An increasing number of businesses now realize the important role that accounting outsourcing companies in India can play in their business processes. Accounting companies, ranging from proprietorships to large accounting enterprises, have been increasingly outsourcing their transaction processing services. This includes services like preparation of accounts, bookkeeping, monthly management, filing VAT returns and taxes, and payroll processing among others.
Whatever the size of your firm, you can also benefit from this trend. However, it is crucial that you choose the right outsourcing company to manage your accounts processes. Since there are so many outsourced accounting companies in India, it is recommended to follow the tips mentioned in this guide when choosing the best service provider.
Evaluate Your Need for Outsourcing
One of the most important benefits of this outsourcing strategy is that it frees your accountants from time-consuming number crunching. This will allow your staff to work on core tasks that add more value to your organization such as providing advisory or strategic consulting to your clients – activities that can help your organisation grow.
Firstly, you should consider the following key points to determine how beneficial it can be to choose accounting outsourcing companies in India for your company:
- Motivation for Outsourcing
Consider the motivation of outsourcing your transactional processes to a company in an offshore destination like India. You may find a big incentive in the cost cutting aspect of this process. When you are able to operate at a lower cost, it will become possible to gain greater competitive edge in your market.
There is another important motivation for outsourcing. As your transactional work is outsourced, you can provide premium services to your clients. As already mentioned, this can include services like:
- Strategic consulting
- Business Strategy
- Strategic Advisory
- Data analytics
- Measure the Technical KPIs
Once the above-mentioned point has been addressed, you should be able to find the reasons for outsourcing your accounting processes. Next, you should measure the technical KPIs of your potential outsourced accounting companies in India. This covers parameters like:
- Communication Skills
Once you are satisfied on these parameters, you should evaluate a number of factors before choosing the best outsourcing company.
Factors to Consider
There are many benefits of outsourcing your company’s bookkeeping and accounting services. Examples can include around-the-clock access to your accounts, no more need to hire and train new staff, real-time online bookkeeping, and high level of data confidentiality and security. Such a service can provide total financial management services – from bookkeeping to helping file your tax returns.
You should expect the following range of services from such a vendor:
- Management accounts
- Cash flow forecasts
- Annual budget & variance analysis
- Statement of income
- General ledger report
- Bank reconciliation report
- Operations analysis report
- Key performance element report
The right accounting outsourcing companies in India like Initor Global can also provide additional bookkeeping services.
It is recommended to consider the following factors when choosing the best UK accounting outsourcing companies in India.
- How They Provide their Services?
The company should be able to handle all aspects of the outsourced accounting services needed by your business. It may seem reasonable to outsource some of your accounting processes and keeping the rest of it in-house. Such a modus operandi is going to develop complications when consolidating and finalising your company’s balance sheets.
So you should choose an outsourcing company that can handle all your accounting and bookkeeping requirements. This includes all accounting heads such as:
- Accounts payable & receivables
- Sales tax computation
- Filing returns
- Card reconciliations
- Records maintenance
- Calculating business & personal taxes
A comprehensive approach to accounts management will help maintain consistency. This not only affects how your balance sheet requirements are addressed, but also in simplifying and speeding up all the processes, including reporting.
- Market Reputation & Experience
Look for accounting outsourcing companies in India that have proven experience and specialisation in UK accounting practices. Accounting is a vast and multi-faceted undertaking that should be assigned only to organisations having years of experience and impeccable reputation in this field. But how can you check and ensure this? The following steps should help you:
- Research the different services provided by the vender and look for reliable credentials
- Look for any history of poor client experiences
- Check reviews and feedbacks to get an idea of what they are capable of
It is important to know that your company’s accounts will be at stake. You should check each agency thoroughly before entering into an agreement with any one.
- Use of Accounting Program & Information Safety Standards
Next, check the accounting program and information safety standards used by the company.
- Make sure the company uses the latest accounting programs used in your market
- The use of the right software technology can ensure faster information handling and higher level of precision
- Preferably, the technology used should be compatible with the one used by your business
- This can help in maintaining consistency in transfer/exchange of information, reports, and solicitations between your organisation and your outsourcing company
As a well-managed company, you must have developed a work culture that includes a variety of practices that are unique to your business. Check the work culture of the potential vendors to identify any potential similarities and gaps. This can also guide you in choosing the right company.
The service provider should also make all reports, including revisions, accessible on your connected systems. This should allow you to keep a tap on your financials when taking key business decisions.
The cheapest outsourcing firms are not the best accounting outsourcing companies in India. A lower price doesn’t translate into the best deal you can find. Even when outsourcing can help you cut costs and increase your savings, this doesn’t mean you should select the most affordable vendor available.
Address GDPR Concerns
While addressing all these factors, data security should be your top priority. You should consider only those outsourced accounting companies in India that can demonstrate the implementation of multiple layers of security measures to protect the confidentiality of your accounts and all the data involved. Initor Global is an excellent example of a company that complies fully with the regulations of the General Data Protection Regulation (GDPR).
You should evaluate the outsourcing agency based on the following parameters:
Make sure that the outsourcing company complies with the regulations laid down under the General Data Protection Regulation (EU) 2016/679 (GDPR). The agency should have:
- Conducted internal data protection impact assessments to meet the Article 35 requirements
- Implemented essential security standards under Article 32
- Entered into a data processing agreement under Article 28
They should also comply with the provisions surrounding international data transfers.
Data Storage & Security
The vendor should also demonstrate they have adequate security and safeguard procedures for data storage that comply with the GDPR. When you enter into an agreement with accounting outsourcing companies in India, your data will be stored outside the EU. The agency should have security systems that anonymise, encrypt, archive, and delete the data after the data lifecycle ends as per the GDPR guidelines.
Before you outsource, it is important to find the right motivation. Next, you should shortlist the list of accounting outsourcing companies in India that ideally match all the above-mentioned requirements. Once these conditions are met, your business will be able to enjoy the benefits of outsourcing accounting management without the potential risks. Even if it takes a little time to research and find the perfect service provider like Initor Global, it is always worth freeing up your employees for core processes and business growth.