Your guide to outsourcing your accounting operations in India from Canada

Are you a Canadian business looking to outsource your accounting services? Look no further than India! With its highly skilled workforce and cost-effective solutions, India has emerged as one of the top destinations for outsourcing accounting services. This article will explore the benefits of outsourcing your accounting in India and guide you through the process.

But first, let's talk about the Wise business account - a multi currency account that helps businesses like yours save money on international payments and payroll. With Wise, you can pay your employees in different currencies while reducing cross-currency costs. Did you know that this account can also be used for accounting purposes? Keep reading to find out how!

Types Of Accounting Outsourcing Options in India 💼

When outsourcing your accounting in India, you have two options: hiring an independent contractor or partnering with an accounting outsourcing company. Let's take a look at each option and its benefits.

Hiring an independent contractor gives you more control over the accounting processes and costs. You can choose the specific tasks you want them to handle, set deadlines, and negotiate their rates. Moreover, as they are not your employees, you don't have to worry about payroll taxes or other legal liabilities.

To find independent contractors in India, you can explore online marketplaces like Upwork, Fiverr, and Freelancer.in. These platforms allow you to review the profiles of potential contractors and read reviews from their previous clients.

Additionally, job boards such as Naukri.com and Indeed also offer a vast pool of talented professionals. And of course, networking and using LinkedIn can also help you find the right contractor for your accounting needs.

However, it's essential to be aware of the legal differences between contractors and employees according to Indian laws. As per the Contract Labour Act, independent contractors are not entitled to benefits like paid leave or insurance coverage. Hence, it's crucial to have a clear contract outlining the terms and conditions of your agreement.¹

The regulations for accounting outsourcing companies depend on the company you choose.

Mindspace Outsourcing Services

This trusted outsourcing option offers three main services: bookkeeping, management, and tax return preparation. Here are some of the features that come with those services, according to their website:

• Manage Chart of Accounts
• Post Nominal Ledgers
• AR/AP Reconciliation
• Sales Invoices
• Enter Nominal Expenses
• Prepare Bank and Credit Card Reconciliations
• Prepare Journal for Month Ends
• PayPal and eBay Reconciliations
• Prepare Cheque Payments
• Prepare Trial Balances
• Manage Multi-Currency Accounting
• Profit and Loss Statements
• Balance Sheets
• Cash Flows
• Annual Budget and Forecasts
• Variance Reports
• Accruals and Prepayment Schedules²

Based on 37 customer reviews, Trustpilot gave MindSpace Outsourcing Services 4.8 out of 5 stars - an “Excellent” review for the site. However, it’s important to note these users were only from the US and the UK, so this may not reflect the Canadian user experience.³

Aplite Advisors

Aplite offers lots of incredible outsourced accounting services, including:

• Accounts Payable
• Accounts Receivable
• Statutory Compliance
• Financial Reporting
• Audit Support
• Recording Transactions
• Credit Card Reconciliation
• Bank Reconciliation
• Payroll Reconciliation
• Periodic Management Reports⁴

Based on 3 customer reviews, Trustpilot gave Aplite Advisors Tax Consultant 4.0 out of 5 stars - a “Great” review for the site. However, it’s important to note that these scores could be skewed by the very minimal amount of reviews.³

Things to Note Before Outsourcing Work to India 🌍

Outsourcing your accounting services to India can bring numerous benefits, but it's essential to understand the process and things to consider before making a decision. Here are some key points to keep in mind.

Cultural Differences

India has a diverse culture, and it's essential to understand the nuances before working with an Indian outsourcing company. Being aware of cultural differences can help in building strong relationships and avoiding any misunderstandings. Here are a few things to consider:

• Indian people value respect for authority, so it's essential to maintain a professional tone and show respect.
• Indian businesses often have strict hierarchies, so communication may flow from the top down. Be prepared for this when working with Indian outsourcing companies.
• India has many public holidays that may differ from Canadian holidays. Make sure to communicate clearly about timelines and deadlines.

Work Ethic

Indian outsourcing companies are known for their strong work ethic and dedication to meeting deadlines. However, due to the time zone differences between Canada and India, there may be a delay in communication. It's crucial to have clear communication channels and set expectations regarding response times.

Compliance with Legal Requirements

Before outsourcing your accounting services to India, make sure the company you choose is compliant with all legal requirements. This includes tax laws, data privacy regulations, and any other relevant laws that may affect your business. The Contract Labour Act¹ is a good place to start.

Payment Cycle for Indian Employees

If you are outsourcing your accounting services to India, you may also have Indian employees on your payroll. In this case, it's essential to understand the payment cycle in India. Here's what you need to know:

• The standard workweek in India is Monday through Saturday.
• Salaries are typically paid monthly or bi-monthly, with most companies paying on the last working day of the month.
• It's common for Indian employees to receive a bonus at Diwali (the Hindu festival of lights) and a 13th-month salary at the end of each year.

Labour Laws For Outsourcing Work To Indian Employees

Before outsourcing your accounting services to India, it's crucial to be aware of labour laws and regulations. Here are a few key points to keep in mind:

• The minimum wage in India varies from state to state, so make sure you are paying your employees according to their local laws.
• Employees in India are entitled to paid leave for illness, festivals, and maternity/paternity leave.
• Employers must contribute towards social security benefits such as provident fund and employee insurance.

Currency Conversion When Paying Salaries from CAD to INR

When outsourcing your accounting to India, you may also need to pay your employees in Indian Rupees (INR). Most methods of currency conversion via banks or money transfer services can be expensive and time-consuming. These financial institutions often promise low or zero fees but make up for them with unfavourable exchange rates and hidden fees.

But with Wise, you can avoid these costly conversions when paying your employees in INR. With the mid-market exchange rate and a transparent fee structure, Wise ensures that you get the best possible exchange rate without any hidden charges. Plus, with features like easy invoicing and batch payments of up to 1000 at a time, Wise makes it simple and convenient to pay your employees in India, or elsewhere.

Pay your employees and clients abroad with Wise

With a one-time fee of just 42 CAD to get started, Wise offers minimal fees on transfers between Canada and India. And when it comes to security, you can rest assured knowing that Wise uses two-factor authentication, 3D secure online payments, and biometric recognition, and has dedicated anti-fraud teams in place.

To sum it up

Outsourcing your accounting services to India can bring numerous benefits for Canadian businesses, such as cost savings and access to a skilled workforce. With Wise, you can pay your employees in different currencies while reducing cross-currency costs. So why wait? Start using Wise today and streamline your international payments and accounting processes.