An accounting function that is up-to-date is critical for any company, because it not only makes budgeting easier, but when your income and expenses are properly organised, it is much easier to review your financial resources and costs. But with growing business complexity, maintaining in-house accounts and bookkeeping is becoming more and more difficult for most companies, which is why outsourcing accounting is important. In fact, according to recent research by Bookkeep, nearly half of all accounting firms outsource their accounts. Considering that most firms are either understaffed or do not have the expertise to deal with the increasing volume of omnichannel transactions, having accounting services outsourced to an accounting outsourcing company can provide several advantages.
In recent years, India has emerged as a reliable accounting outsourcing market for the world, offering cost and competence advantages to firms all over the world. By outsourcing accounting services to a nation like India, you can help avoid the high cost of recruiting, educating, and maintaining an internal accounting division while deriving high value at a significantly lower cost.
In this article, we go over what is outsourcing your accounts all about and 5 key benefits you can unlock by outsourcing accounting services to India.
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What is Accounting Outsourcing and How Does it Work?
Accounting and bookkeeping service outsourcing is a means of hiring a third party to manage your company’s accounts. It usually entails hiring an experienced accounting firm to handle your accounting function considerably better. Hiring the correct accounting team or professional for accounting and bookkeeping in the firm is one of the issues that entrepreneurs encounter. If you are still thinking about why accounting and finance outsourcing is important, Outsourcing provides a firm with access to experienced accountants who can ensure accuracy and timeliness, both of which are critical in accounting. Furthermore, an accounting outsourcing company also allows firms to free up critical time to provide primary products or services, increase capacity, and expand portfolios, increasing the chances of long-term financial growth.
5 Benefits of Outsourcing Accounts to India
Outsourcing accounting to India has numerous benefits for most businesses, including cost savings, time-zone advantages, and giving your accounting an edge over its competitors with its large pool of skilled workforce, end-to-end accounting services, and exceptional tech support.
Here are 5 benefits that make India the most sought-after location for accounting outsourcing.
Cost Efficiency
The Indian outsourcing service industry is recognised for providing skilled services at affordable rates that are far less expensive than those in other countries like USA, UK, and Canada. Due to India’s cheap labour costs, companies can make substantial savings by outsourcing accounting services to Indian organisations. Given how much less the cost of outsourcing accounting services to India is, you will not only be able to save significantly, but you will also be saving money on the infrastructure requirements necessary to improve the main business. Also, outsourcing allows you to save money on full-time or part-time staff pay, taxes, office supplies, and benefits. Fulfilling the promise of Accounting-as-a-Service (AaaS), outsourcing accounting services to India delivers the level of productivity your accounting needs demand while simultaneously letting you keep the cost of hiring full-time employees to the minimum.
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Specialised Workforce
The growing stature of Indian professionals’ accounting expertise can be judged by the fact that accounting firms in India have seen a 70% percent increase in business. Leveraging accounting outsourcing to India, you will be able to find professional accountants with a higher level of proficiency at a lesser price. You will profit from Indian accounting specialists’ high degree of expertise and academic experience if you outsource your accounting needs to India. They offer outsourced accounting, bookkeeping, and financial services, including creating and tracking accounts receivable and payable, invoice generation, profit and loss accounts, tax return preparation, trial balance, payroll processing, and general ledger maintenance. Considering the specialised knowledge, expertise, and experience that Indian accounting professionals bring, your firm will be able to make accounting and bookkeeping operations swift and seamless.
Time Saving
For small and medium businesses, a day never has enough hours to complete all that’s on the task list. Considering how extensive the function of accounting is, you can invest more time and focus on business development and other important duties by outsourcing these accounting services to an Indian accounting firm. Accounting demands a dedicated task force and a suitable amount of time, which is not only expensive but also takes up important time and lowers staff productivity. However, outsourcing accounting to India frees up your staff’s time so they may concentrate on critical duties that will boost productivity. Companies from all around the world also profit from time-zone advantages by outsourcing accounting services to India. The roughly 12-hour time difference is used by accounting firms to offer their clients round-the-clock support. Accounting teams operating across shifts all day long allow Indian accounting outsourcing companies to serve their clients more quickly than they could with an internal team.
Greater Scalability
Growing a business may be one of the main challenges facing newer companies. One of the best benefits of accounts and finance outsourcing is the ability to scale up or down quickly. Backend operations are usually problematic for companies that have grown quickly. This could hinder growth and cost the company large sums. Scalability is one of the main factors that determine the value of an outsourced accounting firm. Indian accounting outsourcing companies offer a wealth of knowledge and can unlock scalability with a full range of services and automation capabilities. When the company experiences a bottleneck, automated outsourced accounting and finance lessens the possibility of human error, keeps track of real-time information for an effective analysis of your accounts, and enables you to expand up to handle a higher workload.
Data Security
Data security is the one the main factors that surface when a business is considering how to determine outsourcing accounts to a third-party partner is viable. Outsourcing your accounts to India gives you total control over the access levels and permissions your staff has to the cloud data. All your transactions are encoded by the accounting software they use, which includes failsafe secure encryption. You can be confident of high-level security features in place combined with restricted access to authorised workers when you outsource accounting services to India. With firewalls, a backup system to avoid data loss, and other security safeguards that avoid malicious use and exploitation of critical accounting data, the data security implemented by outsourced accounting businesses is significantly safer both internally and externally.
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Did You Know?
- India is the world’s largest exporter of accounting services. (Source: World Trade Organization)
- India has a workforce of over 10 million accountants and bookkeepers. (Source: NASSCOM)
- India’s accounting outsourcing industry is worth over $10 billion. (Source: KPMG)
- India’s accounting outsourcing industry is expected to grow at a CAGR of 15% over the next five years. (Source: Mordor Intelligence)
- Over 90% of Fortune 500 companies outsource their accounting services to India. (Source: Deloitte)
Conclusion
A small business or start-up may find it challenging and expensive to assemble an expert accounting team internally. Instead, they might outsource their accounts to India, where they would have access to a big talent pool and labour market. Indian accounting, bookkeeping, and finance outsourcing services companies use the most recent software capabilities that are resilient against any legacy difficulties and have high-level security systems in place. A workforce that speaks fluent English means that there are no communication hurdles either. There are many benefits of working with an accounting services outsourcing company situated in India, including cost and time efficiency, precision, technological support, and strong data security measures.
Contact us today to find out more about outsourcing your accounts.
