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Outsourcing Diagnostic Tool

"Do what you can do best and outsource the rest"

Here you can find an on-line Outsourcing Diagnostic Tool to help you determine whether to outsource accounting services. Just answer the following 14 questions and then click on "Calculate!" button:

Core/noncore activity:
Accounting IS NOT a core activity for our organization (not a core business):

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here
Reduce service/increase service:
With outsourcing we'd have more time for serving our clientele:

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here
Less flexible/more flexible:
Outsourcing might be more flexible, to vary with our seasonal needs:

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here
High risk/lower risk:
We don't know how hiring an employee will work out - with outsourcing there is less risk:

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here
Easy to maintain/difficult to maintain:
It's difficult to establish/maintain and manage our own accounting department:

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here
Difficult to outsource/easy to outsource:
It's easy to find an outsource firm to provide the accounting services we need:

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here
Inability to grow/ability to grow:
If our organization grows, we can easily add services if we outsource:

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here
Staffing: Inefficiencies/increased efficiency:
Efficiency could increase if specialists do the accounting:

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here
Staffing: Instability/stability:
There is much turnover in our organization:

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here
Staffing: Stagnant ideas/new ideas:
The outsourcing firm is up to date on all the latest accounting information and can bring new ideas and knowledge:

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here
Staffing: Basic skills/cutting edge skills:
The outsourcing firm has better knowledge of relevant rules and regulation and is more experienced in dealing with local authorities:

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here
Higher operating costs/lower operating costs:
Cost of outsourcing may be lower - based on proposals received (or estimation):

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here
Fixed costs/variable costs:
Our organization likes variable costs - we prefer billings based upon the contractual rate per hour and the amount of time spent on each activity:

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here
Small capital requirements/large capital requirements:
Accounting by ourselves (without outsourcing) would entail a large capital requirements (PCs, office equipment, etc.):

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
Does not apply here

Source: Journal of Accountancy, Nov 2001

Outsourcing Diagnostic Tool

"Do what you can do best and outsource the rest"

Core/noncore activity:
Accounting IS NOT a core activity for our organization (not a core business):

Reduce service/increase service:
With outsourcing we'd have more time for serving our clientele:

Less flexible/more flexible:
Outsourcing might be more flexible, to vary with our seasonal needs:

High risk/lower risk:
We don't know how hiring an employee will work out - with outsourcing there is less risk:

Easy to maintain/difficult to maintain:
It's difficult to establish/maintain and manage our own accounting department:

Difficult to outsource/easy to outsource:
It's easy to find an outsource firm to provide the accounting services we need:

Inability to grow/ability to grow:
If our organization grows, we can easily add services if we outsource:

Staffing: Inefficiencies/increased efficiency:
Efficiency could increase if specialists do the accounting:

Staffing: Instability/stability:
There is much turnover in our organization:

Staffing: Stagnant ideas/new ideas:
The outsourcing firm is up to date on all the latest accounting information and can bring new ideas and knowledge:

Staffing: Basic skills/cutting edge skills:
The outsourcing firm has better knowledge of relevant rules and regulation and is more experienced in dealing with local authorities:

Higher operating costs/lower operating costs:
Cost of outsourcing may be lower - based on proposals received (or estimation):

Fixed costs/variable costs:
Our organization likes variable costs - we prefer billings based upon the contractual rate per hour and the amount of time spent on each activity:

Small capital requirements/large capital requirements:
Accounting by ourselves (without outsourcing) would entail a large capital requirements (PCs, office equipment, etc.):

Outsourcing Diagnostic Tool

"Do what you can do best and outsource the rest"

Core/noncore activity: Accounting IS NOT a core activity for our organization (not a core business):

Reduce service/increase service: With outsourcing we'd have more time for serving our clientele:

Less flexible/more flexible: Outsourcing might be more flexible, to vary with our seasonal needs:

High risk/lower risk: We don't know how hiring an employee will work out - with outsourcing there is less risk:

Easy to maintain/difficult to maintain: It's difficult to establish/maintain and manage our own accounting department:

Difficult to outsource/easy to outsource: It's easy to find an outsource firm to provide the accounting services we need:

Inability to grow/ability to grow: If our organization grows, we can easily add services if we outsource:

Staffing: Inefficiencies/increased efficiency: Efficiency could increase if specialists do the accounting:

Staffing: Instability/stability: There is much turnover in our organization:

Staffing: Stagnant ideas/new ideas: The outsourcing firm is up to date on all the latest accounting information and can bring new ideas and knowledge:

Staffing: Basic skills/cutting edge skills: The outsourcing firm has better knowledge of relevant rules and regulation and is more experienced in dealing with local authorities:

Higher operating costs/lower operating costs: Cost of outsourcing may be lower - based on proposals received (or estimation):

Fixed costs/variable costs: Our organization likes variable costs - we prefer billings based upon the contractual rate per hour and the amount of time spent on each activity:

Small capital requirements/large capital requirements: Accounting by ourselves (without outsourcing) would entail a large capital requirements (PCs, office equipment, etc.):

Core/noncore activity:
Accounting IS NOT a core activity for our organization (not a core business):

Reduce service/increase service:
With outsourcing we'd have more time for serving our clientele:

Less flexible/more flexible:
Outsourcing might be more flexible, to vary with our seasonal needs:

High risk/lower risk:
We don't know how hiring an employee will work out - with outsourcing there is less risk:

Easy to maintain/difficult to maintain:
It's difficult to establish/maintain and manage our own accounting department:

Difficult to outsource/easy to outsource:
It's easy to find an outsource firm to provide the accounting services we need:

Inability to grow/ability to grow:
If our organization grows, we can easily add services if we outsource:

Staffing: Inefficiencies/increased efficiency:
Efficiency could increase if specialists do the accounting:

Staffing: Instability/stability:
There is much turnover in our organization:

Staffing: Stagnant ideas/new ideas:
The outsourcing firm is up to date on all the latest accounting information and can bring new ideas and knowledge:

Staffing: Basic skills/cutting edge skills:
The outsourcing firm has better knowledge of relevant rules and regulation and is more experienced in dealing with local authorities:

Higher operating costs/lower operating costs:
Cost of outsourcing may be lower - based on proposals received (or estimation):

Fixed costs/variable costs:
Our organization likes variable costs - we prefer billings based upon the contractual rate per hour and the amount of time spent on each activity:

Small capital requirements/large capital requirements:
Accounting by ourselves (without outsourcing) would entail a large capital requirements (PCs, office equipment, etc.):