Benefits of hiring accountants from India

51% of organizations prefer to outsource employees, helping them reduce costs, boost productivity, and tap into specialized expertise. Accounting, in particular, has seen a significant rise in outsourcing due to its technical nature and the demand for accuracy and efficiency. Over 300,000 U.S. accountants and auditors have left their jobs, leading to a 17% drop in hired accountants since a peak in 2019.

As a result, India has emerged as one of the top global outsourcing hubs for accounting work. The country offers a large pool of skilled accountants, along with a cost advantage that makes it an attractive option for businesses looking to streamline their accounting processes without compromising on quality.

In this blog, we will focus on the many advantages that are associated with outsourcing accountants from India. We will discuss the role of accountants, outline why outsourcing from India is beneficial, highlight the salary of an accountant in India, and discuss the challenges you may face when hiring accountants and how Global Squirrels will help you overcome these obstacles.

What are the roles of accountants?

Accountants are essential for your business as they manage its financial well-being. They take care of a wide variety of duties that help you make informed decisions that guarantee correct financial reporting and regulatory compliance.

1. Book-keeping

Accountants are responsible for maintaining accurate financial records for your business, including recording daily transactions such as invoices, bills, and payments. They also conform bank statements and manage accounts payable and receivable, ensuring that financial data is organized and accessible for reporting and analysis.

2. Financial reporting

Preparation of financial statements is a core duty of accountants. They create essential documents such as income statements, balance sheets, and cash flow statements. This provides insights into your organization’s financial performance and health. These reports are crucial for your stakeholders to monitor their financial status and make informed decisions accordingly.

3. Budgeting

Accountants create and manage budgets based on previous data insights and financial projections. They analyze costs and financial trends to help your organization allocate resources effectively and plan for future growth.

4. Auditing

They conduct internal audits to verify the accuracy of financial records and ensure compliance with industry standards and regulations. To reduce financial risk, they evaluate internal controls and spot any inconsistencies or potential improvement areas.

5. Tax planning

Accountants prepare and file tax returns to ensure compliance with federal and state tax laws. It also provides strategic advice on tax planning to minimize liabilities while maximizing deductions and credits, thus optimizing the overall tax position for your business.

Why outsource accountants from India?

There are many advantages of outsourcing accountants from India, the majority of which include cost-effectiveness, professionals having access to advanced technologies, and access to a vast pool of skilled talent.

1. Cost-effectiveness

One primary advantage of outsourcing from India is the significant cost savings. Since the cost of hiring remote accountants in India is significantly lower than in developed countries (the US, Mexico, and Canada), your business could benefit from lower overhead costs, such as salaries, employee benefits, and office space.

2. Access to skilled professionals

India has a large population of well-qualified and quality accounting personnel, including Chartered Accountants (CAs) and Certified Public Accountants (CPAs). The country has a high literacy level 76.32% as of 2022 and a strong education system that churns out qualified human resources in the field of international accounting standards and practices. It allows firms to get quality services that conform with the best services offered in the world.

3. Cultural versatility

Indian accountants are versatile and culturally aware and have strong work ethics and adherence to detail. This allows them to easily relate with clients of diverse origins and or merge well within different groups.

What is the salary of an accountant in India?

The average salary for an accountant in India is $297.84 per month. Below is the monthly salary of an accountant from India based on their experience:

What are the challenges of hiring accountants?

Non-compliance with local labor laws

Non-compliance with local labor laws can present significant challenges for your business, especially when it comes to managing the complexities of regulations like Form 16, Provident Fund (PF), Professional Tax for full-time employees, and Income Tax, Goods and Services Tax (GST), and advance tax for freelancers. You must also navigate other requirements like Tax Deduction at Source, Employee’s State Insurance, and the presumptive taxation scheme under Section 44ADA for freelancers.

Failure to adhere to these diverse regulations can result in hefty penalties, legal actions, and operational disruptions. The challenge is further compounded by the need to ensure compliance with additional rules like the Equalization Levy, which is a direct tax that the service recipient withholds at the moment of payment for online freelancers. Managing these varied obligations requires a deep understanding of Indian and international tax regulations, which can be challenging for your business if you are unfamiliar with the latest legal updates.

Extra charges being added to your overall fee

Staffing agencies charge around 40% to 50% extra by adding huge markups and additional charges like VMS/MSPs. This can affect your hiring process, especially if your business is in its initial stages.

Undedicated freelancers

When hiring accountants as freelancers, your business could face a challenge where the accountant works with other companies simultaneously. This can harm your financial projects and hinder the quality of their work in terms of delays in deliverables and understanding of the project. Freelancers also have the option to stop working on a project as per their will, causing inconvenience for your business.

Difficulty finding accountants with relevant licenses and certifications

Hiring a qualified accountant in India goes beyond just finding someone with experience. You must ensure the professional holds the necessary licenses and certifications from recognized institutions such as the Institute of Chartered Accountants of India (ICAI) or the Institute of Cost Accountants of India (ICMAI). This can be challenging, especially when balancing full-time and freelance professionals. The challenge lies in verifying their credentials and ensuring compliance with financial regulations, making it difficult to find reliable candidates who meet these essential standards.

Also Known: Hire Employees in India

How can Global Squirrels help you solve these challenges?

Global Squirrels is a staffing and payroll platform that helps you hire accountants from India who fit well with your business goals while not needing to worry about payroll and other HR-related functions such as benefits, background verification’s, compliance, and creating offer letters. Our platform allows you to hire freelancers and full-time employees on-site for the USA and offshore globally. You have the complete freedom to hire accountants from India on our platform, from choosing a pre-screened accountant you prefer to ensuring accurate payroll and compliance.

With the help of our staffing platform, you can rest assured that there will be no legal risks for your business. Our platform ensures this by addressing and prioritizing the complex tax and employment laws such as PF and Income Tax and improving potential discrepancies.

Global Squirrels also eliminates VMS/MSP fees and other huge markups charged by most staffing agencies. Once you register and choose your desired plan, our platform charges you a flat monthly fee and the accountant’s salary, helping you understand what you are paying for. Through our unique pricing, you can save up to 20% on hiring accountants on a contract basis.

With our Purple plan and Orange plan, our platform solves the challenge of hiring undedicated accountants by providing them with an employment agreement, which includes a notice period clause. This will ensure they give appropriate notice before leaving your organization. This guarantees consistency in your projects and ensures they are delivered on time.

Do you want to read more about our hiring plans?

1. The Purple plan

Using the Purple plan, you can use our platform to onboard the accountant as a full-time employee you have already sourced. Our platform will ensure that HR-related functions, such as onboarding, payroll, and benefits management, are handled effectively. Global Squirrels will become your hired accountant’s legal employer while ensuring zero business compliance risks.

2. The Blue plan

Our platform will hire accountants from India who meet all your business requirements and goals. The steps include sharing curated and background-verified profiles with you on the portal, scheduling interviews with your selected candidates, and onboarding your preferred accountant. All the employer’s legal obligations remain with you.

3. The Orange plan

When you want our platform to source an accountant from India and handle his/her HR-related responsibilities, you should choose the Orange Plan. Based on your job requirements, our platform will handle the recruitment and HR processes while ensuring zero risks.

Are you ready to hire accountants from India? Request a demo today and hire top accountants who help you reach your financial goals!