Outsourcing Bookkeeping to India: 5 Common Misconceptions Debunked

If you own or manage a small or medium-sized business in the USA, then you might be aware that bookkeeping forms your business’s backbone. Yet, you may struggle to handle bookkeeping in-house due to its intricacies. Often, you may feel that handling bookkeeping in-house may help cut costs and keep finances in order. Though you might be tempted to choose this approach to bookkeeping, it often leads to higher expenses and complications with the accounting process down the line.

On the contrary, outsourced bookkeeping offers the right solution to the various problems that you could face. Nevertheless, many small business owners are wary of outsourcing their bookkeeping, especially to India, for multiple reasons and misconceptions. Worry no more if you are one of those businesses wary of outsourcing your bookkeeping. This blog covers the major myths that surround outsourcing bookkeeping to India. It also helps clarify how bookkeeping outsourcing can bring peace of mind to your business.

But first, let us briefly understand the concept of outsourced bookkeeping.

What is Outsourcing Bookkeeping

Outsourced bookkeeping involves hiring a third-party service provider to handle your company’s financial record-keeping. Top-notch companies like KMK often include services like day-to-day transactional work & general ledger maintenance, month-end or periodic closing & US GAAP compliant financial statements, banking reconciliation with treasury management support, sales tax management & compliance, maintaining prepaid, accruals, depreciation & amortization schedules monthly, management reporting, among others as part of their outsourced bookkeeping offerings. Therefore, outsourced bookkeeping services can cater to your business’s needs, depending on whether you require basic bookkeeping or advanced financial analysis.

Now that we have studied what outsourced bookkeeping services are, it’s time to understand the common myths about them.

Myth 1: Outsourced Bookkeeping Costs More:

Some small businesses in the USA often labor under the thought that outsourcing is expensive and that only big companies can afford it. However, outsourcing is cost-effective and can prove to be a more efficient process. Outsourcing to India lets you access skilled professionals at a lower cost. So, you only pay for the work completed without worrying about extra employee expenses. Plus, experienced Indian bookkeeping experts can handle tasks faster and more efficiently, saving you time and effort.

Also Read: What Outsourcing Companies Charge for Bookkeeping and Accounting Services

Myth 2: Outsourcing Means Losing Control of Your Finances:

Some US businesses feel that outsourcing bookkeeping to a distant country like India means losing control of their business finances. However, that’s not true. A professional Indian bookkeeping service allows you to be in control of your business. This is done by providing transparent processes, regular updates, and real-time access to your financial data. Moreover, this helps you stay informed and make smart financial decisions whenever necessary.

Myth 3: Outsourcing Will Expose Your Business to Greater Risk:

Some small business owners believe outsourcing bookkeeping to India is less safe than having an in-house team, but that’s not true. Outsourcing reduces the risk of errors because experienced professionals handle your finances. Trusted providers like KMK also use advanced security measures to protect your financial data.

Also Read: The Future of Offshore Bookkeeping: Top 5 Trends and Predictions for 2024 and Beyond

Myth 4: Finding a Good Bookkeeper is Difficult:

Some business owners think finding a reliable outsourced bookkeeping provider is challenging. However, many skilled providers like KMK in India can handle bookkeeping and accounting tasks better than an in-house team. You can research thoroughly and contact providers like KMK to understand their services.

Myth 5: Small Businesses Don’t Need Bookkeeping Services:

Many small business owners believe bookkeeping services are only for large companies. Again, this isn’t the case. Outsourcing to KMK gives you access to experts in India who can handle tasks more efficiently. This saves you from hiring and training staff and frees time and resources. In turn, this lets you focus on growing your business—making it a smart choice for businesses of all sizes.

Also Read: Optimizing Efficiency: The Role of Bookkeeping Services for CPA Practices

Score Big with KMK’s Bookkeeping Services

Outsourcing your bookkeeping to KMK is an innovative and cost-effective way to manage your financial records with accuracy and ease. Our experienced team handles everything from maintaining ledgers and preparing financial statements to reconciling bank accounts, ensuring your records are always up to date.

At KMK, we tailor our offshore bookkeeping services to meet your needs, providing expert guidance and support to give you peace of mind. By choosing us, you save time and money while gaining access to top-quality bookkeeping services—without the cost and hassle of hiring an in-house team. Our services include:

• Day-to-day transactional work & general ledger maintenance

• Month-end or periodic closing & US GAAP-compliant financial statements

• Banking reconciliation with treasury management support

• Sales tax management & compliance

• Maintaining prepaid, accruals, depreciation & amortization schedules every month

• Management reporting

Conclusion

Outsourcing bookkeeping to India is a practical and cost-effective solution for small and medium-sized businesses in the USA. By debunking common misconceptions, it’s clear that outsourcing offers access to skilled professionals, ensures data security, and provides efficient financial management without losing control over your finances. Partnering with trusted providers like KMK can simplify your bookkeeping needs, save time and money, and allow you to focus on confidently growing your business.