For achieving success in business, it is extremely important to understand one’s priorities which invariably is linked to higher profits. For higher profits, the focus has to be on expanding the business as well as lowering the costs.
Costs can be lowered when a company chooses to outsource accounting and bookkeeping services in India.
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Why Should Accounting and Bookkeeping Services Be Outsourced in India?
Accounting and bookkeeping services, like any other function, would involve a lot of costs as well as shifting of focus from the primary goal of improving business revenues. The multiple benefits of outsourcing this function are discussed below.
1. Better Focus
If one has to allocate their scarce resources to ensure that the records are compliant with the present regulatory standards, then this would shift the focus from the primary goal of business development.
Timely audit of accounts and submission to the authorities also have to be checked. When the accounting and bookkeeping services are outsourced, the most important advantage that accrues to the business is greater focus on business growth and not to mention greater accountability.
2. Expertise
Outsourcing companies that specialize in providing accounting and bookkeeping services have a dedicated pool of subject matter experts in their team.
These trained professionals constantly keep themselves abreast of the latest amendments in accounting standards. The chances of any accounting errors or compliance errors are the least since any possible deviations from the norm will be cross-checked by the other members of the team.
The client won’t have to worry about the penalties payable in case of errors in computation or issues of noncompliance.
3. Lower Overheads
When a company has a separate accounting and bookkeeping department, there will be huge fixed overheads to deal with.
The salaries of the staff would be a huge component of these overheads and would include the non-financial incentives as well as the statutory dues which would accrue to them. Terminating the services of the staff would also be an additional headache with a sizable one-time cash outflow.
When the staff reach superannuation age, replacing them would require fresh recruitments which entail another expenditure.
A part of the office space would have to be earmarked for this department which can’t be below a minimum size considering that there will be furniture as well as computer hardware required. The latest accounting software will have to be installed which will have an initial cost as well as recurring annual maintenance of contract cost.
When the accounting and bookkeeping services are outsourced, the companies are spared of this expenditure comprising employee salaries, computer hardware and software as well as electricity. In addition, the extra space available could be used for revenue generation.
4. Scalability
As the environment in which today’s businesses operate is volatile, it is difficult to predict whether the present volume of business can be sustained in the future or not.
During an economic downtrend when the revenues are hit, then cost-cutting measures become extremely difficult since it will entail reducing the employee strength. There will be resistance, not to mention the costs involved.
The reverse is also true when business is on the upswing and new recruitment would be necessary. There would be huge costs involved for selecting the right candidate.
Outsourcing accounting and bookkeeping services eliminates this hassle. The fee the company pays for outsourcing would be directly proportional to the range of services availed of.
It would be easier to shift to a less expensive option during times of lower business revenues. And when revenues pick up, it would be possible to shift to a premium service required to keep up with the higher volumes of business.
5. Better Technology
Incorporating or upgrading technology is an expensive proposition.
The company that the accounting and bookkeeping services are outsourced to would have the latest technology since this is their core business.
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Get the Winning Edge with Outsourcing
It is clearly evident that there are numerous benefits for a company that chooses to outsource the accounting and bookkeeping services in India. However, it is important to choose the right company which has sufficient experience in the accounting and bookkeeping profession.
Paysquare is a Pune-based outsourcing company with extensive experience in accounting and bookkeeping which could be approached for their varied professional services.
FAQs
1. What are outsourced bookkeeping services in India?
Outsourced bookkeeping services in India involve hiring a third-party provider to manage financial records, transactions, and reporting. These services ensure accuracy, compliance, and cost-efficiency for businesses.
2. Why should businesses consider outsourcing of accounting services in India?
The outsourcing of accounting services in India offers benefits like cost savings, access to skilled professionals, compliance with tax laws, and streamlined financial operations. It allows businesses to focus on core activities while ensuring accurate financial management.
3. What tasks are included in outsourcing bookkeeping in India?
When you opt for outsourcing bookkeeping in India, tasks like recording transactions, managing accounts payable/receivable, reconciling bank statements, and preparing financial reports are handled by the service provider.
4. How does outsourcing bookkeeping and accounting save costs?
Outsourced bookkeeping services in India reduce costs by eliminating the need for in-house staff, minimizing errors, and leveraging India’s competitive pricing for skilled accounting professionals.
5. What are the benefits of outsourcing accounting services in India?
The benefits of outsourcing of accounting services in India include access to expert accountants, compliance with local and international regulations, cost savings, and the ability to scale services as your business grows.
6. Is outsourcing bookkeeping in India secure?
Yes, reputable providers of outsourcing bookkeeping in India use advanced security measures like encryption, secure servers, and strict access controls to protect sensitive financial data.
7. How does outsourcing accounting services improve business efficiency?
By outsourcing of accounting services in India, businesses can streamline financial processes, reduce manual errors, and ensure timely reporting. This allows companies to focus on strategic growth and operational efficiency.
8. What industries benefit from outsourced bookkeeping services in India?
Industries like IT, healthcare, retail, manufacturing, and e-commerce benefit significantly from outsourced bookkeeping services in India. These industries often deal with complex financial processes and can leverage outsourcing for accuracy and compliance.
