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

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 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.

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.