Month: January 2020

Difference Between Accounts Payable and Accounts Receivable – Infinit Accounting

When one thinks of how successful or unsuccessful a business is doing, it’s natural to lean towards the strategic elements of an organization that ensure profits come in: investments, funding decisions, and risk management. While these elements are important, the success of a business, especially how it runs its day to day operations, is highly dependent on the effective management of operational cash (or commonly called cash flow or cash on hand). This comes in the form of accounts payable (A/P) and accounts receivable (A/R).

Accounts Payable VS Accounts Receivable

Accounts Payable

Accounts Payable (A/P) refers to the money that the company owes to others, usually because of purchased goods or services on credit from a vendor or supplier.

Accounts Receivable

Accounts Receivable (A/R) refers to the money that others owe to the company and are amounts the company has a right to collect because it sold goods or services on credit to a customer.

What’s the Difference Between Accounts Payable & Accounts Receivable?

In accounting, the nature of transaction dictates how it is recorded in a company’s general ledger (or financial books).

  • Accounts Payable (A/P) is recorded as a liability, while Accounts Receivable (A/R) is considered an asset.
  • Accounts Payable (A/P) will decrease the company’s cash while the opposite will happen with Accounts Receivable (A/R).
  • For money to go under Accounts Receivable (A/R), an invoice should be generated and delivered to a purchaser of goods or service, with payment usually expected within agreed payment terms. Accounts Payable (A/P) appears on business ledgers when an invoice is approved for payments.

Accounts Payable (A/P) = CASH OUT
Accounts Receivable (A/R) = CASH IN

The Importance of Having a Balanced A/P and A/R

The keen management of account payables and receivables has a major impact on how liquid a business is. Liquidity in a business refers to a positive net working capital, which simply means that there is enough cash on hand to keep the business operational.

The working capital (WC) of a business is the difference between the current assets and current liabilities. The collection of assets in a timely manner and a balanced settlement of liabilities ensure a healthy and positive net working capital.

Management of Working Capital (WC)

To effectively manage one’s working capital, the Days Sales Outstanding (DSO) of accounts receivables should be less than 45 days. DSO refers to the average number of days accounts receivable payments are collected. Accounts payable are analyzed by the average number of days it takes to pay an invoice (Days Payable Outstanding or DPO).

How do You Increase Working Capital?

Reducing DSO and increasing DPO can increase working capital. Simply put, businesses collect payments from customers faster and delay vendor payments. However, increasing working capital isn’t as easy as it looks as delaying vendor payments can tarnish a business’ reputation and faster payments collection can turn off customers, as they usually prefer businesses that aren’t too strict about getting paid on time.

Ideally, you should always have more accounts receivables (income) than payables (operational business expenses). This is where having a positive net working capital means business profit.

For effective management of operational cash, some businesses hire companies that offer accounting outsourcing services. This way you can focus on the core business decisions while your outsourcing partner takes care of accounting operations so you won’t need to worry about anything.

Managing your business’ finance and accounting on your own is taxing and does not always result in favorable results. With our customized solutions, rest assured that all your concerns would be addressed accordingly and at the same time, it would allow you to concentrate on other important factors vital for your company’s growth. Learn more!

11 months ago No Comments Views

6 Steps to an Effective Order Processing System

A reliable and efficient order processing system for your customers is crucial to business success. Without it, backroom operations will fumble, front end representatives will suffer, and customers are more likely go to a competitor that offers better service. A lot of time, money, and resources can be saved just by developing a proper order-processing guideline. It’s important for you to come up with the best procedure that will help you run your business smoothly and your customers happy.

Here are a few tips to keep in mind when processing orders:

1. Use a Standard Order-Taking Form

Using only one form will eliminate any confusion both internally and externally. It doesn’t matter whether a customer service representative takes the order over the phone, or a client directly fills out a form on your website, a standard form should be used. This way, whoever fills out the form knows what information is needed, and makes sure that all pertinent information is gathered. Some order details might vary depending on the item, such as options to choose color palettes, volume, or size. Make sure these details are included in the standard form so everyone will literally be looking at the same page.

2. Do not Accept Incomplete Order Forms

If all the needed information is not collected, there will be delays in processing it because there is a need to verify what exactly is required in the order. This will cause backlogs and will waste a lot of time. To avoid having to go back and forth between clients and backroom operations, the should be a system that makes sure the order form is returned and completed before it is processed.

3. Confirm the Order with the Customer

Confirming the order means that you’re acknowledging that the order forms were received, and that you’re about to process it. You may send an email that includes the order details, your contact information, and any other pertinent instructions as needed. Make it clear that the customer should reach out to you if there are any problems. You may opt to require the client to verify the order, but it’s often not necessary; your acknowledgment is what matters.

4. Circulate the Filled Out Order Form Internally

This is the time to distribute the order form to the departments and individuals who will perform any action connected to carrying out the particulars of the order, such as the finance team, backroom operations, manufacturers, depending on the nature of your business. It’s important to communicate with everyone concerned what the fulfillment dates are so that they know what to expect, and how best to keep within the timetable allotted.

5. Let the Customer Know About the Order Status

Clearly communicating with customers throughout the process is important. Keep them up to speed as to what the status of their order is. If there are delays or problems, let them know immediately instead of keeping customers in the dark. Give them the details of the order once it ships: tell them who the carrier is, what the tracking numbers are and the expected date of delivery.

6. Ask for Customer Feedback

After the customer receives the order, take the time to get some feedback. Many businesses skip this step, but it’s one way of knowing your client’s sentiments and getting insights into what needs to be improved with your order processing system and inbound call center services. If a client is delighted with the service, then this is also valuable feedback that let’s you know you’re doing the right thing. Having a customer service representative call after doing business is also one way of letting clients know that you value their opinion, thereby increasing the likelihood of them doing business with you again in the future.

Take the time to develop the best order-taking system that works for your customers and backroom operations. This way, it will be smooth sailing for your business and your clients remain satisfied and loyal.

Having a reliable contact center is a vital aspect of a business regardless of the industry they belong to. It must have several communication channels where customers can freely address their concerns and queries regarding the company’s products and services. With our results-driven solutions, you can expect your contact center to deliver the best responses your clients are looking for. Learn more!

When you’re ready to grow, think Infinit-O!

11 months ago No Comments Views

Outsourcing Companies Step-Up Acquisitions

The outsourcing industry has been defined just as much by acquisitions, as much as it has been defined by mega deals: think Xerox (NYSE:XRX) and Affiliated Computer Services. This November, several companies have announced acquisitions of other firms in a bid to redefine their services, and expand their business, and perhaps to give rise to the next Xerox-ACS caliber acquisition, within different industries including legal process outsourcing, IT outsourcing and call center outsourcing.

New York headquartered company, Accenture (NYSE:ACN), has acquired business process management services provider, Knowledge Rules.  The company announced on the 2nd of November that it has acquired the Philadelphia-based company to utilize Knowledge Rules’ expertise in PegaSystems.  According to Accenture’s Chief Technology Architect Paul Daugherty, “This acquisition immediately increases our capacity to implement Pegasystems-based solutions, and will enable us to train and develop more people, more quickly.”  A few days later on the 10th of November, Accenture announced that it has successfully acquired Beijing-based software company, Mogenesis, a provider of mobile software outsourcing services.  Following this, on the 19th of November, Accenture also completed its acquisition of Ariba, Inc.’s (NASDAQ:ARBA) Ariba Sourcing Services, an acquisition that had previously been announced on the 6th of October.  Hot on the wheels of these developments and Accenture once again advised that they are acquiring another company, CAS Computer Anwendungs-und Sytemberatung AG (CAS).  A Kaiserslautern, Germany based company, CAS is a provider of customer relationship management (CRM) and mobility software provider.

It has certainly been a busy month for Accenture as it has been acquiring companies left and right, but other companies have been making notable acquisitions as well.

Financial news and information provider Thomson Reuters (NYSE:TRI) announced on the 18th of November that it is acquiring legal process outsourcing services provider, Pangea3 .  Commenting on the acquisition, Peter Warwick, Thomson Reuters President and CEO said that, “[Thomson Reuters] will now bring to the legal marketplace a responsive, high-quality, transformative resource for a broad range of legal support work. This is particularly important as law firms and general counsel adjust to the realities of the ‘new normal,’ where efficiency, quality and responsiveness are paramount,” signaling Thomson Reuters entrée into the highly-competitive legal process outsourcing business.

This is not however, the only movement in the LPO space as days before the announcement by Thomson Reuters, the acquisition news that had been making rounds in the LPO space was the acquisition of legal process outsourcing company, LawScribe by UnitedLex on the 11th of November.

A number of acquisitions from smaller companies also came through this month, including the acquisition of IT outsourcing and business process outsourcing provider TechTeam Global (NASDAQ:TEAM) by Stefanini International Holdings Affiliate, Stefanini IT Solutions for $93.4 million.  The news came days before TechTeam Global reported its third quarter 2010 results wherein the company reported a net loss of $8.4 million following the company’s sale of its government subsidiary, TechTeam Government Solutions, to Jacobs Engineering Group (NYSE:JEC).

We will likely see more acquisitions coming through before the year ends.  Other companies such as Infosys (NASDAQ:INFY) and Globallogic, have already announced that they are in the market for acquisitions this year and the next, as companies continue to search for the winning combination that may ultimately land them at the top of their field.

Author: Audrey B.

11 months ago No Comments Views

3 Essential Qualities to Look For in a Healthcare Solutions Partner

Revenue Cycle Management (RCM) is central to a healthcare provider’s improvement in ROI and contributes to patient satisfaction. However, the in-house staff might spend more time in actual patient care, or are not fully trained in various RCM tasks. There may also be a talent shortage in these RCM specializations. These scenarios may lead to errors in patient information, high denial rates, and ultimately lost revenue.

Download Infinit-O e-book: Pains and Gains in Your Healthcare Business Journey

This is why healthcare businesses are coming to global healthcare solutions partners to team up with and build teams to help them tackle pain points such as reducing billing errors, monitoring claims processes, and efficiently verifying patient eligibility, among others. Not only does partnering up with a solutions provider reduce costs, but it also gives businesses guaranteed results that meet and exceed their expectations based on their agreed KPIs, whether it be the accuracy of processing or improving denial resolve rate to improve healthcare revenue.

But before you go and search for a healthcare solutions partner, what should you look for? Here are 3 essential qualities in a healthcare solutions provider.

Infinit-O is an expert in Healthcare Processes

1. Expertise in Healthcare Processes

Is your healthcare company having a hard time focusing on RCM because your in-house staff is experiencing an increase in workload? Count on a healthcare solutions partner to help you organize healthcare processes such as patient eligibility, appointment setting, and patient concierge.

Choose a partner that understands your unique needs that creates flexible and customized solutions for tasks in:

  • Clinic Documentation Integrity
  • Medical Coding
  • Medical Billing
  • Claims Processing
  • Other tasks within the RCM spectrum

Patients can have better experience and satisfaction given that they will know which services will be shouldered by their insurance provider and which ones they’ll co-pay. This will trust your company more and in turn, this will impact your company’s revenue flow.

Infinit-O complies with HIPAA, GDPR and other international legislations

2. Compliance with HIPAA and Other Legislations

Many healthcare providers hesitate when they want to partner with an outsourcing company because patient information might not be kept safe. Global healthcare solutions partners know that data security is an important aspect of their company, and will make great strides to keep your patients’ information away from any kind of cyberattack & security threats.

That’s why it’s crucial that your healthcare solutions partner is 100% HIPAA-compliant. This means that the patient data your business manages should be protected by the healthcare solutions partner that uses this kind of information. The outsourced team you work with should understand the nitty-gritty details of compliance programs so that they can help your business meet strict security requirements, such as intrusion detection and prevention systems, Palo Alto next-generation firewall, gateway antivirus programs, internet access control, and SSL-based connections.

Check if they’re also ISO-certified and following GDPR regulations, and if they are aware of California Consumer Privacy Act which will take effect on January 1, 2020.

Infinit-O gives Access to Healthcare Specialists

3. Access to Expert Healthcare Specialists 

Are you experiencing challenges in hiring an in-house staff due to a high price job market? You might want to consider building a team with a healthcare solutions partner. Healthcare service providers nowadays turn to global solutions partners not only to reduce costs but also to acquire access to medical coders, billers, and claims processors. These specialists, from registered nurses with experience in a clinical setting to allied health professionals who specialize in medical coding and claims processing, can help you improve productivity efficiently with reduced errors.

With these three qualities in mind, you can look for the right healthcare solutions partner that can help you build a dedicated team of highly skilled RCM specialists as you focus on your competencies that improve and maintain high patient satisfaction, which ultimately leads to a better return of investment and reputation.

Infinit-O is a trusted healthcare solutions partner that can help you build and operate a dedicated team of well-trained healthcare & RCM professionals specifically designed for your unique needs, with cost savings of up to 70%. We can help you meet your goals, whether they be growth, better productivity or simply bottom-line cost savings. With access to excellent healthcare talent who use cutting-edge technology, we provide some of the best strategic solutions for your business. We are ISO-certified, HIPAA- and GDPR-compliant, so your company and patient data are safe with us.

11 months ago No Comments Views

What to Consider Before Outsourcing

Outsourcing has been present in the market for so many years, tracing back to the 80s, and it has continuously evolved to become what it is today. It has been considered as a staple in the market since most businesses now have realized that entering a partnership with a process outsourcing company has an extensive range of benefits attached to it; even small businesses have already engaged in outsourcing to avail of the benefits that the industry has to offer.

But before one would think of the benefits of outsourcing, one must first consider if the business is already ripe for outsourcing. Most companies have previously engaged in outsourcing but have failed due to unpreparedness. But an unsuccessful outsourcing venture may be avoided given that one knows which areas of businesses must they asses in order to determine whether they are ready to engage in outsourcing.

One must first ponder upon the nature of the business that one wishes to outsource. It is important to identify whether the business that will be delegated to an outsourcing partner is a core business or not. Most professionals would not suggest a company to outsource their core business processes. However, for some industries, there are now companies who are outsourcing their core businesses as they have witnesses that it can immensely affect a company’s performance. As companies outsource their core businesses, they are now able to allot a bigger fraction of their attention to their administrative processes.

Another factor that they need to consider is the skills required to fulfill the duties. As companies offer various solutions that require a specific specialization, it is imperative for companies to assess first if it is feasible to outsource their processes to a solutions provider. It is most common for companies looking to outsource to have their employees undergo training to be able to excel in their tasks. Before a company engages in outsourcing, it is quite important for them to measure their budget first whether they can afford to send the employees into training. This is not the only expense that companies will face as they look into outsourcing as there are still costs that needs to be accounted for.

Budget should also be on the top things to consider when outsourcing as miscalculation of one’s budget may pose challenges in outsourcing as the business partnership progresses. Budget is quite critical since most companies perceive that in outsourcing, business processes will come at a much cheaper cost. One can instantly see the difference in a company’s expenses after engaging in outsourcing as outsourcing can reduce a company’s costs up to 50%. But despite this, one must not be complacent when it comes to expenses, as it has become an issue for most companies.

There may still be a lot to consider before one can engage in an outsourcing partnership as it is going to be a big move for a company. But these key items, business assessment, employee skills and budget, are three factors that should influence your decision to outsource.

About Infinit-O

A provider of outsourcing solutions, Infinit-O’s wide range of services and core team of analysts can deliver efficiently and effectively the solutions tailored according to your company’s needs.

Infinit-O boasts of its long-lasting and growing partnership with their clients who are satisfied with the services the company has offered them.

11 months ago No Comments Views

7 Biggest Successes of Philippines BPO in 2014

The year 2014 will come to an end in a few weeks and we can’t help but look back at how the Philippine business process outsourcing industry has fared throughout the year. Let’s take the time to review its biggest successes in 2014.

1. Ideal Investment Destination

A Singaporean government agency called the International Enterprise Singapore (IES) revealed that the Philippines is an ideal investment hub for businesses because of the country’s strong economic growth potential. The BPO industry in the Philippines is one of the top growing segments in the country, which attributed to the increase in the demand for office and commercial infrastructure. The IES also stated that the country’s talented workforce is also another big contributing factor.

2. Increase of Call Center Business

A statement released by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) stated that India is losing 70% of its call center outsourcing business services to the Philippines and Eastern Europe. This could lead them to lose up to $30 billion in foreign exchange revenue if the trend continues. The Philippines’ quality manpower, lower operating costs, and high-quality services are the top three reasons seen to have contributed to this.

3. Cost-Effective Hub

Cushman & Wakefield published a research paper entitled “Should MNCs Stop Paying Rent Overseas?” It forecasted that the Philippines may soon join China and India in the ranks of viable hosts for MNCs overseas operations. Presently, China and India remain at the top for overseas operations. However, there is expected to be a shift towards other markets because of the increase in rental rates in these countries’ central business districts.

4. Improved Rankings

Despite a controversial video released by BPO company, Aegis Malaysia, promoting Malaysia as a better outsourcing destination that the Philippines, a survey conducted by A.T. Kearney revealed that the latter has actually improved its ranking against 50 other countries. The 2014 A.T. Kearney Global Services Location Index stated that the Philippines ranked seventh among 51 countries, which is two spots above its 2011 ranking, where it ranked 9th out of 50. It further indicated that despite falling in the financial attractiveness factor, the country improved significantly in people’s skills and availability.

5. Improved Global Competitiveness

The Global Competitiveness Report by the World Economic Forum (WEF) ranks the economies of 144 countries. It stated that the Philippines’ Global Competitive Index jumped 33 places this year and is now in 52nd place. The country’s ranking has had a steady upward climb since 2010 but this year’s improvement is the highest in the region since that year.

6. Significant Increase in Employment

The BPO Philippines industry has helped provide better-paying jobs since it started in the early 1990s and it looks like it will continue to do so in the coming years. It has been credited for providing jobs to one million Filipinos is targeting to provide jobs to 1.3 Million Filipinos by 2016.

7. Expected Increase in Revenues

During the International IT-BPM Summit held in Manila, Vikrant Khanna of Tholons stated that the country’s information technology-business process management industry will soon become the Philippines’ biggest earner. Its revenues are projected to hit $48 Billion by 2020, which will account for 19% of the $250-Billion global outsourcing industry.

All these achievements by the Philippine BPO industry this year goes to show that the country is indeed growing by leaps and bounds and that it is truly a prime location for outsourcing. It is exciting to see how much of the industry predictions will be realized in the coming years.

11 months ago No Comments Views

50 Customer Service Quotes to Motivate You for 2015

For the past years, we have seen how the customer service industry continues to develop in meeting the growing needs of the customers. Tools are improved, methods are polished and people are equipped to achieve excellence in customer service delivery. Regardless of the “what” and “how” of customer service, the “why” is most essential.

The significance of having quality customer service is the long-term relationship you build with your customer. All the other reasons fall second. So to help you internalize customer service excellence, here are the best customer service quotes to motivate you for 2015.

  1. Truth builds trust. – Marilyn Suttle
  2. Make a customer, not a sale. – Katherine Barchetti
  3. Kind words can be short and easy to speak, but their echoes are truly endless. – Mother Teresa
  4. Sometimes the best discoveries are the result of simple observations. – Dr. Seyed Reza Agha Seyed Hosseini
  5. Capitalize on charm by continually captivating your customer. – Ryan Lilly
  6. Customers don’t expect you to be perfect. They do expect you to fix things when they go wrong. – Donald Porter
  7. Make your customers comfortable and they will give you their lives. – Paul Orfalea
  8. In the old world, you devoted 30% of your time to building a great service and 70% of your time to shouting about it. In the new world, that inverts. – Jeff Bezos
  9. The way to a customer’s heart is much more than a loyalty program. Making customer evangelists is about creating experiences worth talking about. – Valeria Maltoni
  10. The key is to set realistic customer expectations, and then not to just meet them, but to exceed them — preferably in unexpected and helpful ways. – Richard Branson
  11. Every day we’re saying, ‘How can we keep the customer happy? How can we get ahead in innovation by doing this?’… because if we don’t, somebody else will. – Bill Gates
  12. A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so. – Mahatma Gandhi
  13. Customer service represents the heart of a brand in the hearts of its customers. – Kate Nasser
  14. Spend a lot of time talking to customers face to face. You’d be amazed how many companies don’t listen to their customers. – Ross Perot
  15. Your customers don’t care how much you know, until they know how much you care. – Damon Richards
  16. Loyal customers, they don’t just come back, they don’t simply recommend you, they insist that their friends do business with you. – Chip Bell
  17. Every great business is built on friendship. – JC Penney
  18. Customer experience is a catalyst of transformation. It directly impacts culture, strategy, structure and all parts of a business. – Christine Crandell
  19. Here is a powerful yet simple rule. Always give people more than they expect to get. – Nelson Boswell
  20. Being on par in terms of price and quality only gets you into the game. Service wins the game. – Tony Allesandra
  21. Service, in short, is not what you do, but who you are. It is a way of living that you need to bring to everything you do, if you are to bring it to your customer interactions. – Betsy Sanders
  22. Your most unhappy customers are your greatest source of learning. – Bill Gates
  23. You’ll never have a product or price advantage again. They can be easily duplicated, but a strong customer service culture can’t be copied. – Jerry Fritz
  24. In the world of Internet Customer Service, it’s important to remember your competitor is only one mouse click away. – Doug Warner
  25. Statistics suggest that when customers complain, business owners and managers ought to get excited about it. The complaining customer represents a huge opportunity for more business. – Zig Ziglar
  26. The customer’s perception is your reality. – Kate Zabriskie
  27. Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves. – Steve Jobs
  28. Customer service should not be a department; customer service is everyone’s job. – Ken Blanchard
  29. Well done is better than well said. – Benjamin Franklin
  30. If you do build a great experience, customers tell each other about that. Word of mouth is very powerful. – Jeff Bezos
  31. The purpose of a business is to create a customer who creates customers. – Shiv Singh
  32. Whether you are big or small, you cannot give good customer service if your employees don’t feel good about coming to work. – Martin Oliver
  33. Profit in business comes from repeat customers; customers that boast about your product and service, and that bring friends with them. – W. Edwards Deming
  34. The customer experience is the next competitive battleground. – Jerry Gregoire
  35. Know what your customers want most and what your company does best. Focus on where those two meet. – Kevin Stirtz
  36. You’ve got to look for a gap, where competitors in a market have grown lazy and lost contact with the readers or the viewers. – Rupert Murdoch
  37. Every client you keep is one less that you need to find. – Nigel Sanders
  38. If we keep doing what we’re doing, we’re going to keep getting what we’re getting. – Stephen Covey
  39. Excellent firms don’t believe in excellence – only in constant improvement and constant change. –Tom Peters
  40. The more you engage with customers the clearer things become and the easier it is to determine what you should be doing. – John Russell
  41. If you make customers unhappy in the physical world, they might each tell 6 friends. If you make customers unhappy on the Internet, they can each tell 6,000 friends. – Jeff Bezos
  42. If we consistently exceed the expectations of employees, they will consistently exceed the expectations of our customers. – Shep Hyken
  43. Customer service is a voluntary act that demonstrates a genuine desire to satisfy, if not delight, a customer. – Steve Curtin
  44. Customer Service is everything and anything that touches a customer – directly or indirectly. Customer service means servicing customers and it’s so much more than just solving problems or addressing complaints. Customer service is part of a holistic customer experience that is capable of providing a critical competitive advantage in today’s increasingly cluttered and commoditized marketplace. – Joseph Jaffe
  45. The goal as a company is to have customer service that is not only the best but legendary. – Sam Walton
  46. A man without a smiling face must not open a shop. – Chinese Proverb
  47. Do what you do so well that they will want to see it again and bring their friends. – Walt Disney
  48. Do more than what is required of you. – George Patton
  49. When the customer comes first, the customer will last. – Robert Half
  50. We are what we repeatedly do. Excellence then, is not a single act, but a habit. – Aristotle

Nowadays, the traditional landline phone customer service that businesses have may not serve your customers well—considering that we’re living in the technology era. Having customer support in other types of network such as through online and mobile are some of the customer assistance services we have, which can take your entire customer service to a whole new level. Learn more!

We have created a simple presentation of these best customer service quotes so you can easily share them to your colleagues! See embedded presentation below or click here to download from Slideshare.

11 months ago No Comments Views

Cloud Security and Its Significance with Outsourcing

Since 2010, outsourcing has been slowly transforming and adopting cloud-based computing elements for as much as 10% of their operations. It is one trend that forecasters see will continue, even growing to as much as half or more of a typical outsourcing scope during the next five to seven years – a transition of outsourcing engagements toward cloud-based models. This shift will have a huge impact on infrastructure, operations, training and resources, and most of all, security.

Cloud services are changing the very core of outsourcing. What can be viewed as benefits pose as risks too, things that need to be dealt with in such a way that brings to the forefront the most important challenge in cloud computing – ensuring security.

Cloud services will transform outsourcing

Cloud computing will differ from traditional outsourcing in a big way, which can clearly benefit the customer and improve the operations of the provider. From using active agents (data controllers) to using passive self-service usage of resources, providers will be able to save in data infrastructure and using human technology or resources.

Cloud services use standardized and most often, shared infrastructure or environment, so employing affordable hardware catering to client needs is doable. Access and control are very important and huge differences in cloud services – clients have access to their information real-time and access control need to be regulated, secured, and controlled.

Cloud security will play a huge role in outsourcing contracts

The dynamics between client and provider will have a noticeable shift with cloud-based services relying not on volumes and instances – a metric most outsourcing providers base their fees on. Cloud-based services are also generally shorter than traditional outsourcing contracts so the challenge for providers to have a cloud that can entertain and cater to different clients while keeping all of them secure and apart will demand resources.

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This shouldn’t be a big challenge as what savings providers get from shrinking requirements of infrastructure can be truncated to splurge on security programs, hardware, and qualified IT experts.

Outsourcing providers should take advantage of cloud technology

Cloud services, like any other service, come with risks but are manageable. The inconvenience of transition is very minimal compared to the advantage in crafting and being ahead of next-generation outsourcing agreements.

Providers can offer flexibility in their current outsourcing commitments, offering a change in plans towards partially (or fully) migrating (or testing) the cloud. Of course, the need to be transparent on what are the partners (or sharers) in the cloud is important. The issue of charging is another consideration. Since cloud services have a clear advantage of having access, anytime, anywhere, consumption patterns will double.

Cloud security can be a new outsourced option, even for providers

There is the most important concern of security. Setting types and degrees of user control can be taken control of. They may encrypt or obfuscate data, whatever the service type. Recovery Systems, in case of a breach or a hardware failure (back-ups are crucial), need to be thought of and upgraded time and again.

Zscaler is a known IT security company provider that is employed by 5,000 enterprise and government organizations worldwide to become protected against cyber-attacks and data breaches while staying fully compliant with corporate and regulatory policies. Zscaler was recently named JMP Securities “Hot 100” Company mainly because of its capability to build a modern cloud security platform that enables its clients to embrace innovation securely. It transforms the market for Internet security.

Cloud services set a new age in technology where all businesses will not only outsource but also become virtual. Corporations will manage complex ecosystems of cloud providers, IT suppliers, and business process outsourcers as well as a host of other parties, both internal and external. And security will be at the center of it all making sure trust is earned from clients so business operations can continue for providers.

11 months ago No Comments Views

Philippine BPO Off to a Promising Start in 2015

Experts and business forecasters agree: the BPO Philippines industry is off to a bright start. Here are three articles we’ve compiled for the week that shows us an even rosier outlook for the BPO industry. One article gives us a report on how the BPO industry will impact the local real estate market and how it is viewed as a viable contender in the Asia Pacific as an investment and development prospect. Another shows us the latest Tholons report that includes Metro Clark among its list of BPO hubs in the country. And lastly, Credit Suisse tells us why it foresees a strong 2015 for the BPO Philippines industry.

Why the BPO Sector Continues to Drive the Philippine Property Market

A report by the Urban Land Institute and PriceWaterhouseCoopers predicts that the real estate sector will continue to grow alongside the growth of the BPO industry in the Philippines. Also, the Emerging Trends in Real Estate Asia Pacific reports Manila to rank higher as an attractive investment and development prospect, higher than its neighbors Bangkok, Singapore, and Taipei.

8 Philippine Cities Now in Top 100 Hubs as Metro Clark Enters List

The 2015 Tholons International Top 100 Outsourcing Destinations report reveals that the Philippines now has 8 cities in its list, with the inclusion of Metro Clark recently. Metro Manila is still going strong at second place, with Metro Cebu on no. 8.

Credit Suisse Sees Strong 2015 for the Philippines

The bank stated that the continued strength of the BPO companies in the Philippines are leading the country’s consumption-led economy as it relies less on remittances and more on revenues brought about by compensation being spent by young professionals. This is leading to “structural changes” in the investment front of.

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5 Biggest Accounting Scandals in 2014 to Learn From

This year, we have seen some accounting scandals involving hugely popular companies. These biggest accounting scandals of 2014 rocked the world of finance and accounting and at the same time reminded us about the importance of maintaining good accounting practices. It’s important to be informed about these so that we can be warned about what not to do.

Tesco’s Accounting Scandal

Tesco, Britain’s most popular grocery and retail megastore, is known as the second-largest multinational retailer in the world. However, due to strong competition in the European market, the company’s profits have been progressively declining in the past few years. As if that is not enough to affect Tesco’s standing, their recent accounting scandal contributed to further damaging their reputation. It was revealed that Tesco has allegedly been overstating their incomes and understating costs. They had initially overstated their annual profit by £250 million, which is an overstatement of nearly 25%.

Olympus Corporation’s 13-year Fraud

Last April, Olympus Corporation, the Japanese camera and endoscope manufacturer, was sued by six banks for damages resulting from false financial statements filed from the fiscal year 2000 to the first quarter of the fiscal year 2011. The banks suing Olympus for a total of $273 million or 27.9 billion Yen in damages include Mitsubishi UFJ Trust & Banking Corp., Master Trust Bank of Japan Ltd., Japan Trustee Services Bank Ltd., Trust & Custody Services Bank Ltd., Nomura Trust & Banking Co., and State Street Trust & Banking Co. It is said to be the largest amount sought in civil lawsuits against the company.

Accounting Irregularities at Penn West

One of the biggest accounting frauds of 2014 is the accounting irregularities at Penn West. Penn West Petroleum Ltd. was just beginning to show results from a restructuring program, led by the new president and CEO, David Roberts, when he received reports in July stating the existence of irregularities in accounting practices that have been going on for several years. A large number of retail investors have been claiming operating expenses as capital expenses, which boosted cash flow and influenced the company’s stock price. They made the news public on July 29 stating that the individuals responsible for the said irregularities have been fired. On September 18, the company restated its results upon discovering the misclassification of $300 million worth of expenses.

Mobily CEO Suspended for Accounting Errors

Saudi Arabia’s telecommunications company, Mobily, suspended its CEO, Khalid al-Kaf, effective November 21, after the company was forced to restate 18 months of earnings due to accounting errors. An article on Bloomberg stated that Mobily’s 2013 financial statements were affected by an error in the timing of revenue recognition from a promotional program. As a result, the company’s shares plummeted 30 percent since Oct. 30 while third-quarter profits dropped more than 70%.

Vatican Bank Scandal

Among the biggest audit scandals of 2014 is the Vatican Bank Scandal. The Vatican Bank has been faced with scandal in the last few years. Most recently, an exclusive report by Reuters, stated that a Vatican prosecutor has frozen 16 million euros in the bank accounts of two former Vatican bank managers, and their attorney, for stealing money in 2000 from the sale of 29 Vatican-owned real estates. Between 2001 and 2008, a total of €57 million were pocketed by ex-bank President, Angelo Caloia and ex-Director General, Lelio Scaletti, together with their legal consultant, Gabriele Liuzzo.

These recent accounting scandals give us insight on the vastly negative impact of fraud, and accounting errors on a company, no matter its size and popularity. They not only lead to a decrease of the organization’s stock value but also to the decrease in profits as well as in creating damage to its reputation.

Further, we’ve learned lessons on the importance of hiring upstanding employees, who will contribute to the improvement of the company instead of lead it to its demise. It also goes to show how imperative it is to maintain good accounting practices and establish efficient accounting systems in our organization.

Infinit Accounting offers ISO 27001 & 9001 Six Sigma certified CPA’s at your service 24/7. We can help your company or firm with accounting outsourcing, insurance claims processing, accounts receivable & accounts payable outsourcing.

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Managing your business’ finance and accounting on your own is taxing and does not always result in favorable results. With our customized solutions, rest assured that all your concerns would be addressed accordingly and at the same time, it would allow you to concentrate on other important factors vital for your company’s growth.

11 months ago No Comments Views

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