Everything You Need to Know About Outsourcing Accounting to India

August 18, 2023 - by Mindspace

Is the accounting work in your business becoming overbearing? How about struggling to find a qualified bookkeeper at a price you’re comfortable paying? With the increasing reliance on accurate accounting data to make informed business decisions and a labor force shortage, you might feel backed into a corner.

The good news is that outsourcing your accounting and bookkeeping to India might be the solution that maximizes cost-saving initiatives while still providing your business with access to much-needed help.

In this article, we’ll cover which services can be outsourced to India, the benefits, when it’s time to outsource, and what to look for in your outsourced accounting professional.

What Services Can Be Outsourced to India?

Almost all accounting and bookkeeping services can be outsourced to India, especially with advancements in cloud computing. Here is a list of services you should consider passing off to an outsourced India accountant:

  • Payroll Services – An outsourced bookkeeper can help you with all payroll services, including payroll processing, new hire setup, and compliance.
  • Forecasting and Budgeting – Creating effective budgets and forecasts can help your team make more informed decisions, both of which outsourced India accountants are experts in.
  • Financial Analytics – Tracking KPIs surrounding growth, retention, and sales is crucial for the long-term success of your business.
  • Tax Return Preparation – Outsourced accountants can help you prepare tax returns each year.
  • Management Reporting – Developing monthly financial statements, identifying inefficiencies, and ensuring accuracy are all tasks outsourced accountants handle.
  • Year-End Accounting – Year-end accounting can be more complex than standard monthly reports. Outsourcing this burden to accountants in India can lead to timely year-end report generation.
  • Accounting Software Migration – Switching between software programs can be tedious, especially when trying to preserve the integrity of your data. Partnering with an outsourced accountant might be the solution.
  • General Accounting and Bookkeeping – Outsourced accountants handle general bookkeeping and accounting tasks, such as receivable and payable reporting.

Your business might benefit from more than one of these services. This makes it important to work with an outsourced India accountant that can piece together a custom service package.

What are the Benefits of Outsourcing Accounting to India?

There are numerous benefits of outsourcing accounting to India. First, outsourced accountants are cost-effective. Since outsourced labor isn’t considered employees in your company, you won’t have to pay benefits and payroll taxes, such as health insurance, Social Security, and Medicare. In addition, you have no obligation to withhold taxes from pay on behalf of your outsourced accountant.

Moreover, India’s outsourced accountants are proficient in English, meaning there are minimal language barriers compared to other countries. Clear communication facilitates the transparency and accuracy of your accounting records.

Outsourced India bookkeepers are also considered a skilled talent. Most contractors you work with will be well versed in the accounting principles you are required to follow, such as GAAP for US-based companies. Working with talent that understands regulations helps your business stay in compliance.

The flexibility of working with an outsourced accounting team is unmatched. You have the ability to control the work frequency. For example, if you only need help around month-end, you can contract an outsourced bookkeeper for a few hours each month. With an in-house employee, you might be on the hook for payroll costs regardless of the work burden, meaning you could be paying for no value in return.

When Should You Outsource?

Although there’s no set-in-stone time when it’s best to outsource, there are some indicators. If you find yourself overwhelmed with managing your accounting or consistently letting your books go unreconciled for months, it’s time to outsource. Other indicators that outsourcing is the right move for your company include:

  • You want independence in your accounting system.
  • Your business is looking to grow and develop more insights through accounting data.
  • You want to file timely tax returns and maintain compliance with all regulatory agencies.
  • You don’t have the need for a full-time employee.
  • Your employees are performing multiple roles.
  • You find too many mistakes in your accounting system.

These are just a few of the indicators that it’s time to call in an outsourced accounting professional from India.

How to Find the Right Professional

Not all outsourced accounting talent in India is right for your company. In fact, it’s important that you partner with the right talent. Before you hire, consider the education, experience, credentials, availability, and cost of different professionals.

We’ve done all of the backend work for you, with our team at Mindspace checking off all the boxes. We offer best-in-class quality, pride ourselves on trust, and offer competitive pricing. Reach out to a team member today to get started.