Accounting Outsourcing to India: Save Costs, Stay Compliant, Scale Faster

• Published: June 21, 2025
• Last Updated: June 25, 2025

Outsourcing accounting to India has become a strategic move for US, UK, and Australian businesses. By leveraging India’s large pool of highly skilled accounting professionals, companies across the globe are optimising their financial operations at a fraction of the cost of in-house teams. But why do international businesses choose India as their outsourcing accounting services provider? What are the key benefits and considerations?

Keep reading to find answers to some of the most frequently asked questions about accounting outsourcing to India.

What Accounting Tasks Can US, UK, and Australian Businesses Outsource to India?

The rising trend of accounting outsourcing in India is quite evident, especially in countries like the US, UK, and Australia and for all the right reasons. From day-to-day bookkeeping to complex tax reporting, Indian accountants deliver a full spectrum of finance and accounting solutions. Moreover, they provide all these services while being compliant with global accounting standards. Here are the key accounting tasks businesses from the US, UK, and Australia often outsource to India.

Accounting Functions US Businesses Outsource to India

Businesses in the USA can outsource a wide range of accounting services to India, especially those that demand precision, timeliness, and IRS compliance. Some of the most common tasks for accounting outsourcing to India for US businesses include:

• Bookkeeping & General Ledger Maintenance
• Accounts Payable & Receivable Management
• Payroll Processing (1099 & W-2 preparation)
• Bank & Credit Card Reconciliations
• Monthly Closures and Trial Balance Preparation
• US GAAP-based Financial Reporting
• Tax Preparation Assistance (Forms like 1040, 1065, 1120, and 1120S)
• Ensuring Compliance with US GAAP and IRS regulations

Accounting Tasks UK Businesses Can Outsource to India

Accounting outsourcing to India for UK businesses bridges the growing skill gap at home by tapping into a vast pool of highly qualified professionals. Moreover, skilled Indian accountants working with UK clients are typically trained in IFRS, UK GAAP, and HMRC protocols, ensuring seamless delivery of tax-ready statements and statutory filings. Accounting functions that are commonly outsourced by UK firms include:

• VAT Returns Filings
• Payroll & RTI Filings
• Self-Assessment Tax Returns (SA100)
• Corporation Tax Computation (CT600)
• Year-End Final Accounts Submission to Companies House & HMRC
• Cash Flow Forecasting & Budgeting

Accounting Functions AU Businesses Can Outsource to India

Similarly, accounting outsourcing to India for Australian businesses addresses the dual challenge of rising local costs and a shrinking pool of qualified professionals. Indian accountants serving Aussie clients are well-versed in BAS requirements, GST regulations, and ATO compliance, delivering accurate and on-time financial reports with confidence. Accounting functions commonly outsourced include:

• GST Accounting & BAS Preparation
• Payroll Processing under Fair Work Act Compliance
• Superannuation Contributions & STP (Single Touch Payroll) Reporting
• Accounts Payable/Receivable & Bank Reconciliations
• Tax Return Assistance (Individual, Partnership, Company, Trust)
• Preparation of Financial Statements as per AASB standards
• ATO Correspondence & Lodgement Support

How Much Money Can Companies Save By Outsourcing Accounting Services to India?

Accounting outsourcing to India can save companies up to 60% in overhead costs. These expenses include salaries, employee benefits, infrastructure, software licenses, and ongoing training.

By delegating routine and complex accounting tasks to offshore accountants, international firms benefit from extended hours, faster turnaround times, and reliable service delivery. With experts handling your financials, the chances of errors and inefficiency reduce significantly, which in turn, avoids hidden expenses such as compliance-related penalties.

What Is the Step-by-Step Process for Outsourcing Accounting to India?

From selecting the right partner to a seamless onboarding process, secure system integration, and effective communication, outsourcing accounting functions involves many steps. Let’s find out what each of these steps entails:

Select a Partner:

The first step is to research and choose a reputable Indian outsourcing accounting service provider. You can either hire a freelancer or a specialised accounting outsourcing firm in India. Irrespective of your choice, ensure they hold the right qualifications, relevant experience, and are well-versed in applicable accounting standards such as GAAP and AAS.

Onboarding:

Once you have selected a partner, it is time to onboard them. Brief them about your business goals, workflows, and other essential elements. This will give them a clear idea of what you expect from them so that they can align themselves effectively.

System Integration:

At this stage, your in-house operations need to be aligned with the offshore team’s workflow using accounting software. Whether you use QuickBooks, Xero, NetSuite, Zoho Books, or MS Dynamics, integrating your current platform with the offshore provider’s systems ensures real-time collaboration, error-free data flow, and reduced manual effort.

Ongoing Communication:

Secure data access must be arranged through cloud platforms, VPNs, and 2FA-enabled tools to protect sensitive information. Just as vital is establishing robust ongoing communication. Schedule weekly review calls, monthly reporting, and real-time dashboards, and use collaboration tools like Zoom, Slack, or Microsoft Teams for efficient and smooth communication.

Are Indian Accountants Trained in US GAAP, IFRS, And UK Accounting Standards?

Yes, Indian accountants are well-trained in US GAAP, IFRS, and UK accounting standards. Many pursue global certifications like CPA and ACCA, which cover these frameworks in detail. Home to over 425,000 CAs, about 2,500 ACCAs, and 11,000 CPAs, India is rightly gaining its position as a leading hub for international accounting expertise.

As a result, businesses trust Indian accountants not just for cost savings but also for compliance and quality. Additionally, English proficiency makes communication seamless. That’s another reason why accounting outsourcing to India is growing fast. Whether it’s preparing tax reports or managing audits, they have the skills to deliver what you require.

Can Indian Accountants Manage Local Tax Laws and Compliance Requirements?

Indian accountants are well-versed in managing international tax compliance with accuracy and diligence. Their exposure to global clients equips them to handle country-specific regulations:

The United States of America:

These experts assist US businesses with filings of Forms 1120 and 1065 while being compliant with IRS reporting standards.

The United Kingdom:

They comply with HMRC requirements when filing Corporation Tax returns (CT600), VAT filings, and PAYE submissions, SA800 (Partnership tax return), and Forms P60/P11D/P45.

Australia:

Skilled remote accountants assist Australian businesses with ATO compliance, BAS preparation, GST reporting, and Superannuation obligations.

Are Indian Accountants Proficient in Global Accounting Software Like QuickBooks, Xero, NetSuite, And Sage?

Hiring a skilled Indian accountant brings proficiency in using leading global accounting software such as QuickBooks, Xero, NetSuite, Sage, Zoho Books, and Microsoft Dynamics. Moreover, the top outsourcing firms in India prioritise continuous upskilling to ensure their accountants can expertly integrate with your existing systems.

By leveraging these advanced tools, these experts can automate routine tasks, provide real-time financial insights, and minimise errors. This expertise enhances the overall efficiency of your accounting processes, enabling smoother collaboration and more accurate financial management.

What Does the Onboarding Process Look Like When Working with Indian Accounting Firms?

The onboarding process begins with a detailed discussion about the scope of service you require (bookkeeping, tax preparation, payroll processing, financial reporting), desired timelines, and any industry-specific needs. Following this, a transparent agreement is established, outlining expectations from the outsourced accounting firm.

Next comes setting up secure accounting systems (QuickBooks, Xero, Zoho Books), project management tools (Asana, Trello, Google Drive, Dropbox), and communication channels (Slack, Zoom, Google Meet, Skype). Once the required data is shared with the accounting firm, schedule regular check-ins to keep an eye on deliverables.

Do Indian Offshore Accountants Provide Real-time Support in Local Time Zone?

Yes, many Indian accounting outsourcing firms adjust their working hours to cover regions like Australia, the UK, and the US to facilitate seamless communication. This shift changes allow accountants to ensure businesses receive prompt responses and support as and when they require.

The time difference between India and the other countries allows for a “follow-the-sun” model, where work assigned at the end of a client’s day is completed overnight and ready for review the next morning. This not only minimises the turnaround times but also facilitates faster project delivery. Whether clients require full-time, project-based, or seasonal support, Indian outsourced accounting service providers offer flexible engagement models to ensure availability during peak periods.

What Level of Accuracy and Quality Can You Expect from Indian Accountants?

When you partner with a reliable Indian accounting firm, you can expect high levels of accuracy and quality in financial services. Moreover, they have established processes, ensuring consistency, adherence to compliance standards, and precision in tasks such as bookkeeping, tax filing, and financial reporting.

The key is choosing a partner with proven expertise, a strong track record, and a transparent approach to quality control. Top firms typically employ accountants who are well-versed in international accounting standards and use advanced software and technologies to deliver accurate, timely results.

What Qualifications and Certifications Do Indian Accountants Typically Have?

Indian accountants are renowned for their robust academic foundations and diverse professional certifications. The CA qualification, conferred by the ICAI, stands as the pinnacle of accounting expertise in India. Further, to engage with Western clients, many also pursue qualifications such as CPA, CMA and ACCA. These credentials help Indian accountants understand and navigate through international standards like AAS, GAAP and IFRS proactively.

As India has a population of over 425,000 CAs, 2,500 ACCAs, 11,000 CPAs, and 98,500 active members of ICMAI (CMAs), it proves itself as exceptionally well-equipped to handle outsourcing demands. Whether it’s about adhering to domestic standards or aligning with international frameworks, these professionals meet the evolving demands of the global financial landscape efficiently.

How Can Businesses Find Skilled Offshore Accountants in India?

When it comes to finding the right accounting talent in India, you can go three ways about it. You can hire a freelancer from job portals, set up a back office, or partner with a reliable offshore accounting firm. Which of these models is suitable for your business? Let’s find out.

1. Hire Freelancers from Job Portals

The simplest and most direct way to find skilled offshore accountants is by hiring freelancers through popular job portals like Indeed, Glassdoor, and LinkedIn. These platforms allow businesses to post job openings and access a wide range of skilled professionals.

2. Set Up Your Back Office in India

Another option for U.S. businesses is to establish a back-office operation in India. This can be done by setting up a small office or hiring virtual accountants who will work as part of an internal team. India is already home to the Big 4 accounting companies (Deloitte, PwC, EY, and KPMG), which underscores the country’s deep expertise in accounting and finance.

3. Partner with an Outsourced Accounting Service Provider

Finally, for those who prefer a hands-off approach, partnering with an outsourced accounting service provider is an ideal solution. They typically have large, skilled teams with experience in handling various accounting functions. Additionally, partnering with an established firm can save time, ensure scalability, and provide access to expert knowledge in U.S. tax laws and financial compliance.

How Do I Train an Indian Accountant to Align with My Business Processes and Compliance Needs?

When it comes to aligning an Indian accountant with your specific accounting needs and compliance requirements, it is vital to take a methodical approach. Whether you’re looking to scale operations or streamline financial processes, ensuring that the accountant understands both your business environment and regulatory landscape is key. A structured and comprehensive training program can bridge the gap, enabling them to meet your expectations while maintaining the accuracy and compliance necessary for successful financial operations. Here’s how to ensure alignment:

• Clearly outline the work involved, focusing on the specific accounting functions required, such as payroll, tax filing, or financial reporting.
• Provide in-depth training on local regulations (e.g., sales tax, GST) and international standards (e.g., GAAP, AAS), ensuring the accountant can handle both domestic and cross-border compliance.
• Introduce the accounting software and tools used in your company. Ensure the accountant is proficient with your preferred platform.
• Ensure the accountant is aligned with your business’s financial goals, reporting structures, and key performance indicators (KPIs).
• Provide constructive feedback regularly and offer opportunities for further professional development, keeping them updated on the latest changes in tax laws and financial best practices.

Is It Better to Hire an Individual Indian Accountant or Work with an Indian Accounting Firm?

The decision to hire an individual Indian accountant versus partnering with an accounting firm hinges on your business’s specific size, requirements, and long-term objectives. For straightforward accounting tasks such as bookkeeping, invoice processing, or routine financial maintenance, hiring an individual accountant may be a more cost-effective and flexible solution.

However, when it comes to tax seasons or during periods when the individual accountant is unavailable, working with a solo freelancer can present challenges as they lack backup services.

In contrast, an established accounting firm provides the benefit of a dedicated team of professionals with diverse expertise, a wider range of services, consistent quality checks, and robust scalability. Furthermore, outsourcing firms are equipped with well-defined processes and workflows, which enhance operational efficiency. They also offer continuity in service, even when specific team members are unavailable.

For growing businesses, partnering with a reputable accounting outsourcing firm presents a more reliable, long-term solution that supports scalability and ongoing compliance.

Is Your Financial Data Secure When Outsourcing Accounting Services to India?

As a reputed offshore accounting service provider, data security has always been our priority. Our established process adheres to data security standards such as GDPR. Additionally, we are also accredited with data security certifications such as SOC 2, and ISO 27001.

When it comes daily communication and collaboration with our clients, we use tools such as MS OneDrive, Teams, Gmail, Slack, Dropbox for secure exchange of data. With our robust security protocols and commitment to confidentiality, you can trust us to safeguard your sensitive financial information, ensuring a seamless and protected partnership every step of the way.

How Well Do Indian Accountants Adapt to Western Business Culture and Communication Styles?

Skilled Indian accountants have proven to be highly adaptable to Western business culture and communication styles. This is primarily due to their strong proficiency in English, which is widely taught in schools across the country. This fluency ensures that language barriers are rarely an issue when working with offshore partners.

Furthermore, their exposure to international accounting standards like IFRS, AAS, and GAAP further equips them to meet the demands of Western clients. Indian accountants are also tech-savvy, utilising modern accounting software and systems, making system integration a seamless process.

Can Indian Outsourced Accounting Services Scale with Your Growing Business Needs?

Another impressive thing about accounting outsourcing to India is the scalability and flexibility you receive. Whether you’re expanding into new markets, launching new products, or experiencing peak periods like tax season, most offshore accounting services are designed to scale with your demands.

What if you only want to outsource specific accounting tasks? Skilled virtual accountants in India offer the flexibility to customise your services. And later, when your demands grow, you can add more functions to your existing plan.

Which Countries Most Commonly Outsource Accounting and Bookkeeping to India, and Why?

The United States, the United Kingdom, Australia, the UAE, and Canada often outsource accounting and bookkeeping to India for practical reasons. India offers substantial cost savings compared to local services, helping businesses cut expenses. The country also has a skilled workforce, including Chartered Accountants and CPAs, who handle bookkeeping, tax, payroll, and financial analysis.

Moreover, technology proficiency and strong infrastructure further allow for accurate, timely, and secure financial reports. Outsourcing also provides scalability, allowing companies to grow without the cost of hiring in-house staff. Additionally, India’s time zone advantage enables round-the-clock service and fast turnarounds. This combination of affordability, expertise, and flexibility makes India a top choice for accounting outsourcing.

Final Words

Outsourcing accounting to India goes beyond cost reduction, it enhances operational efficiency, ensures accuracy, and offers unparalleled scalability. Businesses across the US, UK, and Australia are increasingly turning to India for its skilled workforce, which adheres to global standards and brings a level of expertise that drives growth. Whether you’re a burgeoning startup or an established enterprise, outsourcing to a trusted Indian accounting firm can give you the flexibility to grow and stay competitive.

With over a decade of experience and a dedicated team of 100+ skilled professionals, at Whiz Consulting, we empower your business by seamlessly managing complex financial processes. Partner with us to unlock the true potential of your financial operations, allowing you to focus on what truly matters, scaling your business. Contact us today to discover how we can tailor solutions to meet your unique needs.