BPO

Accounting BPO

Well-executed accounting is crucial for the success of any business, as it focuses on the accuracy of numbers, reducing the tax burden, providing information for audits and inspections, and avoiding unpleasant surprises with tax and accounting contingencies.

To turn accounting into a competitive advantage, you need to go beyond the activities of delivering tax obligations, and this is where Accounting BPO (Business Process Outsourcing or Business Process Outsourcing) comes in.

This solution includes outsourcing of accounting routines, providing reports and supporting business partners, controllers, CFOs, directors, and managers in data analysis so they can identify growth opportunities, improve financial efficiency, and reduce costs.

By hiring Accounting BPO, you can focus on your core business while we manage operational activities.

Accounting BPO Services:

Our expert team, a substantial portion of whom are bilingual, coupled with cutting-edge technology, takes care of all your accounting records and the preparation of financial statements. We also offer additional reports to bolster your decision-making process. Our primary focus is to enhance regulatory compliance and minimize tax expenses, and our dedicated team is fully prepared to support your company in reaching its goals.

Moreover, we provide tailored accounting services to meet your company’s unique requirements. These services encompass the creation of asset valuation reports, comprehensive accounting reviews and refinements, and assistance in establishing companies, including foreign subsidiaries and branches, among other specialized offerings.

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Main activities

Accounting record-keeping for company operations
Systematic management of fixed assets, transactions, and depreciation
Recognition of accounting revenue, including under the PoC method
Posting and reversal of accounting provisions
Reconciliation of balance sheet accounts and compilation of reconciliation reports
Preparation of monthly and quarterly financial statements
Adherence to accounting standards such as IFRS, US GAAP, and others
Management of accounts payable and accounts receivable
Preparation of comprehensive financial statements, including explanatory notes and other relevant documents
Handling of annual accounting declarations such as ECD, ECF, DEFIS, as well as CBE, Censo, and SCE-IED reports for BACEN compliance
Collaborating with auditing processes

When is the best time to outsource accounting?

When managing your company’s accounting becomes increasingly challenging, this may indicate that outsourcing should be considered.

One of the primary advantages of outsourcing accounting is gaining access to advanced technology and expertise. Cost reduction is also an important factor to consider, as hiring an in-house team to handle all accounting tasks and manage that team can be more expensive than outsourcing.

If you are busy overseeing other aspects of your business and don’t have enough time to handle accounting, outsourcing may be the best option.

Furthermore, suppose you lack sufficient experience in accounting, are encountering frequent errors, or are struggling to keep up with changes in tax legislation. In that case, outsourcing can help avoid mistakes and ensure compliance.

Lastly, if your business is growing rapidly, and accounting is becoming more complex and time-consuming, outsourcing can assist in managing that growth and ensuring everything runs smoothly.
What are the main advantages of Accounting BPO?

With Bernhoeft, you have a strategic and productive partnership in Accounting BPO. We don’t divide our team into departments; instead, we organize them into service cells, comprised of specialists in various accounting areas.

These cells handle a range of clients and become experts in each segment, enabling us to provide excellent service to companies of all sizes and industries.

By choosing us, you not only outsource your accounting processes but also gain access to our technology, experienced experts, and streamlined procedures. Additionally, you can significantly reduce costs related to infrastructure, team management, and more.

This allows your company to become more competitive and efficient while offering greater security and assurance of quality in your accounting processes.
What technology is used in Accounting BPO?

We offer accounting consulting services using technology to ensure security, speed, and quality in managing information. We have the flexibility to perform tasks both at Bernhoeft and at the client’s office, and we can run the accounting in our system or your company’s ERP, whether it’s SAP, Oracle, TOTVS, Sankhya, or another, as long as it’s capable of exporting the necessary files to meet the tax obligations required by tax authorities.

When your accounting is conducted in our accounting system, we leverage tools that automatically capture incoming and outgoing NFs-e (Service Invoice) and CTs-e (Transportation Invoice), bringing efficiency and security to your day-to-day operations. Our technologies monitor outstanding matters, generate electronic Compliance Certificates (CNDs), and automate processes.

Additionally, through our customer portal, you have access to updated documents not only for the current month but also for previous months. This includes accounting reports, tax documents, and those related to payroll when we are responsible for all these BPOs.

Using the dashboard, you can access charts and indicators related to your accounting, enabling a more comprehensive financial analysis of the company. With this tool, you can use the information for short, medium, and long-term planning, and the displayed data allows you to visualize liquidity ratios, profitability charts, and compositions, among others.

We are constantly exploring new technologies and tools to further enhance our services and ensure customer satisfaction.
What is the transition of services like?

When you outsource your accounting to us, you will receive full support during the transition of services.

Initially, we will conduct an onboarding meeting to understand details about your company’s operations, relevant controls, define timelines, procedures, and other essential aspects to ensure a smooth and seamless transition. Based on the documentation received, we will proceed with configuring the accounting system, setting up cost centers, importing previous balances, and working on the integration of financial data between your system and ours.

Simultaneously, we will provide lists of documents that the company needs to maintain in its records, which the previous service provider will send to us, and those that we will need to receive from the company on a monthly basis to work with the monthly records.

Throughout the transition, our team will also provide training to enable your employees to efficiently use the online platform and help managers extract relevant information from the accounting system.
What is the day-to-day customer service like?

Our day-to-day customer service is provided by a specialized team of experienced and qualified professionals. We have technology experts to ensure that our platform is always up-to-date and meeting the needs of our clients.

To ensure the best possible experience, part of our team is bilingual, which means we are prepared to assist clients of different nationalities, whether they are located in Brazil or abroad.

We also offer various communication channels, such as phone, email, and chat, so you can choose the most convenient way to get in touch with us.

Our goal is to provide quality service with personalized and efficient support, coupled with an advanced technological platform that enables streamlined processes, information security, and meeting deadlines.

When is the best time to outsource accounting?
What are the main advantages of Accounting BPO?
What technology is used in Accounting BPO?
What is the transition of services like?
What is the day-to-day customer service like?

When is the best time to outsource accounting?

When managing your company’s accounting becomes increasingly challenging, this may indicate that outsourcing should be considered.

One of the primary advantages of outsourcing accounting is gaining access to advanced technology and expertise. Cost reduction is also an important factor to consider, as hiring an in-house team to handle all accounting tasks and manage that team can be more expensive than outsourcing.

If you are busy overseeing other aspects of your business and don’t have enough time to handle accounting, outsourcing may be the best option.

Furthermore, suppose you lack sufficient experience in accounting, are encountering frequent errors, or are struggling to keep up with changes in tax legislation. In that case, outsourcing can help avoid mistakes and ensure compliance.

Lastly, if your business is growing rapidly, and accounting is becoming more complex and time-consuming, outsourcing can assist in managing that growth and ensuring everything runs smoothly.
What are the main advantages of Accounting BPO?

With Bernhoeft, you have a strategic and productive partnership in Accounting BPO. We don’t divide our team into departments; instead, we organize them into service cells, comprised of specialists in various accounting areas.

These cells handle a range of clients and become experts in each segment, enabling us to provide excellent service to companies of all sizes and industries.

By choosing us, you not only outsource your accounting processes but also gain access to our technology, experienced experts, and streamlined procedures. Additionally, you can significantly reduce costs related to infrastructure, team management, and more.

This allows your company to become more competitive and efficient while offering greater security and assurance of quality in your accounting processes.
What technology is used in Accounting BPO?

We offer accounting consulting services using technology to ensure security, speed, and quality in managing information. We have the flexibility to perform tasks both at Bernhoeft and at the client’s office, and we can run the accounting in our system or your company’s ERP, whether it’s SAP, Oracle, TOTVS, Sankhya, or another, as long as it’s capable of exporting the necessary files to meet the tax obligations required by tax authorities.

When your accounting is conducted in our accounting system, we leverage tools that automatically capture incoming and outgoing NFs-e (Service Invoice) and CTs-e (Transportation Invoice), bringing efficiency and security to your day-to-day operations. Our technologies monitor outstanding matters, generate electronic Compliance Certificates (CNDs), and automate processes.

Additionally, through our customer portal, you have access to updated documents not only for the current month but also for previous months. This includes accounting reports, tax documents, and those related to payroll when we are responsible for all these BPOs.

Using the dashboard, you can access charts and indicators related to your accounting, enabling a more comprehensive financial analysis of the company. With this tool, you can use the information for short, medium, and long-term planning, and the displayed data allows you to visualize liquidity ratios, profitability charts, and compositions, among others.

We are constantly exploring new technologies and tools to further enhance our services and ensure customer satisfaction.
What is the transition of services like?

When you outsource your accounting to us, you will receive full support during the transition of services.

Initially, we will conduct an onboarding meeting to understand details about your company’s operations, relevant controls, define timelines, procedures, and other essential aspects to ensure a smooth and seamless transition. Based on the documentation received, we will proceed with configuring the accounting system, setting up cost centers, importing previous balances, and working on the integration of financial data between your system and ours.

Simultaneously, we will provide lists of documents that the company needs to maintain in its records, which the previous service provider will send to us, and those that we will need to receive from the company on a monthly basis to work with the monthly records.

Throughout the transition, our team will also provide training to enable your employees to efficiently use the online platform and help managers extract relevant information from the accounting system.
What is the day-to-day customer service like?

Our day-to-day customer service is provided by a specialized team of experienced and qualified professionals. We have technology experts to ensure that our platform is always up-to-date and meeting the needs of our clients.

To ensure the best possible experience, part of our team is bilingual, which means we are prepared to assist clients of different nationalities, whether they are located in Brazil or abroad.

We also offer various communication channels, such as phone, email, and chat, so you can choose the most convenient way to get in touch with us.

Our goal is to provide quality service with personalized and efficient support, coupled with an advanced technological platform that enables streamlined processes, information security, and meeting deadlines.

Successful case

Understand how BPO Contábil helped our clients!

Fraud Detection

We partnered with a nationwide law firm boasting six offices. Each office managed its own financial operations, while a central controller’s office oversaw information consolidation and financial report preparation.

We handled payroll processing, calculation of labor and social charges, tax calculations, preparation of supplementary declarations, accounting routines, and monthly financial statement closure.

In a particular month, we noticed that some DARFs (tax payment vouchers) had the same authentication codes for different payments. This raised suspicion, and we decided to check the e-Cac portal of the Federal Revenue Service. That’s when we discovered that these payments were not recorded in the tax authorities’ system.

At that point, we informed the law firm’s partner to explain our concerns. It was later confirmed that the payment vouchers had been tampered with and did not accurately reflect the actual financial transactions.

We took swift action to identify the fraud and safeguard the law firm. Thanks to our accounting, tax, and payroll BPO services, the law firm gained greater security and confidence in its financial processes, along with better control over its finances.

Tax Burden Reduction through JSCP

We served an engineering company that was subject to real profit taxation and had been compensating its partners through pro labore payments and profit distribution. Upon taking over their accounting, we conducted a detailed analysis of their financial and fiscal situation, aiming to identify opportunities for reducing the tax burden. It was during this analysis that we realized the company could benefit from accounting for and paying Interest on Own Capital (JSCP), given its annual profit realization.

While JSCP is one of the legal methods for partner compensation, it is underutilized by many medium-sized enterprises. We recommended implementing this type of compensation to the company, primarily due to the potential tax savings it could generate.

By utilizing JSCP, the company would incur a 15% income tax cost, which would be withheld at the source. Simultaneously, they could deduct the amount recorded as JSCP from their profit. This approach would result in reduced calculations for Corporate Income Tax (IRPJ) and Social Contribution on Net Profit (CSLL), leading to lower tax liabilities. In practice, the company would pay the 15% income tax withheld at the source but avoid the 34% charge on the JSCP amount, resulting in a 19% tax savings.

In a specific need for the same client, we went a step further and proposed an additional measure to address their requirements. When they were seeking to participate in a particular bid, increasing the company’s registered capital was necessary. Therefore, we recommended that the capital increase be achieved through capitalizing the unpaid JSCP. This approach not only fulfilled the capital increase requirement but also contributed to further tax burden reduction.

They are already with us!

Request a proposal

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In the agribusiness sector, where operations are often spread across vast areas and involve diverse activities, managing contractor risk is crucial to maintaining safety, productivity, and regulatory compliance. Whether dealing with seasonal labor, specialized equipment operators, or third-party service providers, the risks associated with contractors can have significant implications for agribusinesses. Effective contractor risk management is essential to address these challenges and protect the integrity of the agricultural operations. The unique challenges of contractor risk management in agribusiness Agribusinesses face a variety of challenges when it comes to managing Vendor risks. Here are some of the most pressing issues: Seasonal and temporary workforce: Challenge: The agribusiness sector heavily relies on a seasonal and temporary workforce to manage planting, harvesting, and processing. This workforce often includes contractors who may not be fully integrated into the company’s safety culture. Impact: The temporary nature of these workers can lead to inconsistent safety practices and increased risk of accidents, especially when handling heavy machinery or working in hazardous conditions. Diverse operations: Challenge: Agribusinesses often involve a wide range of operations, from crop production to livestock management, each with its own set of risks. Contractors may be required for specialized tasks such as pesticide application, equipment maintenance, or logistics, each bringing unique risks. Impact: Managing the various risks associated with different types of contractors can be complex, particularly when ensuring compliance with industry-specific regulations. Regulatory compliance: Challenge: The agribusiness sector is subject to numerous regulations, including those related to environmental protection, worker safety, and food safety standards. Ensuring that all contractors comply with these regulations is a critical aspect of CRM. Impact: Non-compliance can lead to severe penalties, legal liabilities, and damage to the company’s reputation. Geographic dispersal: Challenge: Agribusinesses often operate across multiple locations, sometimes in remote or rural areas. Coordinating contractor activities and maintaining consistent safety and compliance standards across dispersed sites can be challenging. Impact: The physical distance can lead to gaps in oversight, increasing the likelihood of accidents or non-compliance with regulations. Key documentation for contractor risk management in agribusiness To effectively manage contractor risks, agribusinesses should maintain comprehensive documentation. Here are some key documents to include: Safety protocols and training records: Contractors should receive thorough safety training specific to the agribusiness environment. Documentation should include records of training sessions, safety protocols, and acknowledgment forms signed by contractors. Contracts and service agreements: Contracts should clearly outline the scope of work, safety expectations, compliance requirements, and liability clauses. These agreements serve as the foundation for managing contractor relationships and ensuring accountability. Compliance checklists: Develop checklists for regulatory compliance that contractors must follow. These checklists should cover industry-specific regulations, such as pesticide application standards, food safety protocols, and environmental regulations. Insurance documentation: Ensure that all contractors provide proof of adequate insurance coverage, including general liability, workers’ compensation, and any specialized insurance relevant to the tasks they will perform. Incident reports and audits: Maintain detailed records of any incidents involving contractors, including near-misses, accidents, or safety violations. Regular audits of contractor performance and compliance with safety protocols should also be documented. There are some strategies for mitigating Contractor Risks in Agribusiness and this requires a proactive and structured approach. Here are some strategies to consider: Thorough vetting process: Conduct a comprehensive vetting process before hiring contractors. Evaluate their safety records, compliance history, and ability to meet the specific needs of the agribusiness. Pre-qualification assessments can help identify high-risk contractors before they are engaged. Regular training and updates: Provide regular training sessions for contractors, tailored to the specific risks and regulations of the agribusiness sector. Ensure that contractors are updated on any changes in safety protocols or regulatory requirements. Bernhoeft Academy can be a good alternative for your vendors. Implementing a centralized management system: Use a centralized system to track contractor activities, compliance status, and documentation across all locations. This can help maintain consistency in safety practices and regulatory compliance, even in geographically dispersed operations. Engagement and communication: Foster open communication between your company, Bernhoeft and contractors. We have with our clients and their contractors regular meetings, safety briefings, and feedback sessions that can help reinforce safety expectations and address any concerns. Emergency preparedness: Develop and communicate emergency response plans that include contractor responsibilities. Ensure that all contractors are familiar with the procedures for dealing with accidents, natural disasters, or other emergencies that could impact agribusiness operations. Conclusion Contractor risk management is a critical component of operational success in the agribusiness sector. Given the unique challenges, from managing a seasonal workforce to ensuring regulatory compliance across diverse operations, a structured approach to CRM is essential. By maintaining comprehensive documentation, implementing robust vetting processes, and fostering a culture of safety and communication, agribusinesses can effectively mitigate risks, protect their operations, and ensure long-term sustainability.

Recently, the Brazilian judiciary summoned Company X (formerly Twitter), emphasizing the requirement that foreign companies operating in Brazil must have a legal representative in the country. According to the Brazilian Internet Civil Framework (Law No. 12.965/2014), any company collecting data or communicating with users in Brazil, even if only one terminal is located in the country, must have a legal representative there. This situation is not new for social networks in Brazil. Previously, Telegram faced a similar situation and complied with judicial orders, underscoring the importance of adhering to local legal requirements. Additionally, Decree No. 92.319 (Art. 6) mandates that foreign companies authorized to operate in Brazil must have a permanent representative in the country with full powers to address and resolve any issues, and who can be sued and receive initial summonses on behalf of the company. [embed]https://www.youtube.com/watch?v=0_Dhbh-DIrE[/embed] This requirement applies even if the activities are carried out by a legal entity based abroad, as long as it offers services to the Brazilian public or has a company from the same economic group established in Brazil (§ 2 of Art. 11 of the Internet Civil Framework). The legal representative is crucial for ensuring that the company meets its obligations, particularly regarding data protection and responding to legal demands. Non-compliance with these obligations can have severe consequences. According to Article 12 of the Internet Civil Framework, violations of the provisions in Articles 10 and 11 subject the company to various sanctions, applied individually or cumulatively, including: Warning, with a deadline for adopting corrective measures; A fine of up to 10% of the economic group's revenue in Brazil in the previous fiscal year, excluding taxes, considering the offender's economic condition and the principle of proportionality between the severity of the offense and the intensity of the sanction; Temporary suspension of activities involving the acts provided for in Art. 11; or Prohibition of exercising activities involving the acts provided for in Art. 11. Having a legal representative in Brazil is more than a regulatory requirement; it is an essential strategy to ensure regulatory compliance and mitigate risks in the Brazilian market. If your company operates or intends to operate in Brazil, it is crucial to ensure that this obligation under the Internet Civil Framework and Decree No. 92.319 is strictly followed, ensuring the continuity and security of operations in the country. In addition to this requirement, companies with one or more foreign partners in their articles of incorporation, whether individuals or legal entities, must appoint a tax-resident attorney in Brazil to represent the interests of these partners. It is equally important for the company to have the support of an accountant from the moment the CNPJ is opened, ensuring compliance with tax obligations with the Brazilian IRF. Many foreign investors are unaware that, even when the company is not operating, it still has responsibilities to the tax authorities and social security. This includes the regular submission of accessory declarations, both monthly and annually. Failure to submit these declarations can result in fines and the CNPJ being rendered inactive, making it ineligible to operate. Learn more about these and other obligations that Brazilian companies need to fulfill by contacting us! Schedule a meeting directly with our consultant through this link. Written by: Eduarda Siqueira | BPO and Tax commercial consultant at Bernhoeft.

In the face of numerous payroll providers, how to pick the most suitable one? If you're reading this blog, you understand the importance of keeping your HR team focused on people and the organization's strategic goals, right? To make sure we're on the same page, let's recap: payroll outsourcing, among many benefits, allows your company to have access to cutting-edge technology to minimize errors and meet deadlines, as well as direct contact with specialists without an employment relationship, significantly reducing the cost of retraining and updates. These are just a few advantages of outsourcing, there are many others, but we already know them. The question that probably brought you to this article is: how to choose the partner that will best serve me? It's a great question! Gone are the days when we thought payroll was just a monthly obligation. For a long time, we've understood that we could extract valuable insights from it that would help us in other more strategic issues. In addition, this is an area that works directly with sensitive data, which forces us to reinforce security so that our work is aligned with the GDPR (General Data Protection Law). So, without further ado, this is a path for you to get the most out of it and have a reference of what to look for in your future provider. Remember, if you prefer, you can send us a message on our social networks! Alignment with the sheet partner We underestimate the power of affinity in business, and here we create a space for it to emerge. Finding the ideal partner goes far beyond simply choosing a company with good numbers and a competitive price. Your next payroll partner needs to be aligned with your business goals. It's no use just providing a service if your partner is not interested in the path you intend to take. Partnering with a company that aligns with your business values and goals fosters seamless communication, collaboration, and tailored solutions to address your unique needs. Bringing the topic to real-world scenarios, we will cite some examples that you can think about how your payroll provider should be in tune with you. The first one is to have a customer success team available; they are the ones who will best understand your needs and goals and work proactively to achieve them. Through this team, it is possible to carry out regular performance check-ins, monitor key indicators, establish a strong relationship between operation and company and identify opportunities that enhance the defined purpose. Adaptability is an important affinity to observe. If we can give you a tip, ask if that potential company has enough resources to adjust to the unpredictability. Let's explain better, there are schedules to be met monthly, understanding that there are situations where the deadline needs to be followed even if you do not meet a certain demand / delivery, what can your potential payroll provider do to help? This question remains. Therefore, when looking for the best payroll provider, do not underestimate the importance of affinity. Look for a company that is not only technically competent, but that also shares your values and goals. This connection can make all the difference for the success of both. Read more: Accounting for foreign companies in Brazil: 10 points to consider! Customization, communication, and support. Company history and cost-benefit are common indicators that should be considered when choosing a payroll provider, but you should already have an idea of what your company needs to know about these two aspects. Now, these three points [customization, communication, and support] are often different among different payroll providers and are often the reason for switching providers. Each company is unique, with its own policies, procedures, and requirements. So, while payroll itself is a standard obligation, the way it is done can be customized to meet your specific needs. Finding a partner who understands and can handle this uniqueness makes all the difference. Tailored payroll services ensure you get exactly what you need, eliminating the clutter of unnecessary or irrelevant features for your business. This not only enhances the efficiency and precision of your payroll process but also saves time and resources, as you won't have to constantly adjust or adapt. Given the ever-changing nature of the universe involving employees, laws, and obligations, flexibility becomes a key topic in this debate. Knowing how to quickly and proactively deal with the inevitable changes that occur, whether in labor legislation, an internal restructuring, or the need to adopt new technologies, is an essential role of your payroll provider. This concern also extends to support. Here at Bernhoeft, it is common for us to meet with companies that are trying out a new payroll provider because their current partner cannot provide them with quick service. We know how frustrating it is to have a question and not have someone to turn to, or even to have someone to turn to, but to know that that contact will take a long time. There is nothing worse. Being aware of this bottleneck that some payroll providers face, it's great that you're paying attention when looking for yours. Notice how communication is handled, whether it's through a ticket system, if you'll have access to the specialist responsible for your account, if you can contact them by email, phone or WhatsApp, what facilities this company offers you when things get tough. As we've discussed before, we often receive inquiries from companies with similar concerns. Therefore, we believe it's important to clarify that our approach differs from the standard industry practices. Our core mission is to deliver value in a straightforward and humanized manner. This means you'll never be left alone, regardless of the challenge, whether simple or complex. You'll have direct access to the dedicated expert assigned to your business, via your preferred communication channel. By adopting this approach, we foster an active partnership built on the understanding that we're allies of your business. You can always count on us for support whenever you need it Read more: Are you ready for the economic recovery? Learn how to calculate the cost of an employee! Available technology and resources We have reached the third and final topic of this text, which aims to train your eye to find the best payroll partner. When we talk about technology and resources offered, we tend to think about which programs will directly benefit your company. What software does the supplier use, and what programs will you have access to? And, understand, this is essential to know. But, there are other resources that should be on your radar when choosing, which are: how does your supplier guarantee information security? What technologies differentiate them from the market? When can I benefit from them? At Bernhoeft, for instance, you have access to technologies that bring routine-boosting benefits. We can mention a personalized admission workflow integrated with the payroll system, dashboards with management data such as turnover, percentage of active women and men in the institution, an environment for registering and updating information such as vacations, absences, allowances and timekeeping in real time. In addition, of course, platforms that contain digital signature, bank file with bank transfer and encrypted. We also take data security very seriously. To ensure that everything is complying, we have a dedicated team that oversees the actions that ensure compliance with the GDPR and the standards, policies and procedures that meet international standards on three levels of security: the organizational level, the physical and technological level and the company's cultural level. Hello, we are Bernhoeft! In case you haven't met us yet, we are Bernhoeft! A Brazilian company with over 27 years of experience serving domestic and international businesses of all sizes and industries. We foster an environment where you can focus on the present while embracing the world's vast possibilities and connections. We provide comprehensive consulting services in BPO, Judicial Calculations, Vendor Risk Management, and Tax Consulting. Our ultimate goal across all our business lines is your success At Bernhoeft, we believe that the combination of a strategic HR team and our expertise creates an unbeatable duo. We operate with the highest standards of quality and efficiency to meet all labor law requirements, ensuring your company's complete compliance. The core of our project lies in BPO, timekeeping, and benefits. Your role is to keep us informed, while we handle the rest to ensure everything runs smoothly. We offer 100% outsourcing, 100% dedication, and guaranteed results.

Starting this article by discussing a topic that has been growing worldwide, especially in the United States, is "Contractor Risk Management." This practice consists of managing the documentation and requirements that a supplier/contractor needs to comply with to be in line with all the norms of the hiring company. The practice of outsourcing services is very common since a company does not need to internally develop all the services it needs to deliver its final product/service to the consumer. For example, a car manufacturing industry does not need to produce all the components of a vehicle; instead, it can buy the correctly shaped windows from an outsourced company. However, for everything to run smoothly, it is essential for the hiring company to manage whether its contractor and subcontractor meet the requirements of safety, financial, and legal standards before and during the service provision. This is why contractor risk management was created, which acts as an audit practice that should be periodically performed on all companies that are part of the "contractors." If the company fails to perform these audits on suppliers, some risks can become evident: Legal and regulatory risks ○ Non-Compliance penalties: failure to comply with occupational health and safety regulations can result in hefty fines and legal penalties. ○ Liability for accidents and injuries: without proper verification of safety training and PPE compliance, the hiring company could be held liable for accidents or injuries that occur on the job. ○ Employment law violations: misclassification of contractors and lack of proper documentation can lead to violations of employment laws, resulting in legal action. Financial risks ○ Insurance issues: if contractors do not have the required insurance coverage, the hiring company might have to cover the costs of any damages, injuries, or lawsuits. ○ Increased costs: legal disputes, fines, and compensation claims can lead to substantial unexpected expenses. Operational risks ○ Project delays: unqualified or improperly trained contractors may not perform tasks correctly or efficiently, leading to project delays and increased costs. ○ Quality control: without proper verification of skills and certifications, the quality of work may suffer, impacting the overall success of the project. Reputational risks ○ Damage to reputation: legal issues, safety incidents, or poor-quality work can harm the company's reputation, leading to loss of business and difficulty attracting future clients or skilled contractors. ○ Loss of trust: stakeholders, including clients, investors, and employees, may lose trust in the company’s management and operational integrity. Safety risks ○ Increased risk of accidents: lack of proper training and PPE increases the likelihood of workplace accidents, endangering the health and safety of all workers. ○ Work environment hazards: non-compliant contractors can create unsafe work environments, leading to broader safety issues. Contractual and relationship risks ○ Breach of contract: ff contractors fail to meet their obligations due to inadequate verification, it can lead to breaches of contract and subsequent legal disputes. ○ Strained relationships: issues arising from non-compliance or poor performance can strain relationships with clients, suppliers, and other partners. In summary, thorough verification of contractors' documentation is essential to mitigate these risks and ensure that projects are completed safely, legally, and to a high standard. It protects the hiring company from potential liabilities and supports the establishment of a reliable and efficient workforce. These more than 20 years represent a great growth in our operations, we feel ready to expand our work to the world. If you are interested and would like to receive a contact from a specialist consultant, simply click on the following link: Talk to a specialist

BPO

Accounting BPO

Main activities

When is the best time to outsource accounting?

What are the main advantages of Accounting BPO?

What technology is used in Accounting BPO?

What is the transition of services like?

What is the day-to-day customer service like?

When is the best time to outsource accounting?

What are the main advantages of Accounting BPO?

What technology is used in Accounting BPO?

What is the transition of services like?

What is the day-to-day customer service like?

When is the best time to outsource accounting?

What are the main advantages of Accounting BPO?

What technology is used in Accounting BPO?

What is the transition of services like?

What is the day-to-day customer service like?

Successful case

Fraud Detection

Tax Burden Reduction through JSCP

They are already with us!

Request a proposal

Blog