Accounting outsourcing has become very common and is adopted by many small, medium, and big businesses. While saving time and costs, it also ensures accurate and efficient accounts management. However, to get the best results, the business must choose the right type of outsourcing. Among the different kinds of outsourcing, offshore is one of the most common and preferred.
It has many benefits like cost-saving, increased work efficiency, access to advanced technology, etc. Many countries provide offshore accounting and bookkeeping services like India, the Philippines, etc., with India being the most preferred. Let us see why a business should outsource its accounting and bookkeeping to India.
What is offshore accounting outsourcing?
Outsourcing the business accounting and bookkeeping to a country located far from the one the business is located in is called offshore accounting outsourcing. It is cheaper than other types of outsourcing, i.e., onshore and nearshore. For offshoring, countries with low-cost are preferred, like India, Thailand, the Philippines, Mexico, etc.
Benefits of outsourcing accounting and bookkeeping to India
There is no doubt that outsourcing is better than in-house accounting and bookkeeping. Be it onshore, nearshore, or offshore outsourcing, they are all more efficient and cost-saving for the business. But offshoring comes with some extra benefits such as advantages of time-zone difference, advanced technology, etc.
India is one of the go-to countries for offshoring regarding accounting outsourcing. The lack of too many restrictions, availability of expert professionals, and experience working with different industries using advanced technologies makes India the best option.
Let us look at the benefits of outsourcing accounting and bookkeeping services to India in detail:
Cost-saving and increased efficiency
One of the major reasons behind outsourcing is cost-saving. India is well known for its low-cost labor offering high-quality services. India has the highest number of ISO-certified companies, meaning the quality of services is never compromised. The cost saved here can be used by businesses for core business activities to enhance productivity.
Time zone benefits
The difference in the time zone between India and USA is almost 12 hours. It enables businesses to finish their task on time. The accounting and bookkeeping function can be kept updated daily after the business’s working hours. Due to the difference in time zone, the bookkeeping service providers in India also provide 24*7 customer support for any complexity or discrepancy.
Data security and confidentiality
Confidentiality and data security regarding financial data is of utmost importance. Any data breach or information leak can cause huge losses to a business. Therefore, the accounting and bookkeeping services provider must maintain data security. Cloud accounting software like QuickBooks, Xero, etc., has multiple encryption layers to ensure data safety and security. The accountants and service providers in India are highly skilled and experienced with the cloud accounting software thus, help maintain confidentiality.
Experimental infrastructure facilities
A robust infrastructure is required for the proper functioning and success of a complicated function like accounting. Indian outsourcing bookkeeping services providers are equipped with the latest accounting tools and software. It enables them to provide fast and high-quality services to their clients.
The enhanced digitization and technology help businesses reap the innovation benefits when outsourcing their accounting services to India. It helps businesses adapt to technological innovation easily and smoothly. By outsourcing the labor-intensive work to Indian accounting services providers, businesses can focus on implementing advanced technology to enhance profitability.
India’s accounting outsourcing services providers offer their services to businesses of different sizes and industries. They are experienced and skilled in serving the needs of the businesses. They also provide customized services based on the size and requirements of the business. The ability of the outsourcing service provider to analyze and determine the functionalities and accounting to ensure seamless operations.
Favorable outsourcing administrative policies
One of the biggest advantages of outsourcing accounting and bookkeeping services to India is the lack of restrictions from Indian authorities for international firms. The favorable policies and regulations towards the outsourcing service sector create a suitable and beneficial environment for businesses.
Conducive support during the outsourcing process
The Indian outsourcing service providers also offer legislative support to the businesses. They are well-versed and updated with the GAAP, IFRS, and other international accounting and taxation regulations. It helps businesses with various complicated issues related to accounting. The additional expert assistance helps in managing their work.
A wide range of accounting services is available
Accounting is a collection of a wide range of activities. The outsourcing accounting services in India offer numerous accounting services, and the businesses can choose the services they want to outsource per their needs. Some of the most commonly outsourced accounting services include:
- Bookkeeping and VAT filing
- Self-Assessment of Tax Returns
- Year-end and Corporation Tax Returns
- Invoice generation and processing
- Tracking accounts receivables
- Generating accounts receivable reports
- Tracking accounts payable
- Trial balance and P&L accounts preparation
- Maintenance of General ledger
- Payroll management
Benefits of virtual/ online accounting
Outsourcing the accounting and bookkeeping services to India helps businesses to enjoy the benefits of virtual or inline accounting. The service providers use the latest accounting tools and software to maintain and update the business accounts. The cloud accounting software used by accountants these days helps keep businesses up-to-date with their accounting function and access it from anywhere, anytime.
Though all types of outsourcing have almost similar benefits and features, offshore outsourcing has some additional advantages. The biggest advantage of offshoring to India is cheap labor, lower administrative costs, and time-zone difference benefits. Outsourcing is more advantageous to a business than getting an in-house accountant or accounting team. The difference in time zone allows the outsourcing accounting service provider to keep the accounts up-to-date and provide real-time reports to the business.
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