Top 7 Benefits of Accounting Outsourcing Services In India
Are you planning to outsource accounting services? However, are you still confused about which country is the best place to outsource your services? Then, you must consider India for all your outsourcing needs. India is considered one of the topmost recommended countries for all outsourcing purposes. Outsourcing in India helps accounting practices benefit from cost-effectiveness, high-quality work, time savings, advanced technologies, and several others.
In this blog, we will explore the top 7 benefits of considering India for accounting outsourcing services.
1. Cost-Effectiveness
Staying cost-effective is one of the key aspects of any accounting practice. So, considering accounting outsourcing services from 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 outsourced accounting services from India, you will save on the resource costs of entire accounts and the tax department.
Software cost:
Maintaining the in-house accounts and tax department also requires purchasing accounting and tax software. However, choosing to outsource your accounting services from India will help you save money. The outsourcing service provider will use their software and provide you with access to view your reports anytime.
Training cost:
The in-house team also requires timely training for the software and changes in compliance rules and regulations. However, getting outsourced accounting services from India will help save you the training cost.
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 used for other activities, which can help increase your productivity and grow your accounting practice.
Also, since India is a developing country, labour charges are lower than in most developed countries, such as the UK and the US. The cost of living is less in India than in the UK by nearly 70.7% and the US by 64.4%. Therefore, outsourced accounting services from India will be beneficial in terms of labour cost-effectiveness and reduced operational costs.
2. Skilled Professionals and Advanced Technologies
One significant benefit of considering India for outsourcing your accounting services is access to highly skilled professionals and advanced and latest technologies.
India has one of the highest literacy rates globally, an abundance of young and talented CA and CPAs, and world-class accounting firms. Therefore, several foreign companies are considering outsourcing their processes to Indian CPA firms. This is not only because of the cost-effectiveness but also because of the high-quality services.
Additionally, India’s booming IT and software development industries have 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 outsourcing accounting service providers within India are equipped with the latest account software along with high internet and security solutions. Thus, with these technological advancements, India can cater to 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 to outsource bookkeeping or payroll outsourcing to Indian companies, you’ll have many options to choose from and gain access to highly skilled professionals and advanced technologies. Such skilled manpower will be available with a highly professional accounting service provider like Corient, which offers sophisticated outsourced accounting services.
3. Legislative Support
Legislations and compliances keep on changing every year. However, they are also crucial aspects of accounting. Your accounting practice needs to abide by the latest laws and regulations. Therefore, your in-house accounting team requires constant training on the new amendments in procedures and obligations. At times, this might become complicated. For instance, you constantly stay updated with the GAAP and IFRS valuations.
However, by choosing to avail of the outsourced accounting services from India, your outsourcing partner will handle all your accounting processes, tax procedures, and legal obligations, no matter how complicated. The accounting service providers in India are well-versed with all the necessary international financial regulations. They constantly update themselves with the latest IRS, US GAAP, UK GAAP, IFRS valuations, and any other amendments. This will help you mitigate the risk of non-compliance issues and accounting standards while filing your company reports.
This will also help you reduce your in-house training costs and avoid unnecessary penalties due to 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 accounting process without any difficulty and provide you with high-quality and tailored services according to the needs and requirements of your accounting practice.
Apart from the language proficiency, yet another benefit that you will receive from outsourced accounting services from India is the “Time Zone benefit”. Generally, CPA firms within the US and Europe prefer outsourcing to India due to the difference in time zone.
India is ahead of the UK time zone by nearly 4.5 hours and 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 accounting professionals in India will already complete the work, and you will be ready with your reports.
5. Scalability and Flexibility for Businesses
When considering outsourcing your processes, you expect your outsourcing partner to support you with your accounting needs, especially during growth. In short, outsourcing also refers to hiring a remote team to help you handle extra accounting work from your clients.
The benefit of using outsourced accounting services from India is that the Indian accountant often works according to UK, US, and other clients’ time zone shifts to provide necessary or urgent attention to the client’s financial matters. Thus, they ensure you receive uninterrupted support irrespective of size or operational requirements.
The accounting service provider from India also provides you the leverage of upscaling or downscaling within a short turnaround time. This means you can start by outsourcing one of your processes to an outsourced firm in India, such as bookkeeping or payroll. As your accounting practice grows, you can easily upscale and add any additional services such as tax, accounts payable or receivable, etc., and gain extra benefits.
Thus, the outsourced accounting firms in India provide scalability or flexibility for businesses irrespective of their sizes.
6. Reduced Risk of Errors and Fraud
It is impossible to avoid internal fraud when your accounting department is in-house. However, when you outsource your accounting process, the probability of fraud, security violation, and other data theft is reduced.
One crucial advantage of using outsourced accounting services from India is the reduced risk of errors and fraud. As said earlier, India has an abundance of professional CAs and CPAs. Entrusting your financial matters in the hands of experienced professionals will reduce the chances of errors and mitigate the risk of any financial consequences, including 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 based 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 outsourced accounting services from India is gaining enhanced security measures. Even as the latest and advanced technologies continue to increase, 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, accounting outsourcing service providers ensure continuous monitoring and enhancement of their systems. This helps them mitigate any potential risks or vulnerabilities.
Thus, outsourcing your accounting functions will streamline your operations and provide a secure environment for your financial records.
Final Thoughts
The main objective of this blog is to create awareness of outsourced accounting services offered by service providers and the benefits accounting practices can gain from them. Thanks to these services, accounting practices can now offer high-quality accounting services to their clients using advanced technologies quite cost-effectively.
Developing these services in-house is a difficult and, in some cases, an impossible task due to the requirement of highly skilled labour and the high cost involved. For this reason, the option of outsourcing accounting to a professional service provider is quite popular. Talking about professional service providers, we would like to introduce Corient which is an accounting outsourcing service provider offering accounting services to UK based practices. We have considerable experience in offering a wide range of accounting services from bookkeeping, payroll to corporation services. To know more about our services please contact us through our website contact form and share your special requirements, our executive will contact you at the earliest. We are eager to contribute to your long-term success.