India has grown into a cynosure for huge foreign investments in the last couple of decades, attracting foreigners from every field of life and works. It has also developed into a bustling hub for outsourcing jobs. Several of the world’s superpowers such as the United States of America, United Kingdom, Australia etc, have been outsourcing work to India.
India in turn, has been making considerable amounts of profit. Major business organizations and Charter houses like to deal with Indian institutions, as they provide moderate terms, provide decent service and charge minimal fees for their labor. If you want a local accountant to sort out your company’s finances, you will be charged hefty fees.
On the other hand, dealing with outsourcing companies in India, will be profitable on all terms. Accounting is a core part of any business organization, which is often formulated by third parties. Indian outsourcing companies have been assisting foreign entities generate huge amounts of profit for a long time.
How is an Indian Firm More Popular than Others?
The primary reasons for India’s successful stint as an outsourcing house, are listed below,
- Proper study of the field
- Flexibility in operations
- Reasonable economic needs
- Large untapped talent pool
Importance of Making Mutually Beneficial Deals:
They have been using these points to their advantage, to generate profits as well as return positive results to their clients. Cost effective measures are followed extensively by Indian outsourcing agencies, which in turn help generate profits, while following every necessary step.
This is however, not a one sided affair as India is in turn profiting from this liaison. They have been progressing constantly, making them one of the fastest developing countries in the world. Every prosperous business enterprise considers time to be inversely proportional to growth rate.
Accounting Outsourcing as a General Term:
Accounting outsourcing is a large term, as it includes all spheres of finance and Human Resource Management. These services are of extreme importance to an organization’s growth, while successful implementation is necessary in order to achieve targeted levels of success.
An accounting outsourcing firm has every confidential financial report of its client organization. If leaked, these could cause tremendous repercussions on a large scale. This is where mutual trust comes into play. Outsourcing in general, is based completely on trust. Hence, most organizations, which want to survive in these tough market conditions, adhere to certain basic fundamentals.
What are the Fundamentals of Accounting?
Maintaining detailed records of past financial transactions are a major part of accounting. Hence, this complicated and never ending task must be performed periodically, in order to keep track of income, expenditure and profit margins. Indian outsourcing companies are experienced in most accounting outsourcing jobs. Hence, they provide better results quicker than other international companies.
Role of Modern Technology in Accounting:
Internet technology has played a major role in this field and is solely responsible for making international transactions as easy as they seem. We can communicate with various remote parts of the world via internet, from the comfort of our home. This is also helpful for major economic institutions in looking for cheap labor.
Various renowned multinational companies have been trading with Indian outsourcing companies for quite some time now and have been getting positive results. This has increased inflow of other renowned companies, which as a result made the Indian economy boom, in the midst of severe international financial crisis.
Why Choose an Indian Accounting Outsourcing Firm?
Indian companies are reputed for their service and privacy policies, as well as for maintaining steady flow in their work process. If you are looking for an outsourcing company to assist you with accounting jobs, look no further than India. The internet provides a list of all current top firms.
Go through their individual service history and policies, before finalizing on a company to deal with. You will not regret this decision later. People opt for accounting outsourcing as it saves them considerable amounts of time, resources and human effort, required to setup an in house accounting department.
Primary Reasons for Accounting Outsourcing:
- If you want to set up a permanent Accounts division, you will need to invest in infrastructural development, hire professionals in this field, invest in training facilities and pay regular salaries, regardless of work pressure. Hence, you would need to pay your staff even when they have no work for months on end. This is an example of wastage of valuable resources.
- Chartered accountants and auditors are usually in charge of maintaining regular accounts for various business houses, institutions and multinational firms. Professionals in this field are used to high demand, which as a result push up their rates. Hence, if you plan on hiring professional help on hourly, daily or weekly wages, you will need to shell out a considerable amount of money.
- This as a result, brings us to our third and most important point, which is the advantage of accounting outsourcing. This saves valuable resources, as you follow a pre-decided contract, which has all the terms including payment info and details of the work provided. You are at liberty to employ a firm when you have work. This saves a lot of cash once you do the math. You can employ companies on short notice, while they work overtime, to get your job done.
Importance of Accounting:
Even if you own a small or medium business, you need regular financial accounting in order to keep track of cash flow. Every business organization involves heavy cash flow and if you cannot keep track of where your funds are coming from or where they are going, you better start preparing for an alternate source of income, as your business will not last very long.
Even though you may consider accounting to be an unnecessary expense, it is required in every field of life. For example, you might need to show proper documentation to income tax or other government institutions at a moment’s notice. It is easier to keep them sorted well in advance.
How to Look for a Reputed Firm?
You might also need to show documented proof of financial conditions to shareholders or business associates. These situations enhance the need of regular accounting. Accounting outsourcing companies in India also provide financial management of large transactions. Once you employ a reputed firm, rest assured.
You need to be careful about the whereabouts and reputation of the online firm which you plan on hiring. Conduct a thorough background check, to establish credibility. If things seem favorable, opt for an online meeting to discuss points for setting up a suitable contract. This process is based solely on the owner’s risk. Hence, be careful while signing a contract.
You could refer to online forums or read stories of successful contracts online. Asking around could be beneficial, if you are in touch with people who have interacted with outsourcing agents in the past. If all else fails, place an online advertisement to attract potential bidders. An auction always seems to do the trick.
Final Pointers:
We have discussed the various advantages of maintaining regular accounts and balance sheets. However, what you plan on doing is solely your decision and responsibility. Indian outsourcing agencies have built a reputation for themselves for being trustworthy and delivery quick and efficient results.
They are known to provide cheap solutions and follow strict privacy policies. However, once you employ a firm and provide your financial reports, keep track of what the firm does with your internal information. It is better to be safe, than sorry!