BPO and KPO

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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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Redefine The Future
INDIA
The KPO Hub of the World
Accounting Anytime Anywhere

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Advantage India
Turn Around Time Intellectual Capital Rich Low
Costs of Operation Lower Attrition Rate Telecom
Infrastructure
Todays Mantra Come to India The Back-Office
Partner of the World.
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Financial KPO Hub
FA Outsourcing set for a Meteoric rise in INDIA
As per NASSCOM estimates, the KPO industry is
expected to grow by 45 per cent by 2010. 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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Expanding Frontiers
CICA
ICAEW
AICPA
ICAI
ICPAS
ICAA
ICANZ
WE, AS CHARTERED ACCOUNTANTS,IS BECOMING A KPO
HUB FOR THE ENTIRE GLOBE!
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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
Percentage
Base Year(1997)
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Statistics 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.
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Huge Opportunity for Indian CA
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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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Document Management System
Folder Paths
Folder-Management
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Source Documents
Emails, Efax like J2, MyFax etc MyOnlineRecords
Document Management
www.myonlinerecords.com
All documents will serve as a permanent records
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Source Documents
Document Management
We can upload six files at a time
The files along with message can be directly
emailed from here
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How it works ?
Process of Electronic Fax
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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 Account Description Account Description Account Description
Bank 1000 Cash on Hand Cash on Hand Cash on Hand Cash on Hand
Bank 1020 Cash in Bank (Name of Bank Last 4 Digits) Cash in Bank (Name of Bank Last 4 Digits) Cash in Bank (Name of Bank Last 4 Digits) Cash in Bank (Name of Bank Last 4 Digits)
Bank 1040 Cash in Bank (Name of Bank Last 4 Digits) Cash in Bank (Name of Bank Last 4 Digits) Cash in Bank (Name of Bank Last 4 Digits) Cash in Bank (Name of Bank Last 4 Digits)
AR 1100 Accounts Receivable Accounts Receivable Accounts Receivable Accounts Receivable
AR 1200 Employee Receivables Employee Receivables Employee Receivables Employee Receivables
Current Assets 1300 Prepaid Expense Prepaid Expense Prepaid Expense Prepaid Expense
Current Assets 1400 Other Current Assets Other Current Assets Other Current Assets Other Current Assets
Current Assets 1500 Inventory Inventory Inventory  
Other Assets 1600 Other Long Term Assets Other Long Term Assets Other Long Term Assets Other Long Term Assets
Other Assets 1650 Goodwill Goodwill Goodwill  
Other Assets 1660 Accumulated Amortization Accumulated Amortization Accumulated Amortization Accumulated Amortization
Fixed Assets 1700 Automobiles Automobiles Automobiles Automobiles
Fixed Assets 1720 Equipment Machinery Equipment Machinery Equipment Machinery Equipment Machinery
Fixed Assets 1740 Other Office Equipment Other Office Equipment Other Office Equipment Other Office Equipment
Fixed Assets 1760 Leasehold Improvements Leasehold Improvements Leasehold Improvements Leasehold Improvements
Fixed Assets 1780 Real Estate Owned Real Estate Owned Real Estate Owned Real Estate Owned
Fixed Assets 1800 Accumulated Depreciation Accumulated Depreciation Accumulated Depreciation Accumulated Depreciation
           
AP 2000 Accounts Payable Accounts Payable Accounts Payable Accounts Payable
Credit Card 2010 Credit Card (Name of CC Last 4 Digit) Credit Card (Name of CC Last 4 Digit) Credit Card (Name of CC Last 4 Digit) Credit Card (Name of CC Last 4 Digit)
Credit Card 2030 Credit Card (Name of CC Last 4 Digit) Credit Card (Name of CC Last 4 Digit) Credit Card (Name of CC Last 4 Digit) Credit Card (Name of CC Last 4 Digit)
Current Liabilities 2100 Credit Line Payable (Name of Creditor Last 4 Digits) Credit Line Payable (Name of Creditor Last 4 Digits) Credit Line Payable (Name of Creditor Last 4 Digits) Credit Line Payable (Name of Creditor Last 4 Digits)
Current Liabilities 2200 Federal Payroll Taxes Payable Federal Payroll Taxes Payable Federal Payroll Taxes Payable Federal Payroll Taxes Payable
Current Liabilities 2300 State Payroll Taxes Payable State Payroll Taxes Payable State Payroll Taxes Payable State Payroll Taxes Payable
Current Liabilities 2400 Other Current Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities
Long Term Liabilities 2500 Notes Payable (Name of Creditor Last 4 Digits) Notes Payable (Name of Creditor Last 4 Digits) Notes Payable (Name of Creditor Last 4 Digits) Notes Payable (Name of Creditor Last 4 Digits)
Long Term Liabilities 2600 Other Long Term Liabilities Other Long Term Liabilities Other Long Term Liabilities Other Long Term Liabilities
Equity 3000 Common Stock Common Stock Common Stock Common Stock
Equity 3100 Additional Paid in Capital Additional Paid in Capital Additional Paid in Capital Additional Paid in Capital
Equity 3200 Retained Earning Retained Earning Retained Earning Retained Earning
Equity 3300 Owners Draw Owners Draw Owners Draw Owners Draw
Equity 3400 Dividends Paid Dividends Paid Dividends Paid Dividends Paid
           
Income 1 Revenue Revenue Revenue  
Income 4000 Taxable Sales Taxable Sales Taxable Sales Taxable Sales
Income 4500 Tax Exempt Sales Tax Exempt Sales Tax Exempt Sales Tax Exempt Sales
Income 4800 Other Income Other Income Other Income Other Income
Income 4900 Interest Income Interest Income Interest Income Interest Income
           
COGS 2 Direct Cost Direct Cost Direct Cost  
COGS 6000 Purchases Purchases Purchases  
COGS 6010 Supplies and Materials Supplies and Materials Supplies and Materials Supplies and Materials
COGS 6020 Subcontractors / Outside Services Subcontractors / Outside Services Subcontractors / Outside Services Subcontractors / Outside Services
COGS 6030 Other Direct Cost Other Direct Cost Other Direct Cost Other Direct Cost
           
Expense 3 General Administrative Expense General Administrative Expense General Administrative Expense General Administrative Expense
Expense     Salaries Wages Salaries Wages Salaries Wages
Expense 5100   Officer Wages Officer Wages
Expense 5200   Staff Wages Staff Wages
Expense 5300   Employee Benefits Employee Benefits
Expense 5400   Payroll Taxes Payroll Taxes
Expense 7000   Rent Rent  
Expense 7100   Office Supplies Office Supplies Office Supplies
Expense 7200   Postage Postage  
Expense 7300   Advertising / Business Development Advertising / Business Development Advertising / Business Development
Expense 7400   Computer Expense Computer Expense Computer Expense
Expense 7500   Telephone Telephone Telephone
Expense 7600   Automobile Expense - Owner Automobile Expense - Owner Automobile Expense - Owner
Expense 7650   Automobile Expense - Staff Automobile Expense - Staff Automobile Expense - Staff
Expense 7800   Insurance Insurance Insurance
Expense 7900   Interest Expense Interest Expense Interest Expense
Expense 8000   Dues Subscriptions Dues Subscriptions Dues Subscriptions
Expense 8100   Training Education Training Education Training Education
Expense 8300   Professional Fees Professional Fees Professional Fees
Expense 8400   Travel Travel  
Expense 8500   Meals Entertainment Meals Entertainment Meals Entertainment
Expense 8600   Bank Credit Card Charges Bank Credit Card Charges Bank Credit Card Charges
Expense 8700   Fines Penalties Fines Penalties Fines Penalties
Expense 8800   Repair Maintenance Repair Maintenance Repair Maintenance
Expense 8850   Utilities Utilities  
Expense 8900   Gain / Loss on Equipment Disposals Gain / Loss on Equipment Disposals Gain / Loss on Equipment Disposals
Expense 9000   Depreciation Depreciation Depreciation
Expense 9100   Amortization Amortization Amortization
Expense 9500   Other Expenses Other Expenses Other Expenses
Expense 9900   Federal Income Taxes Federal Income Taxes Federal Income Taxes
Expense 9950   State Income Taxes State Income Taxes State Income Taxes
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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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Payroll Journals
ADP Payroll Statement
Excel Prepared
Coding Reconciliation
Entered in System
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Payroll Journals
Coding Reconciliation
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Accounts Payable Management
Vendor Invoices
Receive vendor invoices via e-Fax, eMail, or
snail mail
Code Invoices to G/L Chart
Enter Invoices into Accounting Software
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Credit Card Statements
Receive Amex Statement via e-Fax, eMail, 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, eMail, or snail
mail
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Check Stubs
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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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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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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How it works ?
Virtual Desktop
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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. Its like working online with your
clients using hosted applications.
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How it works ?
Dual Monitors
Accounting Software
Source DocsEmail
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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
Start
INDIA
Additional info needed?
Will tax return be completed on the spot?
Will India perform tax return?
Scan source documents
Client submits source docs
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
Review and approve tax return
Client signs 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 prepd in
India) C4 Log date in TRCS C5 Log date in
TRCS C6 Close the task by logging date in TRCS
C5
C6
End
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Overseas firm Concerns
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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
11) Dual Monitor System or Split Screen Windows
XP and Citrix Client Installed
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