philippines.

The advantage of using an onshore bookkeeper is that they can be available to meet with you in person. They are usually more expensive than an offshore bookkeeper.

The advantages of an offshore bookkeeper are not just cost, but also qualification and expertise. Because of the lower cost base of engaging offshore staff such as a Philippines bookkeeper, especially through one of the professional offshoring service providers, is that by adopting a lower cost you also get highly qualified personnel.

For example, accountants and bookkeepers in the Philippines would have completed a university degree as a minimum. In many cases, they are qualified CPAs. Offshore bookkeeping staff engaged through professional outsourcing companies will have had their professional skills and credentials checked before they can start work, and with today’s technology, communications with your offshore staff are virtually seamless.

No matter which way you look at getting your accounting done, it is vitally important that your company has sound accounting information systems. Without them, there is an increased likelihood of underperformance because of a lack of information about which management can make decisions.

Getting the accounting system right gives you confidence that what is being reported is accurate for your requirements.

If you are in need of qualified and proficient Accounting member that is reliable and is adaptable to any accounting system, Profitmaster Global outsourcing will help you reach a more profitable results through decreased cost of staffing. Learn more information about our Accounting and Bookkeeping outsourcing

1. Assess Sales Staff Productivity

   How many prospects result in sales and how long does it take for your representative to close a sale? Making this performance assessment illustrates that your sales representatives are well-trained and their productivity is at its optimum level. Identify areas for improvement that will help reach their expected sales to help them make more conversions in a shorter period. Facilitate the necessary coaching.

2. Assess Your Inventory

   Identify the products that make you the most profit and focus on upselling them. Identify the products that have little or no value for your business and either remove them from your inventory if they provide no purpose or make it an area for improvement if you find they could be of value to your customers.

3. Produce New Products

   The best way to add to your range of products is to anticipate what your customer needs are. A great strategy to do this is to do market research. Interview your current clients as to what products they wished you carried. This is also an intuitive way to demonstrate that you are a company that has their customers’ best interests at heart.

4. Minimise Spend

   Is everything you are paying for used most optimally? For instance in this connected world, if your business relies heavily on cloud services and you are settling your dues on a pay-as-you-go basis, do you use all those services? Are there services that are ghost processes that you don’t even know you pay for? Do you have subscriptions you pay for that you don’t even use or have not used in the last six months? It’s important to make sure that you get the value of what you pay for.

5. Obtain New Customers

   In today’s world, this is just as important as ever. Why? Because happy customers buy more and share the experience and results.

6. Intuitive Customer Service

   Associated with obtaining new customers, be intuitive when it comes to customers’ needs and anticipate them before they even realize it. For instance, you do not sell a gadget without an accompanying instruction manual because you are already anticipating that they will need it. This is especially important if new customers are making a switch to your brand. You don’t just automatically assume that they know how to use it. Customer service has to be exemplary. Why? Because frustrated customers talk and this can damage your business.

7. Improve attraction

    Humans are very visually responsive individuals. Creating attraction does not necessarily translate to having the most beautiful display but having one that elicits an emotional response on a personal level. Capitalise on good feelings: “I bought it because it makes me feel good.”

8. Assess Prices

    Are your prices still the same as it was last year and are you losing money because everything else has increased in price except your products? While it’s important to maintain a competitive price point, this should not be a cause for you to lose business. When customers find your products valuable, a price increase won’t reduce your sales.

Use these strategies to help streamline your business processes for maximum productivity and reduce operational costs.

You could achieve these strategies and earn more profit and revenue by reducing costs – this could be obtained through outsourcing. Learn more about outsourcing and reducing costs

Why training is essential 

Training is an essential stage to building a trusting and great working relationship with your new employee. It is important that you allocate time and effort in the training process. If this is done successfully you will have great success working with your new employee which will ultimately have a positive effect on your business.

As an employer, is important that you train your new employee with the correct knowledge on the aspects of the role and your business. We can guarantee that our recruitment and onboarding process is excellent, so the new employee will be equipped to get started, however, with your help with training It will help maximise the effectiveness and efficiencies of the role.

Areas of training

This would include providing the new employee with a clear understanding of the tasks to do the job and the tools and software they need to be familiar with. Being very clear about what you need from them will help them keep up with the demands of your business. Take the time, have patience and understanding, and you will be rewarded through an engaged and hard-working employee well after the training period is finished.

Here are some useful tips that will help you achieve an effective relationship with your new employee and maximise the training experience.

Prioritise your needs

You have decided to outsource an employee because you have seen a need in your business to do so. Before you let your new employee start, you need time to train and familiarise them with all the relevant aspects of your business. It’s part of the process.

Take the time to set a plan, prioritise and decide the areas that you need help with and what role/s you can outsource.

Once you have decided that you can plan what training tools you need and what software you can train the new employee on.

There are some great sites you can get online education through for your new employees. Here are two that may help. Udemy and LinkedIn learning page. They both serve as great tools.

Communicate

If this is your first time outsourcing a new employee, there is no need to fret. It is very much like training an on-site employee, the only difference is they are probably thousands of miles away. Communication is critical for success.

Be sure to manage an effective plan of action when it comes to deadlines, workloads and meetings. When you are on a constant and fixed schedule, you can plan your goals adequately and save time and effort on both parts.

You need to make use of all the messaging tools such as Skype, WhatsApp, Google Chat or any tool that will help you communicate efficiently and effectively. There are also a variety of project management tools that can help communication such as Basecamp, Asana and Trello. A key learning is it’s best to stick to one messaging software and one project management tool to make it easier to organize all communication.

Establish Clear Goals

Establish clear goals for your new employee and maintain focus on them always. You need to explain how they fit into your business, what their specific role is and how their role/tasks can lead to your business’s success. When they understand the “Why” of the entire process, they can simply function because they know and perceive how things are ticking.

The benefit the new employee gets from you explaining your goals and objectives will give them confidence in whatever task you may assign to them.

Continue to build and train your new remote worker(s)

Training should never end as you and your business are constantly developing. Always keep your new employee up to play on the developments in your business. Continue to train and provide learning opportunities. This will help build the capability of your new employee and improve their functionality and ultimately lead to your business’s success.

Learn more about how we can help you with outsourcing and training new staff members.