Rising operational costs, talent shortages, and increasingly complex regulatory requirements have placed immense pressure on accounting firms to find out-of-the-box solutions. Overtime, many have discovered that outsourcing accounting to India has proved to not only be a cost effective solution, but also one with strategic benefits.
A study conducted by Reuters indicated that the world’s fourth largest economy (in GDP) is gradually turning into a hub for accounting. Whether this trend is reminiscent of the 90’s outsourcing boom that put India on the global IT map, is yet to be seen.
On the flip side, the US is facing significant shortages in keeping up with demand for CPAs. This trend is looking to further intensify over the years as per data from the American Institute of CPAs (AICPA). A recent study from the U.S. Bureau of Labor Statistics found that in early 2019 there were approximately 2 million accountants. This number has reduced significantly in 2024 to 1.78 million. The study goes on to state the primary cause for the shortage culminating in a growing number of seasoned CPAs retiring without a reliable pipeline of replacements.
But why India? What makes the country such a lucrative destination for accounting firms? While costs differences are definitely a major cause for this growing trend, there are other factors that often go unnoticed.
In this blog, we explore the why behind this growing trend. This will hopefully help you decide whether outsourcing is indeed the right move for your firm. We will also explore factors like data security, quality of resources, historical implications, culture, and more.
Factors That Make Outsourcing Accounting to India a Prudent Option
A common misconception about outsourcing accounting to India is the scope of work being limited to basic bookkeeping or data entry. The reality is that Indian teams are now handling more complex tasks, such as tax preparation, financial statements, and even nuanced analytical work that previously demanded the attention of a firm’s top talent. As per a study by ICAI, there has been a 78% rise in the number of CAs pursuing the US Certified Public Accountant (CPA) designation.
As a result, the quality of output has kept pace with rising expectations, and the process has become routine for firms that have taken the time to build the right relationships. What’s more, the process for some firms in India has become routine, especially for those painstakingly putting processes in place to ensure compliance with foreign regulations of data security and accountancy laws.
Benefits of Outsourcing Accounting to India for CPAs and Accounting Firms
1. Ability to Scale Operations without Hiring Challenges
For many firms, hiring and retaining skilled accountants locally has become increasingly difficult. Outsourcing accounting to India allows firms to scale operations smoothly without constantly facing recruitment, training, or turnover issues. This flexibility helps firms handle growing workloads and seasonal spikes more effectively.
2. Access to a Deep Talent Pool
India produces around 250,000 accounting graduates annually, many of whom are trained specifically for international work. Their programs put a strong emphasis on U.S. tax code and GAAP, often making new Indian hires more up-to-date on current regulations than some seasoned local staff. Reputable Indian firms invest heavily in ongoing training to stay ahead of regulatory changes and client needs.
3. Advanced Technology and Security Standards
Indian accounting firms often have technology systems that match or even exceed those of many small U.S. practices. Reliable internet, backup power, and strong security measures are standard features. They’re comfortable with the full range of accounting software: QuickBooks, Xero, Drake, and more, and can often suggest ways to get more out of your existing tools.
4. Flexibility and Scalability
Accounting is a cyclical business. Tax season can feel like a sprint, while summer months slow to a crawl. Outsourcing gives you the flexibility to scale your team up or down as needed, without the awkwardness of hiring and layoffs. If you want to test a new service line, you can do so without committing to permanent hires.
5. Around-the-Clock Productivity
By leveraging the time zone difference, businesses can achieve near 24/7 productivity. Work is assigned at the end of the business day and completed overnight, allowing teams to review progress each morning and request revisions for same-day updates. This continuous workflow reduces turnaround times, supports faster project delivery, and is especially valuable for businesses managing tight deadlines, urgent financial reports, or complex accounting tasks requiring multiple review cycles.
6. Freeing Up Your Best People
Perhaps the most strategic benefit is the ability to reallocate your in-house talent. When routine tasks are handled offshore, your senior staff can focus on advisory work and client relationships, areas that drive higher revenue and set your firm apart from competitors.
7. Communication and Professionalism
Indian professionals working with U.S. firms are typically fluent in English and well-versed in Western business etiquette. They understand the importance of deadlines, attention to detail, and proactive communication. In my experience, the commitment level is often higher than what you might expect from traditional hires, simply because their business depends on your satisfaction.
8. Addressing Security and Trust Concerns
Data security is a legitimate concern, but established Indian firms take it seriously. Many have security protocols and certifications like ISO 27001, GDPR compliance, and SOC2 that meet or exceed what most small U.S. firms can manage internally. Regular audits, encrypted communications, and comprehensive confidentiality agreements are the norm.
Why CPA and Accounting Firms Choose AcoBloom International for Outsourcing
As a trusted offshore accounting partner delivering accuracy, scalability, and security for U.S. CPA firms, AcoBloom offers the following advantages:
Full-Service Accounting Support
From tax preparation and bookkeeping to financial reporting and payroll, AcoBloom covers end-to-end accounting needs.
U.S. Standards Expertise
Professionals trained in U.S. GAAP, IRS regulations, and multi-state compliance ensure full alignment with client requirements.
Scalable & Flexible Engagements
Quickly ramp up or scale down resources based on seasonal workloads, without long-term hiring commitments.
Multi-Layered Quality Control
Every deliverable passes through multiple review stages, maintaining accuracy and consistency.
Enterprise-Level Data Security
ISO 27001, GDPR & SOC 2 certified protocols safeguard sensitive client information with the highest data protection standards.
Conclusion
The accounting industry is evolving, and firms that adapt quickly will be best positioned for long-term success. Outsourcing accounting to India is no longer just about saving money, it’s about building a more agile, efficient, and competitive firm. By leveraging global talent, advanced technology, and flexible resourcing, CPA firms can focus on what matters most: delivering value to clients and growing their business.
Ready to experience the benefits of outsourcing your accounting to India? AcoBloom International offers trusted, secure, and scalable accounting solutions tailored for U.S. CPA firms.
Contact us today to learn how we can support your accounting firm’s growth.
