I live in South Carolina and (along with others in my company) do the entire billing function (including accounting) for a company out of California.
Is this pretty common since the cost of employees is so much cheaper?
As you can probably tell, I haven' t been at this job long.
Yes. Since it's extremely common. Even for the so-called "top-notch" jobs. In fact so common that we've even been outsoucing to Chinese Accountants, Since the only thing the idiots in California know about the entire
field of software out-sourcing is Paul McCartney and Sprint.
wrote
There are lots of reasons to outsource certain accounting functions, and employee costs are just one of them.
Yes, I would venture to say that the employee and overhead costs in South Carolina are much cheaper than in Southern California. Your employer probably bid on the job and was low (or among the lowest) bidder.
Other benefits to outsourcing part or all of the A/R function has to do with efficiency. And since you haven't been with that employer very long, you might not see the whole picture. They may only be doing a portion of the client work. They may only have the entire eastern half of the country, and some other business like yours in Colorado is working the western half. Set-ups like that make for speedier billings and deposits because you're not waiting on the mail to run from NY to CA to get paid.
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