Governmental Policies Makes Accounts Outsourcing in India Easier for the UK’s Accounting Firms 

If small-scale accounting firms in the UK are still pondering the pros and cons of outsourcing, they should stop and look around. The fierce competition in the UK’s accounting industry has compelled countless firms to outsource in the last two decades. Most of the accounting firms that have outsourced started doing so with the intention of cost-reductions. However, the quality of work that accountants from foreign locations like India have made accounting firms in the UK reconsider their approach to outsourcing. They’re now making Indian accounting teams key components of their future firm-expansion strategies.

Governmental Help

The UK and the Indian governments have been very helpful in setting up partnerships between the two countries’ accountants. The Institute of Chartered Accountants of India (ICAI), the central statutory body for Indian accountants, recently signed a pact with the Institute of Chartered Accountants in England and Wales (ICAEW), which levels the playing field for accountants from both the countries which are practicing taxation and financial consultancy.

Hence, a CA from India is just as well-equipped as a native accountant to handle a British firm’s accounting responsibilities. The UK’s Financial Reporting Council (FRC) also approves the recruitment of Indian CAs.

A Great Move for Both Nations

In India, the total number of Chartered Accountants (the country produces an estimate of 40,000 CAs every year) supersedes the number of available jobs. The UK’s accounting industry is facing the opposite problem – too many accounting jobs but not enough accountants.

Now that the FRC and the ICAEW have recognized Indian CAs as eligible to handle the accounts of British firms, top providers of accounts outsourcing in India can contribute massively to the UK’s accounting industry. This pact stands on the values of reciprocity – accounting professionals from both countries can benefit. 

The Need for the UK’s Accounting Firms to Outsource

Indian accountants regularly undergo training programmes to keep up to date with the UK’s accounting practices. That’s why many large-scale accounting firms in the UK have entire departments dedicated to these offshore professionals. These forward-thinking accounting firms have gained significant edges over their competitors due to these offshore partnerships. 

In a recent survey, several accounting firms in the UK admitted that outsourcing isn’t just a way for them to delegate repetitive or time-intensive responsibilities like payroll management to their external partners. Large networks of accounting firms in the UK are using their Indian partners to oversee important responsibilities like - 

· Bookkeeping – A majority of the accounting firms in the UK are using their offshore accounting teams’ help to manage the day to day bookkeeping responsibilities. 

· Tax Planning - In the survey, 20% of the firms admitted to using their offshore accounting teams’ services to manage their clients’ taxes. 

· Pensions Advice - 17% of accounting firms in the UK outsource their pension planning services. 

· Financial Planning and Advice – In the survey, 22% of the UK’s firms reported using their offshore accounting teams for providing financial advice to their clients. 

The leading providers of accounting outsourcing services in India use cloud computing technology, which makes collaboration with accounting firms in the UK much easier and safer. Accounting firms that still haven’t optimized this lucrative trend must reconsider!

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Created on Jan 27th 2021 06:27. Viewed 443 times.

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