Do you know that over 35% of accounting and IT processes are outsourced? Every company looks to reduce its overhead burden via outsourcing. The best part of outsourcing is that it is free from geographical boundaries. A company based in the USA can easily outsource its accounting department to a third party in India. With the rise of digitisation, remote work is possible, and companies benefit from it. Usually, companies worldwide look toward Asian countries (especially India) to outsource their accounting department. Read on to understand why India is preferred for outsourcing accounting processes.
Why do companies outsource their accounting department?
Before we understand why India is the preferred choice for outsourcing accounting processes, let us know the importance of outsourcing. Here’s why companies prefer outsourcing services:
- When a company outsources its accounting department, it does not have to hire internal accountants. Since the company does not have to hire or train accountants, it will save a lot of money.
- A company does not have to rely on internal resources after outsourcing the accounting department to a reliable third party. Internal resources can be freed for other business activities.
- Expert accountants and financial experts aren’t easy to find. Outsourcing the accounting department means a company does not have to go through the hassle of finding the right talent.
- Companies have to align the accounting processes with federal mandates. Managing accounting compliance can be a risky and challenging task. To remove the burden from their heads, companies look for accounting firms in India.
- When a company does not have accounting burdens, it can focus on core responsibilities.
- A company can reduce its overhead costs by outsourcing its accounting department to a reliable third party.
- Accounting processes are supported by several software solutions and technology stacks. Often, a company is unaware of the right software solutions for accounting practices. Outsourcing accounting processes means a company does not have to worry about finding the right software solutions.
Why is India preferred for outsourcing accounting processes?
Here are some crucial reasons why accounting firms in India are preferred for outsourcing services.
- Recognised talent
India is known for the best accounting talent around the globe. Accounting and bookkeeping knowledge is deeply embedded within the Indian education system. The CA (Chartered Accountant) course in India is known to be one of the most sought-after courses. At the school level, students in India are allowed to choose accounting subjects and start building their base. Since there are many accounting and bookkeeping experts in India, it becomes the best place to outsource accounting processes.
- Technical infrastructure
Companies wanting to outsource their accounting department look for technical support. Without the required IT infrastructure, remote work control cannot be established. Luckily, India is home to IT geniuses, which is a plus point for foreign companies. With the right technical infrastructure, Indian outsourcing firms can ensure swift accounting services. Not to forget, 13 cities in India are already selected for launching 5G internet services.
- Enhanced legislative support
Completing all the accounting processes timely isn’t a company’s only responsibility. It also has to stay compliant with government mandates. For example, every country has standard accounting practices for corporate entities. A company cannot risk a legal hassle by avoiding government mandates related to accounting practices. Indian accounting firms stay updated with the legal changes and help companies remain compliant. Be it GAAP standards of the USA or IFRS laws in India; accounting firms will help you with everything.
- Round-the-clock services
Companies in the USA and UK often prefer Indian accounting firms for outsourcing services. Since there is an 11-12 hours difference between the time zones, companies can ensure round-the-clock services. By outsourcing accounting processes to India, you can ensure that cumbersome tasks are performed daily without fail.
- Cost Effectiveness
Hiring accountants in a European country can be costly. On the other hand, Indian accounting services are more economical than other countries. A company can find better and more efficient accounting services at lower costs. Companies can successfully reduce their overhead expenses by choosing accounting firms in India for outsourcing. Also, there is no shortage of accounting staff in India. Therefore, a company can easily upscale its accounting department with the help of an Indian outsourcing firm. Start outsourcing your accounting work to Indian accounting firms today!