Accounting outsourcing in India is becoming quite common these days. A typical example of this is payroll outsourcing companies in India. Another example is accounts receivable outsourcing. First let me explain you the concept of outsourcing here. Outsourcing is when you hire an outside company to provide you good or services.
Payroll outsourcing is also a part of accounting services that are outsourced. For larger companies, where the number of employees is quite a lot, it is very difficult to manage an Innhouse payroll accounting function. Such companies usually tend to outsource their payroll function to accounting service providers. Accounting service provider maintain their payrolls for them. They calculate each and every employees pay, their taxes and social securities. They are also responsible to manage any advances that an employee might have been given. Deductions are also calculated by these accounting outsourcing service provider.
Payroll outsourcing companies in India are particularly expert in such kind of services. They have ages of experience in managing payrolls of offshore companies. Companies from all over the world tend to outsource their payroll functions to such outsourcing companies in India. Such companies use online software to maintain their payroll information. This makes it easy for both, the outsourcee and the outsourcer to review all employees’ information in real time.
In contrast to online or cloud payroll software, some use bespoke accounting software. The benefit of using a bespoke software is that such software can be tailored according to need of client. This helps them make more client specific reports. It can fit a large amount of information in a very precise and yet more meaningful report. Such software if purchased by company might get very costly, but for outsourcing companies it is economical due to scale of work. The cost of whole software is divided into all the clients that outsourcing company is using that software for.
Another important part of payroll is pensions. Large companies spend a lot in pension schemes. Pension schemes can be really tricky and someone can easily make a mistake in it. Outsourcing companies hold specialize departments for such schemes. Not only this, they maintain their own pension schemes in which outsourcer can spend. They maintain all the information for where they are investing the pension money and make sure that they get the most out of their investment to cover the pension payments at end.
Some companies also give their employees share options. Valuation of these share options is a complex task. Payroll outsourcing companies in India have the right expertise to perform these valuations when and where needed by the outsourcer. These Accounting outsourcing companies in India take confidentiality very seriously so the outsourcer does not need to worry about their data being divulged to irrelevant places. Data protection is implemented in all such accounting outsourcing companies. With the accountancy bodies becoming more global and interconnected, high standards of integrity and confidentiality are maintained by all accounting outsourcing companies, thus making them a safe place to outsource your work.