The implementation of offshoring business processes to external entities in foreign countries has become increasingly common among organizations in recent years. This trend is particularly prevalent within the accounting industry. In fact, U.S. businesses offshore approximately 300,000 jobs yearly. To be precise, 42% of U.S. firms offshore account work or offshore some aspect of their financial operations.
Among the various countries that organizations offshore to, India has emerged as a leading choice for offshoring accounting work. But what makes India such a popular choice for offshoring accounting services?
In this post, we will explore the reasons behind India’s popularity as a destination for offshoring accounting services. We will also detail how Indian accounting service providers provide added value with their high-quality services. This gives firms utilizing this model peace of mind. Knowing that their financials are being taken care of by experts enables them to focus on other important aspects of their business. These tasks include sales, marketing, and onboarding new clients.
So, what are the reasons why U.S. CPA firms should offshore accounting work to India?
Deciding to offshore accounting work can be a great way to reduce overhead expenses. This is one of the leading reasons companies decide to offshore accounting work. When you offshore, you can hire top-notch talent at lower wages. Your offshore provider will cover the offshore team’s other expenses such; will employee benefits, trainings, offsite activities, transportation expenses etc.
This can result in significant savings for your firm, especially compared to in-house resources. Offshoring reduces overhead costs. It allows you to allocate more resources toward other areas of your business. These other areas may include research and development, marketing, and other growth opportunities.
By utilizing an offshoring team, you can get your rudimentary accounting services such as bookkeeping and payroll done by them. This frees up your onshore team to focus on more value-based services such as financial advisory.
Having access to an offshore team means you can focus your financial resources on developing your onshore team to be more effective and help you grow your firm. By reducing your overhead expenses you can re-invest into the firm.
Another reasons companies decide to offshore account work is that they can take advantage of different time zones. It’s pretty cool. The offshore team can work on tasks while you’re sleeping. By the time you wake up, it’s complete! Plus, it can save you a lot of time and money on traveling for work.
Follow the Sun Model
One of the key time zones benefits that a US firm can get from offshoring to India is the ability to have a “follow the sun” model of operations. Because India is in a different time zone than the U.S., a U.S. firm can offshore the work to India during its off-hours and have it completed by the time the U.S. office opens. This allows for a continuous flow of work and helps to minimize delays and increase efficiency.
Additionally, because India is in the same time zone as many other countries in the Asian region, U.S. firms have 24/7 operations. Teams can hand over work seamlessly to the Indian team after the team leaves for the day and vice versa.
Another crazy benefit is that any firm can schedule conference calls or video meetings during the overlap of the business hours between the two countries, which can save time, and expense on travel.
Overall, the time zone difference between the U.S. and India can provide significant benefits in terms of increased efficiency and productivity, as well as cost savings on travel and other expenses.
The level of accuracy and attention to detail provided by Indian accountants is truly impressive. It also gives you peace of mind knowing that your financials are in capable hands.
But it’s not just about the numbers – the team of skilled and talented accountants and bookkeepers in India make the offshoring experience a true partnership. With access to this vast pool of resources, you can trust that your work will be completed with efficiency and a quick turnaround time. Plus, working with a dedicated team in India can give your firm a fresh perspective and new ideas on how to streamline your accounting processes. Team resources are another reason why companies are looking to offshore accounting work.
Ease of Communication
As the second largest English-speaking country in the world, India offers a unique opportunity for accounting firms in the US to partner with.
India’s education system provides Indians with strong analytical skills, which makes them well-suited for accounting work. With India’s large English-speaking population, communication with your team will be smooth and easy. This allows for a true partnership and a fresh perspective on how to streamline accounting processes.
Ease of Scalability with the Implementation of the Latest Technology
Working with an Indian offshoring firm such as Entigrity can offer flexibility as one of its benefits, as it allows for quick adjustments to your business needs, whether they are sudden growth or fluctuations.
In the accounting industry, things are always changing. New tools and technologies are being developed all the time. And a lot of these new developments are coming out of India! By offshoring your accounting needs to India, you’ll not only have access to the latest and greatest tools and technologies, but you’ll also have access to a large pool of talented and skilled professionals.
The threat is real — Cybercrime to Cost The World $10.5 Trillion Annually By 2025.
As a firm operating in the digital age, protecting your business data is just as crucial as making money. Your data contains all the information someone needs to harm your business.
When it comes to running a CPA firm, there is a significant amount of data that a company must protect from any unlawful act or cyber threat. In India, every offshoring follows a higher security system that is only accessible by authorized staff. This high-level security system allows us to control who has access to data and ensures that all transactions have proper security and encryption measure in place. The fact that proper security measures are in place is another reason firms decide to offshore accounting work.
At Entigrity, we understand the importance of data security. Our team is made up of qualified, experienced, and dedicated individuals who are committed to keeping confidentiality intact at all times. Our processes are guided by uncompromising data and information security policies that are certified by ISO 27001 standards. And we are proud to mention that we are also a SOC2-certified organization, ensuring that we meet the highest standards of data security and privacy.
Reasons to Offshore Accounting Work to India – Summary
Offshoring accounting work to India can provide numerous benefits. It can help to increase efficiency and improve the overall quality of accounting services. Additionally, Indian firms have high levels expertise and experience in accounting, as well as their adherence to international accounting standards. Furthermore, offshoring to India can help in providing improved security for data and restricted access to authorized staff. Given these benefits, it is worth considering offshoring your firms accounting work to a partner like Entigrity in India.