Accounting Outsourcing to India 2026: A Complete Guide

Wondering if accounting outsourcing to India is the right move for your business? With just 2.0% unemployment among US accountants in 2025 (Bureau of Labor Statistics) and over 819,000 finance and accounting jobs posted that year (Robert Half), the talent crunch is real.

That is exactly why more CPA firms and US companies are outsourcing bookkeeping services, tax preparation, and financial reporting to India's skilled professionals. This guide covers the key benefits, outsourcing models, pricing, data security, risks, and how to choose the right accounting outsourcing company.

What does accounting outsourcing to India mean?[toc=Accounting Outsourcing to India Overview]

Accounting outsourcing to India means delegating your financial operations, bookkeeping services, tax preparation, financial reporting, accounts payable, and audit support to skilled professionals in India.

These teams work as an extension of your accounting firm, handling day-to-day accounting processes while you focus on client relationships and business growth.

This is not just back-office data entry anymore. Indian accounting outsourcing firms today handle complex tasks like US GAAP-compliant financial statements, 1040/1065/1120 tax returns, payroll processing, FP&A, and CPA firm audit support. Services run the full spectrum:

• Bookkeeping and day-to-day accounting work, including general ledger maintenance and bank reconciliations.
• Tax preparation services covering Forms 1040, 1065, 1120, 1120S, W-2, and 1099 for US compliance.
• Financial reporting and preparation of accurate financial statements under US GAAP or IFRS.
• Accounts payable and accounts receivable management, including invoice processing and collections.
• Audit support and workpaper preparation for CPA firms and mid-sized companies.
• Financial planning, analysis, and financial modeling for sustainable growth.

But why is India specifically the top choice for US firms right now? Let's break it down.

Why are CPA Firms and US Companies Outsourcing Accounting to India?[toc=Why US Companies Outsource to India]

The US is running short on accountants and India has the talent to fill the gap. From our experience helping 300+ global companies build teams in India, here is what is driving the shift:

1. The talent crisis is real. The US accounting workforce dropped to roughly 1.78 million in 2024, down 10% from 2019 (Bureau of Labor Statistics). Nearly 75% of CPAs have reached retirement age (AICPA), and CPA exam candidates fell 37% between 2016 and 2023.
2. Big firms are already moving. Reuters reported in 2025 that RSM US, Moss Adams, Sikich, and CohnReznick are expanding India operations. The Big Four employ 140,000-160,000 professionals in their global capability centres in India.
3. 40-60% lower costs. Outsourcing accounting services to India cuts overhead significantly,  covering salaries, office space, accounting software, and benefits.
4. Deep talent pool. India produces roughly 100,000 Chartered Accountants annually, many dual-certified in US GAAP or IFRS with specialized expertise in tax preparation, financial reporting, and audit support.
5. Built-in overnight turnaround. The 9.5-12.5 hour time zone advantage means work assigned at 5 PM US time is ready for review by 9 AM the next morning.
6. Enterprise-grade security. Reputable accounting outsourcing firms in India maintain ISO 27001 and SOC 2 Type II certifications, with strict data security protocols to protect sensitive financial data.
7. Same tools, seamless collaboration. Indian firms operate on QuickBooks, Xero, NetSuite, and Sage, the same accounting software US firms already use.

Now that the "why" is clear, the next question is, how do you actually structure it?

What are the Options for outsourcing accounting to India?[toc=Outsourcing Options in India]

There is no one-size-fits-all approach. The right model depends on how much control you need, your budget, and whether you are testing the waters or scaling a long-term accounting function.

From our experience helping 300+ global companies set up operations in India, most businesses choose one of two paths:

Option 1: Build your own accounting team in India

This means the professionals work directly for you. They follow your processes, use your accounting software, and integrate into your company culture.

1. Set up a legal entity (captive center). You incorporate a subsidiary in India for 100% control over hiring, financial operations, and branding. This requires significant capital and 3-6 months to set up. For a detailed walkthrough, read our guide on business setup in India.
   Learn more about how to establish a captive center in India.
2. Hire through an Employer of Record (EOR). The faster route. An EOR like Wisemonk handles payroll, taxes, and compliance while you manage the day-to-day accounting work. You can onboard skilled professionals in as little as 48 hours, no entity setup needed.

Read more: Employer of Record vs Own Entity in 2026

Option 2: Outsource work to a service provider

Here you are not hiring employees, you are contracting for specific deliverables. The provider handles execution and management.

1. Staff augmentation. A staffing firm supplies accounting talent for specific projects or peak periods like tax season. You direct the work, they stay on the provider's payroll. Great for CPA firms handling seasonal spikes.
2. Managed services (full outsourcing). An accounting outsourcing company takes over entire functions , bookkeeping services, tax preparation, financial reporting, accounts payable and delivers against agreed SLAs. You define outcomes, they handle execution.

Read more: Staff Augmentation vs Outsourcing: Differences & Best Fit

Most companies start with one model and evolve as they scale. A staff augmentation setup during a busy tax season often turns into a dedicated offshore team in India within a year.

If you are exploring outsourcing for the first time, our guide on how to outsource work from the USA to India walks you through the full process.

Choosing the right model is half the battle. Finding the right provider to execute it is where things really matter.

How much does accounting outsourcing to India cost vs. hiring in the US?[toc=Outsourcing Costs in India vs. US]

This is usually the first question we get from US founders exploring outsourcing accounting services to India. The short answer, you can expect to save 40-60% on total accounting costs.

Outsourcing accounting to India typically costs $8-$12 per hour for bookkeeping services and $15-$25 per hour for specialized work like tax preparation and financial reporting, based on industry benchmarks from multiple providers. In comparison, the median US accountant earns $81,680 per year, roughly $39 per hour before benefits (Bureau of Labor Statistics, May 2024). Most businesses report 40-60% in total cost savings when outsourcing accounting services to India.

Here is how the numbers compare side by side:

Read more: Cost of Outsourcing to India

From our experience processing $20M+ in monthly payroll for global companies, the real cost savings go beyond hourly rates. You also eliminate recruitment costs, reduce compliance risk, and skip months of onboarding, especially with an EOR model.

Cost is one part of the equation. The other is finding a reliable partner who can actually deliver. Here are the top options.

Who are the top accounting outsourcing companies in India?[toc=Top Companies in India]

Not all accounting outsourcing firms in India are built the same. Here are the top providers US firms trust for bookkeeping services, tax preparation, and financial reporting.

If you're wondering about outsourcing services such as IT, software development, Human Resources (HR), and Payroll services, refer to these detailed guides for a better understanding.

Each provider brings something different to the table. The right fit depends on your budget, team size, and how much control you want over your accounting processes.

How to choose the right provider?[toc=Choosing the Right Provider]

Choosing the right outsourcing provider in India comes down to evaluating expertise, security measures, and the ability to deliver tailored solutions that align with your business goals.

A good partner will not only manage accounting processes but also ensure compliance, data confidentiality, and client satisfaction:

1. Specialized expertise. They should have hands-on experience with bookkeeping services, tax preparation, financial reporting, and audit support ideally in your industry.
2. Verified data security. Ask for ISO 27001 or SOC 2 certification upfront. If they hesitate, walk away.
3. Compatible technology. They should already work on your accounting software QuickBooks, Xero, NetSuite, or Sage.
4. Flexible engagement. Look for tailored solutions and flexible pricing, not rigid packages.
5. Proven reputation. Check G2 reviews, client references, and retention rates. A reliable partner delivers consistently, not just during the sales pitch.

Pro Tip: Always run a pilot project first. Test data accuracy, turnaround times, and communication before committing long-term.

Found your provider? Here is how to set the partnership up for success.

How to ensure a successful accounting outsourcing partnership?[toc=Accounting Outsourcing Playbook]

Based on our experience guiding 300+ global companies through outsourcing accounting to India, here is the playbook that works:

1. Define scope clearly. Document exactly what you are outsourcing bookkeeping, tax preparation, accounts payable, financial reporting with targets for accuracy and turnaround time.
2. Lock SLAs and pricing. Agree on response times, error thresholds, holiday coverage, and confidentiality terms before work begins.
3. Set up secure systems. Use encrypted portals, role-based access, and VPN where needed. No sensitive financial data should travel over email.
4. Run a 60–90 day pilot. Start with one entity or one ledger. Compare results before scaling up.
5. Establish a communication rhythm. Weekly ops calls, monthly reviews, one point of contact on each side. Use the time zone advantage to get completed work by morning.
6. Build in quality checks. Month-end close checklists, sampling, variance analysis track defects by root cause, not just symptoms.
7. Measure and scale. Monitor KPIs like first-pass yield and on-time close. As trust builds, expand into FP&A, financial modeling, and management reporting.

Even with the right setup, outsourcing has risks. Here is what to watch out for.

What are the risks of outsourcing accounting to India?[toc=Risks]

Every outsourcing arrangement comes with trade-offs. Here are the ones that trip up businesses most often:

• Data security gaps. Without proper encryption and strict confidentiality protocols, your sensitive financial data is exposed. Always verify certifications before signing.
• Loss of control. If SLAs are vague, you end up dependent on the provider's timelines, and delays in financial reporting follow.
• Hidden costs. Some providers advertise cost savings but quietly add fees for compliance filings, advisory services, or year-end financial statements.
• Communication barriers. The time zone advantage helps with turnaround, but unclear workflows and cultural gaps can cause misunderstandings.
• Quality inconsistency. Not every accounting outsourcing firm in India follows international standards. Errors in bookkeeping or tax preparation can cascade fast.
• Compliance risks. If the provider does not understand US GAAP or IRS requirements, you may face issues during audits.

Pro Tip: Ask every provider about their data security certifications, compliance track record, and client retention rate before you outsource.

These risks are manageable with the right partner, which brings us to how Wisemonk can help.

Wisemonk EOR: Your bridge to top accounting talent in India[toc=Wisemonk EOR]

Wisemonk is a leading Employer of Record (EOR) in India, helping global businesses hire, manage, and pay teams without the need to set up a local entity. Alongside talent hiring, we connect companies with skilled accountants in India to handle bookkeeping, tax preparation, and financial reporting efficiently.

Key features of Wisemonk

Wisemonk offerings: from skilled talent to complete, compliant, and secure solutions.

• Access to skilled professionals for accounting outsourcing services, well versed in global financial standards
• Dedicated HR support covering recruitment, fast onboarding, and day-to-day team management.
• End-to-end compliance support aligned with international standards to reduce risks for global firms
• Data confidentiality and security protocols that protect sensitive financial information
• Complete solutions for bookkeeping, tax preparation, and financial planning designed to meet diverse business needs

Beyond core EOR services, we also support global companies with contractor payments, recruitment services, payroll compliance, employee benefits, company registration, background checks, GCC setup, offshore development center setup, and equipment procurement. We provide complete India market entry support, making it easier for global organizations to scale confidently.

Talk to our specialists today and discover how Wisemonk can help with outsourcing accounting to India with confidence!