Finsmart Reviews 2022: Hear What Clients Have to Say

For more than a decade, Finsmart has been delivering a vast range of accounting, taxation, and payroll outsourcing solutions to SMBs, accounting firms, and CPAs across the globe. No wonder, we are widely reviewed and recommended as an accounting outsourcing company in India. However, a lot of these reviews reach us through email and chat. That’s why it makes sense to share our recent reviews and feedback!

In this blog, we will share some reviews that will tell you what makes Finsmart a globally trusted outsourced accounting brand. Let’s kick off the collection of Finsmart reviews with Shawn who took the time to review us on Google Maps! 

GMB Review by Shawn 

Shawn Peterson has been working with Finsmart for over 3 years and left a review on Google My Business to share his feedback. After speaking with multiple local as well as global accounting outsourcing companies, Shawn decided to partner with our team. Here’s the review from Shawn! 

“FinSmart is a great partner to have. We’ve been working with them for over 3 years now and they continue to provide consistent, timely, and accurate work. They are honest, trustworthy, and live up to their commitments. It’s been a pleasure to work with them and we look forward to our continued relationship into the future” 

We are glad that our vast range of accounting services helped Shawn streamline accounting functions and boost business profitability. We look forward to many more years of professional association!

accounting firm reviews

Archana’s accounting review

One of our oldest clients, Archana Pimple has been working with Finsmart Solutions since 2012. She needed a team to manage accounting and payroll functions for her business along with timely reporting and support. Our team guaranteed her accuracy and timeliness at every stage of accounting and payroll processing.  Here’s what Archana writes in her Finsmart review on GMB: 

“Our Company’s association with Electronica Finsmart Solutions Pvt. Ltd. is since 2012 and it has been a great working experience for me as well as for our Company. Our entire Accounting and Payroll has been looked after by Electronica Finsmart Solutions Pvt. Ltd since then. Looking forward to many more years of association.”

Archana isn’t the client who has been with us for more than a decade. There are many more!

 

accounting firm review

 

Email Review by Vikram

Next in our collection of Finsmart reviews is Vikram Mhaske, director of human resources at KSPG Automotive India Private Limited from Pune, India. His company is a leading manufacturer and supplier of auto components. Mr. Mhaske was looking for an efficient payroll service partner that can help streamline accounting and payroll operations and get the right financial insights in a timely manner. 

He wanted an experienced team to handle payroll for multiple business units. Here’s what the celebrated entrepreneur has to say about Finsmart’s services: 

“We developed a collaborative partnership with Finsmart Solutions and their team. We appreciate the dedication, commitment, and high standard of service level in providing complete payroll management services aligned to our multiple business units” 

The feedback was shared over the email and is also featured on our homepage!

Everything about the bookkeeping outsourcing services in India

Gilbert’s bookkeeping review 

Over the past decade, hundreds of businesses, accounting firms,  and CPAs have trusted Finsmart for offline bookkeeping services. Gilbert is one such bookkeeping client. Here’s what he has to say about our bookkeeping services: 

“Finsmart Solutions is the best-recommended name when you think of outsourcing your bookkeeping services. They take care of your bookkeeping from start to finish so you can focus 100% on making your business succeed with unmatched accuracy,” 

At Finsmart, our goal is to support our clients with every accounting and finance need. 

review for accounting firm Email review by Samit

Samit Sadavarte, Director and General Manager, Haartz Automotive India Pvt. Ltd. hired Finsmart for its SMART accounting services that came along with unmatched support and quality of work. Here’s what Samit has to say about the services rendered by Finsmart Solutions, India over the span of 4 years: 

“Finsmart Solutions has been our accounting partner since the company incorporation. It’s been over 4 years now with Finsmart Solutions, and they have been very responsive. It is a pleasure working with them. I truly appreciate their excellence and quality of work. The entire staff is fully responsive and dedicated.” 

Learn about the best accounting and payroll services in India

Ankita’s Finsmart review

A lot of our clients choose to review us on our Google Maps listing and Ankita did the same one year ago. While domain expertise is indispensable in the accounting outsourcing industry, not every company is able to provide timely support and guidance. This is what distinguishes Finsmart from others.  

Here’s what Ankita has to say about our diverse range of accounting services: 

“Finsmart values its customers and provides a great service. Team support is prominent,” 

Get in touch with Finsmart Solutions, India to discuss your accounting, bookkeeping, taxation, AR AP, and finance consulting goals.

Partner with Finsmart Solutions, India 

Above are some Finsmart reviews from business owners, CPAs, and accounting firms that are using our bookkeeping, payroll, and management accounting services. 

Finsmart Solutions, India is a trusted FinOps Partner that brings domain expertise, new-age financial technologies, and customer-centric models for businesses across the globe. Since 2007, it has been supporting businesses, CPAs, accounting firms, and global MNCs with a vast range of accounting, taxation, payroll, AR AP, and consulting services. 

Got any queries to ask? Send them to info@finsmart.co.in and get them answered by our accounting experts. 

Check out our latest knowledge resources and services: 

Hiring tips for outsourced bookkeeping services

Basic accounting terms and definitions for small businesses 

Month end closing checklist for 2022

Outsourced Bookkeeping Services for CPAs: 9 Hiring Tips + Benefits

In the last decade, the demand for outsourced bookkeeping services in India has grown a lot among global CPAs and mid-level accounting firms. That’s because every CPA firm now wants to leverage on CAS (Client Accounting Service) to increase their profitability and scale their practice. By outsourcing the routine Bookkeeping Service, the owners and partners of CPA firms are able to focus on high billable services rather than spending their time on regular bookkeeping.

Outsourced bookkeeping services in India are helping small and medium-sized CPAs and accounting firms deliver quality service to their clients and meet their deadlines without burning out. Also, many of them have the flexibility to use extra resources during the tax season without overhiring and taking a fixed cost on their P & L. However, a lot of CPAs and accounting firms are still hesitant about outsourcing bookkeeping services and aren’t sure how to go about hiring offshore accounting or bookkeeping talent.

In this blog, Finsmart Solutions, USA (with back-office operations in India) will share tips to engage the best bookkeeping outsourcing company in India and also list the benefits of outsourcing bookkeeping services in India.

Let’s get straight to the tips for outsourcing bookkeeping services in India!

5 Tips to Outsource Bookkeeping Services in India

While outsourcing bookkeeping is becoming popular among CPAs and mid-sized accounting firms across the globe, a lot of them still haven’t invested in the practice. That’s majorly because outsourcing bookkeeping requires some groundwork.

CPAs and accounting firms need to take the right steps for starting a fruitful outsourced bookkeeping engagement. Here are some useful tips that can help global accounting firms and CPAs outsource the best bookkeeping service in India:

#1 Identify your requirements

Every business has unique bookkeeping needs. While one may require a dedicated bookkeeper to handle all the work as per business priorities and reporting rhythm, another may only require external support to minimize the chances of burnout of internal bookkeepers. The best thing to do here is to identify your requirements before moving ahead with offshore bookkeeping. That way, you won’t end up overspending on outsourced bookkeeping services.

Ask yourself questions like these:

  • Do you require a full-time bookkeeper or part-time?

  • How many hours of bookkeeping support is required in a month?

  • Which bookkeeping model makes the most sense for your needs?

Addressing questions like these will help you review priorities and let you decide on bookkeeping tasks you want to outsource.

#2 Define the process of bookkeeping

Successful outsourcing is the function of a well-defined process. Define the entire process of bookkeeping right from how the data will be received via Gdrive, email, Dropbox, or dedicated link. Here are some other questions worth answering:

  • Once the transactions are processed, what will be the review mechanism?

  • What will be the timeline of review?

  • How would the escalation happen and how queries will be resolved?

  • What will be the review mechanism?

All these processes will help align internally and externally the entire process of bookkeeping which will pave the way toward a successful bookkeeping outsourcing model.

A detailed understanding of the offshore bookkeeping process will greatly help in trust-building as well!

outsourced bookkeeping

#3 Expertise over rock-bottom pricing

Gerald Brom once said, “Everything comes with a price. Everything. Some things just cost more than others.” Since you are already hiring bookkeepers from India and will make good cost savings, don’t pull the strings too tight.

Keep in mind that quality comes at a price. So, prioritize expertise over rock-bottom pricing. Look for qualified bookkeeping professionals and established firms as a long-term investment with calculated profit. Check out their portfolio. Ask about their experience and existing clients.

Note that each bookkeeping outsourcing firm in India has its own strengths and shortcomings. So, do thorough research and find the perfect partner for your accounting firm.

#4 Ask about security

Data safety is not something that leading CPAs and accounting firms can compromise on. Discuss what data security measures are put in place by the outsourced bookkeeping company and clear all your doubts before making a decision. Ask them what network security they have in place and which technologies they put their faith in.

Even if your outsourced bookkeeping experts in India are going to maintain and update your client’s financial records in your accounting software, you still have to make sure that data access is granted on a need-to-know basis.

Learn everything about Accounts Receivable and Payable Services in India

#5 Select the right communication channels

You have covered the most important steps of hiring the best bookkeeping services in India. Now, determine how you want to keep in touch and collaborate with the outsourced company. Ask the vendor about channels used to promote collaboration and manage conversations.

New age tools have taken over the traditional communication mediums like phone calls and emails. Nowadays, a lot of firms are comfortable using tools like:

  • Slack and Whatsapp for quick communication

  • Zoho, Asana, and other new-age CRMs for project management

  • Monday.com, Basecamp, and Trello for collaboration

  • Teams, Zoom, and Google Meet for detailed discussions

These modern tools help CPAs and accounting firms to be in constant touch with the operating team and can also get real-time project information for partners.

Selecting a partner that uses such modern tools will help improve engagement, delivery, and support.

outsourced bookkeeping services

Now that we are familiar with the most important offshore bookkeeping vendor hiring tips, let’s look at its benefits for global CPAs and accounting firms.

Benefits of Outsourced Bookkeeping Services in India

Outsourced bookkeeping and accounting services have been consistently gaining popularity in the global market. And there are a lot of reasons that make it a good option for CPAs and accounting firms across the globe.

Here are those reasons:

#1 Effective use of human resources

Opting in for bookkeeping outsourcing services in India lets CPAs and accounting firms deploy their human resources efficiently. This helps them focus on the most high-priority clients and take their company’s growth to the next level. Outsourced bookkeeping in India will also help your CPA firm attract more clients.

#2 Better work efficiency

Simplicity is the soul of efficiency. If your business operations are not simplified well, you won’t be able to scale your business. You might even fail to support existing clients.

Outsourced bookkeeping services in India help CPAs and accounting firms increase productivity by taking off the additional workload. By outsourcing complex and time-consuming tasks, you can focus on providing a superior customer experience.

#3 Cost saving method

This is one of the biggest reasons for choosing outsourced bookkeeping services in India. Unlike other countries, outsourcing bookkeeping companies in India are known for providing services at competitive pricing. The average hourly rate taken by a bookkeeper in the US is $22 per hour.

outsourced bookkeeping for cpas

The hourly bookkeeping seat fee charged by leading bookkeeping outsourcing companies like Finsmart is $15. A dedicated bookkeeping seat and US-tax seat will cost you somewhere $1500-$2000 a month only. This helps CPAs make massive cost savings in the short run.

Long story short, the charges taken by outsourced bookkeeping companies in India are way lower than that of countries like the USA, Australia, and Canada.

9 benefits of outsourcing accounting and bookkeeping services

#4 High scalability

Retaining a big in-house team of accountants often brings cost and hiring challenges for CPAs and mid-sized accounting firms. Outsourced bookkeeping services in India will help you dodge problems related to the hiring process and also save money on rental space, infrastructure, and office supplies.

This helps CPAs and mid-sized accounting firms scale in an easy and economized manner. This means that you can expand your accounting and bookkeeping business without a snag.

There you go!

We have told you everything important about outsourced bookkeeping services in India. Partnering with an outsourced bookkeeping firm that can improve bookkeeping operations for your clients while cutting down overhead costs is the right step forward for CPAs and mid-sized accounting firms.

Yes, getting started with outsourced bookkeeping will take a little time but if you keep the aforementioned tips in mind, we are certain you will come across a firm that will handle bookkeeping for some of your clients and help your business grow.

Got any queries to ask? Send them to info@finsmart.co.in and have them answered by our bookkeeping experts.

Also read:

Month-end closing checklist for better accounting

Outsourced payroll services in India

India entry services for global MNCs

16 Basic Accounting Terms and Definitions for US-based Businesses

How often have you ended a call with your accounting team feeling befuddled about an accounting term? If your answer is a lot of times, then, you’re not alone. A lot of business owners in the US (and at other places too) aren’t familiar with common accounting terms and definitions. 

However, in order to manage your business and finances properly, it is really important to latch on to basic accounting concepts and terminologies. If you want to learn, then, keep reading! 

In this blog, Finsmart has compiled a handy list of 16 basic accounting terms and definitions for US-based businesses. These terminologies and definitions will define business accounting basics for you and give you insights on how to keep your business operations running smoothly. 

Accounting terms and definitions

Are you ready to explore our list of basic accounting terms and definitions? Let’s go! 

#1 Cash flow 

You must have heard this term while having a conversation with your accounting team. Cash flow depicts the net amount of cash and cash equivalents coming into and going out of the business at any given time. In simple words, it is the calculation of all cash collected and spent on business operations, investments, and financing.  

#2 Cash flow forecasting 

As the term itself suggests, cash flow forecasting involves predicting the future flow of cash that will move through (in and out) your business bank accounts. This basic accounting term will help you create scenarios based on new projects or investments; let you determine when to invest in a business, and also pay off debts or pay yourself correctly. 

basic accounting terms

#3 Allocation 

Most entrepreneurs allocate tasks to different team members to lighten the workload and make business functions run effectively. This basic accounting term is something like that. Allocation is the process of assigning funds to various accounts or periods. It can also be used to divide costs between different departments or activities within a company. 

#4 Credit/Debit 

Credit as a basic accounting term means an increase in a liability or equity account or a decrease in an asset or expense account. Debit, on the other hand, is an increase in an asset or expense account or a decrease in a liability or equity account. 

 

Learn about outsourced bookkeeping services in India

#5 Income sheet 

Another important accounting definition for businesses to keep in mind! The income sheet shows the company’s financial performance (net profit) over a certain period. It tells the financial story of the business over a period of time. The income sheet is an amazing benchmark tool for businesses to measure performance and understand profit. 

accounting terms and definitions

#6 Accounts Payable (AP) 

Accounts Payable (AP) represents money your business has incurred but has not yet paid. In other words, this basic accounting term represents the amount due to vendors or suppliers for goods or services received that have not yet been paid for. AP is recorded as a liability on your balance sheet. 

#7 Accounts Receivable (AR) 

Accounts Receivable (AR) represents the money due to your business for goods or services it has provided. It includes all of the revenue (sales) that your company has provided but has not yet collected payment on. AP is recorded as an asset on the balance sheet that is likely to convert to cash in the short term. 

 

Accounts payable and receivables services in India to streamline accounting 

#8 Accrued Expense 

As the accounting term itself suggests, an accrued expense is a type of expense that has been incurred but hasn’t been paid or for which there is no expenditure documentation yet. A journal entry is created to record an accrued expense in place of documentation. An accrued expense is generally expected to be paid for within quite a short period of time like next week or next month. 

#9 Asset (A) 

Another basic accounting term you might have heard from your accountant. An asset is defined as anything of value or a resource of value that is owned by your business and can be easily converted to cash. These are listed in descending order of liquidity. Cash, A/R balances, inventory, buildings, office furniture, land, and vehicles are all considered assets.  

#10 Equity (E) 

Equity (E) can be found on a business balance sheet and is one of the most common pieces of data employed by analysts to assess a company’s financial health. It denotes the value left over after liabilities have been removed. To be more precise, equity represents the money that would be returned to your business’ stakeholders if all of the assets were liquidated and all debts were paid off.

basic accounting terminology

#11 Inventory 

Inventory is a basic accounting term used for raw materials, produced goods, and goods that are available for sale. There are 3 types of inventory – raw materials, work-in-progress, and finished goods. Inventory is classified as a current asset on a business’s balance sheet. As goods are sold to customers, the inventory account becomes lower. 

#12 Liability (L) 

All debts that a business has yet to pay are referred to as liabilities (L). These are settled over time through the transfer of economic benefits including goods, money, or services. Common liabilities in accounting include Accounts Payable (AP), payroll, and loans. 

#13 Interest 

Another basic accounting term every US-based business should have an idea about. Interest is the amount paid on a loan or line of credit that exceeds the repayment of the principal balance. It is often reflected as an annual percentage of the amount of a loan. Interest in accounting can either be simple or compound. 

#14 Journal Entry (JE) 

Journal entries (JE) are raw business transactions that are recorded in manual accounting or bookkeeping systems in chronological order by date and posted to the appropriate accounts in the general ledger. Each journal entry comprises a unique identifier, date, debit/credit, amount, and account code.  

 

 7 glorious tips to outsource accounting to India 

#15 Payroll 

Since you are a business owner, it is obvious you give wages, salaries, and bonuses to your employees. The total of all the compensation that a business must pay to its employees on a given date or for a set period is called payroll. It often appears as a liability on your balance sheet showing what your business owes in terms of unpaid wages, bonuses, and more. 

#16 Receipts 

We are certain most of our readers know about this accounting term. For those who don’t, receipts are documents produced by a business for its customers after they have paid for goods or services. Business owners should save received receipts because they can prove that their incurred expenses are accurate. 

basic accounting definitions

Basic accounting terms and concepts 

Our list of basic accounting terms and definitions ends here. But your accounting journey has only begun. You are likely to come across more unfamiliar accounting terms, finance phrases, and acronyms. Whenever that happens, speak with your accounting partner to get the exact meaning and insights. 

Got any queries to ask? Send them to info@finsmart.co.in and have them answered by our accounting experts.

Check out these services as well if you operate or want to scale in India:

Outsourced accounting and payroll services in India

India entry services for global MNCs

Discover accounting outsourcing services in India

Month-End Closing Checklist for Better Accounting in 2022

Are you a new business struggling with month-end closing? Don’t worry, you’re not alone. A lot of new businesses and entrepreneurs struggle to keep up with their accounting books. As soon as they realize the urgency of finishing accounting tasks and reconciling accounts, another month passes. As a result, they fall behind in recording transactions. 

Closing your books at the end of the month can be really stressful and time-consuming if you don’t know what to do. If you want to simplify your accounting responsibility of closing your business books, we have some serious tips for you. 

In this blog, Finsmart will share a month-end closing checklist for better accounting in 2022. We have outlined major accounting tasks that require action over the fiscal period. 

Are you ready to explore our month-end closing checklist? Let’s go! 

#1 Create a closing schedule 

Since you are a thriving business, it is pretty obvious that you have so much going on every month. From finance to marketing, production, surveys, shipping, and customer support – there is no dearth of tasks you have to carry out to operate your business effectively. No wonder, memorizing dates for performing accounting tasks is really difficult and frustrating in a crazy work schedule.   

That’s why we suggest business owners not waste their valuable headspace memorizing a bunch of dates. Instead, note down all important and relevant deadlines. Prioritize each accounting task according to upcoming due dates. That way, you will be able to prevent delays and inefficiencies during month-end closing. 

month end close checklist

#2 Record incoming cash 

The next important accounting tip of our month-end close checklist is about maintaining cash records. Put all incoming revenue totals, whether they have been remitted or due in writing (along with sources). Our accounting experts suggest business owners put the following incoming cash on record: 

  • Revenue
  • Loans
  • Invoice payments 

Measure the differences between your invoices and bank statements to make certain that you aren’t overlooking any outstanding customer payments. If there’s a payment in due or you find any sort of inconsistencies, manage them right away. Send customers a reminder of the amount due. Put any late fees into practice if required. 

Learn about outsourced bookkeeping services in India

#3 Reconcile accounts 

Let’s be honest. Based on how efficiently you have regulated your expenses during the month, this step can either be a piece of cake or back-breaking on the month-end closing checklist. Reconcile every transaction with your bank account statements.

Break your account into the following categories: 

  • Cash, cheques, and saving accounts
  • Prepaid or accrued account
  • Bank loans and notes

Pick one option first. Start working on it carefully. Make strides for others afterward. This way, your business accounting will stay streamlined and you’ll be able to catch errors at month-end closing with ease. 

accounting month end close checklist

#4 Update accounts payable 

Account payable is really important to track what is owed to suppliers; ensure your payments are properly approved and accurately processed. All these will help you produce an accurate balance sheet. But let’s be honest. Since you are a business owner, you probably don’t have time to record transactions every day. True, isn’t it? 

How about writing your purchases and organizing receipts? You will be able to keep your account payable in perfect form in that manner. After reconciling transactions, record them in your accounting books at the end of each week. Cross-check your records to make certain you have covered up all bills and invoices during your monthly close. 

Outsource AP and AR services in India if this report doesn’t make any sense to you.

#5 Review assets 

One of the most important accounting tips on our month-end closing checklist. Assets are resources that are owned and controlled by a business. Building, machinery, raw materials, furniture, inventory – all of these are your business assets. Although assets don’t convert directly into cash, they can depreciate in value over time. 

In other words, they are long-term items that add value to your business. When closing your month-end accounting book, record any payment related to your business assets. Note if you have made any new purchases or transactions related to fixed assets.

#6 Count inventory 

The next accounting tip of our month-end closing checklist is to perform monthly inventory counts. Businesses that aren’t using an automated inventory management system or haven’t hired or outsourced accounting management services to keep on top of their inventory status often expose themselves to overselling and ruffling customers for items they want to buy from you. 

You don’t want those things to happen to your business, right? If your answer is yes, start performing monthly inventory counts. By doing so, you will be able to figure out what items you need to replenish and identify products that will expire by a certain date. You will be able to make adjustments and reconcile your books after covering all end-month accounting actions. 

#7 Check revenue and expense accounts 

Another important accounting tip from Finsmart’s month-end closing checklist! Review your revenue and expense accounts. Make certain you recorded them in the correct account for a specific period. Write down all the sales and revenue for the time period you’re analyzing. Add together all costs of producing each product for sale. Be sure accruals and prepaid expenses are recorded in your books in the right manner. 

9 known benefits of outsourcing accounting and bookkeeping services

#8 Review your work 

Remember how we used to double or triple-check our exam paper before submitting it to the teacher? Just like that, you should consider having a second set of eyes review your work before completely closing business accounts at month-end. After reviewing your work by yourself, ask your manager or supervisor to have a look at your books. 

Ask them to review your accounting information and tell you if it is accurate. That way, you can substantiate your business’ strategic financial planning is formulated on a healthy foundation. 

monthly closing checklist

Month-end close checklist 

Closing your accounting books is really important for businesses. It demonstrates the monthly financial status and also shows which areas require attention. With this, our month-end account close checklist ends.  

Got any queries to ask? Send them to info@finsmart.co.in and have them answered by our accounting experts.

Check out these services as well if you operate or want to scale in India:

Outsourced payroll services in India

India entry services for global MNCs

7 things to keep in mind while outsourcing accounting to India 

 

Outsourcing Accounting Services to India? Here are 7 Things to Keep in Mind

The many advantages of outsourcing accounting services in India have made it popular amongst businesses of all sizes. For those who don’t know, outsourcing accounting and bookkeeping companies in India are helping organisations as well as CPA firms boost accounting efficiency, minimise bookkeeping cost, and maximise profitability every year. While thousands of global CPAs and accounting firms hire bookkeepers in India, a lot of them have a limited understanding of outsourced accounting and aren’t sure how to go about the same. That’s why we have decided to help out!

In this blog, Finsmart Solutions will share tips to keep in mind while outsourcing accounting services to India for your business or CPA firm. Read on to discover agency hiring ideas that will help you switch to outsourced accounting and bookkeeping. Let’s get started:

Tips for outsourcing accounting services in India

#1 Identify requirements

Requirements will define the goals of your accounting outsourcing and help bring the best of its utility and benefits. If your CPA bookkeeping and accounting needs aren’t clear, you might end up picking the wrong engagement model while outsourcing accounting services to India. Or you may end up hiring the wrong accounting resources!

Therefore, our first and foremost tip for businesses is to identify your accounting and financial requirements. Ask yourself why you need to outsource accounting services. Is it because:

  • You don’t want to pay a full-time accountant’s salary

  • You are spending a lot of time on accounting functions and are unable to focus on other critical business aspects.

  • Your bookeeping or accounting firm is growing rapidly and you need fast scalability for financial functions

  • You want to minimise errors, automate payroll management, and benefit from modern accounting technologies.

Pick a notebook and list down your reasons for outsourcing accounting services in India. This will give you a better perspective on your outsourcing needs.

outsourcing accounting india

#2 Be clear about expectations

They say when the WHY is clear, the HOW becomes easy. This means that when you are clear about your expectations and scope of work, your outsourced accounting and bookeeping partner will be in a better position to address your business goals and recommend correct accounting solutions.

Want a robust reporting system for your accounting firm? Ask your potential accounting vendor about the same. Want accounting for CPAs help on an hourly basis? Mention the same in the very beginning. Be open about your business accounting goals and tell potential service providers what exactly you are trying to achieve while outsourcing accounting services in India.

#3 Decide engagement model

Accounting outsourcing companies across the globe work with multiple engagement models. Below three are the most popular:

Dedicated accounting seat: In this engagement model, the accounting and bookkeeping team works dedicatedly for you.

Hourly accounting seat: In this engagement model favoured by small businesses, business owners get access to specific hours of accounting support.

US tax sheet: This engagement model brings support for tax return preparations and filing.

At Finsmart, we specialise in the ‘bookkeepers on subscription’ engagement model. While vetting outsourcing accounting partners in India, the USA, or anywhere in the world, we also recommend putting your trust in stringent paperwork!

outsourcing accounting india

#4 Choose expertise, always

Even if you have rightly chosen outsourced accounting and bookkeeping services in India, there will be a lot of pricing options to choose from. And let’s be honest here, engaging an experienced team of accountants and bookkeepers that will bring professionalism and prompt support to the table won’t come at super low pricing.

If you are hiring an accounting team in India for monthly support, paying anything between 1500 and 2000 USD is practical. An hourly accounting seat in India on the other hand will cost anything between 15 and 20 USD per hour.

Partner with an established outsourcing accounting company in India to get the best expertise.

#5 Experience and reputation

This is one of the most important tips to consider while outsourcing accounting services in India. Since you will be spending a lot of time and resources on accounting outsourcing for your business or CPA firm, signing an agreement with the company won’t be enough. You have to make sure that your offshore accounting vendor has vast experience and an unmatched reputation.

Going through the websites of shortlisted accounting outsourcing vendors is a good place to start. Read online reviews to get a reasonable idea of their market reputation and discover references as well. Ask for client references to double-check expertise and professionalism.

#6 Confirm data security

Jodi Rell once said, “At the end of the day, the goals are simple – safety and security.” She is 100% right even in the accounting sense. Ensure that your partner outsourcing accounting and bookkeeping company in India has customer data safety and security measures in place to protect critical business and financial data. This is super crucial for CPA firms.

Discuss security measures in place and technologies being used for accounting and bookkeeping. For example, “what procedures are followed to keep track of the location and propagation of my clients’ accounting data” is a good question to start the data safety conversation.

outsourcing accounting india

#7 Good communication

Lack of communication causes unmet expectations and lots of errors. Therefore, it’s important that all the critical business aspects are communicated clearly. India is a popular accounting and bookkeeping outsourcing destination because English is widely spoken by local financial professionals and most CPA firms across the globe prefer the same.

Having it all in writing will also greatly help in avoiding miscommunication. For every day or weekly communication, use modern communication and collaboration tools to keep everything streamlined. This is how truly global CPA and accounting firms function!

Outsource accounting services to India

Above are some useful tips and ideas to keep in mind while outsourcing accounting services in India. Hiring an offshore accounting company for your business or CPA firm generates great value, especially when your business goal is to optimise accounting operations and reduce overhead costs.

Yes, the outsourcing process is going to take some time, but we are certain that with patience and thorough research, you will arrive at the best choice for your business or accounting firm.

Got any queries to ask? Send them to info@finsmart.co.in and have them answered by our accounting experts.

Check out these services as well if you operate or want to scale in India:

Outsourced payroll services in India

India entry services for global MNCs

How Global CPA Firms Can Combat “The Great Resignation”: Maanoj Shah

Recently I went for a global CFO meet where I got the opportunity to interact with CFOs across the globe. Every person I spoke to said, staff retention is the biggest challenge they are facing right now. This got me thinking that “The Great Resignation” tidal wave is hitting everyone hard, irrespective of the industry sector. This mass exodus is being felt both inside and outside of the accounting sphere.

You could argue that employee turnover is normal and retirement is a natural part of life. But the data tells a different story. In November 2021 alone, 4.5 million Americans quit their jobs. According to the U.S. Bureau of Labor Statistics, in all 20.2 million employees have walked away during May – September 2021. And, over 73% of US employers are having difficulty retaining and attracting new staff. That is a serious issue!

With a large percentage of accountants retiring, it is creating a great void in the industry. Besides, the cumulative cost to businesses facing The Great Resignation is huge. But why is this happening? And can anything be done about it? Here’s my take!

Key Issues

Owing to the growing regulatory requirements and stringent compliances, there is increased pressure on the accounting staff more than ever. Accountants all over the globe are struggling with overwork and burnout in the busy tax and audit season. Moreover, during the pandemic, people got access to alternative jobs with the “Remote Work” culture where they could balance personal and professional life. So your employees had a choice between being an overworked accountant vs remote worker where they were not bound to geographies and could work for companies in any part of the world. These alternatives created a great challenge for CPA and accounting firms.

The Solutions

1. Create Hybrid Work Format: As an accounting firm, a lot of collaboration is required between a Bookkeeper, an Accountant and a Partner. However, it might not be possible for them to physically meet every time. So ideally if CPA firms can create a hybrid work format, say for example 3 days in office and 2 days WFH, it can help accountants to balance professional and personal life and they will get the needed time and space. And remember, a happy employee equals a productive and motivated employee.

2. Implement Collaborative Tools and Technology: Adequate technology and automation tools in the accounting field can help deal with great resignation. It’s time that you understand the need to automate your accounting function and embrace advanced technologies like Artificial Intelligence, Robotics, Cloud Computing, Big Data, Internet of Things, Blockchain, etc. Use the latest tools and technologies like Zoom, Google Meet, etc. for meetings. Make use of Accounting Practice Management Softwares like Karbon, Financial Cents for managing client deadlines and work. Use Project Management Tools like Monday.com, Asana to keep client work and priorities organised.

3. Switch to Outsourcing: You can outsource accounting and bookkeeping services to a third party and get experienced and expert professionals looking after your accounting and finance function. Cross border or offshore outsourcing to a country like India can add significant value to small and medium businesses in the form of reduced costs, time zone advantage, access to specialized expertise and more.

You can easily scale up their services in the busy season and free your in-house staff for more productive tasks. This will not only bring more satisfaction to your employees but will also keep them motivated. An outsourced partner can help you streamline your processes and workflows to achieve greater efficiency. Additionally, they can assist you to smoothly automate or transform your finance function in order to achieve maximum value. One can refer to our blog that was written earlier on technology transformation . https://finsmart.co.in/technology-transformation-for-your-accounting-process-finsmart/

4. Seasonal Incentives: Tax season can be really exhausting for accountants. They are naturally overworked, and hence during such times, burnout rates can be high. You may ease their stress and keep them happy during tax season by incentivising them over and above their compensation package. Everyone loves a bonus system that rewards their performance. Consider offering employees a one-time bonus, special incentives, gift cards, extra allowances like offering food-based rewards in the form of pizza coupons, happy hours, etc. Rewards can be individual, team-based, or be a joint effort to meet an office-wide goal. This added benefit will help them remain motivated during this tough season and build loyalty towards their company.

Act Fast, Act Now!

We don’t know how the great resignation will impact us but being prepared is the key to surviving it. So take action now! There can’t be any perfect solution to The Great Resignation but some of the above solutions can help CPA and Accounting Firms to combat the situation. Employee Retention is a constant process and one has to invest in terms of time and energy in creating a great working relationship and culture of trust and bonding within the teams.

About Author

The article is written by Maanoj Shah – Director Growth Strategy & Alliances at Electronica Finsmart Solutions Pvt. Ltd. www.finsmart.co.in Finsmart is a leader in accounting outsourcing with 15+ years of experience in catering 150+ clients in outsourcing of payroll, bookkeeping and management accounting services for large multinational corporations as well as SMEs globally. The Accounting Seat™ offering by Finsmart is specially designed for global CPA firms. It offers bookkeepers on subscription helping CPA firms to reduce their workload, help them to provide scalability with bookkeepers and enhance efficiency and profitability of the firm.

Payroll Management Services For India Based MNC

Accounting, MIS and Taxation Services For a Newly Incorporated Company in India

Accounts Payable Service For a MNC Having Global Presence

Bookkeeping and Reconciliation Services For USA Based Company

9 Benefits of outsourcing accounting and bookkeeping services

Outsourcing accounting & bookkeeping Introduction

In the current time, it is challenging to find a qualified and eligible person or agency to grant their accounting or bookkeeping services at an affordable price.

It is very challenging for small businesses, entrepreneurs, and startups to get an accountant because of the lack of money.

They need the right people with the right skills to prepare for their company’s financial statements, manage bank account operations, prepare the outgoing invoices, and analyze financial data.

Most of the small companies do not feel comfortable doing accounting independently. Around 30 percent of small businesses are going with outsourcing accounting and bookkeeping services.

Apart from that, it is commonly believed that bookkeeping must be done in-house. But before that, the companies must ask themselves if they have adequate skills and experience to do this job.

Nevertheless, companies can deal with all the tasks within the organization and can increase the accounting tasks. And after all this hassle they will end up overpaying the taxes.

Now you must have understood why it is necessary to have the right person for the right job. You must consider outsourcing accounting services to the company with the right expertise and knowledge about the domain. It will help you to do your particular job more qualitatively and cost-effectively.

Therefore, many companies consider outsourcing bookkeeping and accounting services to scale their business without affecting the harmony of business, employees, and customers.

Benefits of outsourcing accounting and bookkeeping

Here we are going to share the 9 excellent benefits of outsourcing accounting and bookkeeping tasks:

1. Cost-effective:

Most of the businesses’ perception of outsourcing is that they think it is costly as compared to inhouse Accountants. But in reality, it is opposite to their perception.

Many accounting companies in India offer their services at an economical cost and they charge based on the volume of transactions. So you can scale your servie up and down based on the business, Further in inhouse Accountant you may not get all the relevant expertise and if they goof up the cost of non-compliance becomes heavy, so considering all this Outsourcing is a cost effective and efficient solutions

Further by outsourcing services remotely, you ultimately save money on office supplies, snacks, travel expenses and many more things. You only have to pay for what you need.

2. Achieve a high level of accuracy:

You will achieve a high level of accuracy by outsourcing bookkeeping services. Experts know their job better than anyone else; therefore letting accounting professionals doing their job will give you far better accuracy as compared to inhouse accounting.

3. Elimination of hiring cost:

If you see the image of any recruitment process from its base, you could find that it is a very rigorous job and takes many resources to manage that procedure.

You also have to make recruitment strategies like making ads and taking interviews, which cost a lot of force. It needs dedication which many companies can’t afford.

But in doing this many of the companies do not think about what cost and hassle it takes to get an accountant through this process, therefore, they could afford it and correlate it with equal time and expenses. Therefore this must be accounted for savings from outsourcing business processes.

4. Saves your time:

We have seen that after the growth of any particular business, they find themselves spending more time managing the money and less on the business.

This is why you should consider outsourcing bookkeeping, which helps you focus on your business with total energy. The accounting companies perform the administrative works to manage the accounts and spending of money.

5. Helps in straightforwardly scaling the account:

The accounting service providers have an efficient amount of availability to scale the business services in a significant and well manner, with no lagging. For example, if your bookkeeping tasks exceed one employee’s function, you can easily be enforced with the extra workforce.

6. It reduces the chances of fraud:

The accounting and bookkeeping companies use automation technologies or softwares, which reduces the risk of mistakes, and it also saves time. It minimizes human error, and even regular reports reduce the chances of internal frauds.

7. Timely Reporting:

When the accounting is outsourced they ensure you get timely MIS and Reports needed to run your business. In inhouse accounting you will have to strive to get the timely reports from the Accountants.

8. Reaping benefits from up-to-date technology:

Accounting companies are up to date with the happenings and new technologies in their industry. Due to new technology advancements, companies could systematically progress by using them optimally.

9. New ideas:

The outsourced companies have the diversified nature in which customers from various places and locations are linked with those companies. Therefore the next level of creativity comes when many brains are involved in reaching a particular goal.

When you should outsource your accounting and bookkeeping?

You should consider outsourcing accounting and bookkeeping work when managing all the matters becomes tricky and seems very difficult.

You could choose to outsource when you cannot handle the workforce on time at an affordable cost. You could get that from another company where the workforce came in a remote location with less expense.

If you think that there is an internal error or fraud in your company, you should involve a third party in the picture.

When your mind is stuck and needs some extra advice from the professionals or experience one, then you should go for it. It makes that easy to handle your business with the headache-free mind.

Things to consider before outsourcing

The following things which you should consider before outsourcing is that:

You have to find all the management team who will lead your offshore team and check for their required exposure and experience; this will help you achieve your goal.

You have to check for their service level agreement in which the sign documents of the outsourcing partnership are written.

Check for the pricing and compare it with the other vendors and then go for that. Level of flexibility, have to be checked for flexibility and proper communication with them have to be done.

Conclusion

Thus, we can say that outsourcing accounting and bookkeeping services could play a vital role in enhancing your company’s services. It helps in appropriately managing the company by saving your time and cost.

From the article, we understood that the advantages of outsourcing accounting and bookkeeping are that it reduces the cost, enhances the quality of the product, gives human resources at a lower cost, and increases the profit. It reduces the company’s investment. It emphasizes the efficiency as well as the effectiveness of that company.

How better payroll management lead to happier employees? – Finsmart

Managing payroll information isn’t just about sending off cheques, releasing salaries, and keeping records. It is highly concerned with the organization’s relationship with its employees, handling their grievances, and standing answerable to their concerns and queries. 

If an organization aces its payroll management, employees are always going to be smiling… and working.

How do you ensure that your payroll management is on point and your employees are always happy? We’ll tell you. Though it’s not a small task, it’s quite simple. Your internal team should be aligned, trained, and to save resources, you can even outsource your entire payroll process to experts. If not that, you can hire a consultant to guide and advise you. 

Stay updated with state tax laws

The state tax laws and the government regulations can change and your organization may take time to get up to date. Send your staff for training keep them updated with the changes and always ensure that changes in your organization are aligned with that of the government.

Automate your operations

Automated operations mean that everything will be aligned, from your employee’s attendance records, leave records, extended work hours, and their requests. You won’t have to have 10 different software or multiple employees working on managing a single leg of the organization. 

Be transparent with your employees

Employee objections can be challenging to manage as well as, if not handled correctly, can have a negative impact on the employees and the company. It’s best to stay transparent with your employees. Stay on track, and if you miss, let your employees know. Set proper expectations and keep your employees updated.

Standardize your payroll management

Though, every organization’s payroll operations lead to the same results, the means to end can be different. If you hire a new employee in place of a present one, the new employee may take time to adjust to the new environment even with his/her past experience. It’s best to facilitate internal promotions or standardize your operational structure. 

Keep internal deadlines aligned with external

You may have to file forms and give out cheques at the right time of the year and month for the timely release of payments. For that to happen on time, start your internal processes at the right time. Keep your employees and your staff aligned so your payroll is processed without a glitch.

Outsource to a consultancy

Keeping up with taxes, state laws, and keeping a track of your employee records can be a task for your internal team. You can drastically reduce the cost as well as increase efficiency if you simply hire an external agency. It’s always better to hire professionals if things are getting a bit too serious and heavy for your internal team.

Conclusion

Payroll management isn’t a small task, and it’s a sensitive factor of a company too. Your employees’ happiness, productivity, loyalty, and longevity depend on it. That in turn affects your company’s public recommendation and image. Keep things aligned, use automation software, and listen to your employees… always.

5 Simple Ways to Streamline your Payroll Management – Finsmart

Managing payroll systems isn’t an easy job. Whether your company is just starting or whether you have grown is a mid-sized company that’s humming with business; we could all use some help with payroll management.

But the question is… where to start from?

Considering that automating tools help considerably in streamlining your payroll management systems, how exactly are they to be managed? We all could use some expert advice. Once we have got the basics right – everything else falls into place.

Here are the key things to keep in mind to streamline payroll management system:      

  • Complete your payroll management records

 Keep the basics clear. Centralize and store your employees’ details, official deductions, bonuses, benefits and overtime in a single sheet. You can even use payroll automation software where everything is stored against proper names.

If your employees expect any changes in those details, let them know that they will have to report in advance. After all, if the records are right, then only will the payroll move smoothly.

  • Use an electronic payroll system

Are you still recording the time your employees put in, manually? That way you are not only using up more time but also rendering human errors that may just increase TAT. Adopt an electronic system that stores everything at one place, as well as send you automatic alerts, warnings and notifications when something doesn’t add up.

You could also customise the software as per the policies of your company.

  • Open a separate payroll account

 Opening a separate payroll account helps you manage your operating cash and your taxes & payroll cash differentiated, helping you manage both with ease. Your bank can become invaluable in this case. The representative will guide you on managing your expenses and operating cash, helping you manage cash on hand whenever it comes to payroll management.

  • Create an integrated network

If your employees are punching in on time, if certain updates are given or not, all of this can be tracked to one centralized system. Going electronic not just for the payrolls, but also to manage other systems of records is integral in defining a smooth-running system.

An integrated system allows manual efforts to be drastically reduced, and human errors are largely eliminated.

  • Consider an outsourcing agency

 At the start, any business has a minimum number of partners and a small staff size. As the company grows, so does everything associated with it. Payroll management requires multiple changes and redefinitions. Consider outsourcing your payroll management services.

 A professional team helps your company’s system align with that of the state rules & regulations. With a whole team dedicated to looking after your payroll tasks & milestones, your company will have a smooth humming system.

  • Your key to success

To summarise quickly, use an integrated network to eliminate human errors, open a separate payroll accounts and keep your systems up to date with the current trends in the industry. Encourage your employees to be proactive in updating their details.

Last but not the least, having a dedicated payroll management services agency, can be a boon for today, and years to come.

Benefits of payroll management software

  • Payroll management software is useful for compliance purposes- staying up to date with employee records on attendance, work performance, income and deductions etc.
  • Automation of payroll helps speed up payroll processing and makes it easy to generate reports e.g. for tax filing purposes. 
  • When you outsource payroll to third party providers, privacy of employee and company financial data will be maintained.
  • Payroll softwares can offer employees access to their payroll data and for self-service processing

Technology Transformation for your Accounting Process – Finsmart

Over the years, technology has transformed the way businesses function. The digital transformation is taking place in core operational areas as well as central functions including accounting and finance. Evolving technologies such as Machine Learning, Artificial Intelligence, Robotic Process Automation, Cloud Technology and Blockchain have made accounting more efficient and easier. 

The recent survey conducted by Ernst & Young highlights that 92% of finance leaders across 89 corporates are on the path towards introducing digital transformation in the accounting and finance function. As per Statista report, the worldwide spending on digital transformation technologies and services is expected to be 239 trillion U.S. dollars by 2024.

Today, more and more organisations are reaping the numerous benefits of digitization in the accounting process and carrying on day-to-day tasks in a timely, effortless, and accurate manner. And some of the outsourced accounting firms have been leading in the forefront of digitization where the organisation gets dual benefits of outsourcing cum digitization with lesser hassles. Take a look at some of the positive changes that can be achieved in the accounting process by embracing digitization.

Benefits of Technology in Accounting Process

  • Streamlined System and Processes

Digitization results in a streamlined accounting process that follows a definite standard, leading to overall improved performance. Digitization enables real-time access to important data and information as everything is stored on a centralised cloud system. 

  • Easy Access to Financial Information

With the use of advanced accounting software, reporting tools and dashboards, you can create financial reports such as cash flow statement, profit and loss report, balance sheet, working capital report, etc. within minutes. Besides, you can even set it on auto pilot mode where in the moment you do a monthly closure of books these reports are made available to you in a fly. Integrated systems and real-time reporting help you to access information at any time and from anywhere. This helps management make strategic decisions with increased accuracy, speed and reliability.

  • Enhanced Data Security

With the growing number of cyber-attacks, data safety and security is the topmost priority for every organisation. New-age cloud based accounting tools allow you to back up your data and secure it safely on a multi-server environment with the help of security measures such as encryption, authorized access, two-factor authentication, firewalls, etc. And these systems are available on a monthly subscription so organisations don’t have to investment in creating these sophisticated infrastructure.

  • Saves Time

Digital accounting makes the entire process of accounting much faster, whether it is budgeting, invoicing, reporting, or statements. A recent survey conducted by the Institute of Management Accountants states that accounting teams spend more than half of their time on low-level administrative tasks. Among the 800 participants who took part in the survey, over 50% believe that automation can reduce the administrative burden and enable them to focus on key business tasks. 

  • Cost-Effective

Digitization reduces the need to hire a team of professionals to manage the accounts of a business. Moreover, the adoption of digitization leaves no room for manual errors as data is automatically recorded with the help of accounting tools and software. This eliminates the cost that would have otherwise incurred on rectification of manual errors. All of this results in drastically reducing the operational costs of business. 

  • Business Continuity and Remote Accounting team

Digitization was biggest boom in the era of this pandemic since the least impacted businesses were those that used these accounting and financial technologies. They were able to set remote accounting team leading to zero business disruption. Digital transformation has enabled such organizations to respond and thrive during the pandemic.

Digital Transformation in Finance and Accounting

 

The emerging digital technologies are making it simpler for businesses to manage their operations more efficiently. Implementation of these technologies facilitates the development of timely financial insights and helps you gain a competitive edge in the market. 

With the countless benefits of digitization, it is time that you set up a digitization plan for your accounting process. Finsmart is a leading player in Outsourced Accounting and Payroll Services. We use these powerful technologies that contribute to digital transformation in the financial sector. We also help you implement and use technologies such as Machine Learning, Artificial Intelligence, Cloud Accounting, and Dashboarding tools to gain complete financial transformation resulting in better business decision making and thereby help scaling your business. 

Three Common Misconceptions About Offshore Outsourcing – Finsmart

Three Common Misconceptions About Offshore Outsourcing

Offshore AR /AP outsourcing has become a proven strategy for organizations to create efficiencies in costs and time, and deliver better value to their customers. According to a 2021 Report Linker study, the finance and accounting outsourcing market is projected to grow by US$16.7 billion. But even with its impressive track record, accounting outsourcing is viewed through a lens of skepticism by many. Unfortunately, popular misconceptions about outsourcing have persisted in the collective imagination, preventing many businesses from fulfilling their true potential. Let us consider three common myths and then peel back the surface to look at the ground reality.

1. “The outsourcing service provider does not know my organization’s processes or the industry’s nuances”

Accounting outsourcing companies such as Finsmart are comprised of experts who have significant experience across industries, working on AR and AP for organizations of all sizes. The average in-house accountant cannot be expected to have the same exposure. Our resources are trained and experienced in understanding the protocols of clients and following them to the tee. Any time there is a task that requires specialized knowledge, a resource with expertise in that aspect will step in to accelerate the process.

Having Finsmart as your Intelligent FinOps partner means that you will need to conduct training and knowledge transfers on your processes only once. From a training standpoint, your organization can effectively switch to the autopilot mode. On the other hand, in-house AR/AP teams will require you to conduct numerous training/re-training exercises as your company navigates expensive recruiting and attrition cycles.

You can also read more about how outsourcing can save you the hassle of training and retraining employees in our blog here.

2. “Outsourcing isn’t necessary when implementing technology solutions can achieve the same results”

Bill Gates famously said that “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” This point is extremely valid in the ‘outsourcing vs. technology’ debate in the context of AP and AR. 58% of large firms use cloud-based accounting software, according to a 2020 report by Entigrity. However, while tasks can be automated and accelerated by technology, unless they are underpinned with sound business processes, the results are bound to disappoint. Technological capabilities may not be used optimally if a culture of maximizing productivity has not been carefully cultivated over the years.

Outsourcing companies, on the other hand, are incentivized to continually hone and refine processes to achieve maximum efficiency. By onboarding an outsourcing company, you are leveraging their proven processes. When a technology layer is then added on top of this foundation of sound practices, the maximum value can be drawn out of your AR and AP function. With Finsmart as your ‘Intelligent FinOps partner’, you are leveraging optimized processes and cutting-edge technology at the same time.
With Accounting Seat, you need to conduct training processes only once. There will be no need for retraining ever again. Knowledge transfers will happen internally on our end with no support required from you. Our teams are well-versed in a wide range of accounting software platforms which means time required from your organization on software training sessions will most likely be non-existent, or minimal if at all.

3. “Outsourcing means downsizing and layoffs for employees”

While outsourcing can be an effective tool in reducing headcount, it does not necessarily entail downsizing. The flexibility offered to you by outsourcing means that resources can step in to supplement your internal team to better handle seasonal demands and surges in workload. This translates into better work-life balance and satisfaction for your team members during grueling work cycles such as those typical of the tax season.

Employee attrition rates are already high in the accounting field with burnout and long hours frequently cited as reasons. According to AICPA’S Journal of Accountancy, 2020-2021 was one of the most brutal tax seasons for CPAs in recent history. But the problem is exacerbated by the fact that more CPAs are retiring than entering the field. Outsourcing can put an end to the churn and make your employees feel supported. The reduced attrition rates will help you to focus on strategic areas rather than grappling with your talent pipeline and managing deadlines.

Understanding outsourcing

Outsourcing is meant to be a tool in empowering your organization to meet its business goals by shifting your attention from operational details to strategic focus areas. In this blog, we have inspected some of the assumptions about outsourcing. However, even many of the benefits of accounting are not understood well enough. Most companies view cost-savings as the sole criterion to measure the impact of outsourcing when in fact, your intelligent FinOps partner can offer you a plethora of hidden benefits such as improvements in vendor relationships, a more satisfied supply chain, better controls and much more.

In an increasingly competitive business landscape, it is vital that you embrace the strengths and efficiencies that outsourcing can impart to your organization.

To know more about Finsmart’s services, click here.

Say goodbye to the hassle of training and retraining bookkeeping resources – Finsmart

Say goodbye to the hassle of training and retraining bookkeeping resources

With advances in technology and changes in the business landscape, businesses are re-evaluating which functions of their organization will benefit from in-house resources and which will not. After all, people are one of the biggest investments that companies spend in terms of cost and time. Managing people involves incurring various costs that can bog down the company. Managers believe that they have more process control when they have dedicated bookkeeping resources in-house even when that is not the case. They also often fail to see the lack of productive output, lack of exposure to cross-industry expertise and other consequences of this mindset. In this blog, we will explore the hidden and visible costs of in-house accounting resources and how you can overcome these challenges.

Revenue traps from recruiting to training to retraining

There is a significant investment of time that is involved in hiring an in-house accountant and it begins even before recruitment. It starts right from devising the recruitment strategy, which takes up precious man-hours for your HR, accounting department, supervisors and CFO. Short-listing and interviewing the candidates and conducting background checks also divert time away from important tasks.

Once recruited, there will be a significant learning curve. There will be industry-specific, project-specific and other specialized information that they will require familiarization on. Today’s businesses use a wide variety of accounting software platforms. The onboarding process, therefore, demands a period of software training too. On-the-job training will have to be undertaken by supervisors and senior employees, triggering a cascading effect of reduced productivity. It can take between weeks and months for an employee to get fully trained and comfortable to deliver to their fullest potential.

While the resource is in the onboarding stage, they are losing money for the company. It is only after a substantial period that the company reaches a break-even point. This problem is exacerbated if most of the resource’s work is not on revenue-generating work. After spending considerable time and money on hiring and training an employee, they may choose to leave your organization for various reasons. This leaves the company back at square one, and employee retraining can be even more expensive.

Taking advantage of outsourced teams

In-house employees may not work optimally throughout the day, which means you will be paying for man-hours that are not utilized productively in improving your bottom line. By investing in outsourced teams instead, you can drive down your accounting costs by 50% while improving scalability, efficiency and accuracy.

With Finsmart’s Accounting Seat , you are leveraging cross-industry expertise in accounting. Our teams have a vast amount of knowledge gleaned from working with various companies. They are exposed to the latest trends and technology and trained on an on-going basis. If new developments arise in the broader accounting and financial realm, our resources would have already undergone training on the same and would be immediately deployable on tasks that require the updated skills.

With Accounting Seat, you need to conduct training processes only once. There will be no need for retraining ever again. Knowledge transfers will happen internally on our end with no support required from you. Our teams are well-versed in a wide range of accounting software platforms which means time required from your organization on software training sessions will most likely be non-existent, or minimal if at all.

With our Accounting Seat Subscription model, you can downsize or upsize your accounting function as per your needs without worrying over personnel-carrying costs, and have access to resources with higher expertise and cross-industry knowledge.

Making the switch

Many companies do not identify the hidden costs and opportunity costs of hiring in-house accounting resources. They are bogged down with personnel-carrying costs and training procedures that cost the company dearly in the long run. They also fail to identify the streamlined processes, technology expertise and other strengths that outsourced teams can bring. Leveraging outsourced accounting teams needs to be viewed not just from a cost-saving perspective but also from the perspective of accessing superior expertise and dynamic capabilities.

If you want to know more about how we have helped companies improve their productivity and drive down costs with our Accounting Seat, click here.

Tax relief in respect of COVID related receipts and Ex-Gratia payments – Finsmart

Covid 19 has caused hardships to many and even business units have also suffered by loosing their employees to Covid virus

On this background – many employers have offered to provide lump sum compensation to the family members of deceased employee

So there was no clarity regarding taxation of the same earlier which has been brought now

The Central Board of Direct Taxes said that any sum received by taxpayer from employer or any person towards COVID-19 treatment during FY 2019-20 and subsequent years shall be exempt.

Further, in case of death due to COVID-19, ex-gratia payment received by family members of employee from employer shall be fully exempt and exempt upto Rs. 10 lakhs where received from any other person.

This is a good move on the backdrop of hardships endured by family members of deceased employee and the government is proposing to amend the law accordingly

How to Maintain Confidentiality of Payroll Information in Business?

Your employees give you the most personal and important information, like their bank account number, PAN number, AADHAR number, and other information. If you can’t keep this information safe and secure, which is a critical task in a world that’s barraged with electronic information like that, then your company is going to lose quite a lot of talented employees. 

If you think with all the cybersecurity in place, that your employee information is safe and impenetrable, then think again. In a world where identity theft and cybercrimes are at an all-time high, and probably the norm, you have a lot to lose than just talented employees; you have their trust and your image to lose. 

How do you ensure that your company’s employee information is in safe hands? You either follow safety norms now and then, or you outsource to a credible data handler.

Either way, you have to ensure from your end that you have chosen the right methods because security starts with you. Nevertheless, we’ll help you establish some basic principles of electronic data safety to get you started on the right foot. 

Awareness campaigns

Electronic data safety is a big thing, and once you know the laws pertaining to it, you are obliged to make your staff aware as well. You need to conduct internal training, as well campaigns to keep your staff tuned in with a data safety attitude. 

Trustworthy staff

Your staff needs to be trustworthy. Are you sure that your HRMS(Human resource management system) is not leaking information? Are you sure there are no moles in the organization? Is your data security structure free of loopholes?

You should be very careful with who you impress upon the responsibility of data protection.

Additional Layer of security

Any department that deals with information can lead to a disaster even if a small mistake occurs. It’s advisable to have an additional layer of security for any information that’s being handled. For example, always double-check the methods of digital information disposal.

Learn about state cybersecurity laws & measures

You can never be better than knowing state cybersecurity laws. Keep your staff updated on cybersecurity laws, and it’s better to always run an email circular containing all the information that your staff needs to know. You can never be too sure of how well your employees’ vital info is being stored.

Hire an expert team

A credible team of experts can always take the load off your internal team and help you stay streamlined. Look at the bright side, you have more free-minded human resources, you have saved money, and you have security experts to take care of your data. 

In conclusion

Payroll management is not a small task, and data protection catering to payroll confidentiality is even more crucial. Keep your staff on track with cyber laws, keep them trained, run campaigns, and always know that no amount of security is enough for vital information. 

Ministry of Corporate Affairs ( MCA ) has now allowed all matters of board to be approved through Virtual Meeting wef 15th June 2021 – Finsmart

With this amendment some board matters which were restricted to pass through physical board meeting only, can now be dealt with in a Virtual Board Meeting

However one should keep following points in mind while conducting Virtual Board Meeting:

  • Virtual Board Meeting can be held anytime with 7 days’ notice given to every director either through electronic means or by post or hand delivered
  • It is necessary that all participants to Virtual Board Meeting have access to same technology that enables them to participate in the meeting without any constraints
  • It is necessary that virtual board meeting is recorded the audio with video and the recording is saved for records
  • It is necessary that only concerned directors are attending the meeting and no other person is allowed to attend the same in any manner
  • It is necessary to ensure that proper identification procedures for persons attending the meeting and security measures for safeguarding integrity of the meeting are undertaken

Virtual Board meetings has upside such as reduced travel, more attendance, shorter agendas and quick presentation.

Recent amendment is a good move bringing ease of business conduct for all companies on the background of Covid pandemic.

Though social distancing measures are going to relax at some point in future, we feel that most of the companies will continue to adapt the series of online board meetings throughout the year for its obvious benefits

How E-Payroll Management Boosts the Organization performance?

What is Payroll Management?

The payroll management refers to the process of managing the administration of a company’s employee’s financial records. This would include details of the employee’s salaries, incentives, bonuses, allowance, deductions, gross pay and net pay. An employer must maintain and keep these records as dictated by the rules and regulations.

Are you sure your payroll is on track? And that you are making the most of your organization’s skills?
Payroll management can drain your organization’s internal team, but if you ace it then there’s nothing better for building your employees’ happiness as well as loyalty towards your company. 

After all, trust is the lifeblood of any work force. 

Today, the whole world is inclined towards digitizing operations and benefiting from electronic processes and freer manpower. Why not automate your operations and train your employees to handle the same digitally.

You may be wondering about the advantages before you take the big leap, right? We’ll tell you all about employee payroll management in a second. The number of hours that can be saved just by digitizing one leg of your organization’s management will put a smile on your face. Below given are the ways in which outsourcing your payroll management to the experts, can make your HR’s life easier and make your records error free to almost nil.

5 essential ways in which outsourcing your employee payroll management can boost your company’s performance!
 

  1. Automated attendance and Payroll together
    EPayroll software will link your employee attendance and payroll records automatically. You won’t have to find separate resources for the two; saving time, money, manpower, as well as human errors. 
  2. Future payment and costs ideas
    E-payroll provides a comprehensive data of costs & expenses, helping you to plan future costs and get an idea of where excess money is going. You also get an idea of which employee segment is better performing, which isn’t, and which is.
  3. Personnel records and other official summaries
    If your E-payroll software records personnel records like leaves, unplanned leaves, sandwich week offs etc, you will have your payroll calculations done pretty easily.  The data will be overarching and everything will be aligned for you to just check and approve.
  4. One software for multiple records
    The reports developed & captured by payroll software concerned with basic data as well as attendance reports, entry & exit timings, work submissions etc can help you mount the best tallied reports. Free of human errors, these save precious human resources.
  5. Cut down on operational costs and TAT
    As mentioned earlier, the world is moving towards digitization. Every organization’s operations leg is becoming electronic, and with that it’s time you take the plunge as well. The operational errors, turnaround time (TAT), as well as costs of maintenance become almost nil. The other side of the coin is, your employee trust increases and everything that they need, is almost at the touch of a button. 


Conclusion
Why stay behind when the world is moving ahead?  Your HRMS systems’ can be completely electronic, and the amount of work that will get done in the shortest span of time by outsourcing to experts will impress you to no limits. But once you take the plunge, you will be able to maximise your internal resources and take expert advice with hints of learning for yourself.

As Business Owner are you sure about your Tax Compliances ? – Finsmart

It is no secret that India has stirred huge interest among various domestic and overseas investors wanting to enter the Indian SME market. You surely understand the opportunities, and therefore the urgency to stay ahead in your business. However, one of the most challenging job is to stay updated on compliance and regulatory requirements.

How many Business Owners today can confidently say that they are 100% compliant?

What are you doing to mitigate the risks associated with compliance?

The Government policies are evolving, new laws gets enacted, and amendments to the existing ones keep happening. These are all not very simple to understand, at times ambiguous creating confusion and even more difficult to implement them. How prepared are you to handle all this?

Any laxity in compliances today proves to be fatal since it boils down to paying  heavy interests and penalty. And taking toll of Business Owners time and mental bandwidth which could have been otherwise used in the business growth.

Given the way SMEs operate their businesses, with unstructured processes, loose financial discipline and improper documentation leads to a high risk on missing compliance. And today whether GST, TDS, TCS all have become a monthly or quarterly filings. Most times the accounting team aren’t able to provide the financial statements in time before the compliance deadlines so there will be no time to evaluate or discuss the same. In lot of cases even the financial statements may not reflect the correct financial performance of the business and in hush-hush the statements are filed to meet the deadlines just making sure that you keep dealing with notices from the departments and paying lawyers’ fees.

With more automation and rigor on compliance on regulatory side, there’s isn’t any choice with the today’s organisation but become compliance ready. Outsourcing your Accounting, Payroll and Compliances or setting up in-house department with right financial processes is key to mitigate your risks. But setting up in-house full-fledged finance department still will eat into Business Owners bandwidth in terms of managing these talents. The right outsourcing partner will ensure you are upto date on your Accounting, Compliances without much headache and at an affordable cost. So whichever way you go ensure you are on the right path to compliances.

 

Are you compliant ready? Well, team Finsmart is just a call away in case you need help.

 

www.finsmart.com is one stop solution for all your Accounting, Payroll and Compliances needs. We specialise in managing Indian Entity of Global MNCs , Technology Companies and New Age businesses. Our Controller/CFO Services ensure as Business Owner you are on top of your Growth Metrics.

New Section 206AB and 206CC on TDS & TCS comes into effect from 1st July 2021 – Finsmart

A new section is introduced in the Finance Bill, 2021 for deduction and collection of tax at source at higher rates if an amount is paid or payable to the specified person who did not file the income tax return which will come into effect from 1st July 2021. Section 206AB for TDS is inserted after section 206AA of the income tax act. Section 206AB provides for deduction of TDS at higher rates for non-furnishing of Permanent Account Number (PAN). Similarly, section 206CCA for TCS is inserted after section 206CC of the income tax act.

Here is more about this section :

  • Brief Description Section 206AB and 206CCA
  • Applicability of this section on the type of transactions
  • Conditions to deduct TDS or collect TCS
  • Rates applicable for TDS
  • Rates applicable for TCS
  • Example

Brief Description Section 206AB and 206CCA

Section 206AB provides TDS or tax deduction at source on amounts paid or payable to the specified persons not filing their income tax return at rates higher than specified in the act.

Similarly, section 206CCA provides tax collection at source (TCS) on amounts received by a specified person at rates higher than specified in the act.

Applicability of this section on the type of transactions

The nature of the transaction can be any transaction excluding the following:

  • Salary
  • Premature withdrawal of EPF
  • Winnings from any lottery or card games or crossword puzzles  
  • Payments to contractor
  • Income with respect to investment in securitization trust
  • Winnings from any horse races
  • TDS on cash withdrawals

Conditions to Deduct TDs or Collect TCS

The tax shall be deducted/collected at source if the payment/collection is made to/from the person satisfying the following conditions:

  • The person does not file income tax return for both of the previous two Financial Years (FYs) immediately before the FY in which tax is required to be deducted,
  • the income tax return (not belated return) filing due date is expired and 
  • The total amount of TDS and TCS is Rs.50,000 or more in each of these two previous years.

It does not apply to a non-resident who does not have a permanent establishment in India. Permanent establishment for this purpose includes a fixed place of business where the enterprise’s business is carried out wholly or partially.

Rates applicable for TDS

The tax shall be deducted at source (TDS) on higher of below:

  • Twice at the rates prescribed in the relevant provisions of the income tax act.
  • At five percent.

In addition to non-filing of income tax return, if the specified person does not furnish PAN, then the TDS rate shall be higher than the rates prescribed in this section or section 206AA of the income tax act.

Rates applicable for TCS

The tax shall be collected at source (TCS) on higher of the following;

  • Twice at the rates prescribed in the relevant provisions of the income tax act.
  • At five percent.

In addition to non-filing of income tax return, if the specified person does not furnish PAN, then the TCS rate shall be higher than the rates prescribed in this section or section 206CC of the Income Tax Act.

Example

An ABC company or a Firm makes a Contractual payment of Rs. 80 lakhs to M/s XYZ for the preceding two previous years (FY 2019-20 and FY 2018-19). The tax was deducted at 1% (Rs. 80,000 each year) by the company.

M/S XYZ did not file him IT return for both the years and the due date of filing the return has expired.

Hence, when the company deducts tax in the FY 2020-21 and learns that the payee has not filed his ITR for the last two years, the TDS should be deducted at higher of the following:

  • i. Twice the rate prescribed in the Act, i.e. 2% (twice of 1%), or 
  • 5%

Hence, the tax should be deducted at the rate of 5%.

Further, if PAN is not furnished, then TDS shall be deducted at the rate of 20%, which is higher than 5% or 2% (twice 1%).

5 Key Advantages of Remote Accounting – Finsmart

While bookkeeping services are important, what’s more important for small to medium scale enterprises is to pay attention to the larger picture. Bookkeeping is a specialised task and in today’s world of remote working, remote bookkeeping professionals can be a boon for your business. If you are an owner of a small to medium enterprise, you will be happy to find out the advantages remote bookkeeping services come with.

To help you understand why remote bookkeepers are a boon, we have listed down 5 essential benefits that it can come with for your company. Have a look –

  1. Saves costs
    Remote bookkeeping services are given out by professionals, and comes at a lower cost. It saves space kept for a full team, and helps a specialised team working remotely to do all your bookkeeping. They are easy to reach out to, and come at a lower cost to company ratio.

 

  1. Higher availability
    Since they are working remotely and you are always in touch with them, you can contact them anytime you want and get real time updates about your financial status. Any time you need an update you only have to reach out to them. Such professionals are available full time, and will always take your call.

 

  1. Data assurance
    Your data will always be safe with a remote bookkeeper since they are centrally focused on your work and will never underestimate the pressure of being liable. Many remote workers use cloud storage as a way to safe your data, as well as to share it with you.

 

  1. Minimizes business pressure
    Since your bookkeeping is completely taken care of by a remote professional, you are free to focus on your business and help it grow at a steady pace. All your invoices, payroll management, cost to company ratio, and cash inflow is seen and taken care of by the remote working. With such insights, you are only empowered better to handle your business.

 

  1. Convenient and time saving
    You save time in hiring and profiling new employees for bookkeeping and you also save time in doing the work yourself. Where you have to follow a complete process to set up a new team, here with a remote bookkeeper you do all of it in one go. Compared to setting up a new team, you can hire a remote bookkeeper in comparatively low cost.

 

In conclusion
Remote bookkeeping is always preferred in times like the present. When the whole world is working from home, it’s not possible to reach out to your bookkeeper physical. Instead, hire a virtual bookkeeper so that your work is a done in low cost, you get a specialised professional, and your data stays safe.

 

Finsmart is a firm specialised in Outsourced Accounting, Compliances and Payroll , with over 15 years of experience and serviced over 200 clients they are leader in Remote & Outsourced Accounting Service.

How can CPA firms in the USA benefit from Outsourcing Bookkeeping operations to India?

The recent trend in business shows that many USA-hailed CPA firms are availing their outsourcing accounting services from India, a nation that proudly owns a high population of English-speaking and skilled youths.

Consequently, the outsourcing service sector is booming in India, with accounts and finance forming the major part of the outsourcing services that India is providing. 

Outsourcing the back end bookkeeping services to India can benefit CPA firms in the USA through the following ways:

1. Cost-effective approach

India offers labor at a lower cost than the labor costs in the developed nations like the USA and Canada.

Thus, the professionals taking care of the finances and accountants will demand a relatively lower payment than their foreign counterparts, doing the outsourcing service cheap for the USA-based CPA firms. These firms get the finest and proficient services in return for low-cost charges.

2. Increases work productivity

Ensuring an efficient flow of operations is where businesses focus the most. The CPA firms may not possess an unlimited budget or resources, which is where the outsourcing services come at aid. These accounts outsourcing service providers from India have all the necessary inputs that accelerate the productivity of small-scale CPA firms.

3. Comes up with top-notch infrastructure

The outsourcing service providers hailing from -India proudly own exclusive infrastructure facilities, much to the CPA firms’ advantage. This enables smooth functioning, allowing the international services to receive the finest services.

From optimum internet connectivity to required software and tools, Indian accounting outsourcing firms have everything in place. Thus, the USA-based accounting firms can have wide potential to draw out the best services, spending some minimal amounts.

4. Consultations and Support that come alongside

Besides providing cost-effective services, the Indian outsourcing units can offer legal support and assistance to the newly emerging CPA firms during complex circumstances.

These outsourcers have all the necessary knowledge about the international systems of accounting and taxations, IFRS, and GAAP, which allow them to offer expert advice and consultation to the partnered CPA firms. This, in turn, provides the growing CPA entities to work, function, and manage things better.

5. Can work with all scale and sizes

The outsourcing service providers from India can partner with diversified firms and cater to various scaled firms’ needs. This flexibility makes the Indian account outsourcing service providers advantageous for all types of CPA firms.

Moreover, they are flexible with various time zones, making it possible to work for a prolonged period for some projects without compromising the quality.

6. Legal policies are supportive

The Indian administration has offered a favorable and profitable environment to the outsourcing sector by putting unnecessary restrictions, rules, and regulations on foreign firms.

Rather, the policies are quite favorable and suitable, thus helping in further blooming up of this sector and inviting the international businesses’ attention for outsourcing.

Conclusion:

Undoubtedly, the brands from developed countries looking forward to expanding or taking their businesses to the next level look towards talented and skilled Indians to derive the finest services.

So with the advantages of cost-friendliness, efficiency, and latest technology, outsourcing accounting services to India can free up the extra load from the USA-based CPA firms and help them scale up their business.

Shalaka Joshi: Finsmart Solutions Pvt. Ltd. The CEO of Magazine India

We strive to build a global outsourced accounting and payroll organization that is recognized as a Trusted Growth Partners for its clients and employees,” shared Shalaka Joshi, on what drives her to jump out of bed every morning.

For decades now, traditional accounting has been replaced with digitized solutions. In parallel, for the longest time, women limited in certain roles have eventually broken the glass ceiling to transform into fierce, focused, and fabulous businesswoman. One such woman, who has revolutionized a historically male-dominated industry of numbers, is Shalaka Joshi.

Finsmart Solutions, an incredible business in her own right, entered the Indian outsourced accounting landscape in 2006, to revolutionize the industry as one of its kind. Offering dedicated finance and accounting services when outsourcing accounting was not familiar to most mid-sized and small-sized brands, the brand successfully carved a reputation for itself as a single destination for accounting, taxation, and payroll compliances for various business entities.

5 Surprising facts about outsourced accounting you must know

All the companies, small or big, can be benefited from outsourcing their accounting services. But many still believe that there are more negatives to it than positives.

Many firms believe that their data will be at stake if they outsource their accounting needs, while some believe that small outsourcing teams cannot handle large IT data.

In this article, we plan to bust the myths regarding outsourcing accounting services, and we are here to shed light on the truth about outsourced services. You can gain more and even better if you select and verify proper outsourcing firms.

Outsourced Accounting Myths & Facts

So, explore most common myths about outsourced accounting: 

Myth 1: It isn’t easy to trust remote accounting firms with data privacy.

Fact:

This will only be true if you don’t verify the outsourcing firm before getting them on board. Nowadays, accounting firms are using cloud-based services to secure your data.

It’s completely foolproof, and you can access your data anytime you want. Most of the accounting firms will sign an agreement with you specifying that your data will be safe.

Myth 2: Only large companies require outsourced accounting and bookkeeping services

Fact:

It’s not true. It’s true that large companies can benefit from remote accounting services, but this applies to small to mid-sized firms too. For example, if you have a bookkeeping expert in the house but no one to deal with taxes, you can hand over the latter service to a remote accounting professional.

You save time and get an utterly specialized team at a low-cost. 

Myth 3: Outsourcing requires a high level of IT infrastructure

Fact:

The outsourced accounting team has its own infrastructure, and you need not worry about providing them anything. Most of the remote teams work on automated technologies that you won’t have to buy.

Your data is secured on a cloud-based platform that is impenetrable. All you have to do is introduce your outsourcing team to your company’s working style, and your work ready to go. 

Myth 4: Outsourcing and offshoring both are the same

Fact:

That isn’t true at all. Offshoring and outsourcing, even though both can be resourceful, aren’t the same. 

Offshoring means a company that’s remotely working from another country. While outsourcing means a country that isn’t a full-time part of your main organization.

While both can be beneficial, offshoring can be really good if the countries’ service rates are low.

Myth 5: Outsourcing teams only be used for the short term.

Fact:

You may have an in-house tax expert, but probably you won’t have someone to take care of your bookkeeping. 

The latter service can be given to a remote bookkeeping firm. Bookkeeping is done monthly, whereas tax returns filing is done yearly; you can bring onboard an outsourced bookkeeping firm as a yearly partner. 

So, basically …

Don’t believe in the myths that people have about outsourcing accounting processes. Instead, believe in the fact that these firms are experts at a low price and trustworthy if you verify them.

You have a lot to gain from outsourcing your accounting needs than to lose.

7 Benefits of outsourcing accounting services for your business

Many start-ups and small SMEs don’t realize that they should focus on business development more than funding.

Accounting plays a key role in business development. Accounting helps understand where your financial assets are going and how well it’s aligned to your business goals.

Especially in today’s time, if you hand over your accounting to a professional team, it can help you maximize your business. But how does outsourcing your business accounting help you focus more on your business? 

Benefits of outsourcing accounting services

Here are 7 benefits of outsourcing accounting that helps you focus more on your business.

1. Increases value addition

Since your internal team will be free of accounting processes like payroll management, invoicing, checking accounts receivables, billing, and other important functions, you will be able to put those employee resources towards other system functions.

In this manner, you will get efficient accounting done and an internal workforce boost.

2. Gives more time on hand

Your accounting processes require dedicated time, but since outsourced accounting experts will handle your accounting, you will have more time on hand to use for your core business. You can add more value to your company and pursue your business goals with more focus.

3. Maximizes your capital

Your hiring cost will be cut down greatly, as well as your time in training new employees. You will be able to maximize that saved capital by putting it into core business development. Your money gets saved for better use in increasing your traction.

4. Amps up productivity

Your employees will be free of tedious tasks like managing payrolls, balancing accounts books, and checking for financial leakages. They will be able to use their skills to run the business efficiently. The whole task of accounting will be taken care of by the outsourced team.

5. Accelerates accounting processes

A team will be dedicated to taking care of all your accounting needs. You won’t have to worry about tax delays, report timelines, and account reconciling. The outsourced team will be focused solely on your accounting needs, thereby accelerating the process. 

6. Expert advisory

Along with a team taking care of your accounting and bookkeeping services needs, you will also have good accounting advisors to seek help from. You will be able to reach out to them when filing IT returns and reconciling your accounts. 

7. Immediate execution

You won’t have to train anybody, and the outsourced team will only require a brief introduction to your company. Your account’s processes will be immediately looked at, and the work will start without delay. 

In conclusion

Your business needs your complete focus and maximum output from your team. With complete accounting taking off from your team, your team will generate more work, and you will be able to focus more on your business. So, time to try outsourcing accounting services needs.

Payroll Management Process, Payroll Methods & Solutions – Finsmart Blog

Payroll is one of the significant elements of whether you will join a company or not. But while negotiating your salary, we focus on increasing that CTC.

While CTC is important for your salary structure, you also pay attention to how much your take-home salary increases.

To know your salary in and out, read on. We will get you started on your journey to understanding your payroll management and the factors that affect it.

You need to ensure that you are up to date with the changes in the salary structure as per your company’s policy and the state taxation laws.

During any new batch of employees, you will have to educate them on these taxes. Still, before you do that, you need to make sure that your salary structure benefits both non-taxable and the taxable bracket of employees.

Generally, CTC has four sides; basic, allowance, prerequisites, and retirement benefits/contributions. In addition, some perquisites can be exempted, helping you save money in taxes.

5 Payroll Methods to Improve Your Payroll Management Process

  1. Basic salary and its components

Remember, it is always a better trade-off between a higher in-hand salary and a higher taxable salary.

People with lower pay should opt for a higher basic salary like home rent allowance, conveyance, medical reimbursement, etc.

These salary elements may get taxed to a certain extent. But they make a higher portion of the entire salary. Employees higher up in the hierarchy get higher packages, so their taxable elements are more. However, due to this, they get more tax benefits.

2. Importance of Allowance

Specific individuals get fixed allowance from the income tax department, helping them bring down their taxations to a great extent.

Although tax benefits are reasonable, you need to remember that a lower in-hand salary is better without tax deduction.

3. Facilities and Advantages

Additional facilities and amenities provided by the employer to the employee aren’t included in the salary. If the Income Tax Department had this prerequisite as a part of the salary structure, they would be taxed. That’s the reason you need to pay close attention to the number of prerequisites your employer is providing you.

4. Benefits of Retirement

This is the fourth and the essential factor in your pay structure. These savings aren’t short-term; these are long-term savings that help an individual live a dignified life post-retirement.

While these deductions are necessary, they cut down the take-home salary to some extent. So, it is essential to pay attention to such elements while structuring your salary.

5. Long Term & Short Term Goals

While an employee doesn’t have complete control over their salary structure, they still can opt for a personalized one. However, you need to be sure about your long-term and short-term financial goals before you go ahead and change your tax structure.

Here are the key things to keep in mind to streamline the payroll management system:

  • Complete your payroll management records

 Keep the basics clear. Centralize and store your employees’ details, official deductions, bonuses, benefits and overtime in a single sheet. You can even use payroll automation software where everything is stored against proper names.

If your employees expect any changes in those details, let them know that they will have to report in advance. After all, if the records are right, then only will the payroll move smoothly.

  • Use an electronic payroll system

Are you still recording the time your employees put in, manually? That way you are not only using up more time but also rendering human errors that may just increase TAT. Adopt an electronic system that stores everything at one place, as well as send you automatic alerts, warnings, and notifications when something doesn’t add up.

You could also customize the software as per the policies of your company.

  • Open a separate payroll account

 Opening a separate payroll account helps you manage your operating cash and your taxes & payroll cash differentiated, helping you manage both with ease. Your bank can become invaluable in this case. The representative will guide you on managing your expenses and operating cash, helping you manage cash on hand whenever it comes to payroll management.

  • Create an integrated network

If your employees are punching in on time, if certain updates are given or not, all of this can be tracked to one centralized system. Going electronic not just for the payrolls, but also to manage other systems of records is integral in defining a smooth-running system. An integrated system allows manual efforts to be drastically reduced, and human errors are largely eliminated.

  • Consider an outsourcing agency

 At the start, any business has a minimum number of partners and a small staff size. As the company grows, so does everything associated with it. Payroll management requires multiple changes and redefinitions. Consider outsourcing your payroll management services.

 A professional team helps your company’s system align with that of the state rules & regulations. With a whole team dedicated to looking after your payroll tasks & milestones, your company will have a smooth humming system.

  • Your key to success

To summarise quickly, use an integrated network to eliminate human errors, open separate payroll accounts and keep your systems up to date with the current trends in the industry. Encourage your employees to be proactive in updating their details.

Last but not the least, having a dedicated payroll management services agency, can be a boon for today, and years to come.

Benefits of payroll management software

  • Payroll management software is useful for compliance purposes- staying up to date with employee records on attendance, work performance, income, and deductions, etc.
  • Automation of payroll helps speed up payroll processing and makes it easy to generate reports e.g. for tax filing purposes. 
  • When you outsource payroll to third-party providers, the privacy of employee and company financial data will be maintained.
  • Payroll software can offer employees access to their payroll data and for self-service processing

Conclusion

While tax benefits are essential to your employees, as an employer, you need to be transparent and let them know your company’s salary structure. After that, your employees can take a call whether they want to opt for the tax benefits or not. 

After all, transparency is the key to a long-term relationship between the company and employees. It would be recommended to take advice from an expert payroll management services provider to implement it more efficiently.

7 Easy Steps of Crisis Management Planning in 2020

One of the most important roles that an accounts management team plays is managing crises.

First, let us understand what crisis management is?

Crisis Management is the process that involves the identification of threats to an organization and the methods used by the organization to deal with such threats.

Most of the businesses fail due to a cash shortage. The money invested and expended is more than what’s the working capital.

So, how do you start with crisis management planning? As well as what can be done if such an event occurs?

Let us explore the various options available to deal with any type of crisis management.

1. Start job costing

Start noting down the cost that each leg of the company brings up; marketing, payrolls, asset costs, products, and other services.

Put these costs against profit margins, and you will see the deficit. You will get a clear picture to work with.

You will see the profitable services differentiated from the non-profitable ones.

2. Expedite your receivables process

Determine the accounts that can be pushed to pay early. You need to be very careful about which accounts you are asking for early receivables.

Tap into the most promising accounts first, and while establishing new partnerships, ask for early part payment.

3. Look at possible borrowing options

You can be considering credit options and borrowing from legit financial organizations.

Be mindful enough to understand the interest rates and other things that can affect and hamper your business.

Before you take business loans, know that if your company has a cash flow problem at the primary level, the loan works only as a temporary relief.    

4. Negotiate on your payables

Negotiating on your payables with your vendors can be a significant relief on your working capital. Be honest with your vendors about your paying capacity.

If you can push for part-payments, or a complete waive of even a penny, nothing like it. Remember to never negotiate to a point where you will be heavily indebted.

That would be the last thing you need during a crisis.

5. Eliminate expenses

When in a cash flow crisis, prioritize your company’s expenses.

Eliminate every cost and pay only the cost that keeps your business operational and keeps you running.

Keeping an eye on every penny that you spend is an excellent filter to sort out expenses, but more importantly, doing so during a crisis is helpful.

6. Manage non-essential assets

Remember that any asset that’s not required at present, or during a crisis, is a liability.

Sort your assets out and check for any asset that’s adding more cost than revenue. You could always do an audit of every asset that keeps your company moving.

Removing or selling off any asset that doesn’t help only relieve your business account.  

7. Hire an outsourcing agency

One of the ways to be prepared is to hire an outsourcing accounts management team. A dedicated team that looks over your account books and balance sheets has preventive measures set up and has a plan B for a crisis.

An accounts management outsourcing team keeps track of your company’s financial records, forecasts cash flow shortages and raises, and keeps on hand methods and steps to take during a crisis.

The accounting outsourcing companies come with an added advantage of cost flexibility against the fixed cost of in-house resources.

To summarise

Always keep a check on your company’s accounts management and always have a backup plan ready. 

Keep your borrowing options open and immediately start job costing once you detect a cash shortage. Cutting down on expenses, trying to early receivables can all help in keeping your business running?

As a rule, always have a backup plan ready, or have a dedicated accounts management outsourcing firm do the job.

Payroll Management: 6 Easy Ways to Manage Payroll Effectively

Managing payroll systems isn’t an easy job. Whether your company is just starting or whether you have grown is a mid-sized company that’s humming with business; we could all use some help with payroll management.

But the question is… from where to start?

Considering that automating tools help considerably in streamlining your payroll management systems, how exactly are they to be managed? We all could use some expert advice.

Once we have got the basics right – everything else falls into place.

Here are the key things to keep in mind.

1. Complete your payroll management records

Keep the basics clear. Centralize and store your employees’ details, official deductions, bonuses, benefits, and overtime in a single sheet.

You can even use payroll automation software where everything is stored against proper names.

If your employees expect any changes in those details, let them know that they will have to report in advance. After all, if the records are right, then only the payroll will move smoothly.

2. Use an electronic payroll system

Are you still recording the time your employees put in manually? 

That way, you are not only using up more time but also rendering human errors that may just increase TAT.

Adopt an electronic system that stores everything in one place and send you automatic alerts, warnings, and notifications when something doesn’t add up.

You could also customize the software as per the policies of your company.

3. Open a separate payroll account

Opening a separate payroll account helps you manage your operating cash and your taxes & payroll cash differentiated, helping you manage both with ease.

Your bank can become invaluable in this case. The representative will guide you on managing your expenses and operating cash, helping you manage cash on hand whenever it comes to payroll management.

4. Create an integrated network

If your employees are punching in on time, if certain updates are given or not, all of this can be tracked to one centralized system.

Going electronic not just for the payrolls, but also to manage other systems of records is integral in defining a smooth-running system.

An integrated system allows manual efforts to be drastically reduced, and human errors are largely eliminated.

5. Keep an eye on changing payroll regulations

The tax regulations related to India payroll change frequently.

Hence it is imperative for any business to keep a close watch on these changing statutory compliance & payroll regulations and ensure that these are incorporated in the payroll cycle on a timely basis.

After all, everyone wants to be tax compliant all the time. 

6. Consider outsourcing payroll agency

At the start, any business has a minimum number of partners and a small staff size. As the company grows, so does everything associated with it.

Payroll management requires multiple changes and redefinitions. Consider outsourcing your payroll services. Remote payroll processing services help your company’s system align with that of the state rules & regulations.

With a whole team dedicated to looking after your payroll tasks & milestones, your company will have a smooth humming system.

Your key to success

To summarise quickly, use an integrated network to eliminate human errors, open separate payroll accounts, and keep your systems up to date with the industry’s current trends.

Encourage your employees to be proactive in updating their details.

Last but not least, having a dedicated payroll management services agency can be a boon for today and years to come.

Solving Demands of Bookkeeping Function – Finsmart

Bookkeeping though seems to be a simple task but sometimes it can become a daunting task as well, especially in case the things are not managed properly and effectively. Bookkeeping though seems to be a simple task but sometimes it can become a daunting task as well, especially in case the things are not…

We’ll keep your bookkeeping function on track; we have a knack for that – Finsmart

Contact the Experts for the Professional Bookkeeping services in India

For the growth of the business, maintaining a proper book of accounts is much important as accurate bookkeeping assists the business in growing business rapidly. One of the best ways to get the bookkeeping done is through outsourcing bookkeeping services to the professionals. The cost of outsourcing your bookkeeping is much lesser than appointing full-time bookkeepers. With the right bookkeeping services, the businesses will not only be able to maintain accurate records but it will help in the growth of the company.

Some of the benefits of using professional bookkeeping services in India include:
• By using professional services, you can have an accurate understanding of your income and expenditure and how much income was spent in the last fiscal quarter will also remain transparent. With the help of transparent results, the entrepreneurs can take the decisions fast for the future.

• The professional bookkeeping services will also help in recovering debts from unrecorded or forgotten sources which will provide cash in hand to the business. The cash recovered can be used towards the growth of the business, both nationally and internationally as well.

• The businesses that offshore bookkeeping services can easily reduce the overheads cost and enjoy greater cost efficiency. Think about all that money which can be saved by using international accounting services. The professionals are highly expertise in this domain and will offer more accurate and professional advice that can help in creating future plans. The advice of niche experts can prove to an asset for any organization.

• When you use the international accounting services you can remain assured that your valuable business information is in the right hands and you will never be late for any financial deadlines. Whether it’s about invoice generation or paying the debts, all the finance-related work will be done on or before the deadlines. Also, it means that the revenues will be collected within the time resulting in a healthier state of finances within the organization.

Controlling a business and running it successfully for longer period are two different aspects. You might be having huge amounts of capital and satisfied clients, but your business might not sustain for long in case you have not maintained effective and accurate financial books. Bookkeeping is an essential part of every business and every business owner must know how to get this task done. Electronica Finsmart Solutions Pvt. Ltd. has helped many national and international businesses in enhancing their reputation while completing the books of accounts at the same time. The team of the professionals at our organization stay updated with the latest rules and guidelines that can help in preparing more accurate financial statements and records all the time!

Get the professional bookkeeping services in India for your business!!

Accounting is Financial Storyteller – Finsmart

Correct accounting services gives higher profits

There is no second opinion on the fact that proper accounting can offer detailed and accurate insight on how the company is performing and with the help of proper accounting, the business can take precise decisions. Financial accounting permits businesses to keep track of all its financial transactions and that is why accounting is considered as a financial storyteller. Financial accounting is a process of maintaining the company records and reports that are vital for the operations of the business. Whether you are looking for the accounting services for small businesses or for large size businesses, it is important to outsource the work to the professionals. Professionals will record the important information on a series of financial statements including the balance sheet, income statement, and cash flow statement that can be used in the future.

How financial accounting helps in decision-making
• The investors will have an accurate analysis of the financial status of the business and they can make their investments accordingly.
• Proper financial accounting helps the creditors in understanding the solvency, liquidity, and creditworthiness of businesses.
• With the help of correct accounting services, the businesses can make accurate decisions regarding allocating the limited resources more productively.

Accurate decision making

Accounting helps in taking more accurate business decisions and laying policies aimed at improving the effectiveness of the business. Some of the benefits of accounting include deciding the prices of the items post evaluating the market situation, considering resources that are required to make these products and exploring different financing and business opportunities, etc are vital for every business. All these decisions if taken by the professionals with years of experience can result in minimizing the losses and maximizing the revenues. Also, accounting offers important information regarding cost, outstanding liabilities, assets, revenues etc which together result in implementing the right decision for the business.

Professional small business accounting services can give better results

It takes years to become a successful accountant who can understand the complexity of the job. Since the job of the accountants is incredibly complicated, so they are the professionals who can maintain your account books and can help in growing your small business venture as well. Since most of the small business owners are already pre-occupied with so many works and don’t have much information regarding the accounting procedures and practices as well. Accounting mistakes are bad which can result in huge revenue losses as well, so the businesses can rely upon the professional small business accounting services to make their business more successful. The accountants for small businesses come up with unique and transparent approaches to solve the complex accounting problems and ensure that no mistakes in the facts and figures are done from their end. If you also struggling to deal with maintaining your accounts and need to streamline the process for accurate decision making, then get in touch with the professionals at Finsmart Solutions.

Are you ready for March 2020? – Finsmart

The Indian Financial Year starts from the 1st of April and ends on 31st March every year; therefore all the businesses and individuals must fulfill the important financial obligations by the date to not face any kind of penalty in the future. It is important for all those who follow the mercantile system to ascertain the transactions accrued up to 31st March and to properly record the same information in the books of account. For the businesses that are unable to prepare their financial records by end of March 2020 or experience some financial blind spots can consider outsourcing their finance and accounting functions to the experts who will follow Indian audit and accounts service standards while preparing the accounting books for their clients.

We all need to take care of accounting work and manage accounting books timely so that we can plan our business strategies effectively and in a more systematic way. By taking the help of financial accounting outsourcing services, the businesses can easily offload the financial and tax responsibilities to the right kind of people that will allow you to concentrate on other more important areas. Along with saving your precious time, the professionals will also do a review of the accounting and finance of your business and will help in managing the finances of your company in the best possible way.

By appointing an accountant for managing your business, you can focus on other important areas as the financial and tax responsibilities are been taken care of by the right person which you have hired. Along with saving your precious time, the professionals will save your hard-earned money as well, which can be utilized more effectively and contribute towards more profitably. As a business owner, there are many other important areas where you need to invest your time and in case you are managing the finances of your company as well, then it might result in mismanagement of operational needs. The best way to streamline the process is to opt for outsourcing accounting services as the experts have complete and detailed knowledge of tax legislation and will manage it rightly.

In case you are managing your business and need some professional help to take care of your business, then you can get the best guidance from Finsmart Solutions which is a leading accounting outsourcing services provider in India offering the best and reliable accounting services to all kind of businesses including small, medium and large. The accountants/experts at the company will look at the numbers and will offer the best financial advice which will help you to make your business more successful and growing as well. The management and accounting review done by the experts will help in building a more stable position for your business and that too at the most affordable prices which is totally worth it!!

Do you know 2A reconciliation is must under GST regime? – Finsmart

What is 2A reconciliation under GST regime?

Under the new Central Tax which is being issued by CBIC a few days back has made certain amendments in the CGST Rules. One of the important amendments in the Rules is to allow the credit to the recipient only in case the corresponding supplies have been reported in the GSTR-1 by his suppliers. This move is in line with the amendment made in the return format which will be effective from 1.4.2020. The main reason behind making this amendment is to lower the cases of fake invoices where fraudulent credits have been availed to deceive exchequer. The taxpayers under the new rule must reconcile their data regularly with the data declared by its vendors too. The return filing and processing will be semantically automated and the GST returns are inter-linked.

Before filing the GST returns it is important to reconcile the GSTR 3B with GSTR 2A so that you don’t have to pay any kind of penalty or demand notices from the department. In case a supplier files GSTR – 1 in any of the particular month with the disclosure of the sales, then the corresponding details need to be obtained in GSTR – 2A of the recipient.

For the businesses filing the return can prove to be a complicated tasks, especially post the amendments in CGST Rules, therefore more businesses outsource the services to accounts payable services providers who are experts in managing your tax more systematically.

By using accounting and taxation services, which is the process of outsourcing accounting service and taxation to a company outside of your business, the business owners can capitalize on benefits that previously were not known to them.

Advantages of outsourced accounting services:
• Businesses can have increased profitability by outsourcing accounting and taxation related work to the firms who are highly specialized in it. As a business owner, you will be able to spend more time with your customers and can offer them a higher level of service.

• You don’t need much staff internally who can manage the internal accounting functions. Rather you can make significant reductions in the overall employment costs like salaries, payroll taxes, benefits, training etc by outsourcing the work to an outsource accounting services provider.

• The ability to offer higher quality accounting information is found in the professionals to whom you have outsourced the work. Working with accounting professionals will deliver reliable and accurate information which in turn will help in taking improved business decisions timely.
These are just some of the benefits out of many which you can have by choosing outsourced accounting services, you will get the best professional assistance that keep your business focused on your critical objectives. So get the best guidance by hiring Finsmart Solutions which is a leading accounting outsourcing company in India offering the best and trusted accounting and bookkeeping services to its clients.

Why payroll functions & procedures are important for organization?

Number crunching means activities or processes which are concerned with numbers or mathematical calculation; for example, calculations in finance, statistics, or computing. It is rightly said that payroll function is much more than the crunching of numbers, the value of the time which you invested in doing payroll is much greater than paying someone for processing your payroll. Payroll is a not profit-generating function in your business but is essential for your business. To ensure smoother working within an organization, it is important to hire the best payroll outsourcing company as there is a lot of work and responsibilities involved which need to be taken care of properly.

Payroll is an extended department and is not the core department in most of the companies therefore they prefer to outsource the work to get the best quality services at the lowest prices. By outsourcing payroll and by choosing from the list of payroll outsourcing companies, business owners can focus on core business values along with lowering the cost and risks involved. Some of the benefits offered by payroll service providers India include:

• Time – Payroll processing is time-consuming and in case you outsource the work to the professionals, you can utilize your time and efforts on other more important aspects within your business.

• Money – Payroll Outsourcing is one of the cost-effective ways and by outsourcing payroll work, you can make great savings each month. The same amount can be invested in expanding your business.

• Accuracy – Payroll job done by the professionals will deliver accurate results, you can expect the entire payroll process without errors by using payroll management services offered by the experts.

• HR automation services – With the help of HR automation, the HR department can easily manage their functions effectively. By appointing the professionals, common problems faced by the HR get resolved in a more productive and efficient.
For businesses, it is important that they must keep on changing with the latest norms and regulations and implement the same within their business as well. By using payroll management services, the business can stay updated with the latest range of services that help to deal with any payroll challenges.

Payroll is well known for being a non-profit generating essential function within an organization and it involves a lot of work, liabilities, and responsibilities that need to be taken care of properly and in a more professional way. For getting the best and accurate results, you can get in touch with Finsmart Solutions, which is one of the renowned payroll outsourcing companies. We help businesses to focus on the value-based aspects and core areas of their business so that they can save a lot of time, and effort while diverting it towards the growth and productivity of the business. Some of the services offered by the company include payroll processing, payroll taxes, creation and maintenance of payroll reports, creation of contracts, salary pay rules, pension and much more.

Great Accountant Leads to Great Business – Finsmart

One of the major causes of the downfall of any business is the poor financial management of the company. With the introduction of complex legislative changes to the tax structure, it is difficult for the entrepreneur/proprietor/owner of a company to understand its impact on his business. This is why collaborating with an outsourced accounting service can be beneficial for businesses.

There are several accounting services in India that offer their expertise to small businesses as well as large corporations. While it may feel daunting to provide an outsider with confidential information about your company, it will actually set you up for success in the long run.

Accurate filing of taxes is not the only benefits one can derive from any accounting outsourcing company. Maintaining transparency in the books of accounts and insightful reporting are some of the other valuable services provided by the outsourced accounting services company.
With that in mind, below are 5 reasons why employing the services of a great accountant from an accounting outsourcing company leads to great business.

1. Maximize the deductions

Many business owners often end up paying more taxes as they are unaware of the possible deductions they can avail. By partnering with an accounting outsourcing company, you will receive the services of a competent accountant capable of identifying potential deductions and thereby helping you save big on taxes.

2. Be prepared in case of an audit

An accounting outsourcing company will provide businesses with a trusted accountant responsible for ensuring that the company is legally compliant and follows the industry standard practices of the various accounting services in India.

3. More time to focus on your business

Delegating your company’s onsite accounting and tax services needs will free up your day. Therefore it is highly advisable to invest in any of the professional accounting services in India that will provide you with an accountant capable of performing insightful reporting while you can focus on growing your business.

4. Take good business decisions

The valuable insights and scope of knowledge of a good accountant will be an asset to any business. Apart from onsite accounting and tax services, an expert accountant will also provide businesses with budgeting and cash flow advice that will help the management make prude decisions.

5. Make long term plans
Finally, receiving advice for business forecasting and long term planning is a great incentive for hiring an accountant from any accounting outsourcing company. The accountant can analyze reports from previous months and give suggestions on the best time for buying inventory or the budget available to make big investments in the future.

Conclusion

The backbone of the accounting services in India is the well qualified and trained accountants. The various accounting outsourcing company provide their clients with a pool of good accountants who’s services they can avail at a marginalized cost.

Having an accountant trained not only in onsite accounting and tax services but also on various other business metrics will ensure that your business stays competitive as well as viable.

Our strength, Your Business – Finsmart

Small business owners often think that they can reduce costs by taking the DIY approach for accounting and bookkeeping instead of utilizing the various accounting outsourcing services in India. This works well if you have the time and expertise to maintain accurate records. Otherwise, it will lead to penalties and extra efforts related to the wrong filing of taxes. If accuracy in maintaining the books of accounts is not followed, it will cost you big time in the long run.

A reputed accounting and tax services firm will not only lower your stress level but also maintain transparency in your company’s records. These firms not only provide monthly accounting services but also provide bookkeeping services and tax services.

Messing with your taxes can cost you a number of penalties such as:
• Penalty for not filing TDS return
• Penalty for not complying with the IT notice
• Penalty for providing incorrect information and not disclosing the source of income.
• Penalty for not maintaining the book of accounts accurately.
• The penalty associated with not getting your company’s accounts audited.

Hiring an in house accountant may not be feasible for start-ups and small organizations. But with a firm specializing in providing accounting and tax services, you will receive tailor-made solutions for your monthly financial accounting service needs and other accounting requirements.

Below are some of the advantages of engaging with an accounting and tax services firm for maintaining your business’s books of accounts.

Access to experts

a number of changes have been introduced in the ITR forms. It may be difficult for a business owner to understand the accounting terminologies and enter the correct information. Wrong filing of taxes leads to penalties and notice from the IT department.
But by partnering with a bookkeeping and tax services agency you will have access to a pool of professional accountants capable of handing your monthly accounting services needs and filing your taxes error-free.

Access to accounting and tax services software

Gone are the days when business records can be maintained with mere pen and paper. In today’s business environment it is legally binding to maintain proper records of all business expenses. Utilizing accounting and tax services software will help you maintain good accounting records that are compliant with the law.

But unfortunately, the software for the bookkeeping and tax services are expensive. This is why it makes more sense to take the support of the firms that provide accounting services in India. Small businesses can get access to the latest technology at a reasonable cost.
Better Accounting Compliance

As the firms providing accounting services in India are staffed with experienced and professional accountants, they will ensure that your company stays compliant with various accounting rules and regulations.
You can avoid interest and penalties as accounting and tax services firm will identify the exact amount of tax to be paid without any delay.

Conclusion
The income tax department does not look kindly on individuals or companies that try to skip their taxes. Therefore don’t mess with taxes!

How to Identify & Fix Accounting Mess? – Finsmart

“Identifying that the problem exists is the first step to solve the problem.”

If you feel that your accounts have taken a bad shape, the prime concern is to identify the actual working condition of your business and you find the “MESS.”

The secret of success is to look inside the business functionality. Luckily, an accounting mess is not challenging to be solved and can be easily turned around.

Accounting function if not proper, can add stress, limit the growth opportunity and affect the backbone of an organization.

Through this read, you could know why it happens and how to fix it or make your accounts tidy with professional accounting and taxation services.

Why your record gets puzzled?

  • Improper accounting processes.
  • Limited knowledge of accounting systems and law.
  • Unsorted/Missing Data.

How to get rid of the accounting jumble?

  • Setting up tried and tested processes.
  • Keeping financial records up-to-date and accurate with minimal changes.
  • Capitalizing on experts knowledge of systems and law.

Outsource accounting service Vs Employees service 

Now you must be thinking to hire someone, but whether it goes well with an accounting service provider or an in house employee?

You may feel tempted to hire someone, but it needs to be that one who has the experience and know how of functional as well as technical aspects. Regardless of geographical locations, the accounting team needs to fit with perfection and with no barrier. This can easily be achieved by outsourcing accounting service.

At Finsmart Solutions, We are working with companies of all sizes, across industries and helping them with accounting services, which is further contributing a company to know it’s financial and business growth independently. We align our services to the expectations of clients and ensure there is a room to tweak the services any point in time during the journey of growth.

An Accounting Mess- Misguiding reports, last minute changes in entries, uneven deduction of taxes etc. lead to a chocked and inconsistent business growth and the best way to clear it, is to outsource your accounting and enjoy the seamless process.

What Exactly Should You Expect From Your Accounting Team? – Finsmart

Maintaining the accounts is utterly essential for any business. It provides you different information about the costing, expenses, pending payments, etc. Now, accounts management trends are different in various organizations. Few of them want an in house accounts team, which would maintain all the details of the same, whereas some are interested in taking services from the accounting outsourcing company. The outsourcing services in accounts management are even more popular nowadays for the quality of their solutions. There are so many global companies and even Indian companies to provide outsourcing accounting services to India.

The responsibilities of the accounts management team

The accounts management team has the respective responsibilities, which are crucial and even more vital than any other department in the organization. That is because money plays a pivotal role in the running of any business. If it can be handled and maintained correctly, then the growth would be faster. In this growth, the accounts team has some responsible roles to play, such as-

  • First of all, the responsibilities of the budget in different purposes and handling of them methodically belong to the finance part of the accounts team.
  • It verifies the needs of the organization and proposes the acts to be taken accordingly.
  • At the same time, it controls expenses and makes them meaningful to reduce the unnecessary costs of the company.
  • They should maintain the dues and pending amounts attentively so that they don’t cause a loss to the company.
  • The accounts and bookkeeping services are related to each other. So, bookkeeping is also another responsibility for the accounts team of some company.
  • It should also maintain the consolidated records of the earning, profits, and expenses to analyze the yearly growth of the organization.

The outsourced accounting services are too smart to handle all these matters. Mostly, in the case of bookkeeping services, these service providers have gained immense popularity.

The concept and the works of the outsources accounting services.

The concept of the outsourcing companies for accounts is comparatively new than the in house accounts services. You can even outsource the accounts services for your business that would provide smarter guidelines for the does and don’ts in your industry. There are many companies, which are outsourcing accounting services to India.

  • First of all, the outsourced accounts and bookkeeping services, save a lot of time and money of the organizations, especially the small business owners.
  • These provide overall consolidated solutions on the matters of accounting and bookkeeping services, for which you may need an entire team to hire for a full time with all the employees’ facilities.
  • This service uses the topmost and latest technology to execute the accounts works for the clients. So, there are preciseness and perfection at the same time in their works. A simple accountant or accountant team may not afford it in this manner.

Fins smart is an accounting outsourcing company, which smartly offers outsourced accounting services to its clients, especially the small business owners.

If you are looking for an Accounting Partner and not sure which Accounting and Bookkeeping company can be a right choice, then read our blog Factors To Consider While Choosing Your Accounting Outsourcing Partner.