Outsourcing is a pressing issue in U.S politics. People fear they will lose jobs to outsourcing. But, is that really true? Is that what outsourcing is all about?
For some, it's a magical cure-all. It gives them access to skilled-accountants and CPAs who are just a call away.
A lot of time goes into hiring and managing the payroll of an employee. In fact, it’s an expensive and time-consuming process which can be managed better.
So, could this be why accounting firms are outsourcing their work to India?
The benefits of outsourcing include:
Slashing cost up to 50%
India has something which many other countries do not, manpower. With a population of over 1.3 billion there is no shortage of skilled manpower for almost any task. Accountants in India are highly skilled and due to the sheer numbers, they can turn around tasks much quicker than their counterparts in countries like the U.S.
In fact, many U.S. based accounting firms are already taking advantage of India’s manpower by outsourcing and saving 30%-50% of the cost of doing it in-house.
Outsourcing tedious back-end work can actually help you save on recruitment, payroll, training and other onboarding expenses. Outsourcing accounting services is a clever way to reduce overhead expenses while increasing efficiency. In fact, an in-house study of QX suggests that 80% of accountants and bookkeepers outsourced to gain access to a large, tech-savvy talent pool that could turn around work in a short span of time.
As accounting firms your focus is more on client acquisition and growing your business. Outsourcing your tax returns and bookkeeping gives you time to plan and execute your sales strategy. The beauty being that whatever you save, can be re-invested in the business to be used for expansion and service offerings.
Your outsourcing partner should be an extension of your team, who are just a call away. When you outsource accounting services, you no longer have to spend valuable time filling up forms and understanding new software. You can focus on the things that really matter such as scaling your business and operations.
Having India in the time zone it’s in is actually a boon to accounting firms in the US. It works out that when you are at home sleeping accountants in India are already up and onto the work. This means quicker turn arounds and greater efficiency for you.
As mentioned earlier India has the benefit of manpower which means you get access to a skilled workforce anytime. Rather than trying to do everything why not outsource specific services such as tax preparation to a company that actually specializes in it. This means means your in-house staff can focus on the core strengths of the accounting practice rather than getting caught up in less rewarding tasks.
The right outsourcing partner will actually let you get out from behind the desk so you can focus on the things you really want to.
And we are not the only one to say that!!
This is what Koshy George CPA has to say.
It's time to stop burdening yourself and outsource your accounting work to increase operational efficiency and profitability.