Choosing the Right Accounting Outsourcing Partner in India
Outsourcing is a ‘one size fits all’ remedy that seems to help with cost-cutting initiatives in major corporations to small enterprises. It was the Fortune 500 Companies that first demonstrated that organizations could focus on customer service if they outsource non-core accounting activities to accounting outsourcing in India. With communication and technology becoming more affordable, accounting outsourcing has become the new normal.
Since a big bulk of accounting can be outsourced, it is easier to consider the core accounting processes that must not be outsourced. These include:
- Business processes that require close engagement with senior management (for example, budgeting)
- Business processes that require close engagement with customers (for example, follow-up on collections)
- Business processes that require on-site presence (for example, inventory audits)
Apart from these operations, companies can hand over the rest of the accounting to outsourcing companies. It is important to note here that the handover is to be carried out in a phase-wise manner, and the service provider must be chosen after careful deliberation. Although the other operations are not part of the core accounting, it still requires a reliable outsourcing service provider company.
Understanding Your Business Needs:
Understanding your business needs is the foundational step in the process of accounting outsourcing in India . It involves a thorough examination of your company’s unique characteristics, challenges, and objectives. This includes evaluating your industry, growth stage, current financial processes, and specific pain points. By comprehensively grasping your business’s needs, you can align outsourcing solutions that are tailored to address your precise requirements.
Assessing Your Accounting Requirements:
Once you have a clear understanding of your business needs, the next step is assessing your accounting requirements. This involves determining the scope of accounting functions that need to be outsourced, such as bookkeeping, payroll processing, tax preparation, financial reporting, or even strategic financial planning. It’s crucial to identify the specific tasks and processes that can be delegated to an outsourcing partner effectively.
Now, let’s create a table to compare identifying goals and objectives in the context of accounting outsourcing as an Indian accountant:
Identifying Goals and Objectives
Efficiency and Accuracy
The primary goal is to enhance the efficiency and accuracy of financial processes. This includes streamlining tasks, reducing errors, and ensuring that financial transactions are recorded and processed promptly and precisely.
A key objective is to minimize accounting and financial management costs. This can involve reducing overhead associated with an in-house accounting department, software licenses, and staff training expenses while maintaining high-quality financial services.
Ensuring compliance with relevant laws and regulations is a fundamental objective. This includes adherence to tax regulations, financial reporting standards, and other statutory requirements. Maintaining impeccable compliance reduces the risk of penalties and legal issues.
Shifting internal resources toward strategic decision-making and core business activities is a critical goal. Outsourcing accounting functions allows business leaders to focus on strategic planning, innovation, and growth initiatives, which are vital for long-term success.
These identified goals and objectives provide a comprehensive framework for businesses when considering accounting outsourcing in India.
Steps to Choose a Perfect Accounting Outsourcing Service Provider
So how does an organization choose the ideal accounting outsourcing service provider? Here are the key parameters to help you choose an accounting outsourcing in India firms:
Proven Track Record
Does the outsourced accounting firm have a proven track record that spans over a reasonable period?
To ensure this, companies must look at the firm’s track record, right from the time of the company’s inception. Experienced service providers carry with them more experience and fewer chances of messing up. Certain service providers may not have the requisite years of experience, but if they can offer quality management, they are worth considering. So an accounting services provider must be judged on more than just their years in the business.
Key Performance Indicators Adopted
To check the efficacy of accounting outsourcing in Indian company, you need to first outline the key performance indicators (KPI) to monitor and measure their performance. This KPI depends on the accounting product that is being outsourced.
Quality Workflow and Processes
Given that there will be internal and external staff involved, the workflow will have to be modified accordingly. Further, communication channels between the two will also have to be established to ensure a seamless transition from one team to another. If there are creases along the way, it may result in a finished product that is not in line with the client’s expectations.
Competency of Service Providers’ Team
One of the most crucial factors would involve assessing whether the outsourced service provider has skilled staff that is capable of handling and designing processes that can give you an unfair advantage over your competitors. You should only hire the provider that can give you the best accounting outsourcing services.
If the outsourced accounting service provider has experts on their team who are capable of offering more than standard accounting tasks like bookkeeping, then they are more likely to be value for money. Additionally, they are not only capable of handling a diverse set of tasks such as financial analysis but are also capable of scaling up according to your requirements as your company expands.
Handling accounts could expose the team to sensitive information, which might demand the maintenance of confidentiality. Hence, accounting outsourcing service providers should be capable of substantiating their claims of operating over secure information technology systems. They should provide proof that they are capable of handling your accounts without any leakage. You can also use a contract to make sure that the private information of your company is safe in their hands. It is important that they conform to ISO 27001 standards, as it lays down stringent guidelines on maintaining security by the service provider.
Budget and Cost Advantage
When availing the services of an outsourcing accounting service provider, your company’s budget plays an important role in this decision-making process. It is true that hiring an outsourcing company will cost you less but the price charged differs from one company to another. A service provider that offers his services at abysmally low prices may not necessarily be the best option. Conversely, a company making unreasonably high demands may not be capable of coming through on its promise. In some cases, paying a little extra in lieu of additional services could give you a cost advantage.
Hence, the best way to assess a service provider would be by carrying out checks on the quality of the service provider and negotiating terms until it suits both parties. Further, the pricing structure shall have to be reviewed periodically.
On-Time Work Delivery
Every process in the professional world has a deadline. And if one part of the system misses that deadline then the entire system can get affected. So the only way to avoid this from happening is to use time management as a criterion when you are choosing the outsourcing provider.
The accounting outsourcing service provider must be able to hand over top-quality results within the given time. It should not make a difference whether the task is simple or complicated. The best way to go about this is to communicate this requirement with the provider itself. They will know best what kind of outcome they are capable of.
There are a lot of criteria that you must keep in mind when you are selecting your outsourcing company. It will not be an easy task but in the end, all this hard work is sure to pay off. You will only be doing this once since after that the outsourcing company will be in charge of your non-essential accounting processes. So, it is best if you struggle through this selection process to reap the benefits of it later on.
With the above-mentioned points, you will be capable of selecting an accounting outsourcing service provider that meets your requirements and your budget. Upon taking care of these factors, you can ensure that your firm makes a wise decision in choosing the right service provider that will help you extract the maximum benefits.
Take the Next Step Towards Financial Excellence
Are you ready to elevate your financial operations and unlock the full potential of your business? Don’t hesitate to reach out for more information or assistance in choosing the right accounting outsourcing partner. Our team at IPPC GROUP is here to empower your success.
Visit our website at www.ippcgroup.com to learn more about our comprehensive accounting and financial services. Contact us today and discover how we can tailor our expertise to meet your unique needs.
Don’t miss the opportunity to streamline your financial processes and drive your business toward greater efficiency and profitability. Contact IPPC GROUP now and embark on a journey toward financial excellence.