These days, most people try to find ways to outsource work. This is done either through accounting services firms or any other financial service provider.
Small businesses make more sense to outsource accounting work than to set up their own accounting section.
This is because maintaining a bookkeeping division can be expensive. Hiring accountants, training personnel, and buying accounting software can be cumbersome and costly.
Therefore, outsourcing accounting work is one of the best options for small and medium-sized businesses.
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Why Do Companies Outsource Accounting Work?
Outsourced Accounting Services eliminate the need to set up or maintain a dedicated subdivision for accounting.
Thus, outsourcing accounting work for your company has the following benefits:
- It helps cut costs by around 40-50%
- It gives round-the-clock, real-time access to all accounts
- It can help boost the bottom line due to a lower number of employees
- Time and effort can be saved because staff need not be trained or hired
- It assures the quality of financial services provided
These are the reasons why most small companies or new enterprises prefer to use accounting outsourcing services to run their business.
This new wave is currently popular in India as well. The following accounting services can be outsourced in India:
- Invoice generation services – Companies provide services that help with invoice generation. This involves making lists of all receipts and purchases. It contains important information like balance, due date, etc.
- Generating accounts receivable reports – Accounts receivable tells you how much a business holds up cash flow because of unpaid dues from clients. Agencies offer services to generate accounts receivable reports.
- Tracking accounts receivable services – It is very important for any business, big or small, to keep track of their accounts receivable. This service can be outsourced to external companies.
- Trial balance preparation – A trial balance is a sheet that contains the balance of all ledgers compiled into debit and credit columns. It is a very important financial statement that every company needs to keep track of.
- P&L accounts services – A profit and loss statement (P&L statement) needs to be maintained to summarize the revenues, costs, and losses incurred by a business. Companies regularly outsource P&L accounts services from external accounting firms.
- Tracking accounts payable services – Accounts payable refers to the amount of cash that a company owes a supplier for any goods or services.
- Payroll processing services – Payroll refers to any compensation that is given to employees for their work. Payroll processing is done to maintain a record of total wage earnings, payment delivery, and payroll tax filings.
- General ledger maintenance services – A general ledger is an accounting sheet that keeps track of all financial transactions.
- Compilation of tax returns services – One of the most crucial statements a company needs to prepare is its tax returns filings. Several accounting firms offer these services with dedicated divisions to file tax returns.
India is well-known for having an abundance of world-class accounting firms. A lot of foreign companies also outsource their accounting work to India.
Indian accounting firms cover all accounting segments and have well-rounded expertise in several different areas of bookkeeping.
Several leading accounting agencies in India offer accounting services. Doing your homework before outsourcing any work to an external agency is important.
It is important that the company is top-rated and has an excellent track record for its services.
It is also important to remember the number of years the company has been in the business. The more reputed the company is, the better.
Networking is one of the easiest ways to establish contacts in any field or business.
Networking with people in the industry can help turn social connections into clients or coworkers.
Expanding your network is the best way to initiate deals. These deals can lead to promising future outcomes.
What Does a Client Look For?
If you are looking to find work for yourself, you must note what a client expects from you.
In addition to basic accounting skills, most clients look for:
- Strong analytical skills
- Ability to do transactional work
- Data analytics skills
- Strategic advisory skills
- Business strategy
- Communication skills
- Business acumen
- Ambitious and driven mindset
- Ability to work in a team environment
The best way to get noticed is to build a strong profile. Working in an accounting company is a good starting point.
But even if you haven’t, establishing your expertise by working in the field is a great way to start.
Experience and recommendations will help build a profile that helps you get noticed by a client. Moreover, it is also important to market yourself and does adequate research before starting your work.
There are several reasons why companies outsource accounting work. This is especially so in the case of India, where there is a wide talent pool and abundant resources to choose from.
The key to getting work in outsourced services is to build a worthy profile, network well, and do your research.