Why Outsourcing Accounting Services in India

Source: http://www.ecolutionsindia.com Why Outsourcing Accounting Services in India?

Accounting indicates business health which needs expertise and knowledge of accounting standards, tax laws and corporate laws. Outsourcing accounting services in India is the best option as it has multiple benefits. Read more‌ Content: Accounting is a Thermometer of Business. As the thermometer indicates your health status, Accounting is indicator of Business Health. You may even call it a Business Report Card which basically conveys how much profit you have made and what are your assets and liabilities.

Accounting consists of Book Keeping and Financial Reporting. Book Keeping involves recording of income, expenditure, assets & liabilities in a structured manner and reporting involves preparation of financial statements like balance sheet, profit & loss account and cash flow.

As the business became multidimensional, multinational, multi location, accounting got complicated and various concepts like accrual basis, revenue recognition, assets valuation, exchange fluctuation, depreciation, holding company, subsidiaries, listed company, impairment of assets etc. emerged. The simple accounting concept of conservativeness, debits and credits gave way to accounting jargons and accounting standards. If everyone has stuck to the basic

principle of book keeping and accounts, we would have been spared with the complicated accounting standards, running in to thousands of pages.

Accounting has become very complicated and needs to be handled by experts who are up to date with Accounting Standards, Tax Laws & Corporate Laws. Users of the Financial Reports of the Company are share holders, investors, tax authorities, financial analysts, stock exchange regulators, Banks, Creditors etc.

Accounting and Book Keeping can be done in house by company or can be outsourced to third party specialized in this area and having domain knowledge.

Financial Process Outsourcing (FPO) is gaining immense popularity and covers Accounting and Book Keeping, Accounts Payable & Receivable Management, Financial Reporting, Payroll Management & Tax services. Technology has rendered the offshore FPO feasible and cost effective.

Outsourcing should be by choice and not by compulsion. Some of the prerequisite for FPO are: • • • • •

Cost Benefit Analysis.

Proper selection of FPO partners.

Detailed SLA with well defined responsibilities and deliverable.

Agreeing and documenting the process flow and date charts.

Define communication and escalation protocol.

Accounting services in India has emerged as a most preferred FPO/ Finance and Accounting Outsourcing (FAO) destination and scores over other for the following reasons: • • • • • •

Good infrastructure and broad band connectivity.

Easy availability of skilled manpower.

Cost of manpower is low as compared to developed countries.

Substantial cost benefit.

High quality output & productivity.

Time zone advantage with US. Domain expertise and process management skills.

Other countries might challenge India's FPO lead, but India stands ready to maintain its position as the top outsourcing destination for many years to come.

Ecolutions India is the one stop solutions to all your financial, accounting & taxation needs. We have professionally qualified specialists provides perfect accounting services. For more information visit at: http://www.ecolutionsindia.com Keywords: accounting services, accounting services India, bookkeeping services, bookkeeping india