Monday, May 11, 2009
As an Operations Officer, this is a question that cannot be ignored; furthermore, if I plan to keep my company advancing into the future, I also cannot ignore the increased reliance on overseas functions within my industry. Outsourced accounting is in its infancy, and as it grows through toddler to maturity, we are going to see more work that is shipped overseas. Some will be performed by accounting groups that are at the peak of professionalism, others, not so much. I believe that we will see a backlash not unlike the software industry has seen with outsourcing to India. Nothing raises a person’s ire off the charts than when they have technical issues that are addressed by someone reading a script and whose accent is very thick. On the accounting side, the largest issue that I have heard addressed is the time difference. While you are sleeping, they are working. If you have issues, they are dealt with when you wake up, but not by the India team until the evening. So it can be 48 to 72 hours sometimes before issues are fixed.
In May, TAD began to test a relationship with CVR to address another issue that has slowly been arising, and that is how to best take care of the quickly growing Spanish Speaking market. Our idea is to partner with CVR and provide accounting services through their accounting firm, and we act as the gateway, working with the client of the sales tax and payroll side. So far the relationship has been progressing steadily, with some testing coming along very positively. During this testing I started to wonder, what if we were to outsource some of our data entry to CVR? What are the positives: They are in Central America, they have been in the accounting business for many years, but even larger, and they fall within the Central time zone. Work done by CVR is done during my work day, so errors that arise are easily addressed and fixed quickly.
What does all this mean? From my view point it means that TAD is continuing to look forward and discover additional ways to save our clients cash flow while delivering a product. More importantly, from an operations viewpoint, we are keeping a watchful eye on the competitor, and creating game plans that keep our firm in business and not shelved away. Overseas outsourcing cannot be ignored, companies that do so might find themselves out priced and out serviced.
For the meantime, TAD is keeping its accounting processes US based, and will always keep the compliance part of the business in the US. Tad will also continue to test data entry functions with our Spanish partners to keep focused on the future, unlike the dinosaurs, we would rather not find ourselves extinct.
Scott West / COO
Tuesday, May 5, 2009
The topic of outsourcing payroll truly spurred this conversation. I can still remember graduating college, and the company I worked for absolutely refused to outsource payroll. It was a violation of privileged company information. What if they sold employee information? What if our competitors were able to get this information and use it against us? Five years later, they were on the band wagon, and would never dream of bringing the processes back in house. What changed? What finally made them realize this was the right thing to do? I think it was time.
Although they could have outsourced payroll processes long before they did, they needed time to make sure the processes truly were secure. To verify that the company was going to be in business now and into the future so once the processes were turned over, they would not need to be concerned their data was sitting in an unstable company. I believe this same test is now happening with outsourced accounting.
Although there has been outsourced accounting companies offering services for many years, companies are just starting to realize there are truly stable, well formed businesses providing a quality service for a reasonable price. And I believe company management is finally starting to see, these businesses have a true investment in providing a professional, quality based service. Business owners are getting a taste of how outsourced accounting companies provide a true team based accounting process.
There are many quality firms to choose from, TAD being one of those. And while all of our accounting processes from data entry to the financial package creation are done by US based accountants, other companies can provide outsourced solutions that include India based data entry to financial preparation by trained accountants in China. Some company’s are new, while others, like TAD, have been in the business for 14 years or more. TAD and its competitors are always looking for new ways to build security into the service, so the client at all times understands their financial health, is our financial health. In order to provide this comfort the industry is building new access platforms, security is invested in, and partnerships with larger software firms are beginning to flourish.
I believe that the outsourced accounting market will be larger than the outsourced payroll market. Companies will over the next few years quickly embrace the fact their internal accounting department is the only revenue neutral department in the business. They will see outsourcing is beneficial, as the accounting teams are trained, and instead of a few employees, they have access to an entire team of trained accountants and CPA’s.
When the businesses begin to realize outsourced accounting firms like TAD, see their client’s financials as the lifeblood of not only their firm but the client firm, and working with each other as teams is the most beneficial way to perform accounting, the floodgates will open, and our industry will flourish.
Scott West / COO www.tadaccounting.com
Friday, April 24, 2009
Come on, stand up and shout it. I know there are some amongst you that are the same way. See, you, young lady right there with the thirty sticky notes surrounding your monitor, stand up and be proud, for today I have a cure, and the cure is Microsoft One Note!
Microsoft One Note is the answer to my obsessive note taking prayers. Get rid of reams of legal pads, take down the wall of fluorescent yellow, pink and green reminder notes, because I guarantee once you use OneNote, you are never going back!
Within OneNote I can create an ocean of Notebooks, and within each Notebook I can have as many New Pages as I want. And within each page I can… take notes! But wait, before you change blogs, you can do so much more. I can doodle, that’s right, doodle while you are talking to me. But not making really bad representations of dogs and cats, I can create flow charts and line drawings of your accounting processes while you speak. I can go to your website, and copy and paste sections into the notes, guess what OneNote automatically does, it notates it! That is right, at the bottom it shows the date and time I copied the information, but also creates a direct link to the website, right down to the page the text was pulled from. Then I can turn around and send you the page via email, or even PDF the page.
I can take notes and drag them over the task icon, and suddenly I have a task to do in Outlook. I can tag notes, color code them, index them; categorize them in any way I want. I can do this with the whole page or within sections of the page. Plus I can do screen captures by simply pressing the windows key with the letter S on my keyboard, and OneNote becomes a screen capture tool as well. Need a voice reminder? I can attach voice notes and video notes to any section of any page. I can format, bullet point, copy, paste and print. Unlimited power. This is only a small taste of what OneNote can do for you.
So, my little sticky note friends, I bid you a fond farewell. Although you have served me well for the last 20 years I must now leave you in the Office Depot aisle never more to become stuck to my shoe as I leave the office.
Friday, April 17, 2009
First, a couple of big stories coming out of TAD. On November 2008, TADAccounting was purchased by Accountacus, LLC, a firm based in South Carolina. At the same time, the firm purchased Outsourced Financial, a South Carolina based outsourced accounting firm. This really is a match made in heaven. TADAccounting,s years of outsourced accounting experience blended with Outfi’s tax specialties, create one firm allowing a broadening of financial services. Through this partnership, we can now provide professional tax, CFO and financial conversion services to our clients. We also gain a strong CFO, through the acquisition, Scott Powell, CPA. His background and experience in the public and private field provides a strong foundation for TAD’s growth. Expect a lot of great changes over the coming years which will strengthen our services and our relationships with clients.
You might also have noticed our entire image has changed. From our logo to our business cards, TAD is growing up. Our website has been updated, providing more relevant information to potential clients. Through our merger, we can now feel comfortable in opening our services to not only small to medium sized companies, but corporations as well. We feel the website is easier to navigate for the browser, and allows the user to find information quicker, as all links are located at the bottom of each page. One click access.
We are also extremely proud to announce TAD will begin offering accounting services to Spanish speaking business owners beginning May 1, 2009. These services will be provided through our partnership with Chicas Vilchez & Ruiz. They have been in business for over 24 years, so we feel confident in their work and client relationships.
TAD has also worked with CPA firms to provide a new service that we call CPA Solutions. CPA Solutions allow CPA and accountants who focus mostly on taxes to begin offering outsourced accounting to their business clients. Through a client based portal, a CPA’s clients can send TAD accounting work as if it was going through their CPA. We do the work, provide the CPA the financials, and then the CPA presents the information to the client. TAD pays the CPA or accountant a monthly retainer, so the CPA not only collects revenue at tax time, but monthly from the client as well.
TAD will also announce on June 1, 2009 a new platform for clients to access their fiancial reports and daily accounting tasks directly through the desktop. So, there is a lot going on at TAD!
I greatly appreciate your time, and look forward to sharing more with you over the coming weeks, months and years.
Scott West / COO