Which Accounting Functions Can US Businesses Outsource to India?
US businesses increasingly outsource accounting functions to India to improve efficiency, reduce costs, and access skilled finance professionals without expanding in-house teams. Virtual accounting teams in India can manage a wide range of accounting, payroll, reporting, and compliance functions while aligning with US regulations and business practices.
Bookkeeping
Bookkeeping includes the daily recording and classification of financial transactions. Outsourced teams handle general ledger updates, journal entries, bank and credit card reconciliations, and expense categorisation using cloud accounting systems.
Transaction data is shared through synced bank feeds, cloud folders, or integrated expense tools. Records are updated daily or weekly, and month-end preparation is completed to keep financials clean and current.
Accounts Receivable (AR)
Accounts receivable outsourcing covers invoice generation, payment application, receivables tracking, and follow-ups on overdue balances.
Offshore teams create invoices based on time logs, purchase orders, or delivery milestones, apply incoming payments, prepare AR ageing reports, and send reminder communications for outstanding invoices.
Accounts Payable (AP)
Accounts payable includes vendor invoice processing, expense coding, approval coordination, and payment scheduling.
Outsourced teams match invoices with purchase orders or delivery receipts, verify agreed terms, generate AP ageing reports, and reconcile vendor statements to ensure timely and accurate payments.
Payroll Processing
Payroll outsourcing covers wage calculations, tax deductions, benefit adjustments, and pay stub preparation in compliance with federal and state payroll regulations.
Teams input employee data, process timesheets, prepare payroll runs for review, and assist with payroll tax filings such as Forms 941 and 940, along with year-end documents including W-2s and 1099s.
Financial Reporting
Financial reporting includes preparation of monthly profit and loss statements, balance sheets, cash flow statements, and customised dashboards.
Reports may include budget vs actual analysis, profitability by department, KPI summaries, and management insights, scheduled on monthly or quarterly cycles based on leadership preferences.
Compliance and Tax Support
Compliance and tax support includes preparation of federal and state tax filings, payroll tax returns, sales tax filings, and information returns.
Offshore accounting teams often collaborate with US-licensed CPAs to support filings such as Forms 1120, 1065, and 1040 while ensuring alignment with US GAAP and IRS requirements.
Audit Support
Audit support involves preparing schedules, reconciling balances, and organising documentation for internal or external audits.
Outsourced teams assist with Prepared-by-Client (PBC) lists, lead schedules for AR, AP, and fixed assets, and provide supporting documents to auditors efficiently.
Budgeting and Forecasting
Budgeting and forecasting services support financial planning through annual budgets, rolling forecasts, and scenario-based financial models.
These models incorporate historical data, growth assumptions, and cost structures, enabling US businesses to evaluate cash flow, profitability, and strategic decisions.
