USA Suggestion needed on Name of accounting and finance business

[MattIr]

Dear Friends,

A Friend is in process of registering an accounting and finance solutions and outsourcing business (primary outsourcing will be based in offshore in south asia)

The Business will based in Houston Tx area & will primarily provide, AR, AP, Closing, Balance Sheet recs, financial analysis and various ad-hoc solutions via our staff, which will result in major cost savings & improvement in quality of work.



His question is, should he has the word outsourcing in the name of company or not, e.g. XYZ Outsourcing Solutions vs XYZ Optimization Solutions or XYZ Business Optimization Solutions.

Please share your thoughts on pro and cons of names?



Regards,

 

[John Baker]

A company is outsourcing, to Southeast Asia, the financial records of clients - AR, AP, and all the general purpose statements? If you were approached and told this - would you let your company use this service? And by the way, your question has that hesitation to it that begs to ask - why would someone be concerned in the first place?
I can tell you from my experience, keep things in control of where you are. Services and other business in other countries comes under the jurisdiction of that country's laws and politics. Many times, just keeping up with "who's minding the store", can be a full time job, all in itself.
For example - letters of credit and similar financial instruments originating in foreign countries comes with a heavy load of banking relations, governmental medaling, and similar business.
I'd give this plan of your friend a lot of thinking. Also, trying to sell - better quality with a cheaper price tag because someone else is doing things, kind a like out of sight out of mind, can be a hard sell. .

 

[kirby]

I think including the word "outsourcing" is fine as that is what his potential clients are seeking.

 

[John Baker]

What Kirby is advising is ok, as long as your friend doesn't hold you responsible, if things go south. You know what I mean?
A venture like this is usually handled by specialist that are "in" the business and have experience with who's-who, doing what, off shore.

Off shore enterprises carry a lot of risk. Reducing that risk comes with a price tag, and a hefty price tag at that.
>Do you know of any firms that are already in the business of doing what your friend is looking for?
>Are there industry limitations - legal, monetary, contacts, currency exchange and funds transfer details, and so on?

There's a lot to deal with when going off shore for anything, in todays business climate. Keyboard advice like this media offers, are all well intended, but have serious limitations when it comes to this kind of enterprise.
Advise your friend to seek professional representation - not advice. In fact, your friend should start with as much free advice as possible, from a source that he should be depending on already - his bank. For example, JPMorgan Chase, Citigroup, Bank of America, Bank of New York Mellon, US Bancorp, and similar houses of financial services, are the heavy hitters here. Banks that have national and international services can offer a considerable amount of low risk advice. Of course they'll try and sell you the very service that you're friend is looking to provide, but, if your friend is smart about it, going in with a factfinding attitude, can garnish a considerable lesson curve to the good.
I would assume that your friend is going to provide his services to small businesses. Thus the economical price tag. Just be mindful of the "extras" expected by the client, to your friend's "basic" service package.

 

[MattIr]

Thank you for valuable feedback, in this case my friend also has control and owes the south asia offshore operations, it's like a sister company.
The idea is a customer may have accounts payable which they are currently doing in house and may be facing cost or quality issues or both.
This company will come in via their USA based office, conduct the review of process, optimize it and shift the day to day process of AP to offshore sister company in south asia

The customer will received overall better quality, low cost and avoid the issues related to employees such as turn over etc