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“Setting Up, Operation for Accounting and Work Management ”
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA BPO and KPO “Setting Up, Operation for Accounting and Work Management ” at Park Hotel, Kolkata on 18th July 2009 ParaAccountant – India Accounting Globally
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“The KPO Hub of the World”
Redefine The Future INDIA “The KPO Hub of the World” Accounting Anytime Anywhere…
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Today’s Mantra “Come to India –The Back-Office Partner of the World.”
Advantage India Turn Around Time Intellectual Capital Rich Low Costs of Operation Lower Attrition Rate Telecom & Infrastructure Today’s Mantra “Come to India –The Back-Office Partner of the World.”
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“Indians are BORN ACCOUNTANTS!”
Financial KPO Hub F&A Outsourcing set for a Meteoric rise in INDIA As per NASSCOM estimates, the KPO industry is expected to grow by 45 per cent by Out of the $16 billion, which the KPO industry is estimated to earn, around $12 billion would be outsourced from India. A fresh Chartered Accountant or law graduate earns Rs 2.5 lakh annually in a developing country, a KPO alternative can offer up to a 500 per cent increase! “Indians are BORN ACCOUNTANTS!”
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ICAI Expanding Frontiers
CICA ICAEW AICPA ICAI ICAI ICPAS ICAA ICANZ WE, AS CHARTERED ACCOUNTANTS, IS BECOMING A KPO HUB FOR THE ENTIRE GLOBE!
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Indian Accountants – Becoming Para Accountants for the World !!
How can a CA practice Globally ? Indian Accountants – Becoming Para Accountants for the World !!
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Huge Opportunity for Indian CA
Growth of Professional Accountants Huge Opportunity for Indian CA Percentage Base Year(1997)
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Statistics of Returns filed
Percentage of Primary Returns Filed 2.74% 52.03% 70.19% 78.33% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% India UK Canada USA Percentage % of Returns Filed
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Huge Opportunity for Indian CA
Average salary offered to accountants/bookkeepers in UK, USA & Canada and compared to India to in Indian Rupees Annually. 60000 India Canada USA UK Average Salary (Rs.) Country Currency Conversion Rate Salary India Rupee(Rs.) 1 Rs.60000 Canada Canadian Dollar($) 43 $36000 USA Dollar($) 49 UK Pound(£) 80 £30000 Foreign Exchange Rate
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Huge Opportunity for Indian CA
Comparative Rates for Primary Returns 7800 7500 6000 1000 2000 4000 8000 10000 India (Saral) Canada (T1) USA (1040) UK (SA 100) Rupees
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Services – Indian CAs can do for CPAs
Outsourced Bookkeeping & Accounting Services Setup, Designing & Mapping Chart of Accounts Bank & Credit Card Reconciliation Tracking Accounts Receivable & Aging analysis Accounts Payable & Vendor Management Billing & Invoicing Inter-Company Reconciliation Reviewing & Reporting Financials General Ledger Maintenance & Cleaning Monthly Review of Client Prepared Financial Statements Account Reconciliation & Analysis Cash Flow Planning & Budgeting Preparation of Monthly, Quarterly & Annual Financial Statements Preparing Compilation Report Continued……..
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Services – Indian CAs can do for CPAs
Taxation 1040, 1065, 1120 & 1120S Tax Returns Sales, Use Tax & Tire Tax Payroll Payroll Processing Journalizing Payroll in Accounting Program Reconciling Payroll Liabilities Filing of Monthly & Quarterly Forms (1099, W2, etc) Auditing Preparing Work Paper for Insurance Audit Preparing Work Paper for Payroll Audit
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Common Applications Used
Accounting Taxation Payroll
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How it Works KPO Accounting Work Model Reviewed Overseas
Processed in India Scanned in Overseas
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Folder-Management Document Management System P R O C E S S
Folder & Paths P R O C E S S CPA’s ACCOUNTS CPA’s FOLDER LIST OF CLIENT CLIENTS TO BE PROCESSED ERRORS & REVIEWS COMPLETED ERROR LOG NOTE: Client Information will be provided in CLIENTS folder. Only concerned Folder and Files are accessible Folder-Management
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Document Management Source Documents Emails, Efax like J2, MyFax etc
MyOnlineRecords Document Management All documents will serve as a permanent records
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Document Management Source Documents We can upload six files at a time
The files along with message can be directly ed from here
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How it works ? Process of Electronic Fax
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Receipt of Source Docs via
How it works ? Operational Workflow Process Receipt of Source Docs via
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Add Work Screen Work Management
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Memorized Work Screen Work Management
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Work Management Client Open Work Client Work Completed
All work to be done for individual person can been seen every morning when a person Login You can see reports for all works which have been previously closed
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Client Detail Screen Work Management
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Work Management Attendance Entry Attendance Report By Month
Enter daily Time In and Time Out into the Program.
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Standard Chart of Accounts for Small Clients
Balance Sheet Items Profit & Loss Items Type AC # Account Description Bank 1000 Cash on Hand 1020 Cash in Bank (Name of Bank + Last 4 Digits) 1040 AR 1100 Accounts Receivable 1200 Employee Receivables Current Assets 1300 Prepaid Expense 1400 Other Current Assets 1500 Inventory Other Assets 1600 Other Long Term Assets 1650 Goodwill 1660 Accumulated Amortization Fixed Assets 1700 Automobiles 1720 Equipment & Machinery 1740 Other Office Equipment 1760 Leasehold Improvements 1780 Real Estate Owned 1800 Accumulated Depreciation AP 2000 Accounts Payable Credit Card 2010 Credit Card (Name of CC + Last 4 Digit) 2030 Current Liabilities 2100 Credit Line Payable (Name of Creditor + Last 4 Digits) 2200 Federal Payroll Taxes Payable 2300 State Payroll Taxes Payable 2400 Other Current Liabilities Long Term Liabilities 2500 Notes Payable (Name of Creditor + Last 4 Digits) 2600 Other Long Term Liabilities Equity 3000 Common Stock 3100 Additional Paid in Capital 3200 Retained Earning 3300 Owners Draw 3400 Dividends Paid Income 1 Revenue 4000 Taxable Sales 4500 Tax Exempt Sales 4800 Other Income 4900 Interest Income COGS 2 Direct Cost 6000 Purchases 6010 Supplies and Materials 6020 Subcontractors / Outside Services 6030 Other Direct Cost Expense 3 General & Administrative Expense Salaries & Wages 5100 Officer Wages 5200 Staff Wages 5300 Employee Benefits 5400 Payroll Taxes 7000 Rent 7100 Office Supplies 7200 Postage 7300 Advertising / Business Development 7400 Computer Expense 7500 Telephone 7600 Automobile Expense - Owner 7650 Automobile Expense - Staff 7800 Insurance 7900 Interest Expense 8000 Dues & Subscriptions 8100 Training & Education 8300 Professional Fees 8400 Travel 8500 Meals & Entertainment 8600 Bank & Credit Card Charges 8700 Fines & Penalties 8800 Repair & Maintenance 8850 Utilities 8900 Gain / Loss on Equipment Disposals 9000 Depreciation 9100 Amortization 9500 Other Expenses 9900 Federal Income Taxes 9950 State Income Taxes
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Source Documents Regular Work Flow Source Documents We Receive:
Bank Statements AP Invoices Check Stubs Credit Card Statements Weekly/Bi-Weekly Input Sheet for Payroll Processing Statements from ADP, Paychex & Paychoice for PR J/Entries Loan Statements One-Write-Up Sheet Client Tax Organizer & Source Documents Sales Tax Information on Taxable Sales & Total Deposits Source Documents
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Coding & Reconciliation
Payroll Journals ADP Payroll Statement Excel Prepared Coding & Reconciliation Entered in System
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Coding & Reconciliation
Payroll Journals Coding & Reconciliation
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Vendor Invoices Accounts Payable Management
Receive vendor invoices via e-Fax, , or snail mail Code Invoices to G/L Chart Enter Invoices into Accounting Software
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Credit Card Distribution
Credit Card Statements Receive Amex Statement via e-Fax, , or snail mail Credit Card Distribution Credit Card details are identified by their GL Codes an excel is prepared and entered in system Coding of Expenses Distributing Amex Bill e-Fax, , or snail mail
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Entering Manual Check Stubs
A summary of check stubs is made in excel, and then entered in system, also facilitating in bank reconciliation
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Bank Reconciliation
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Doing Monthly & Quarterly Sales Tax
Sales Tax & Use Tax Pull Data from Clients A/R & Accounting Software Doing Monthly & Quarterly Sales Tax Calculations for Sales Tax
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Doing Monthly & Quarterly Sales Tax
Sales Tax & Use Tax Payment Voucher for Client & Filling up Sales Tax Form Doing Monthly & Quarterly Sales Tax
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How it works ? Operational Workflow Process Login Window
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Virtual Desktop How it works ?
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Real-time Information
KPO Accounting How can a CA become VIRTUAL & practice GLOBALLY? Virtual Connectivity Remote & Secured Real-time Information 24/7 Online Access Data Backup All users are virtually connected and can work from any location. The network is secure, the data is protected and all information is in real-time. It’s like working online with your clients using hosted applications.
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How it works ? Dual Monitors Accounting Software Source Docs
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How it works ? Dual Monitors - Enter Information into Accounting Application Source Docs Accounting Software
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Tax Work Flow CLIENT CPA INDIA Start Additional info needed? Will tax
return be completed on the spot? Will India perform tax return? Client submits source docs Scan source documents no no yes C1 yes no yes Upload source docs to DMS Work on tax return Complete, review, and approve tax return w/ client Work on tax return C2 Are there any outstanding queries? C5 yes Are there any outstanding queries? Gather all necessary info and find answers to any outstanding queries no yes C3 no Complete tax return Client signs tax return Review and approve tax return C4 CONTROLS C1: Log client info in Tax Return Ctrl Sheet (TRCS) C2: Enter issues into DMS and log date in TRCS C3: Track and resolve issues/queries in DMS (only for tax returns prep’d in India) C4: Log date in TRCS C5: Log date in TRCS C6: Close the task by logging date in TRCS C6 C5 End
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Overseas firm Concerns
Who would handle my client’s accounting data…their work ethics?? How can I view & control my Financial Information? What about my data security & client interests? Is that going to affect my Financial Decision making? How would the payment mechanism be?
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How it works ? Infrastructure Well spaced work place
Necessary furniture and fixtures. Pentium IV, 512MB RAM and above. Dedicated Internet leased line(254 kbps – 1:1) Dual Monitor System or Split Screen Windows XP and Citrix Client Installed
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