The 10 most Frequently Asked Questions (FAQ) that we have received during the past moths:
- Why outsource and why XACCT?
- What transactions should I outsource through XACCT?
- What is the difference between XACCT and other accounting software like PeachTree or QuickBooks?
- What is the difference between our services and those of an Application Service Provider ("ASP"), like ePeachTree, NetLedger, etc.?
- What is the difference between our services and those offered by on-line banking?
- Do I need to fire my current accountant and/or CPA?
- How do we maintain open lines of communications? And by the way….Where are you?
- Is my information truly confidential?
- How secure is my information?
- What happens in case of natural emergencies (e.g. a Hurricane) or if I need a check right away?
In today’s business environment it is impossible for a businessperson to be an expert in everything. Outsourcing is recognized as a powerful tool for business growth, but up until now was reserved for only the largest companies. The strategy involves outsourcing specific functions to specialized third parties, allowing you and your personnel to:
- Focus on core business strategies to increase revenue
- Gain specialized service and expertise at a fraction of the cost of a fulltime employee
- Achieve organizational flexibility
- Build and sustain a competitive advantage
- Obtain access to leading edge technology
- Benefit from qualified and trained staff
- Reduce payroll headcount and costs
To succeed in today’s fast changing marketplace, companies must embrace new ways of doing business. Outsourcing is the answer, and XACCT provides the means. We are the leaders of the new trend to outsource accounting functions over the Internet. If fact, we are not aware of any other organization that is offering such a complete set of services to fulfill your non-core financial functions. Our 7 years in business have allowed us to study the fastest and most effective way to handle common day-to-day business processes and have designed, programmed and implemented the most effective technology available. You can rest assured that, with our service, your business will operate with the highest efficiency possible.
What transactions should I outsource through XACCT?
All transactions that can be processed by a qualified third party under a secure and confidential arrangement and that will save you time and money should be outsourced. Accounting functions can be divided into accounting for core transactions and non-core transactions. The core transactions of a business relate directly to the main revenue cycle. In other words, core transactions are the reason for being in business in the first place (retailers sell inventory, thus inventory accounting would be considered a core function, etc.) and usually they are unique to each individual business. The non-core transactions are all other transactions that do not directly affect your revenue cycle but that are an essential part of running and managing a sound business (e.g. payroll, financial reporting, etc.). These non-core transactions complement the core transactions and are usually similar in nature and form in all types of businesses and industries.
At XACCT, we provide accounting services for both types of transactions. Accounting for core transactions requires that we work very closely with our clients and therefore, it is generally billed on a per hour basis. As a general rule, it is more economical to maintain these functions in-house. On the other hand, for non-core transactions, XACCT provides full accounting services; including the recording, filling, processing and reporting of transactions.
What is the difference between XACCT and other accounting software like PeachTree or QuickBooks?
PeachTree and QuickBooks are cost effective accounting softwares that can be easily managed by accountants. Three things differentiate us the most:
- You do not have to be an accountant to effectively maximize the use of our system. To properly use PeachTree or QuickBooks you need to learn the software plus know the accounting basics. Our solution was developed with non-accountants in mind, who have limited time to spend on administrative burdens. XACCT is by far the simplest solution for handling your day-to-day needs.
- You only make informed decisions; we will handle all the data entry, and follow your instructions from then on. Accordingly, you can focus your time and energy, or that of your current assistants, on growing your business.
- You can stop worrying about having the latest software version, backing up your files, getting training, hiring or getting an MIS support contract, or maintaining your accounting software up and running. We cover all these needs for you.
- PeachTree and Quickbooks have no audit trails and minimal ability to limit what different employees can see or do. With XACCT you have a complete audit trails, which makes it easier for your auditor. Additionally, you choose specifically what employees see and what they can do.
What is the difference between our services and those offered by an Application Service Provider ("ASP"), like ePeachTree, NetLedger, etc.?
ASPs provide a great solution for outsourcing your accounting software’s MIS needs. It also allows you to benefit from having your data maintained and stored in a scalable data management software, e.g. ORACLE, Microsoft SQL 7, etc. However, working with these systems is basically the same as using PeachTree or QuickBooks, except that they are on-line and have scalable data management software. Therefore, since these ASPs basically provide an on-line accounting software, you will still need to learn how to use them, not to mention getting trained and/or knowing the accounting basics. In addition, you will still be using you and your employees’ valuable time and money in data entry and/or processing.
At XACCT, you have the same benefits as you would have if you outsource your MIS function using an ASP, except that it is FREE. You do not pay for using our software. We bill you for actual services rendered (e.g. checks prepared, invoices posted, etc.) and not for the access to our system. Being a full service provider of accounting functions PLUS an ASP at the same time, we will save you and your personnel, time and training costs, both in MIS and accounting matters. At the same time, you will benefit from on-line software that has a scalable database software tool (Microsoft SQL), and that is ready to grow with you.
Another critical aspect that you must consider before subscribing to an ASP service, either for your personal use or for its use by an employee or an outside third party, is that we have a conservative pricing strategy. At XACCT you only pay for actual services rendered. After all, that is the basis of any sound business. On the other hand, traditional ASPs are no different that other e-tailers and .com companies that operate under very thin margins, if any, and that incur substantial losses month by month. By reading any business magazine or the business section of your local newspaper, you can easily find and learn what is happening to these business models, they go belly up! Can you imagine what would happen if you’re financial records are maintained and stored in one of these unreliable ASP’s and they go bankrupt?
What is the difference between our services and those offered by on-line banking?
We admit it. On-line banking is great! But only for consumers. It is certainly limited for business clients. Our services complement and fulfill all those limitations. In most cases, the banks will provide the tools and training (of course with an installation and a monthly fee) but you still need to process everything and then transmit it to the bank. The main differences between on-line banking and XACCT are as follow:
XACCT |
On-line Banking |
|
| Bank Balance Information | X |
X |
| On-line Reconciliation of Bank Balance | X |
|
| Processes your Payroll | X |
|
| Prepares Payroll Checks and Tax Returns | X |
|
| Manages your Unpaid Invoices | X |
|
| Processes Payments (checks and electronic) | X |
X |
| Segregates Payments by Payee | X |
|
| Monitors Professional Svc Withholdings | X |
|
| Provides Different Authority Levels | X |
Limited |
| Provides Scanning of Invoices and Bills | X |
|
| Reports Deposits by Customer | X |
Limited |
| Follows Up on Receivables | X |
|
| Maintains Records of your Payees, Customers and Employees |
X |
Limited |
| Accounting Financial Reports | X |
|
| Provides Liquidity details | X |
Do I need to fire my current accountant and/or CPA?
No. If you currently have a full time accountant and/or a CPA, chances are you are not maximizing the benefits you receive against the cost they represent. Think about it, if you have a trained accountant that knows your business by heart – wouldn’t it be a good move to turn that knowledge into income generating activities and more useful projects, like improving controls, negotiating with vendors, analyzing data trends to get new business or re-financing your loans. By contracting our services, your accountant, currently representing an overhead cost, will have "available" time that can be used in more productive ways. He (she) will stop printing checks, generating financials, reconciling accounts or processing the same payroll checks, while still serving as our principal liaison and supervising and reviewing our work. Not only will you benefit from his (her) valuable knowledge, but also he or she will be more motivated and interested in the overall company’s performance. On the other hand, if you have accountants processing and mailing checks, reconciling bank statements and processing payroll, there is an opportunity to reduce your costs.
Same rationale applies to your current CPA, if any. CPAs in general will bill you by the hour. Since all your records will be organized for your tax returns, audit, review or compilation at years-end, your CPA can focus more time on consulting services and value added suggestions for improvement. The better your records are organized, the less time your CPA will spend reviewing them, which ultimately translates into lower costs for you. In fact, you can even get him a User ID, so that he can review your information on-line.
How do we maintain open lines of communications? And by the way…. Where are you?
By using the integrated e-mail capabilities of the software, we are able to maintain open lines of communication. Just click on the notes next to each Payee, Customer or Employee and you can give instructions or ask questions. The email becomes a ‘task’ for us and will be responded to within 2 days. Finally, the risk of miscommunications decreases significantly as you can review past and pending tasks.
It really does not matter where we are located because we are prepared to fully service your account on-line. We receive and send all your documents by messenger, facsimile or e-mail. You can pay any Payee or Employee electronically within the United States and you can download all your financial information directly from the Web site. If any Employee or Payee prefers a check, you can have your signature securely encrypted into our magnetic generated checks, and we will gladly mail the checks for you.
Anyway, and to satisfy your curiosity, our offices are located in San Juan, Puerto Rico.
Is my information maintained confidential?
All of your information is maintained in total confidentiality. We don’t provide your information, to any Payee, Customer, bank or regulatory agency, unless you have previously authorized it in writing.
In addition, you must consider and understand that we service your accounting and financial needs. We do not care for mass advertising or Internet traffic. It is simply NOT our business. Thus, we do not use your information for any marketing or advertising campaign. Period.
As secure as is technologically possible. We have put together the most reliable and secure software available in the market today. Once you have successfully logged-in, all information transmitted between us is encrypted. All Fortune 500 companies with web presence use this technological to transmit information. We also maintain a thorough control over the User Ids and the Password security, to the extent that even WE don’t know your password. If you forget your password, we must assign you a different User ID and you must set up a new password (of course we would invalidate the old User ID). Furthermore, we make daily back ups of all your information in specially designed hardware and using the latest state of the art technology.
Please refer to the Security and Privacy Section for detailed information about our security and privacy measures.
What happens in case of natural emergencies (e.g. a Hurricane) or if I need a check right away?
For natural emergencies, for example, Hurricanes, we have set up a contingency plan, which includes a Power Generator and alternative lines to the Internet. Accordingly, most of our services should be readily available even if communication lines and/or electricity goes down.
You should always maintain a reserve of unused checks, in case you need one right away. If you don’t have any left, just let us know and we will provide you with temporary blank checks. Should you need to use any of these checks, just write the check as you do with your personal checking account. Once the check has cleared the bank, we will recognize the manual payment in our records.
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