Outsourcing Accounting to India: A comprehensive list of tasks

Accounting outsourcing or Accounting offshoring has become a strategic option for many companies seeking to optimize their operations and reduce costs. India, with its skilled workforce, tech-savvy environment and cost-effective labor, has emerged as a leading destination for offshoring various business processes, including accounting. In this blog, we will explore a comprehensive list of accounting services that can be outsourced to India, highlighting the benefits and advantages of such a move.

Accounting and Bookkeeping Tasks:

Outsourcing basic accounting and bookkeeping tasks to India can provide businesses with accurate financial records, including maintaining general ledgers, accounts payable and receivable, bank reconciliations, and financial statement preparation. Most Indian accountants are well-versed in international accounting standards and can efficiently handle these tasks.

Some tasks that Indian offshore team can help with:

• Document collection: Client follow-up by email or phone to collect the necessary statements, bills, and checks to get the work completed.
• Organize documents: Organize the documents and file them appropriately to maximize work efficiency.
• Classification: Classification and transaction posting of bookkeeping entries.
• Invoicing: sending invoices to clients for the goods or services they received. Follow up on unpaid invoices by email and/or phone.
• Payroll processing: calculating and processing employee paychecks and taxes.
• Recording daily/weekly/monthly transactions: Keeping track of all the financial transactions that occur in the business based on your client's requirements.
• Posting journal entries: transferring information from the daily transactions into the general ledger.
• Reconciling bank and credit card statements: comparing these statements with the sources and ensuring that they match.

Management and CFO Support:

Offshoring firms specializing in accounting services can offer support to management and CFOs by providing financial analysis, budgeting, forecasting, and strategic financial planning. This assistance enables businesses to make informed decisions based on reliable data and expert insights.

Sales and Use Tax:

Managing sales and use tax compliance can be complex and time-consuming for businesses. By outsourcing these tasks to India, companies can ensure accurate calculation, timely filing, and compliance with tax regulations. Indian accountants stay updated with the latest tax laws, reducing the risk of penalties and errors.

Some tasks that Indian offshore team can help with:

• Sales tax Compliance: Ensure your company is compliant with state and local sales tax laws.
• Use Tax Compliance: ensuring your client company is compliant with use tax laws.
• Tax Exemption Certificates: managing tax exemption certificates for your customers.
• Tax Filings: preparation and filing of sales and use tax returns.
• Managing sales tax: Collecting and remitting sales tax to the relevant tax authorities on time.
• Reconcile sales reports with accounting software.

Payroll Tasks:

Payroll processing, including salary calculation, tax deductions, and generating payslips, is another essential accounting function that can be outsourced. Accounting offshoring firms have experience in handling payroll tasks for businesses of various sizes, ensuring compliance with local labor laws and maintaining confidentiality.

Some tasks that Indian offshore team can help with:

• Employee onboarding: Onboard employees and get the relevant information needed to set up payroll.
• Timekeeping: Keeping track of employee hours worked, including calculating overtime and holiday pay.
• Payroll taxes: Withholding and paying federal, state, and local payroll taxes.
• Recordkeeping: Maintaining accurate and up-to-date employee payroll records, including employee information, salary, and benefits data.
• Reporting: Preparing and submitting various payroll-related reports, such as tax filings, W-2s, and other government-mandated reports.
• Training: Training new employees on payroll procedures and policies.
• Problem-solving: Troubleshooting payroll-related issues and resolving any problems that arise

Audit and Tax Preparation:

Preparing for audits and tax filings is a critical aspect of accounting. Offshore service providers can assist in preparing financial statements, reconciling accounts, and organizing documentation for audits. Additionally, they can efficiently handle tax preparation and filing, ensuring compliance with relevant regulations.

Some tasks that Indian offshore team can help with:

• Payment advances: Make tax payments ahead of time.
• Individual tax preparation: 1040, 1040 NR, 1040 SR, etc. (Municipality, City, State, Federal)
• Business tax preparation: 1120, 1120S, 1065 (Municipality, City, State, Federal)
• Other tax forms 5471, 5472, 990, 1041, 8863, 4562, 8822, 8889, 1099 NEC, 1099 MISC, etc.
• Checklist: Maintain a checklist for all the tax preparation and verify against it for each tax return that is prepared for accuracy.
• Audit: Comparison of previous statements and analysis.
• Review: Review financial statements for any issues.

Client Onboarding Tasks:

Outsourcing client onboarding tasks, such as setting up new accounts, managing billing and invoicing, and handling customer inquiries, can streamline business processes. Indian accountants are adept at managing these tasks efficiently, ensuring a seamless experience for clients and customers.

Some tasks that Indian offshore team can help with:

• Engagement letter: Prepares an engagement letter that outlines the scope of services to be provided and the fees associated with those services, gets it approved, and gets it signed by the client.
• Client communication: Establish expectations, timelines, and deliverables.
• Workflow setup: Workflow setup for the new client to ensure that work is completed efficiently and effectively.
• Risk assessment: Assess the risk associated with providing services to the new client, such as the risk of fraud or noncompliance, if applicable.

Administrative Tasks:

In addition to core accounting functions, offshore service providers can handle administrative tasks, such as data entry, record management, and document processing. Outsourcing these administrative tasks allows businesses to focus on their core competencies and enhance overall productivity.

Some tasks that Indian offshore team can help with:

• Email management: sorting and responding to emails on behalf of your practice.
• Customer support: providing customer support services via phone, email, or chat.
• Transcription: transcribing your audio or video recordings into text documents.
• CPE credit management.
• Travel planning: arranging travel logistics for your employees or clients.
• Data analysis: analyzing business data to identify trends and opportunities.
• IT support: providing technical support for software, hardware, or network issues.
• Virtual assistance: providing administrative support services remotely.
• Sales support: assisting with sales activities, such as lead generation or follow-up.
• Inventory management: managing the business’s inventory levels and stock.
• Recruiting and hiring: assisting with the recruitment and hiring process for new employees.

Marketing Tasks:

While not directly related to accounting, some offshore companies also offer marketing support, including digital marketing, content creation, social media management, and branding. This integrated approach provides businesses with a one-stop solution for their accounting and marketing needs.

Some tasks that Indian offshore team can help with:

• Website Design: designing and developing your company's website.
• Search Engine Optimization (SEO): optimizing your website to rank higher in search engine results.
• Pay-per-click Advertising (PPC): managing your company's PPC campaigns.
• Social Media Management - managing your company's social media accounts, and posting relevant social media posts.
• Email Marketing: creating and sending email campaigns.
• Content Creation: creating blog posts, white papers, and other marketing materials.
• Website management: maintaining and updating the business’s website.
• Proofreading and editing: reviewing and editing written content for accuracy and clarity.
• Market research: conducting market research to help make informed business decisions.
• Content moderation: reviewing and moderating user-generated content on your business’s website or social media accounts.

Benefits of Offshoring Your Accounting Tasks:

(Here are a few that our clients have achieved)

• Partner profit increase: Up to 90% for some of our clients.
• Partner time spent: Up to 30% more available time to spend on growth-related activities.
• Partner time reduction: 10% or more time-saving in weekly hours spent. Spend more time with family.
• Cost savings: You get 60 to 70% labor cost savings. No need to worry about insurance, social security, and other overheads.
• Save billable hours: 30 to 40% savings in billable hours of experienced staff. Supported by lower cost hours of your offshore staff. This increases your billing rates.
• Scalability: You get scalability and flexibility. As your needs change, you can easily scale up or down your offshore accounting staff to meet those changing needs.
• Access to specialized expertise: You get access to specialized expertise that may not be available in-house.
• Increased efficiency: Your offshore team can improve your practice's efficiency by providing access to streamlined processes, advanced technology, and specialized skills. This can allow you to focus on your core competencies while leaving many accounting tasks that can be done remotely to the offshore team.
• Reduced administrative burden: Offshoring accounting staff can reduce the administrative burden on your firm by eliminating the need to hire and manage in-house accounting staff. This can free up time and resources that can be directed toward other areas of the business.
• 24/7 service: Your offshore accounting staff can work in different time zones and can provide your firm with 24/7 service, allowing for faster turnaround times and increased productivity.

Wrapping Up:

Outsourcing accounting services to India offers several advantages, including access to a highly experienced & qualified talent, cost-effectiveness, and round-the-clock support due to the time zone difference. By leveraging the expertise of Indian professionals, businesses can streamline their accounting processes, ensure compliance with financial regulations, and focus on their core objectives. As the global outsourcing market continues to grow, India remains a top choice for organizations seeking reliable and efficient accounting services.