India is one of those places that offers many opportunities to the companies that are outside or overseas. Choosing India for outsourcing is a strategic move for the companies to hire skilled talents, expand potentials, and also reduce costs on many different operations. Outsourcing is a part of a business, nevertheless, CPA’s have diversified success in making outsourcing give top-notch results to them. India is known for its skilled workforce and cost-effective services. We are going be looking at
Why Outsource Finance and Accounting?
In this growing and busy era of globalization, economies and businesses are getting more and more interconnected. In fact, digitalization has made world-wide collaborations so much easier. Building and maintaining an in-house finance and account staff requires a lot of infrastructure, people, and budget. This can especially be difficult for small and medium sized businesses. This is why most companies opt for outsourcing tax preparation to India.
Huge Cost Savings:
Usually, labor costs are one of the most major expenses for most businesses. Studies have shown that by outsourcing tax preparation to India, total operating costs can be saved by 60-70%. Compared to developed nations like the US, UK, etc., the cost of labor in India is low. This shows that outsourcing tax preparation services to the country is rather affordable.
Time Zone Advantages:
The different time zones can also be a great advantage when you have a proper schedule worked out with the outsourcing firm. For example, the US is almost 9 hours behind India, which means that US businesses can get their work done and delivered effectively immediately after waking up. This is a game-changing advantage for overseas partnership when used strategically and effectively.
Expandability:
When you plan to scale your business to the next level, you need extra eyes to keep your business accounts steady. These firms can come up with financial management solutions to meet the businesses changing needs, making them ready for growth and expansion while maintaining efficient financial control. This will also help in clearing of unnecessary budget allocations and ensuring your finances are smoothly managed.
Manage Staffing Problems:
Researches have shown that there is a shortage of talent in the US accounting industry and a large number of firms are finding it difficult to retain existing staff or acquire new ones. This becomes a huge hassle especially in the busy tax season as many firms are left scrambling to scale up their tax preparation services. This is why many businesses are switching to outsourcing to India as you can scale up and down as required. For example, resources are added in the busy tax season and scaled down when the tax season is done. This also reduces the cost required to maintain an in-house staff.
Outsourcing Bookkeeping and Tax Preparation services to India not only helps businesses save on costs but also makes sure that there is compliance with proper tax regulations. As the trend of offshore tax preparation continues to grow, India will remain as one of the preferred locations for businesses that are looking for quality tax solutions.
