Top 7 Benefits of Accounting Outsourcing Services In India
Are you planning to outsource accounting services; however, still confused which is the best to outsource your services. Then you must consider India for all your outsourcing needs. India is considered as one of the topmost recommended countries for all outsourcing purposes. Outsourcing in India helps businesses benefit from cost-effectiveness, high quality work, time-saving, advanced technologies and several others.
In this blog we will find out the top 7 benefits why one must consider India for their accounting outsourcing services.
1.Cost – Effectiveness
Staying cost-effective is one of the key aspects of the business. So, considering accounting outsourcing services to India will help in achieving cost-effectiveness through:
– Reducing overhead cost – Hiring an expert team of in-house accountants can be expensive. However, if you consider outsourcing your accounting services in India, you will be saving the resource cost of entire accounts and the tax department.
– Software cost – Maintaining the in-house accounts and tax department also requires the purchase of accounting and tax software. But choosing to outsource your accounting services to India will benefit you from saving this cost. The outsourcing service provider will be using their software, and providing you the access for viewing your reports anytime.
– Training cost – The in-house team also requires timely training for the software, and changes in rules and regulations of compliances. However, outsourcing your accounting services to India will help save the training cost generated for the in-house accounting department.
– Office-space cost – Maintaining an in-house accounting department will occupy your office-space. However, when you outsource the entire process, your office-space will be free to be utilized by other activities which can help increase your productivity and growth of business.
Also, since India being a developing country, the cost of labor charges is on the lower side as compared to most of the developed countries in the UK and US. The cost of living is less in India as compared to the UK by nearly 70.7% and the US by 64.4%. Therefore, outsourcing your accounting services to India can be beneficial in terms of labor cost-effectiveness and also reduced operational costs.
2. Skilled Professionals and Advanced Technologies
One of the significant benefits of considering India for outsourcing your accounting services is access to highly skilled professionals and access to advanced and latest technologies.
Since, India has one of the highest literacy rates globally, and abundance of young and talented CA and CPA, along with the world class accounting firms. Therefore, several foreign companies consider Indian CPA firms for outsourcing their processes. It is not only because of the cost-effectiveness but even for high quality services.
Additionally, with the booming IT and software development industries within India, it has helped the country become one of the top offshoring accounting and outsourcing destinations globally. India is capable of providing excellent technical support to its clients. Also, the accounting firms within India are equipped with the latest account software along with high internet and security solutions. Thus, with these technological advancements India is able to cater all the accounting needs of its clients quickly and accurately; thereby becoming one of the leading destinations for account outsourcing services.
So, if you are considering outsourcing your accounting process to Indian companies, you’ll have a lot of options to choose from and gaining access to the highly skilled professionals and advanced technologies.
3. Legislative Support
Legislations and compliances keep on changing every year. However, they are also the crucial aspects of accounting. It is essential for the company to abide with the latest laws and regulations. Therefore, your in-house team of accounting requires constant training over the new amendments in procedures and obligations. At times this might become complicated. For instance, constantly staying updated with the GAAP and IFRS valuations.
However, by outsourcing your accounting processes to India, your outsourcing partners will be handling all your accounting processes, tax procedures, legal obligations no matter how complicated they are. The accounting firms in India are well versed with all the necessary international financial regulations and they constantly keep themselves updated with all the latest IRS, US GAAP, UK GAAP, IFRS valuations, and any other amendments. This will help you in mitigating the risk of non-compliance issues and accounting standards while filing your company reports.
This will also help you with saving your in-house training costs and save unnecessary penalties due to the compliance issues.
4. Language proficiency and time zone benefit
India ranks as the second-largest English-speaking country globally and 48th according to the 2021 English Proficiency Index. Also, major software and communication tools that are used in India provide the English user interface. One such popular cloud accounting software used globally is Xero. With all such benefits, it will be relatively easy to establish communication with the Indian accounting consultants. They can clearly understand your entire business process without any difficulty and provide you with high quality and tailored services according to the needs and requirements of your business.
Apart from the language proficiency, yet another benefit that you will receive in outsourcing your accounting process to India is the “Time Zone benefit”. Generally, the CPA firms within the US and Europe prefer outsourcing their accounting services in India due to the benefit of the difference in the time zone.
India is ahead of the UK time zone by nearly 4.5 hours and with that of the US time zone by nearly 9.5 hours. Therefore, any accounting request provided to your service partners will be processed within this time difference, and by the time you start your day, the work will already be completed by the accounting professionals in India, and you will be ready with your reports.
5. Scalability and Flexibility for Businesses
Whether you are a startup company, small size company or a large firm, one of the significant needs of the business is scalability. Similarly, when you consider outsourcing your processes, you expect your outsourcing partner to support you with your accounting needs in the times of your firm’s scalability and growth. In short, outsourcing also refers to hiring a remote team that can help you in expansion of your business processes.
The benefit of outsourcing the accounting services in India is that the Indian accountant often works according to their clients shifts (UK, US and other clients time zones), so as to provide the necessary or urgent attention to the client’s financial matters. Thus, they ensure that you receive uninterrupted support irrespective of your size or operational requirements.
The accounting firms in India also provide you the leverage of upscaling or downscaling your business within the short turnaround time. Which means that you can start with outsourcing one of your processes to the outsourced firm in India for example bookkeeping or payroll. As your business grows, you can easily upscale and add any additional services such as tax, accounts payable or receivable etc. and gain additional benefits.
Thus, the outsourced firms in India provide scalability or flexibility for the businesses irrespective of their sizes.
6. Reduced Risk of Errors and Fraud
It is impossible to avoid any internal frauds when your accounting department is in-house. However, when you choose to outsource your accounting process, the probability of frauds, violation of security, and other data theft reduces.
One of the crucial advantages of outsourcing your accounting services in India is reduced risk of errors and fraud. As said earlier, India has an abundance of professional CAs and CPAs, by entrusting your financial matters in the hands of experienced professionals will reduce the chances of errors and mitigating the risk of any financial consequences including the fraudulent activities within your financial operations.
Moreover, because outsourcing involves adhering to strict protocols, service providers maintain highly secure systems that safeguard your financial records, reducing the risk of tampering and fraudulent activities due to the implementation of advanced security measures.
Trusting your accounting services with outsourcing firms in India provides peace and security, knowing professionals manage finances with precision and integrity.
7. Enhanced Data Security Measures
One of the significant benefits of account outsourcing services in India is gaining enhanced security measures. Even as the latest and advanced technologies continue to proliferate, the country has bolstered its ability to provide robust cybersecurity measures, ensuring the protection of your sensitive financial information.
With constant and regular security audits and updates, the firm ensures continuous monitoring and enhancement of their systems. It helps them in mitigating any potential risks or vulnerabilities.
Thus, by outsourcing your accounting functions to India will not only help you in streamlining your operations but also provides a secure environment for your financial records.
Final Thoughts
For startups, small businesses, and accountants, hiring an in-house expert for accounting purposes can be difficult and costly. So, such firms can consider outsourcing their accounting processes to India, where they can achieve several benefits along with focusing on the growth of their business.
India boasts a vast talent pool and embraces cutting-edge accounting technologies and software, alongside a favorable time zone. Hence, they are more affordable and top choice for outsourcing in comparison to several other countries.
If you wish to outsource accounts to India, we at Corient are one of the leading providers of accounting outsourcing services.
Our wide range of services include complete bookkeeping and account services, accounts payable outsourcing services, audit services, tax outsourcing services, business tax support services, advisory and consulting services. We commit to delivering a valuable experience to all our clients using our highest calibers, enabling you to focus primarily on growing your business.
If you would like to explore our services and discuss how we can help your business, you can contact us today!