This is more important in the case of accounts, as it involves compliance and the need to track expenses and revenue. This is a dilemma that accountants within organisations typically face: the need for bookkeeping without the resources for a separate department.
Except fund accounting, which is required for non-profits, universities or government grants, all other accounting is vital to track, monitor and offer information for the financial health of an organisation established to make profits.
This is where the decision to outsource bookkeeping to India helps in more than one way, tilting the balance in favour of a cost-effective solution.
Professional Expertise at Reasonable Costs
The search for a chartered accountant typically begins with a set of criteria, the most important of which is the outsourcing partner’s professional expertise. With a qualified and experienced partner, an accountant in an organisation that outsources tasks will find it easy to liaise and receive exemplary service.
The best part of the deal is receiving professional services at reasonable costs. To obtain the full suite of services from an in-house team would be a considerable drain on resources and, for most organisations, would not be the best ROI.
While accounting is not an earning vertical or resource, it is intrinsic to operations and has metrics to measure the effectiveness of the resources ploughed into accounting.
A simple comparison would reveal that insourcing and outsourcing services are opposites regarding resources spent for most organisations; Insourcing works only for unicorns and huge multinationals. Here, it is essential to add that many large organisations also outsource to cut costs and streamline operations.
Specialisation as Per Compliance Requirements
While accounting goes by a set of fundamentals, subtle nuances are intrinsic to different geographical locations. Compliance differs per location, so the search for a chartered accountant must consider this.
Indian bookkeeping services that cater to the requirements of organisations and businesses in the UK have acquired adequate knowledge and experience in many essential activities.
Bookkeeping, reconciliation, monthly financial statements, records of employee and sub-contractor earnings, tax preparation, tax processing and preparation of year-end forms have all become a part of the regular services offered by reputed outsourcing partners in India.
As per the regulatory and compliance requirements of businesses and organisations in the UK, this specialisation bodes well for accountants who need qualified assistance.
Outsourcing Partners Invest in the Latest Software
One of the advantages of the decision to outsource bookkeeping to India is that reputed agencies invest heavily in the latest software and update themselves frequently, staying in sync with the latest requirements.
This works out best for the agencies because the nature and scale of operations permit and mandate the need for the newest software and processes. This may not be entirely possible with insourcing.
It may not help an organisation invest frequently in the very attested software for operations that are not on a vast scale. This is the exact opposite in the case of agencies that provide the services. Optimising the resources and implementing the latest processes is possible with many clients.
Typically, bookkeeping outsourcing works in three modes: server–based, Remote Access and Application Service.
Server-Based Processes of Bookkeeping
This process entails a procedure wherein the client shares the documents in a soft copy format with the service provider, who then updates the books on the agreed platform, after which the updated books are shared with the client. This fast turnaround process typically happens during the intervening nights of the clients’ working days to help the clients remain updated when offices open.
Bookkeeping through Remote Access
Here, the process involves sharing the documents with the service provider in a soft copy format. The organisation that outsources the work would be required to grant remote access to the systems where the books are maintained. The service provider would update the books remotely with the shared information. Again, the fast turnaround happens between cease work and the start of work the following day, which helps the client remain updated in the morning.
Bookkeeping Through Application Service
This entails a process where the client and the service provider use a shared application. With login credentials granted, the outsourcing partner would update the books in the platform on receipt of the records through soft copies. Here, the process could be like the other two modes – viz, after ceasing work, or depending on the client’s requirements, the process could be a real-time activity.
In all three processes, the records reach the outsourcing partner electronically, and the client accesses the updated books before commencing work on any given day. Achieving this with in-house resources would be like overkill. For instance, having a full-time resource to perform a task that may take an hour or two or more does not make sense.
Some of the Tangible Benefits That Accrue Through Outsourcing
Any organisation searching for a chartered accountant or outsourcing bookkeeping to India will look at the cost-to-benefit ratio and access to specialised services. Here, it is pertinent to note that benefits are tangible and intangible when bookkeeping is outsourced.
They include:
- Substantial savings on costs towards bookkeeping operations.
- Cutting down on workforce requirements where optimal utilisation is not achieved.
- Permits the business to have a laser-like focus on core business activity.
- Access a full suite of services from a qualified and experienced team at a fraction of the cost.
- Offers access to a dedicated service provider during the contract period.
- On-demand access.
- Updates before the commencement of working hours.
- Greater security from aggregators who treat customer data with great care.
Security Protocols and Protection of Data
Organisations and, by extension, the accountants who decide to outsource have an essential aspect that needs consideration. The data is shared with outsourcing partners. With the deep inroads in analytics and business intelligence, all required for a competitor or an entity with malicious intent is access to disjointed numbers and disparate data from multiple sources.
The entities can unearth a wealth of information by piecing together this information. This is the underlying consideration. However, two aspects will rest the discussion on this contention.
One, it makes business sense for outsourcing partners to build a reputation. The agency that relies on outsourced bookkeeping tasks for business must be considered reliable.
Therefore, the effort will always be to maintain privacy and protection. Two, with regulations regarding data falling into place with the threat of stiff penalties, agencies that deal with data are a lot more conscious of their responsibilities.
Certification and Credentials
Reputed and reliable bookkeeping service providers in India have certified roll teams with the credentials to undertake the required services. In some agencies, the level of expertise and knowledge is always one level higher than what is needed. This is typically practised to ensure that delivery never fails from a lack of requisite knowledge and expertise.
A bookkeeper’s typical responsibilities include journal entries of all financial transactions, filing of source documents, preparation of trial balances, bank reconciliations, preparation of cash flow statements, financial reports, invoicing, payroll administration, filing of tax returns and year-end returns – are all undertaken by specialist bookkeeping service providers in India.
Accounting services are vital to organisational growth and neither adjunct nor trivial. Therefore, organisations and accountants in charge of the operations must make the right decisions to ensure that bookkeeping is carried out as per the exact needs.
Achieving this through a stop-gap arrangement or in a manner that is ad-hoc in nature will backfire and become an obstacle to the growth of the organisation. Therefore, accountants must decide to zero in on the most suitable accounting and bookkeeping service provider to outsource.
With the right firm like Outbooks to take care of the bookkeeping, it will become possible for the accountant to focus more on the other aspects of accounting which require their undivided attention.
The more innovative way to function is always to have a laser-like focus and ensure that resources are not sprayed thin across a large area. Outsourcing is definitely in.
Reach out to Outbooks at info@outbooks.co.uk or 44 330 057 8597 today!
Parul is a dedicated writer and expert in the accounting industry, known for her insightful and well researched content. Her writing covers a wide range of topics, including tax regulations, financial reporting standards, and best practices for compliance. She is committed to producing content that not only informs but also empowers readers to make informed decisions.