Outsourcing accounting services to India: Frequently asked questions

Our firm’s fees are highly competitive and help U.S. accounting firms to save at least 60% on their operating direct and overhead costs.
Pankaj Dave, Senior Partner, B.M. Chatrath & Co

What are the benefits of outsourcing and specifically, use of the firm’s BMC SaAS division?

As economists are often quick to point out, outsourcing is little more than an extension of the division of labour. As part of the drive towards increased efficiency, it is part of the natural economic process to try to find better, more efficient and less expensive ways of doing things. Outsourcing is just one means used by companies to cut costs and increase efficiency.

The service provided by B.M. Chatrath & Co can become the virtual accounting division or personal bookkeeper for a client business and a reliable resource for the firm. Using the latest technologies, BMC helps to develop policies and procedures to streamline the accounting process – this can increase the overall efficiency of the firm’s business operations.

The advantages include:

• Increased availability of qualified personnel, secure online access, faster turnaround times and improved customer satisfaction
• Outsourcing bookkeeping and the preparation of tax returns can save at least 60% of the current cost
• Reduce the need to increase staffing levels during year end for special pay outs and during peak tax season
• The opportunity cost in term of savings can be significant. Outsourcing allows your staff members to concentrate on high end services such as financial, estate or retirement planning.

How does an online bookkeeping service work?

The outsourcing of the bookkeeping function helps with the daily tedious work involved in business processing, including:

1. Downloading of bank statements and check scans
2. Updating of transactions in QuickBooks from bank statements
3. Reconciliation of transactions and payments
4. Updating of accounts receivable and accounts payable
5. Updating of payments received through PayPal, bank statements and deposits into checking accounts
6. Bank statement reconciliation.

Why should I choose BMC SaAS to outsource accounting services?

Outsourcing accounting services to BMC offers multiple advantages. Key among those are:

• The COST FACTOR. Costs related to your accounting and tax related work will be reduced by at least 75%
• No infrastructural or administrative hassles
• Increased productivity and efficiency
• Easy access to skilled resources
• Less dependency on internal resources
• Reduced turnaround time due to the time-zone advantage
• BMC have been providing finance and accounting outsourcing solutions to global customers across diverse industries since 2008
• Fast turnaround time is the USP of BMC’s accounting services – the firm has the expertise and skills to complete large volumes of work accurately and efficiently within short time frames, depending on the complexity and project size.

What is the pricing structure?

BMC’s accounting and tax preparation services are based on the complexity of the accounting and tax work involved.

However, prices are competitive and the firm offers a free trial offer.

The firm’s prices are highly competitive and help accounting firms to save at least 60% on their operating direct and overhead costs. BMC’s typical rates per hour or monthly fixed rates depend on a number of factors, including:

• Project type and complexity
• The technology used
• Required skill and experience level of accountancy personnel
• The terms of the contract.

Charges can be on an hourly or monthly fixed basis:

• Hourly rates vary from US$12-15
• Monthly fixed rates for an exclusive accountant start from US$2,000 per month and are agreed by mutual discussion based on volume and complexity of the outsourced work.

What are the expected savings through engagement of a single bookkeeper on a monthly basis?

The savings that can be made by outsourcing accounting services to BMC are explained in the example below - all figures are in US dollars:

Is BMC able to work with different software applications?

The firm is specialized in use of the following software:

1. QuickBooks Online, QuickBooks Desktop versions (Certified Intuit Pro Advisor), Peachtree, Quicken, Intacct and EasyAcct for Accounting and Bookkeeping
2. Bill.com for processing bills
3. Hubdoc.com for processing credit card transactions and expenses processing.

If different finance and accounting software is in use, BMC has the skills and expertise to work using the software of your choice and to deploy it effectively.

Related article

• India: Accounting & Business Process Outsourcing opportunities in 2017 and beyond

How does the free trial work?

BMC provides a free, no obligation 30 day trial to demonstrate its capabilities. This trial period is very beneficial in terms of clarifying various issues which may arise.

What measures are in place to ensure data security?

BMC takes data confidentiality, copyright, and privacy very seriously, and ensures that any client related information is not published, distributed, sublicensed, sold or disseminated to third-parties at any cost. Additionally, we make our employees sign confidentiality agreements, service-level agreements, and non-disclosure agreements at the outset of every project to ensure the complete safety of our client’s data. The firm's Financial Data Security Policies are as below:

Password
Our password protected logins restrict access to registered users. User passwords are invariably encrypted in the SQL database and a log is maintained of all users accessing the system.

Non-disclosure / Confidentiality agreements
All employees sign non-disclosure/confidentiality agreements. Each employee is bound by the agreement and not allowed to share information from engagements with anybody, nor are they allowed to share the information with co-employees unless there is a question related to the preparation of the engagement. Preparers and reviewers are allowed to share information only through their direct supervisors.

Secure service centers for Financial Services Outsourcing
We have in place a comprehensive service center security policy that is implemented to ensure secure financial services outsourcing. The security measures adopted include:

• Restricted physical access to the processing and server environments
• A paperless system so that data cannot be removed from the facility
• Virtually restriction of internet access on the computers used in operation and data retrieval and transmission is carried out under the supervision of the project manager.
• Furthermore, computers without media ensure files cannot be copied and Outlook has been removed from all PCs.

Physical security

• A security guard is present at the entrance
• Access cards are required before entering the server room. Access is restricted to only dedicated employees who are assigned to the outsourced activities
• Returns are prepared in a paperless environment and no source documents, accounting data or tax returns are printed
• The printer is limited to printing only the management reports.

Personal belongings

• Briefcases, bags and other personal belongings of the employees are not allowed in the service center
• There are no removable media devices and PCs do not have floppy drives or CD R/W drives.

Is there a formal contract before work starts?

A contract is sent once the client has decided to hire BMC’s services. Required changes can be made to the contract to suit both sides.

The AICPA also recommends that such contracts should exist between the outsourcing organization in the U.S. and the offshore service provider.

What about clarifications that may be required?

Emails to address any concerns can be sent directly to BMC who will normally be able to reply within 24 hours.

Clients contact the firm at any time by sending an mail to bmc.outsourcing@bmchatrath.com or call the firm using their 24/7 helpline: + 91 9810261802. The firm adopts the same procedures when clarifications are needed relating to any data or information provided by the client.

After a client's data has been sent for processing, what comes back from BMC?

BMC creates separate electronic files for each type of sourced document. These documents will be stored in secured electronic folders that are properly organized to track the flow of the particular task or task group.

The information on the sourced documents will be keyed into the accounting firm’s processing system and after completion, BMC will inform the firm by email that both sourced documents and electronic data are ready for download and review.

What about control over client files?

The accounting firm is always in control as it maintains the original hard copy of their clients' records. Additionally, the firm can access the electronic files via the Internet to view the status of each assigned task.

Once the assigned task is complete, it is securely transmitted back to the firm in a file format compatible with the accounting software being used by the firm. If necessary, the data can easily be modified online by the firm’s staff or by BMC’s team.

What should clients be told about who is doing their accounts processing and tax returns?

The most important points to make to a client when outsourcing are:

• BMC is associated closely with the firm through membership of Alliott Group and operates as a ‘virtual extension’ of the firm in India
• Client will receive 24X7 service
• Cost reductions without compromising on quality, accuracy, security and TAT
• The firm’s team can help clients by adding more value through higher level services with routine work being handled by an extended work center in India.

While BMC’s accountants will prepare the accounting records and tax returns, the firm will continue to deal directly with the client. All records will be subject to the firm’s final review, approval and will be communicated only by the firm to their client.

For more information

For more information on the outsourcing of accounting and bookmarking services to a trusted member firm in India, please contact Pankaj Dave at B.M. Chatrath & Co who have offices across India.