In the outsourcing domain, aws accounts sell services are considered to be the domain which requires 100% accuracy for the simple reason that the accounts of any business cannot afford any discrepancy in the amounts or entries and totals. An accounts payable is what the business needs to pay and an accounts receivable is business revenue. It is simply not affordable to let any of these suffer from any sort of loopholes.
However, before getting into the details of various accounting processes and examine their outsourcing landscapes etc. it is important to understand the various types of accounting processes existent in any business.
Accounting processes can broadly be classified into the following types:
- Revenue Processes
- Disbursement Processes
- General Accounting and Bookkeeping Processes
- Fixed Asset and Capital Accounting Processes
- Cost and Inventory Accounting Processes
- Financial reporting and analysis
Let us examine all these categories in brief and then probably in this article or in another we will try to look at the sub – classification of these categories.
Revenue Processes –
Revenue processes, as their name indicates are related to revenue. They are specifically related to inflow of money in the business. Accounts receivables, sales orders and customer invoicing – all fall within this range. In other words, revenue processes are about money that is to be earned.
Disbursement Processes –
On the other hand, disbursement processes are related to expenses. These can be related to various kinds of disbursements or payments like – Accounts payable, travel and entertainment expenses (within the organization), cash disbursement processes, or processing the documents related to the letter of credit. In other words, these are all processes related to outflow of money.
General Accounting and Book-keeping Processes
General accounting and book-keeping processes are about maintaining overall ledger accounts. This also means that the book – keepers ensure accuracy of timely entries and regularly take care of updating accounts chats. This process also includes generating trial balances and closing accounts as and when required. Further bank reconciliations and account reconciliations along with preparation of financial statements like balance sheets, income statement and cash – flow statements etc. are also taken care of in general accounting and book – keeping.
Fixed Asset and Capital Accounting Processes
These process are meant for businesses to maintain depreciation tables and schedules, maintain the accounts that are a work – in – progress as well as the account for write – offs and valuation adjustments. They also take care of reconciling the ledger entries with fixed asset accounts.