To enhance the efficiency and effectiveness of your business operations, the option to outsource various services is growing rapidly. Various business functions are being sourced externally, transcending geographical borders, in order to boost overall productivity and operational efficiency. Among these various business tasks, accounting services stand out as a primary area that certified public accountants (CPAs) in the United States and the United Kingdom often choose to outsource, aiming to amplify their operational efficiency.
India has emerged as a prominent destination to outsource accounting services, especially for developed nations. A number of reputed CPA firms have opted to offshore theiraccounting services to Indiaand are witnessing rapid growth as a result. But what lies behind the success of Indian accounting outsourcing firms?
To answer your question, we have listed some key factors contributing to the success of Indian accountants in the outsourcing realm.
Cost Efficiency:
One of the primary reasons is the cost advantage. Labor costs in India are lower than in many developed countries, making it cost-effective for businesses to outsource their accounting functions to India. Indian accountantshave gained a credible name for themselves in the international market due to the efficient services provided while being affordable and economic for international CPA firms.
Skilled Workforce:
India has a large number of qualified and skilled professionals in the fields of accounting and finance. Accounting students in India receive comprehensive training that includes both Indian accounting standards and international accounting methods as part of their curriculum.It is worth noting that the Indian accountant certification exams have high parameters as compared to similar exams in other countries. As a result, Indian accountants and bookkeepers who provide CPA firm outsourcing services are exceptionally proficient and offer a wide range of expertise. When international companies outsource accounting services to India, they receive some of the most skilled and qualified professionals as their dedicated accountants.
English Proficiency:
English is widely spoken and used in business communication in India. This language proficiency reduces language barriers and enhances communication between clients and service providers.
Time Zone Advantage:
India’s time zone difference can work to the advantage of businesses in other countries. Tasks can be assigned in the evening, and the completed work can be available the following morning, leading to increased efficiency and faster turnaround times.
Technological Infrastructure:
Online accounting work in India is done with the assistance of the latest software and technologies.
India has invested heavily in modern technology and infrastructure, ensuring that outsourcing partners have access to cutting-edge accounting software and tools. The availability of latest accounting software, robust security solutions, and high-speed internet services in India makes it the top choice for global CPA firms.
Data Security and Compliance:
Indian outsourcing firms adhere to international data security standards and regulations, ensuring the protection of sensitive financial data. Online accounting work in India is done as per the security standards and regulations.
Scalability:
Outsourcing to India provides scalability options. Businesses can easily scale up or down their accounting operations based on their changing needs. Companies have the option of hiring dedicated accounting professionals for the time period of their choice. Accountants are usually in high demand during tax filing season when businesses tend to get overwhelmed with the increased work pressure and deadlines. An outsourced accountant can step in to take over the workload, provide accurate reports, and be rehired as per future requirements.
Cultural Compatibility:
Indian professionals are known for their professionalism, work ethics, and dedication, making them compatible with western business cultures. Indian accountants usually possess prior work experience with international clients, which makes them adaptable to cultural and new work norms.
Legislative Support:
Managing a CPA firm usually makes it difficult to keep up with legislative changes. However, missing out on these updates can lead to legal and tax authorities taking action against your firm. In India, accounting professionals diligently stay informed about the latest IRS and US GAAP modifications. To avoid the risks associated with legal compliance and taxation issues,hire a virtual accountant from India who can make sure you are covered in this aspect as well.
Outsourcing accounting services to India offers a cost-effective, skilled, and efficient solution that allows businesses to focus on their core operations while benefiting from the expertise and cost advantages available in India.
