Benefits of hiring accountants from India
Organizations increasingly outsource accounting functions to reduce costs, enhance productivity, and access specialized expertise from around the globe. The growing demand for accounting outsourcing is driven by the complexity of the field and the need for accuracy and efficiency. A shortage of qualified accountants in the U.S., with over 300,000 leaving their jobs since 2019, has further fueled the outsourcing trend.
India has emerged as one of the leading global destinations for hiring accounting experts, offering a vast pool of skilled professionals and a cost-effective solution for businesses seeking to streamline their operations without sacrificing quality.
In this blog, we will focus on the advantages 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 the USA, Canada, and Mexico, 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). As per a report from Statista, the country has a high literacy level of 76.32% as of 2022 and a strong education system that churns out qualified professionals in international accounting standards and practices. Many professional carry CPA certifications for USA accounting standards as well.
3. Cultural versatility
Indian accountants are versatile, culturally aware, and have strong work ethics and adherence to detail. This allows them to easily relate with clients in different countries and or merge well within different groups.
What is the salary of an accountant in India?
According to Glassdoor data, the monthly salary of a skilled accountant with 4+ years of experience and excellent English language skills is $418.51.
What challenges could you face when hiring accountants in India by yourself?
High entity set-up cost and legal complexities
Establishing a legal entity in India for hiring can involve significant costs, from registration fees to ongoing compliance and operational expenses. These financial commitments can quickly add up, making it costly for your business to expand. In addition to this, you may not be aware of some important tax laws such as Form 16, Provident Fund (PF), and Professional Tax for full-time employees. Failure to adhere to these diverse regulations can result in hefty penalties, legal actions, and operational disruptions.
Difficulty finding accountants with certifications from recognized institutions
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). You would also prefer to hire a professional with CPA certifications for USA accounting standards. The challenge also lies in verifying their credentials and ensuring compliance with financial regulations, making it difficult to find reliable candidates who meet these essential standards.
Challenges you face when you hire accountants from India through a staffing agency
High bill rates due to markups
Outsourcing agencies charge around 40% to 50% extra by adding huge markups. This can affect your hiring process, especially if your business is in its initial stages. So, when they bill you high, your budget for attracting top talent will reduce, and eventually, your hired worker will receive significantly lower pay compared to industry standards.
Lack of commitment to your projects
When hiring accountants via a staffing agency, your business could face a challenge where the accountant works with other companies simultaneously. This can harm your projects and hinder the quality and deliverables of their work. Without an employment agreement, they also have the option to stop working on a project as per their will, forcing you to put your crucial projects on hold.
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 talent 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 verifications, compliance, and creating offer letters. Our platform will make it easier for you to hire accountants from India on a full-time basis.
Based on your job requirements, our platform will share the curated profiles of top accountants with you on the portal. These profiles will match the experience you require and the certifications from recognized institutes, such as the American Institute of Certified Public Accountants, the Institute of Chartered Accountants of India (ICAI), and the Institute of Cost Accountants of India (ICMAI). With the help of our staffing platform, you do not need to set up any entity in India to find and hire talent. Global Squirrels will handle your accountants’ end-to-end recruitment and payroll. Moreover, you can rest assured that there will be no legal risks for your business as Global Squirrels will be the Employer of record (EOR) for the hired accountants.
Through the flat fee pricing model, Global Squirrels’ staffing platform eliminates huge markups charged by most outsourcing/BPO agencies. Once you register on our platform and choose your desired hiring plan based on your requirements, our platform will only charge you a flat license fee and the accountant’s monthly payroll cost, allowing for 100% transparency in the billing. With our Purple and Orange plans, our platform will ensure their total commitment to your projects by sharing an employment agreement with them, which includes clauses related to their scope of work and termination/notice period. This guarantees they will work only on your projects and adhere to the deadlines, project phases, and conditions under which the employment can end.
Are you ready to hire accountants from India? Request a demo today and hire top accountants who help you reach your financial goals!