Why Outsourced Accounting Is the Smart Choice for Growing Businesses
Do you know?
 India is the largest exporter of accounting services (WTO)
 The country has more than 10 million accountants and bookkeepers (NASSCOM)
 India’s accounting and bookkeeping outsourcing industry is valued at $10 billion (KPMG)
 The industry is expected to grow at a CAGR of 15% over the next five years (Mordor Intelligence)
 More than 90% of Fortune 500 companies outsource these services to India (Deloitte)
What is Outsourced Accounting?
Outsourcing is an effective strategy for companies that want to streamline their accounting and bookkeeping operations.
Companies hire an experienced and reliable third party to manage their accounting and finance operations. It not only helps strategic leaders to streamline such operations but enables them to focus on growing their companies rather than managing day-to-day functions.
Benefits of Outsourcing
Outsourced accounting is emerging as an effective strategy for companies to streamline their finance operations. Let us explore the benefits available for international businesses:
1. Cost Savings
According to ACCA, companies can reduce their costs by 30% to 50%. India offers a skilled talent pool at an affordable cost in comparison to other countries. Additionally, organizations can reduce their office infrastructure and operation costs. Global businesses can reduce their in-house team, which further results in significant cost savings.
2. Access to Skilled Experts
The number of CPAs have increased from 2,000 in 2020 to almost 11,000 in 2024. Additionally, India has 400,000 CAs who are active members of the ICAI. Finance outsourcing offers access to this vast talent pool of professional experts who are well-versed with global accounting standards. Deloitte research shows that companies can enjoy productivity gains of 20% – 30% by outsourcing to India.
3. Improved Accuracy and Compliance
A study by Accenture shows that 53% of businesses outsource accounting and finance functions due to strict adherence to accuracy and compliance. Reputed business accounting service providers use advanced software like NetSuite, MS Dynamics, Xero, Zoho Books, and others to implement robust quality control checks. Access to such advanced software ensures data security, minimizes the possibility of errors, and ensures companies comply with international regulatory requirements.
4. Focus on Core Business
Outsourcing to India frees up international resources to focus on core business functions like customer servicing, product development, and strategy planning. The Accenture study shows that almost 78% of CFOs confirm that outsourcing accounting and bookkeeping services allows their people to focus on value-added service, which improves organizational efficiency by 10% to 30%.
5. 24/7 Support and Quicker Turnaround
The time zone difference ensures round-the-clock productivity. When the in-house team clocks off for the day, the outsourced team starts their day, which keeps the work moving. As a result, companies benefit from quicker turnaround especially for crucial tasks, such as cash flow forecasting, financial analysis and reporting, monthly closures, reconciliations, and more. Accurate and timely reports offer financial agility resulting in improved decision-making capabilities. Deloitte study shows that 71% of the companies outsourcing finance and accounting operations do so because of the flexibility offered.
To successfully outsource small business accounting operations, working with a reliable Indian partner is crucial. The chosen partner should be well-versed with international accounting standards and provide a comprehensive solution. Additionally, they must offer cutting-edge technology for delivering automated workflows and quicker turnaround times.
To explore more about outsourcing accounting and bookkeeping operations, drop a mail on info@greenvissage.com or call on +91 8237857853.