Benefits of Outsourced Accounting Services to India

Bookkeeping and accounting are one of the most important functions of an organisation, as it helps to constantly measure the health and profitability of an organisation. In smaller proprietorship organisations, the business owner takes the responsibility of maintaining bookkeeping and accounting functions. In medium and large organisations, these functions are looked after by certain in-house employees in the finance department, besides their other job roles. However, organisations having limited staff find it extremely difficult to allocate dedicated resources to only look after bookkeeping operations. When faced with such a scenario, organisations have the following two choices to make for allocating manpower resources for managing their bookkeeping and accounting functions: 

  • Recruitment: Organisations have the choice of permanently recruiting new in-house staff to look only after bookkeeping operations. The recruitment process is time-consuming and expensive. But since the job is repetitive and back-end in nature with no direct bearing on business growth, organisations often may not find any justification in increasing the fixed operational expenses in terms of salaries and other employment benefits that will have to be paid regularly to the recruit. 
  • Outsourcing: Organisations may engage a third-party agency offering Bookkeeping Outsourcing Services to manage the bookkeeping and accounting operations on their behalf. Such outsourced service providers charge their clients on an hourly basis or monthly basis depending on the agreement they have with each of their clients. The companies need to pay bookkeeping outsourcing service providers only for the services they seek, which may vary depending on the company’s requirements. Thus, the total pay-out for outsourced services works out to be much less in comparison to the operational expenses payable to in-house staff. 

Before deciding upon how to manage bookkeeping and accounting operations, each company should also understand the following benefits of Bookkeeping Outsourcing Services in India:

  • Better utilisation of resources: By outsourcing bookkeeping operations to a third-party service provider, a company can free up their manpower to focus on core activities that can help in generating more value for the business.
  • Access to technology: Organisations which manage bookkeeping operations in-house, do so manually. Such organisations do not like to purchase expensive software for automating bookkeeping and accounting operations. Renewing the licence for the software periodically is also an expensive proposition that companies would tend to avoid. However, maintaining bookkeeping operations manually is risky as the chances of making errors and omissions are very high. Mistakes in maintaining bookkeeping records will impair the true picture of the financial health of an organisation and lead to an additional outflow of funds in the form of penalties and interests payable to statutory bodies. Moreover, an organisation will have to spend extra resources and time to identify the mistakes for correction. On the contrary, all bookkeeping outsourcing service providers use the latest software for recording and maintaining bookkeeping entries. By outsourcing bookkeeping services, an organisation will get the advantage of using such expensive software for fast and accurate bookkeeping operations without the need to buy and maintain the software. 
  • Support from experts: Since the nature of a bookkeeping job is back-end, a company may not be willing to spend more money to hire a full-time expert to manage bookkeeping operations. Outsourcing service providers in India have a rich pool of talented subject matter experts who are well versed with the rules and regulations of international accounting practices. By outsourcing their bookkeeping operations, organisations can get support from such subject matter experts at an affordable price. 
  • Cost-benefit: Since the value of the rupee currency is much lower in comparison to the dollar, engaging a third-party bookkeeping service provider from India is much more economical without compromising the quality of the service received by an organisation.
  • Committed Workforce: India is renowned for its committed and loyal workforce who are more than eager to go the extra mile to provide superlative accounting and bookkeeping services to their clients.
  • Language Proficiency: The third-party bookkeeping service providers in India have an excellent command of the English language. Thus, organisations having global operations across geographies would be more comfortable outsourcing their jobs to service providers based in India.
  • Advantage of time zone: By outsourcing services in India, companies operating globally can reap the benefits of the time zone difference by getting 24*7 services from their service providers. This effectively means that any work assigned to the service provider will get completed by the time the organisation returns to work on the next day. 
  • Infrastructure to connect globally: India has a reliable technology infrastructure that can provide flawless data transmission with utmost data security. This ensures the security of clients’ data.
  • Adherence to statutory compliances: Bookkeeping service providers are well aware of the changing legal and statutory compliances which organisations need to follow and can support their clients with prompt adherence.
  • Flexibility in manpower engagement: As an organisation grows, the workload also grows proportionately. Depending on the changing needs of their clients, third-party bookkeeping service providers can increase or decrease the number of staff engaged for the timely completion of the work assigned by their clients. 
  • Access to real-time reports: Through the use of technology and storage of data on the cloud, third-party service providers can churn out real-time and error-free reports very fast for review by their clients. 
  • Conducive policies: The Indian government known for its conducive policies on the technology front acts as an enabler for overseas organisations to source their requirement from India. 

The above benefits highlight why most companies prefer to engage with the Best Bookkeeping Outsourcing Services in India.

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