The developing business landscape has created a great demand for outsourced accounting firms in India, due to their strategic support in financial management services and compliance services. Some major outsourced accounting firms in India manage complex laws, streamline functions, and enhance decision-making through their advanced financial technology tools and expert strategies. Among the global leaders like Deloitte and PwC, there are also some trusted Indian outsourced accounting firms, such as “The Algebra Group (TAG),” which is redefining the process of managing companies’ financial operations through their effective accounting services and long-term growth approach.

What is Accounting?

Definition:

Accounting means recording the income and expenses of a business or organization. It includes tracking of the company’s finances, i.e., what comes in and what goes out, and how they are balancing their financial performance. It provides information about the company’s performance over a period of time to business owners and investors by ensuring that the financial statements fulfill all the legal and regulatory standards.

What is an Accounting Firm?

An accounting firm is a firm of accounting professionals that provides various financial services such as auditing, tax preparation and planning, payroll processing, bookkeeping, and advisory services to its clients. Some of these accounting professionals may be certified public accountants (CPAs).

The structure of an accounting firm is based on its size, as some of these firms may be headed by only a single accounting professional from their home, whereas other firms employ thousands of professionals at distinct locations across the country or globe. Outsourced accounting firms in India are differentiated from small specialized companies to large companies based on their size and expertise.

These firms are also differentiated depending on the service charge. Some firms may charge their clients pre-project, or some may charge per hour; it is purely based on the service quality they provide. Whereas some of these firms charge per month for their ongoing services, such as financial reporting. The service charges of each firm vary according to the size of the firm, the quality of services they offer, and the degrees and certifications held by their professionals.

What are the Services Provided by Accounting Firms?

The services provided by them differ, as some firms focus on limited services, as they have specialization in those services, while others offer many. Before collaborating with any accounting firm, you should investigate the services provided by the firm to ensure that what you require is fulfilled by that firm or not. Below are some common accounting services provided by the outsourced accounting firms in India.

1. Operational Bookkeeping

Operational bookkeeping is the basic thing an individual thinks about when it comes to accounting. Accurate bookkeeping has a direct relationship with a business’s success. It includes tracking and tallying all the financial transactions that take place within any organization. The organizations usually have many accounts, and the accounting professional’s job is to investigate which account transaction was affected. Generally, many accountants do bookkeeping, but it is not essential that every bookkeeper should be an accountant by profession. Outsourced accounting firms in India offer operational bookkeeping services and ensure to track real-time financial insights for their clients.

2. Tax Planning and Preparation

Tax preparation is the procedure of preparing the tax returns to highlight that the company complies with the federal, state, and local tax laws. Every established business has to file a tax return, but it is not necessary that each business itself engage in tax planning. According to a current survey by H&R Block, 76% of small businesses outsource tax preparation.

Collaborating with outsourced accounting firms in India helps businesses and organizations to prepare their taxes ahead of time by offering tax planning services. It is typically done to make improvements in the tax statement or reduce taxes before a company files a tax return.

3. Payroll

Payroll involves a process that includes calculating salaries, deducting taxes, and distributing payments. Accounting firms also provide payroll services, or we can say that there are some firms that offer only payroll services. Payroll services seem to be straightforward, but when a business employs different professionals having different specializations, it gets more complex. Some professionals are paid hourly, while others are paid monthly.

An accounting firm manages and ensures that all federal, state, and local taxes are withheld accurately from every employee’s salary and then pays them through their preferred payment method.

4. Business Development and Valuation

Businesses typically need capital to expand and grow their production or services, which requires investment. The investors are generally private individuals or banks providing loans. They demand proof of whether the company can repay that money or loan or not. These proofs are presented in the form of valuation reports and audits.

Such proof of business development and valuation services are provided by outsourced accounting firms in India, where they study the books thoroughly and analyze historical data to find growth patterns and present the report to investors and banks.

5. Advisory Services

Financial Advisory services are critical and crucial for accounting firms and are a relatively new professional role, but have become essential for businesses. When an accounting firm provides advisory services, it collaborates with that company and supports it to grow and expand. Rather than only maintaining the books and providing tax preparation and planning, these firms actively participate in clients’ businesses, use business intelligence software, and apply their expertise and experiences to support the business to overcome financial issues and achieve its goals.

6. Outsourced CFO

Some outsourced accounting firms in India offer outsourced CFO—Chief Financial Officer—services; it is an expanded form of advisory services. They provide services such as financial strategic planning, especially for small and midsize companies that do not require a full-time Chief Financial Officer or have limited funds to recruit one. CFOs also provide their services on a part-time or project basis.

Types of Accounting Firms –

These are large firms, and they play an important role in managing regular financial business activities in an organization. Thus, most outsourced accounting firms in India and public companies have opened their branches, especially to deal with the specific type of accounting activity.

1. Large Global Accounting Firms

Large accounting firms are referred to as full-service accounting firms or Big Four Accounting Firms. The name itself indicates that these firms are large enough and capable enough to cover each and every type of accounting service in the same place. Typically, these are the international firms that provide services to large companies or even governments. They employ hundreds and thousands of employees having specialization in a specific discipline or industry in order to fulfill all the types of services their clients expect. Examples are KPMG and Deloitte.

2. Tax Firms

Tax Firms is a specialized accounting firm holding a specialization in taxes. They provide various services such as tax planning, tax preparation, and tax resolution at both the corporate and individual levels. However, it is not essential that all tax firms manage all types of tax services; for example, some hold specializations even further, such as tax preparation only for high-net-worth individuals or handling of real estate taxes. Typically, Chartered Public Accountants are the professionals employed at tax firms.

A common example of a tax firm is H&R Block, a tax preparation-based firm.

3. Audit Firms

An audit firm is a specialized accounting firm holding a specialization in audits. They provide their audit services to wealthy individuals, small businesses, public companies, government institutions, and multinational institutions, and they investigate whether they follow the rules set by the Australian Securities and Investments Commission (ASIC) regulations. Audit firms perform annual audits of companies’ finances to check their accuracy and determine whether the business is profitable or not. Auditing is often performed by an outside firm to ensure that it has no relation with that business. An audit report is essential to deal with banks, financial institutions, or shareholders. Audit inspectors or professionals are also called forensic accountants.

4. Outsourced Accounting Firms

Outsourced accounting firms in India or abroad are the external finance firms hired by a company rather than having an in-house accounting department within an organization. In short, it is a full accounting department, especially for small businesses, at less than the cost of a full internal finance staff. The services provided by an outsourced accounting firm vary based on what businesses require at specific times. Whereas they include all the services provided by large global finance firms, to a small specialty audit.

5. Bookkeeping Firms

Typically, small to midsize enterprises (SMEs) collaborate with bookkeeping firms, as they are small in size and do not have time to handle their own book records or money transactions, and have limited funds to hire a large full-service accounting firm. Bookkeeping firms work on basic accounting functions like data entry, bank statement settlements, accounts payable, accounts receivable, payroll management, etc.

What are the Big Four Accounting Firms?

Big Four Definition:

“Big Four” is a short form used to represent the four largest financial firms, measured by revenue in the United States. The big four accounting firms – Deloitte, PwC, EY, and KPMG – offer a wide range of services.

Explanation:

Deloitte, Ernst & Young (EY), PricewaterhouseCoopers (PwC), and Klynveld Peat Marwick Goerdeler (KPMG) are referred to as the Big Four accounting firms, depending on the revenue generated by them. These firms provide auditing services, management advisory services, legal advisory services, assurance, business development and valuation, tax planning and preparation, market research, and payroll. These firms are the main sources of tax law interpretation and accounting audit standards.

• Deloitte: Deloitte is the largest of the Big Four accounting firms, growing to around 470,000 employees according to its 2025 fiscal year (FY). The company’s annual revenue was US$70.5 billion. It has its presence in more than 150 countries.
• PricewaterhouseCoopers (PwC): In 2024, the second-highest amount for the Big Four firms was reported by PwC, which reported an annual revenue of US$55.4 billion. It created 6,161 jobs and increased its workforce to around 370,000 employees, according to its 2024 fiscal year (FY). It has its presence in 149 countries. The company invested US$1.5 billion in artificial intelligence (AI) initiatives and launched its ChatPwC platform.
• Ernst & Young (EY): Ernst & Young (EY) is the third largest of the Big Four accounting firms, growing to around 406,209 employees according to its 2025 fiscal year (FY). The company’s annual revenue was US$53.2 billion. It has its presence in more than 150 countries. The company has its own AI platform and AI assistant that makes use of a large language model (LLM) that allows users to generate ideas and conduct research.
• Klynveld Peat Marwick Goerdeler (KPMG): Klynveld Peat Marwick Goerdeler (KPMG) is the fourth largest of the Big Four accounting firms, growing to around 275,000 employees according to its 2025 fiscal year (FY). In 2024, the company’s annual revenue was US$38.4 billion. It has its presence in almost every US state and operates in 142 countries.

Top 10 Outsourced Accounting Firms in India –

1. The Algebra Group India

• The Algebra Group (TAG), one of the best outsourced accounting firms in India, was established with an objective to transform data into confident decisions.
• It fills the gap by navigating growth, capital, and operational complexities
• They provide services such as investment and transaction advisory, accounting and bookkeeping, systems and report automation

2. Deloitte India

• It is one of the well-recognized outsourced accounting firms in India and also a part of Deloitte Touche Tohmatsu Limited.
• Provides a wide range of accounting services like auditing, risk advisory, financial reporting, regulation with international and local accounting standards, and drafting detailed financial statements.
• The company ensures to provide accurate, transparent, and complete financial reporting by using cloud-based advanced financial management technology and robotic process automation.

3. PwC India

• PwC was founded over a century ago and is recognized as one of the best outsourced accounting firms in India
• It is an Indian branch of the global PricewaterhouseCoopers network
• They support clients by guiding them over financial complexities and fulfilling business goals through their innovative accounting solutions
• It’s especially known for its high-quality services, such as a strategic approach, audit, assurance, and advisory services.
• Their skilled employees utilize advanced technology to ensure accuracy and compliance in every service.

4. KPMG India

• KPMG India is a part of the global KPMG international network and is identified as one of the world’s leading outsourced accounting firms in India
• The company was established in 1993 with the objective of providing innovative solutions to the accounting challenges and supporting them in achieving their objectives.
• They offer excellent service, strategic methods, and comprehensive accounting and financial expertise to their clients
• They provide a wide range of services, such as audit, advisory services, and tax, backed by expert accounting consultants and advanced technological tools.

5. EY India

• EY India is the Indian branch of the international Ernst & Young network and is one of the leading outsourced accounting firms in India
• It was established in India with an objective to provide innovative solutions to the complex accounting challenges to their clients and support in achieving business goals
• EY India is recognized as an industry leader for its high-quality service, strong expertise in accounting and finance, and innovative approach
• They offer a wide range of services, such as audit, assurance, and advisory services, supported by skilled employees and advanced technological tools that ensure accuracy, clarity, and adherence

6. Grant Thornton Bharat

• Grant Thornton Bharat India is an Indian branch of the international Grant Thornton Bharat, and is one of the well-known outsourced accounting firms in India
• The company provides direct tax services, indirect tax services, transactional services, financial audit services, assessment of local GAAP/US GAAP/IFRS financial statements, and financial reporting advisory services
• Their key clients are automotive and EV, aviation, banking, education and ed-tech services, asset management companies, energy and renewable companies, engineering and industrial product companies

7. BDO India

• BDO India is an important member of the international BDO network and one of the recognized outsourced accounting firms in India
• BDO India offers accounting advisory services, corporate tax services, financial audit statement preparation, payroll management, and compliance
• Important clients are banking and financial companies, e-mobility, IT companies, media, and telecommunication companies

8. Nexia International India

• Nexia International India is a member of the global Nexia International network and is listed among the well-recognized outsourced accounting firms in India
• They offer services such as audit and assurance, tax advisory, financial outsourcing, accounting, merger and acquisition (M&A), financial transactions, company valuations, and risk advisory
• Major clients are ESG, real estate, construction and development, manufacturing and distribution companies, government and public sectors, and financial services.

9. SS Kothari Mehta & Co India

• SS Kothari Mehta & Co., India, is one of the distinguished outsourced accounting firms in India, established in 1953
• They deliver services such as financial statement audits, fixed asset management, financial reconciliation services, financial accounting services, risk advisory, and internal financial control
• Their important clients are top-listed companies, new startups in manufacturing sectors, and IT/ITES companies

10. Lodha & Co

• Lodha & Co. India is one of the well-recognized outsourced accounting firms in India, established in 1983
• They provide services like audit, company law compliance, financial consultancy, internal audits, statutory audits, GST compliance, and import and export consultancy
• Their major clients are corporate-based, central banks, banks, insurance companies, and public sector corporations

Conclusion –

By concluding this article, we can say that outsourced accounting firms in India are playing a remarkable role in managing the business finances and compliance requirements. The Big Four – Deloitte, PwC, EY, and KPMG – are continuing to set their standards high with their experience and expertise, but The Algebra Group (TAG), an accounting firm, has bridged the gap of financial complexities through its innovative and technology-driven solutions. Together, these firms empower organizations by working with them and primarily focusing on their clients’ success, making India a prime destination for outsourced accounting services.

Frequently Asked Questions (FAQs) – 

1. What do you mean by an outsourced accounting firms in India?

An outsourced accounting firms in India generally refers to hiring an external or third-party firm to manage a company’s finance and accounting functions or department. These functions may include handling of accounts receivable, accounts payable, managing payroll, monthly bank reconciliations, tax planning and preparation, legal compliance, financial reporting, etc.

2. Are the services of outsourced accounting firms in India available only for specific industries?

Outsourced accounting firms in India are flexible and easily adaptable across various industries, which include:

• Manufacturing industry
• Healthcare
• technology/SaaS
• Real estate and construction
• Government and public sector
• Government and private contracts

3. What are the benefits of outsourcing to an accounting firm?

• Financial expertise
• Scalability
• Cost-effectiveness
• Data protection
• Access to the latest technology
• Reduced errors in accounting and bookkeeping

4. What is a cost accounting firm?

Cost accounting firms are the firms that manage, control, and track the overall expenses of a company to enable them to understand their company’s financial health more effectively.