Finance and Accounting Business Process Outsourcing Services

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Concept of FAO BPO

Finance and Accounting Outsourcing has become the integral part in a world of competition where accounting services providers and accounting services buyers are mutually benefited through the exchange of quality accounting services for money. Outsourcing accounting function means one less internal function that takes time and resources away from what really determines a company’s success. Outsourcing has become a norm for the companies to cut their costs and time on routine activities.

The basic concept, which lies behind the most of the Finance and Accounting Business Pro-cesses Outsourcing (BPO) deals is the labor arbitrage opportunities. Achieving cost savings through labor arbitrage and improved efficiency are most sought outcomes of the outsourcing initiatives.

Finance and Accounting Outsourcing is the best management strategic tool to offload the burden of critical non-core functions through outsourcing so as to manage them in a more efficient, productive and profitable manner. This will not only help you to focus on core functions but will im-prove your bottom line significantly up to 70% by way of saving in labor cost and overheads.

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60005,079 5,235

4,596 4,512

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2,833

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Sweden UK Germany Canada France Italy FTEpricing model of

outsourcing

USD/month Senior accountant salaries comparison

Average 4,389

“In the long run, outsourcing is another form of trade that benefits the US economy by giving us cheaper ways to do things.”

Janet Yellen, Chief Economist to President Bill Clinton,Wall Street Journal.

70% 70% of saving in labor cost and overheads.

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Recently, IBM Research team analyzed the financials of 244 publicly traded companies that entered into outsourc-ing programs between 2001 and 2012.That analysis revealed a correlation between outsourcing and significant improvement in business performance. The results of the study demonstrate that outsourcing clients consistently outperform their peers on key finan-cial metrics, including Selling, General and Administrative (SG&A) expenses, Earnings Before Taxes (EBT), Operating Income and Return on Assets (ROA). The results also demonstrate that companies that choose to outsource experience significant improvements in their financial performance com-pared to their performance levels prior to outsourcing.

AdvantagesOutsourcing, largely, has been a management tool available to only large companies. AIM

Group is catering to the needs of various small and medium size business enterprises. AIM Group seeks to help those looking for assistance in financial management by offering the services of its in-house accountants. Advantages to outsource to AIM Group:

• Our accountants free you from financial niches, and let you focus on the core processes of your business• Economical alternative to local employment• Outsourcing will lower your overhead cost by turning over staff management to us• Outsourcing will eliminate the need to find, hire, train and manage a qualified staff• AIM Group has an extended resource pool of readily available skilled Senior accountants and Certified Accountants (ACCA, CPAs) with ”Big 4” experience• AIM Group ensures rapid deployment of employees whenever you need them• Accountants keep essential and sensitive data confidential and secure• Accountants can work beyond your work hours to produce output promptly• Staff members report to you directly daily• You are not required to incur/invest on capital expenditure. AIM Group will provide you all technical infrastructure at offshore to support your business.

89%

47%

42%

27%

“Strategic Evolution” research study by KPMG:

of the respondents revealed their plans to maintain their outsourcing transac-tions

of the respondents remarked that out-sourcing opened new doors for experi-ence to them

believed that outsourcing improved their financial performance

remarked that competitiveness was greatly improved by outsourcing

Concept of FAO BPO

With our help you save on space, furniture, computers, software.

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Outsourcing Option 1: FTP Server Bookkeeping OutsourcingBest suits for: Clients who do not want their information to leave their office

You send us the Source Docs

To send us the documents, you can either scan the documents and upload them to a secure FTP server or fax the documents to our toll-free fax number

We give you updated books

In the final stage, we will send the updated books to your e-mail address or load the updated books on to a secure server. This will be sent to you the previous night, so you can download the up-dated books from the server to your computer in the morning

We update your books

We can update your books by the same night. At this stage, we will require you to provide a backup copy of your books. This can be carried out on the software of your choice

How it works

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Outsourcing Bookkeeping - Process Options ComparisonOutsourcing bookkeeping to AIM Group is fast and easy: our bookkeepers can work with you in a way that suits you best to make the entire outsourcing process an incredibly pleasant experience.

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How it works

Outsourcing Option 2: Remote Login Bookkeeping OutsourcingBest suits for: Clients who want to get work done faster

You send us the Source Docs

You can send us your source documents in four ways. You can scan the documents and upload it to a secure server or e-mail the documents to our mail box. You can also fax it to our toll free fax or place it in your computer, so that we can access it re-motely

We connect to yourcomputer through internet

In the second stage, we will connect to your computer by using a remote desktop access service, such as, Secure VPN

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We update thebooks and logout

We will update your books during the night, so when you come to of-fice the next morning, you will find the updated books on your computer

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How it works

Outsourcing Option 3: Online Bookkeeping OutsourcingBest suits for: Clients who need access from anywhere

We connect to yourcomputer through internet

You can login to the online account-ing software, at any time to see the updated books

You send us the Source Docs

You can send us the source documents by scanning the documents and uploading them to our server or by faxing them to our toll free fax number

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We update thebooks and logout

We will update your books by logging in to the Online Accounting Software which you use, for example, quick-booksonline.com and update the books

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Communication: Integral to Outsourcing

We believe that good communication is central to the success of an outsourced project.

All our clients work halfway across the globe. They operate in time zones that are vastly dif-ferent to ours and engage in models that could be different. We fully understand the complexities of such an engagement.

That is why we have taken deliberate steps to ensure that communication channels are con-stantly open and every member of the project is kept up-to-date.

VOIP: Real-time conferencing and conversation is an integral part of our com-munication strategy. That is why we are available for chats and calls on internet messengers or several US phone lines that ring at our Ukraine office.

Here are a few communications tools and best practices that AIM Group uses:

Email: We believe that emails are a great way to be clear on goals and expecta-tions. Often, we recap conversations and decisions on email, so we have a mutual understanding on what needs to be achieved.

Online Conference and Collaboration Tools: For projects that require customer walkthroughs, we use tools like GotoMeeting, an online conferencing software.

Instant Messaging Tools:We use several IM tools such as Skype, Yahoo Messenger, AOL, MSN Messenger etc.

Project Management Tools:Our online project management tool allows you to remain up-to-date on your work. This increases the amount of control you exercise on your progress.

All our clients work halfway across the globe

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Services

Services AIM Group is the high-quality provider of web-based ac-counting solutions for companies of different sizes. We will become your online finance department and provide you with all the numbers that your business needs.

BookkeepingWe provide complete bookkeeping from opening the mail to making payments. We will maintain the books of account of your business including accounts payable, accounts receiv-able, inventory and fixed assets.

Accounts Payable Complete records of accounts payable. Includes vendor in-voice recording, validation of vendor invoice, employee claim recording and validation, aging analysis and supplier recon-ciliation.

Accounts ReceivableComplete records of accounts receivable. Includes invoice recording, customer receipts recording and allocation, aging analysis, customer payment follow-up and receivables rec-onciliation.

Fixed Assets Complete records of fixed assets and calculation of deprecia-tion at the end of the period.

Payroll ServicesFull payroll services including calculation taxes, leaves, de-ductions and payments.

Goods and Services Tax (GST)Sales tax returns and detailed GST transaction reporting and review.

General Ledger and FinalizationMaintain Chart of Accounts, internal financial reporting and review, year-end preparation and liaison with external audi-tors.

Technical Assistance Computerized accounting system selection, set-up and train-ing Labor, overhead, and expenses budget. We will not only be providing you with just the regular Trial Balances and Fi-nancial Statements but also continuously discuss with you to find out about your needs, we ask a lot of questions and take the time to listen to your answers. We ask about your past experience, current situation, future plans and also identify your major bookkeeping headaches. We then review your existing books or documents to assess the volume and type of work required, and agree a provisional schedule with the tasks to be completed.

Reconciliation We reconcile payables and receivables on a regular basis. Reconciliation is a very important step in your account-ing, which helps to prevent losses due to lost revenues or fines because of overdue payments.

BudgetingThe budget provides a formal quantitative expression of expectations. It is an essential facet of the planning and control process. Without a budget, an organization will be highly inefficient and ineffective. The budget is an essential tool to translate general plans into specific, action-oriented goals and objectives. By adhering to the budgetary guidelines, the expectation is that the identi-fied goals and objectives can be fulfilled.

Cash flow ManagementAIM Group provides services of cash projections as per your business requirements. You can use our standard methodology or we can adopt your style. Cash-flow planning entails forecasting and tabulating all significant cash inflows relating to sales, new loans, interest received etc. and then analyzing in detail the timing of expected payments relating to suppliers, wages, other expenses, capital expenditure, loan repayments, dividends, tax, in-terest payments etc. The difference between the cash in- and out-flows within a given period indicates the net cash flow. When this net cash flow is added to or subtracted from opening bank balances, any likely short-term bank funding requirements can be ascertained.

Performance MeasurementWe provide you with a detailed ratio analysis of your business performance. The usual ratios that can help you are the following: • Gross profit • Net profit • Return on assets • Return on investment • Earnings per share (EPS)

Financial AnalysisWe can calculate various financial ratios that can help you to analyze your business and the product lines to make appropriate decisions:

• Liquidity ratios • Leverage Ratios.

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Technology and data security

AIM Group has state of the art technology infrastructure, including a robust LAN/WAN set-up, sophisticated servers with advanced security software and applications, real-time data backup, dedicated and multiple Internet lines, 24x7 access and virtual private networks that enable us to inte-grate with client sites.

All AIM Group’s clients data is kept in our highly secure hosting centre in a jurisdiction that has been selected specifically for its internationally renowned, highly developed standards of data confidentiality and protection. Access to this data is subject to multiple restriction levels.

Selected user groups around the world enjoy around-the-clock secure service access to com-pany-critical information over the internet using Virtual Private Networks (VPNs), web clients, remote terminal services, and specific network protocols such as SSH. Our IT department can cater for the technical set-up that suits your requirements best and provides the desired level of comfort.

In addition to the infrastructure backbone, we have access to global knowledge having vast library of most of the databases and software that are used by the industry to provide comprehensive Finance and Accounting Outsourcing solutions.

Our team are well trained and experienced on multiple platforms including but not limited to the following:

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AIM Group offers Finance and Accounting Outsourcing services built around a 360o system of quality. Traditionally a single process could have multiple parties taking responsibility for small bits and pieces of the whole process chain. By employing a 360o approach, we migrate each of the vari-ous processes to a combined single site. This reduces the touch-points and cycle time and increases the quality and security of each transaction. Offering quality in every transaction is part of our brand promise.

This dedication has led us to achieve Six Sigma levels of quality which will be fortified by quality and security certifications currently applied for.

Service MethodologyAt AIM Group we always try to add value to customers by providing timely services by adher-

ing to the service level agreements. In order to ensure smooth and proper flow of activities it is import-ant that the way by which we operate has a clear structure. Process check list, process documentation, Quality Checks (QC), Peer to Peer audit, review by experts etc. are some of the techniques which we follow in order to ensure accurate output is delivered to clients.

Quality assurance

Correction required

Work accepted by Client

Billing

No review notes

Evaluation of work by certified accountant

Final work processed and forwarded to dedicated

certified accountant

Review notes

Sent to client for clarification

Incorporation of clarification

by the receiver/reviewer

Clarification received from client

Client upload documents to secure server

Secured documents received by AIM Group

Documents are forwarded to reviewer along

with review notes if any

Preparer:Organize the documents

Feeding in the systemMarking/Ticking

Review notesSelf review

Reviewer checks:Documents and ticking

Accuracy of workReview notes

Self review

AIM Group has implemented various controls and monitors it continuously to ensure security is delivered according to the commitments. We have always been highly conscious of handling sensi-tive client and patient information with the utmost confidentiality.

The following areas are covered:

Physical Security Data/Network Security Confidentiality

Physical Security • Access to work areas is controlled by proximity access card systems which is giv-en to each employee with his photograph, contact details, etc. and every entry to and exit from work is duly recorded.

• Lockers are allotted to every employee to ensure that he doesn’t carry his/her per-sonal belongings on the shop floor.

• There is a single entry/exit point, which is monitored 24 X 7 by trained security pro-fessionals.

• Latest Close Circuit TV (CCTV) in-stalled in all rooms and important public areas like passages, conference rooms, open area, etc.

• Latest DVR facility to simultaneously record 16 Video channels of CCTV with a capacity of retaining the recordings up to 15 days.

• Fire security and alarm system consist-ing of smoke and heat detectors, sensors, and a complete control panel in the Guard Room. Fire-fighting equipments are also in-stalled.

• 24-hour Security Guard at the building

• Random audits are carried out to en-sure security policies are followed. Non Compliance of the same leads to disci-plinary action.

Data/Network Security • Every employee has it’s unique us-ername and password to access his/her workstation.

• Electronic Devices such as mobile phones, PDA etc. are not allowed on the production floor, the USB ports and other media drives are disabled.

• Continuous monitoring of the web traffic and disciplinary actions are taken for any violations.

• Use of secured line (128 bit SSL) to access and transmit data from servers.

• Access to the local drives of our serv-er are restricted based on the process the employee are assigned to.

• Appropriate backup mechanism is in place to prevent data loss.

• Weekly updation of the anti virus pattern on every system.

Confidentiality • Every employee signs a Non-Disclo-sure Agreement at the time of recruit-ment and any breach of the same leads to termination of employment.

• Restricted access to internet web-sites and the same is allowed only if it is a process requirement.

• Continuous monitoring of the web traffic and disciplinary actions are taken for any violations.

Technology and data security

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PricingThere are different pricing models AIM Group offers to its clients, ranging from FTE to Hourly.FTE (Full Time Employee) basis

FTE basisThis is the pricing model whereby we deploy the equivalent number of dedicated full time

manpower as the client would have/had in its home country to suit its project needs. FTE is, in fact, provides the opportunity of having “Virtual Employee” in low cost offshore location with no employee liability. Under FTE model, dedicated Full Time Employee with dedicated infrastructure are assigned to the client’s project which not only helps in reducing the cost substantially but also ensures high project monitoring so as to ensure time and quality delivery.

Under FTE Model, the client is charged a fixed price per employee per month on the basis of number of people deployed. Charges vary from USD 1000 per month to USD 3000 per month de-pending on the set skill required, experience and expertise.

For stable workload, we recommend FTE pricing model which is more beneficial compared to Hourly Rate. FTE puts in 160 hours of work every month. AIM Group submits bills monthly, similar to your current salary expenses timing. The number of FTEs assigned to a project would depend on your demand.

Pricing

Pay as you goYou pay for hours that you want in advance, say 100 hours in a month. We dedicate a re-

source pool to you for 100 hours. If there are more hours put in than 100, then AIM Group submits extra bill. Advantages of this system are Quick Turn-Around Time and in summary it is alternative version of FTE model.

Post ServicingYou allocate us a job, we complete it and bill you for the hours spent at a rate finalized. Turn-

Around Time is higher in this system as there is no resource pool allocated to you. This model is more suitable for small and ad-hoc outsourcing requirement.

Bookkeeper USD 1000 per month

Accountant USD USD 1400 per month

Senior Accountant USD USD 1850 per month

Accountant USD USD 12 per hour

Senior Accountant USD USD 15 per hour

Staff Accountant

In – House Accountant versus Outsourced Accountant Comparison

Annual SalaryPayroll Taxes (10%)(a)

Employee Benefits (20%)(a)

THE BOTTOM LINE

In-HouseAccountant

USD 41,800USD 4,180USD 8,360

USD 54,340

Outsouced Accountant

USD 16,800NoneNone

USD 16,800

SavingsPercentage

60%100%100%69%

Annual Savings

USD 25,000USD 4,180USD 8,360

USD 37,540

Note: (a) the figures are provided for comparison purposes only. Actual savings may vary.

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ONSHORE

OFFSHORE

Serviceassimilation

study

Servicedelivery

enhancement

Serviceopportunity

identification

SLAbased service

delivery

Servicesolution

definition

Servicepilot tand

review

SERVICESTRANSITION

Next stepsNext steps

AIM Group follows a structured way of work flow where there is a clear cut understanding mechanism as to what are the key input requirements, source and time of receiving inputs, process methodology, output requirement as per service levels and the final output to the clients.

At AIM Group, operational excellence is at the heart of everything we do. Our quality value proposition is based on our service delivery value chain – Understanding the Client’s Business, Transi-tion, Stabilize and Improve.

Understanding Business Process to be outsourcedWe work with small business owners or firms to understand their accounting needs and iden-

tify accounting processes that needs to be outsourced. At the end of this phase our customers will have an overall understanding of our accounting system to satisfy their unique requirements.

Feasibility Study and overall process mappingWe work with our customers to create various accounting process mapping activities to in-

tegrate between the internal accounting processes and the offshore accounting business processes. At this phase we will determine the entire solutions and the cost efficiency of the accounting to our clients.

Business Process Migration/TransitionWe execute the work to our offshore locations. We coordinate extensively with our custom-

ers and report the project status regularly to our customers. During this stage we create digital process manual to execute work at our offshore facility.

Business Process Stabilization and DeliveryIn this final phase, accounting business process solution is implemented. We work closely

with our client’s team for knowledge transfer and monitor accounting process flow performance.

We can undertake any type of accounting and financial projects to custom suite your small business needs and requirements.

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Company, Team

Pavel Prysiazhniuk CEOPavel is a CEO of AIM Group with over 14 years of experience on the executive positions in international corporations in sales, strategy and finance.

Has proven track record in consulting and investment banking industries with fo-cus on Financial Services, IT and Cloud Services.

He was in charge of development and implementation of new products, business models and services for mining & metal, power & utilities, oil & gas and consumer industries.

Pavel has gained a deep expertise in Management Consulting and Financial Advi-sory Services occupying executive positions in such international corporations as Siemens AG and Microsoft.

Was deeply involved in Cloud Services promotion and various complex IT projects communications at Nokia Networks.

Yuriy LypkaDIRECTOR

Yuriy is a Director in AIM Group consulting practice. He has more than 8 years of extensive experience in accountancy, audit practice and financial management.

Auditor with Ernst & Young in 2007 – 2009, conducting financial statements au-dits in accordance with IFRS, US GAAP, Swiss GAAP. Strong background in met-allurgy, trade, glass, agriculture, confectionery, transportation, financial services. Good knowledge and support in implementation of SAP, IT Enterprise, 1C.

2010 – 2011, Yuriy was a senior executive in transaction support department. He has a track record in more than 15 projects in due diligence of companies in variousindustries all over CIS an Europe.

Yuriy is a member of the Association of Chartered Certified Accountants (ACCA) since 2011.

Pavel StolayevDIRECTOR

Pavel is a Director in AIM Group outsourcing practice. He has brought unique in-sight to the practice gained from extensive experience as an accountant.

In his role as a financial controller, he managed books for various companies from Ukraine and European Union.

Pavel qualified as a member of Association of Certified Chartered Accountants (ACCA) in 2011.

2008 – 2011 Pavel worked in Ernst & Young, global leading audit and consultancy practice. He has proven track record in more than 15 projects for companies in theCIS and European Union from mining and metals, agriculture, telecommunica-tions, oil and gas sectors.

Detailed below are the steps to get your outsourcing process started with:You Provide InformationWe request as much information about your requirements, plans and business overview as

possible. We want to understand you and your needs as the first step. The most important part of this step is to complete the rapid reply form. Following which, we will exchange as many emails and calls as necessary to make sure we understand what is involved.

You understand the processIt is helpful for you to understand the outsourcing process end to end. We, therefore, quickly

educate you with the entire business outsourcing process and what is involved. We understand that your requirements are unique and require a flexible and customized process. We therefore customize our processes to best suit your financial needs and business goals and educate you at each and every step on the way.

Queries and ClarificationsWe try our best to make things very clear before we sign any contracts, so we request cus-

tomers with any doubts/clarifications or questions which they may have. Also we try to provide as detailed answers to your query to remove any ambiguity. We will adapt and improve our process, if need be, as per discussions, we don’t wish to remain a vendor, but become an indispensable part of your organization.

Negotiate the deal and sign the contractWe promise to offer you with industry competitive prices, and view our engagement in the

long term. We try not to charge customized pricing, until and unless necessary. Our pricing is tailored to suit your individual needs and requirements. Our pricing plans include working at a Full Time/Part time Equivalent (FTE) or Time and Material. You choose whatever makes you most comfortable. We are very flexible in our pricing approach and want to involve you in the process.

Send paymentThe wiring and payment details will be sent to you. Most businesses prefer to wire to our bank directly.

Begin our engagement, give feedback, start to receive outsourcing benefits and see expectations met & superseded

We get started on our business process. Your feedback is invited and is highly regarded and will be highly appreciated. Together we embark on achieving our objective, which is maximizing the performance of your finance and accounting function and through it your business success.

Next steps

45 – 49, Vozdvyzhenska Str. Kyiv 04071

cell: +380 95 389 92 52e-mail:pavels@aim-partners.com

www.aim-group.com.ua