Importance of Outsourcing Accounting and Bookkeeping Services in India

In today’s globalized business environment, outsourcing has become a strategic move for companies aiming to reduce costs. And one of the most outsourced business functions is accounting and bookkeeping, due to its essential role in business operations. India has become their primary destination for outsourcing accounting and bookkeeping services due to various favorable reasons.

In this blog, we will explore the most favorable reasons that make outsourcing accounting and bookkeeping to India a smart move.

Why are accounting and bookkeeping services essential for business success?

Accounting and bookkeeping services are essential for business success because they ensure financial accuracy and compliance at every stage, which helps inform decision-making for your business.

Accounting: The primary purpose of accounting is to record, summarize, and report financial transactions in a way that provides clear, accurate, and valuable financial information to various stakeholders.

Bookkeeping: The purpose of bookkeeping is to systematically record and organize all your financial transactions professionally according to accounting standards (in short, accurate financial reporting).

While accounting is a broader concept, it also includes bookkeeping in its process. Once accurate records are maintained according to standards, the entire accounting process becomes effective and efficient. Because the ultimate goal of both is decision-making for your business

They help track your overall expenses and control costs, ensuring all your operations run smoothly throughout the financial year.

By partnering with one of the best accounting firms in India, you benefit from a comprehensive solution that reduces your operational costs and ensures compliance with local and global accounting standards.

Key Benefits of Outsourcing to India:

1. Cost Efficiency

One of the most compelling reasons businesses outsource to India is the significant cost savings it offers. Hiring in-house accountants or bookkeepers in countries like the US, UK, or Australia is far more expensive due to higher wages and overhead costs. In contrast, India offers high-quality services at a fraction of the cost, allowing businesses to reinvest those savings into growth.

2. Access to Skilled Professionals

Not only is cost-benefit a consideration in India, but there are other factors as well. One of those factors is that here, you gain access to skilled professionals.

Some people might think that if the cost is low, then the work must be of low professionalism and low quality. However, they are unaware that India is a country with a population of more than 60% who are young and talented, actively seeking work in the accounting and bookkeeping field.

India provides a vast pool of qualified accounting professionals, who graduate in high numbers every year, including Chartered Accountants (CAs), Certified Public Accountants (CPAs), and experts trained in international accounting standards such as IFRS and US GAAP.

Every year, India produces over 30,000 new Chartered Accountants (CAs), many of whom hold international certifications, and has a significant presence of outsourcing firms specializing in cross-border tax and compliance.

3. Experience

Indian companies are global players in Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO), with accounting being a mature segment within this ecosystem. India's BPO sector is a global leader, handling 56% of the world's business process outsourcing, and is estimated to have a revenue of US$38 billion as of 2021. With a strong growth trajectory, businesses are increasingly relying on countries like India for all their financial and accounting-related services.

4. Time Zone Advantages: 24/7 Support

Time differences between India and other countries (especially Western countries) can allow your business to access round-the-clock support, ensuring that accounting tasks are completed efficiently and on time. When your office closes for the day, your outsourced team in India continues the work, helping you get more done in less time.

5. Focus on Core Business Activities

Businesses often face difficulties when having people with non-technical backgrounds, as they struggle to perform work related to bookkeeping according to specific accounting standards. We can say that professional bookkeeping is not their core area of expertise. That's why outsourcing non-core functions, such as bookkeeping, allows companies to focus on strategic business areas like sales, operations, and product development. You simply focus on your deliverables, and we'll handle the accounting and bookkeeping for you.

What should you consider before choosing an outsourcing firm for accounting and bookkeeping services in India?

Selecting the right accounting service provider can have a substantial impact on your financial health, compliance, and overall operational efficiency. Choosing the right firm suitable for your specific business involves various factors. Here is a list of some general factors that every company must consider:

1. Expertise and Specialization: To check whether they understand your industry and its compliance (e.g., SaaS, manufacturing, e-commerce) and its local tax regulations as well as international standards if needed (GAAP, IFRS, etc.), and they can scale services as you grow (e.g., from bookkeeping to virtual CFO services).

2. Technology and Tools: Are they using modern accounting software (e.g., QuickBooks, Xero, Zoho Books, or NetSuite)?

3. Services Offered: Always check for their range of services and look out to see whether they cover your specific needs or whether they can tailor a custom service package for you.

4. Relevant Certifications: Do they hold relevant certifications from a reputable board, such as the ICAI in India?

5. Client Testimonials: Finally, always check the company's website for client reviews.

Why partner with Mercurius?

Outsourcing accounting and bookkeeping to India is more than just a cost-cutting strategy; it’s an innovative, scalable, and efficient business decision. With access to skilled professionals, the latest tools, and reliable compliance, companies can gain a competitive edge while maintaining financial accuracy and control.

Mercurius is a leading accounting firm in India, with a presence in over 60+ countries and a client base of more than 2,000. Our team includes over 400 professionals, comprising registered CAs, CPAs, and tax consultants. We proactively provide comprehensive services, ranging from company setup in India to post-incorporation support, including accounting, bookkeeping, auditing, and tax compliance filings.

Suppose you are looking to outsource your accounting or bookkeeping. India offers world-class services tailored to your business needs. Contact us today to discover how we can help streamline your financial function.