Key deciding factors and understanding
A company, irrespective of its size, needs to flourish, be productive and profitable for its steadfastness and financial stability. It is imperative for a company to own a team of qualified and expert accountants to boost the business processes and maintain a consistent growth. However, this could be expensive and labour intensive. Along these lines, it is smarter to seek support from an accomplished outsourced service provider.
UK accounting firms are found to be progressively choosing Indian outsourcing vendors for their tax preparation services. The primary reason being the cheap labour. Moreover, accounting service providers in India augment value and incentives by extending quality services.
With the expeditious advancement in most of the major industry verticals, an ever-increasing number of companies, who have rapidly emerged are on the lookout for reliable accounting service providers. Outsourcing to India is accompanied by a series of advantages which can benefit a company in a substantial way.
Some of the vital factors as to why UK accounting firms should contemplate outsourcing to India include:
Tremendous Cost Savings
This is a standout amongst the most evident reasons for outsourcing tax return work. The cost of a talented and skilled workforce in India is much lesser in contrast to other countries. Despite the fact that outsourcing is inexpensive, there is no paucity of skillful and superior quality resource to deliver best-in-class services.
Time Zone Privilege
We as a whole realize that time is money. Because of the highly advantageous time zone, service providers across India are constantly accessible all throughout the day. This is an extraordinary preferred standpoint for the UK accounting firms to gain 24X7 admittance to exceptionally gifted professionals, who provide first-rate services to their clients within a fast turnaround time of 24-48 hours.
Because of the narrow time difference of 4.5 hours between India and the UK, a tax return dispatched in the late evening hours can be processed and completed in time for a review next morning by the UK firm.
Professional Bookkeepers and Accountants
India ranks top in the rundown to the most favoured outsourcing destinations around the world. It boasts of being one of the biggest talent-houses for expert accountants and bookkeepers. You can access this large reserve of expertise and complete your work in a well-timed and orderly manner.
Information Security Policies
With business growth, one of the real concerns for a company becomes the maintenance of the security of the accounts and records. This indicates ensuring a safe and secure client data.
Therefore, before proceeding on a partnership with an outsourcing service provider in India, conduct the necessary due diligence concerning general data security. Ensure that the outsourced vendor follows globally recognized security standards like ISO 27001, is General Data Protection Regulation (GDPR) compliant, preferably with a BS 10012:2017 framework and maintains robust non-disclosure agreements.
Outsourcing to India will guarantee exclusively that your every detail, client information, document and other private information is safeguarded and secured in databases.
While choosing India as an outsourcing partner for your accounting needs, it ends up less demanding for you to scale your practice up or down in accordance with the busy and lean periods in a short and fixed turnaround time, with flexible and systematic provisions which service providers in India offer.
In addition, accountants that have successfully managed the outsourcing of their tax preparation work are most likely to stay away from hiring additional staff during the influx of filing self-assessment tax returns.
Keep Frauds under Scrutiny
Outsourcing to India can aid you in preventing any sort of misrepresentation or fraudulent activity by any employee of an organization. Every service provider in India is responsible for every transaction pertaining to your accounting requirements and offers you the assurance to get the best quality outcomes.
High Level of Precision and Accuracy
For any UK accounting firm, it can be an extremely beneficial initiative to outsource accounting services to India as it guarantees distinctly accurate results. This high level of precision, thus, will help to proficiently oversee different back-office operations.
Access to New Technologies
Novel and innovative accounting technologies and tools have rapidly transformed the market scenario. A vast majority of these tools and techniques are developed in India. You can avail these most recent accounting and other budgetary instruments and technologies by outsourcing here in India.
Circumvent Account Processing Penalties
Inaccurate account and tax processing can deliver erroneous results and prompt imposition of penalties. You can stay away from these hassles and punitive damages to a significant extent by outsourcing your accounting prerequisites to qualified experts in India.
Focus on Your Key Competencies
Outsourcing accounting administrations to professionals in India can be effective in saving your profitable assets and time considerably. Back-office tasks and operations can be a distracting repetitive function. Outsourcing can provide you ample time to centralize your core competencies and render top-class service experience to your clients.
Why is GDPR pivotal for outsourcing to India?
Working with a non-compliant outsourcing company can expose you to the potential risk of a reputational harm with penalties running significantly up to 4% of a company’s worldwide yearly turnover or €20 million, whichever is higher.
How does a tax outsourcing process work?
The process is pretty simple and can be effected in three major ways:
Working remotely through a virtual and secure technology like VPN, Citrix, RDP or GoToMyPC.
Working on a secure portal of an FTP server whereby all tax documents are properly scanned into the server, gathered, processed by the Indian vendor and reinserted to the portal.
Working in the cloud involves a cloud accounting software that incorporates the login credentials of the accountants which can be accessed by their Indian counterpart to dispatch the tax assessment papers and documents using a secure portal.
How to find and choose the best outsourcing provider?
A careful and meticulous early vetting of a prospective partner is required to ensure dependability and an unwavering quality. Consider your agenda based on the following item checklist.
- Perform a thorough background check
- Solicit feedback and referrals from colleagues and peers
- Interview rigorously various outsourcing vendors
- Evaluate their outsourcing prowess and data security
- Ratify their fee structure and payment obligations in writing
- Assess their working infrastructure
- Determine the expertise of their staff
- Gauge their technological abilities and acumen
- Formulate a governance process and a review mechanism
- Prefer vendors who have industry certified affiliations
- Select someone who is respectable and transparent in communication.