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.
#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!
#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.
#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 email@example.com 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