Although accounting outsourcing has been a common strategic practice for accounting firms around the world for some time, its recent acceleration can be partly attributed to the global disruptions caused by COVID-19.
Outsourcing services, particularly in the accounting sector, gained momentum when the world pivoted to digital processes. As a result of the rising popularity, numerous small and large businesses now want to explore outsourcing accounting services and integrate them into their business.
However, for businesses looking to outsource accounting to another country, the primary concerns would be to calibrate the skill and experience of professionals, along with the regulations and accounting practices followed in the country of origin. How to select the best country for outsourced accounting and staffing is another crucial concern.
In our last article, which talks about the 5 Benefits of Outsourcing your Accounts to India, we touched upon how India’s extensive pool of accounting professionals can help streamline and fast-track your accounting process.
In this piece, we go over 5 reasons why leveraging India’s pool of accounting talent can get you the best accounting outsourcing service in the world.
Staff Shortages in the UK, BREXIT Aftermath
Findings from global accounting firm BDO’s recent bimonthly report ‘Rethinking the Economy’ reveal that 75% of medium-sized businesses in the UK report skill and staff shortages as a major challenge affecting growth [1]. Further, BREXIT, which marked UK’s departure from the EU, has redoubled this challenge as accounting and finance firms in the UK largely rely on the migration of overseas students earning a sector-related degree in the UK. A drop in net migration would eventually reduce the applicant pool for hiring managers trying to fill executive and specialist roles in accounts.
This is where outsourcing your accounts to India makes sense. Talent availability and specialization are key to India becoming the global hub for accounting outsourcing. It is noteworthy that every year, nearly four million graduates with strong fundamentals in commerce, finance, and accounts are produced by Indian colleges, giving international businesses access to a wide talent pool to outsource their accounts to.
Equipped Teams, Epicentre of Big Four
The celebrated big four accounting firms, namely Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers, have their presence in most of India’s major cities. These are offices which are specialised centres, created to meet the needs of clients in the UK, US, and Canada. With India being the world’s IT hub, these outsourcing firms are aptly and abundantly geared for international clients, which highlights the potential of the labour force and financial markets in India.
Having access to a variety of cutting-edge accounting tools and software, Indian accounting outsourcing providers can guarantee high-quality outcomes in a timely manner. India offers a fantastic talent pool and consultants in data centre hosting who can design exceptional code applications, giving value to the organisation.
24×7 Service, Hassle-Free Collaboration
India accounting outsourcing companies also allow for smooth sailing of operations by accommodating the different shift timings of their clients’ regions. Being 4.5 hours ahead of the United Kingdom (GMT) and 9.5 hours ahead of the United States, Indian accounting outsourcing teams put these time differences to the best of their use. This enables shorter turnaround times (TAT), more responsive workspaces, and timelines not stretching.
Businesses also witness enhanced productivity as an increased number of personnel in different time zones can devote more time to project completion. Plus, firms which outsource accounts to India also offer an improved work-life balance for their in-house teams, as employees are not overburdened and are able to prioritise tasks specific to their domains. With the assistance of Indian outsourcing companies, organisations such as CPA firms and financial advisors can zoom in on their clients’ primary projects while delegating back-end duties such as accounting to Indian outsourcing partners, allowing optimal utilisation of resources.
Young Population, Future-Proof Strategy
The International Labor Organization (ILO) reports that India is home to the world’s largest youth population. More specifically, India has the largest youth population in the world; around two-thirds of the country’s total population is below the age of 35, which makes up for a staggering more than 808 million in human resources [2].
Further, it is not likely in the least that this talent pool will shrink in the coming years given that it is anticipated that the number of people in the working-age population will only continue to increase. Companies in the US and the UK are looking for CPAs and CMAs that are well-versed in their regional financial practices, and Indian accounting professionals can duly fulfil these specialist roles.
Legal Compliance, Best Governance Professionals
Outsourcing your accounts to Indian accounting firms allows you to save time and resources that would otherwise be spent on legal processes, paperwork updates, and standard taxation. Accounting experts in India are well-versed in the domain’s laws and regulations, remain up to speed on the newest tax and IRS and HMRC policies, and adhere to the Generally Accepted Accounting Standards (GAAP).
Indian teams which outsource accounting furthermore assist corporations in requesting updated information on any changes in the law that may have an influence on the business. If these firms are based in another nation, Indian accounting outsourcing companies often collaborate with the country’s legislative body. This assures that the firm’s owners or their employees do not squander time keeping up with compliances.
Did You Know?
- India has the world’s largest accounting workforce, with over 10 million accountants and bookkeepers. (Source: NASSCOM)
- Indian accounting outsourcing companies account for over 50% of the global accounting outsourcing market. (Source: KPMG)
- The Indian 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)
- Indian accounting outsourcing companies save businesses an average of 50% on their accounting costs. (Source: Clutch)
Conclusion
One of the largest industries in the world, India’s accounting sector has a market value of $576 billion [3]. India is a hotbed of talented professionals including Chartered Accountants, Financial Consultants, Research Analysts, MBAs in Finance, and Investment Consultants, offering excellent customer service, job efficiency, cost advantages, and knowledge transfer. Given that accounting processes can be cumbersome and precision-oriented, outsourcing accounting services to an Indian company can enable your businesses to allocate time and resources more effectively and give precedence to core activities like wealth planning, investing, disclosing financials, marketing, and tax planning.
Bibliography
- https://www.financialaccountant.co.uk/news/skills-and-staff-shortages-still-a-challenge-for-uk-businesses
- https://www.ilo.org/newdelhi/info/WCMS_175936/lang–en/index.htm
- https://bloncampus.thehindubusinessline.com/accountancy/offshoring-speeds-up-growth-of-accounting-professionals/article34822526.ece
