The accounting firms in India are a combination of rapidly emerging companies and top international leaders, providing various trustworthy financial solutions to businesses. The Big Six – Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), Klynveld Peat Marwick Goerdeler (KPMG), Grant Thornton, and BDO—take the benefit of global experience and deep understanding of the industries that align with the Indian economy. Additionally, the rapidly emerging top accounting firms in India, such as “The Algebra Group (TAG)”, QX Group, and Whiz Consulting, serve global clients with their cost-effective and high-quality accounting services. The services, such as bookkeeping, account handling, financial reporting, and tax compliance, ensure head-to-head financial support. Appointing the right accounting firm fulfills scalability, technology, communication, and data security for long-term business growth.

What is Accounting?

Definition:

Accounting is defined as the tracking of the overall income and expenses of a business or organization. It involves the recording of the entire company’s finances, i.e., the income and the expenditure, and how the company is balancing its financial performance to maintain its position in the market. Accounting provides detailed data about the company’s performance over a time period to the founder and the investors, and also ensures that the financial reporting meets all legal and regulatory compliance requirements.

What is an Accounting Firm?

An accounting firm is a company in which skilled accounting professionals are employed who offer a wide range of financial services like auditing, tax preparation and planning, payroll processing, bookkeeping, and advisory services to investors, corporations, government entities, and high-net-worth individuals. Some of these accounting professionals hold certifications as a public accountant (CPA).

• The structure of such firms differs in size; some of the firms are entirely controlled by only one accounting professional operating from their home, while other types may involve thousands of employees at various locations across the country or globe.
• Also, outsourced top accounting firms in India are differentiated into small specialized firms and large companies, depending on the size and the experience held by the company.
• The demand for the service charge is different; some may charge their clients per project, or some may demand it per hour, which totally depends on the service quality they provide.
• While there are also some kinds of firms that charge per month for their services, like financial reporting. Hence, the service charge of each accounting firm varies based on the size of the firm, the quality of services they offer, and the degrees and certifications held by their skilled employees.

What Factors Should Be Considered While Selecting an Outsourced Accounting Firm in India?

Outsourced top accounting firms in India have become the top destination for firms looking to set up their accounting operations and access the skilled talent pool for outsourced accounting and financial services. In this global landscape of reputable outsourced financial firms, selecting the right one can be challenging. By carefully determining the various critical factors, companies can simplify the selection process and make better-informed choices. The following are the key factors that should be considered while engaging an outsourced accounting service-providing firm.

1. Search for Industry-Specific Experience: While searching for an outsourced accounting partner, choose the one that has proven experience in your specific industrial sector. Collaborating with the service provider who has a better understanding of your sector’s regulations, reporting standards, and operational practices, and also ensures that they can deliver more accurate and compliant bookkeeping services.

Additionally, the expertise in your specific industry ensures that they are familiar with traditional challenges that occur in your business. This allows them to offer customized solutions that align with your organization’s requirements and help you handle finances more efficiently and achieve sustainable growth.

2. Emphasize on Accounting Automation: When you are seeking an outsourced accounting firm, it is crucial to give preference to the automated financial firms. There are many reputable outsourced financial firms that make heavy investments in advanced accounting software like cloud-based platforms and AI-powered automation tools to make the financial operations more accurate and efficient. These firms are efficient in using globally recognized systems like QuickBooks, Xero, Sage, SAP, ZOHO, and NetSuite. Their expertise ensures seamless integration of AI tools with your existing financial infrastructure, which helps in reducing manual errors and hence saves time.

3. Assess their Communication Practices: When you are selecting the outsourced accounting firm, be specific that it should not give you a distant or disconnected feel. You should experience connectedness and have clear and reliable communication channels like MS Teams, Slack, Zoom, and Google Meet. The outsourced accounting firm should provide you with regular updates and ensure that you have easy access to your offshore accountants whenever it’s needed.

Sometimes, due to overlapping business hours, a clear communication system allows offshore and onshore business teams to work together efficiently by minimizing the possibility of risk, errors, and deletions. Assessing the communication practices ensures that your accounting operations are always transparent and aligned with your business goals.

4. Review Their Security Protocols: When you are searching for an offshore accounting firm, it is necessary to verify their certifications, data encryption systems, and compliance practices. Reputed outsourced top accounting firms in India follow strong security measures to keep their sensitive information secure.

They use advanced encrypted methods for both data in transit and at rest, the implementation of multi-factor authentication, and strict access control to prevent illegal use. They follow global standards and international regulations such as GDPR by ensuring overall legal and regulatory compliance for their clients across the world. Selecting a partner having such securities can make you more confident in outsourcing your accounting operations by safeguarding data and maintaining compliance.

5. Verify They Can Scale with Your Business: As your business expands, the need for accounting operations may also double. Today’s requirements for your business may be far more different from those you have a year from now.

Hence, only a scalable outsourced accounting service provider is capable of offering such flexible services that effortlessly grow with your business. Such flexibility ensures that you will be provided with consistent and uninterrupted support that will keep you aligned with your company’s growth.

6. Focus on Sustainable Value Rather Than Immediate Cost: Selecting a reasonable outsourced accounting firm does not always ensure you receive high-quality services. It is essential to determine the factors such as service quality, trustworthiness, and ongoing support.

Going for offshore accounting can be a cost-effective option. But it benefits you only when you get consistent, high-quality expertise that provides support at every stage of your business journey. Hence, focusing on sustainable value rather than cost-effectiveness offers you long-term growth and a strong financial foundation for business.

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Top Accounting Firms in India –

When seeking the appropriate accounting firm, it is essential to check factors such as their experience and innovations, and their global outreach. Top accounting firms in India, such as The Algebra Group, Deloitte, KPMG, and PwC, have set the standard by providing tailored solutions with the help of advanced technology to fulfill the various business needs.

1. The Algebra Group

The Algebra Group (TAG), one of the best outsourced top 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

Deloitte became part of the top accounting firms in India in 1990 and quickly grabbed its position as a well-known accounting firm in India. It is involved in providing a wide range of financial services such as audit, tax, consulting, and various advisory solutions. The workforce employed in this company is approximately 100,000 and operates in more than 15 cities in India.

Deloitte is engaged in providing extensive financial and accounting support to its clients. It serves diverse industrial sectors such as finance, health care, and technology. It is recognized for its Deloitte Green program, which promotes innovations in finance and accounting practices by offering customized solutions that improve decision-making and boost growth.

3. KPMG

KPMG started its operations as part of the top accounting firms in India in 1993, and since then, it has emerged as a well-recognized accounting firm in India. The company is working on offering a wide range of services such as audit, tax, advisory services, and consulting.

As per the current status, the number of employees employed by the company is around 40,000 in more than 10 locations in India. KPMG serves primarily in the finance, energy, and technology sectors. It leverages its KPMG Clara platform, which utilizes advanced analytics and AI to improve finance and data-driven accounting solutions for its clients.

4. Ernst & Young (EY)

Ernst & Young (EY) established its presence in India in 1989, and since then, it has become one of the top accounting firms in India. It provides various services in accounting, such as assurance, advisory, tax, and large transaction support, mainly in the industrial sectors of finance, technology, and healthcare.

It has employed approximately 100,000 skilled professionals within the nation in more than 10 cities. Also, Ernst & Young’s Finance Transformation program focuses on improving the efficiency, effectiveness, and adaptability of the finance functions with the support of advanced technologies and a detailed understanding of the industry’s specific challenges.

5. PricewaterhouseCoopers (PwC)

PricewaterhouseCoopers (PwC) marked its presence in India in 1998, and since then, it has become one of the well-recognized top accounting firms in India, employing more than 50,000 employees and functioning across prime metropolitan cities in the country. PwC provides services in audit, assurance, consulting, and tax.

It offers its services in industries such as energy, technology, and healthcare. Also, PwC’s Finance Transformation program supports their clients in accounting operations, and its combination with industry expertise and global network strengthens PwC’s position as a leader in India’s accounting sector.

6. Grant Thornton Bharat

Grant Thornton Bharat established its presence as a top accounting firm in India in 2001 and marked its strong presence by operating in over 12 cities and employing 10,000 skilled professionals throughout India. It offers a comprehensive range of services such as audit, tax, and advisory.

Grant Thornton Bharat serves across various industries such as manufacturing, healthcare, and technology; it has also expanded its reach by delivering customized financial solutions. Additionally, it has gained recognition because of its advanced approach to finance, supporting organizations in improving efficiency and streamlining operations, and maintaining regulatory compliance.

7. BDO India

BDO, one of the top accounting firms in India, was established in 2013 and has swiftly become a leading accounting firm in the Indian economy. It is operating in 14 major cities and employs more than 11,000 professionals.

The firm is involved in offering services such as assurance, tax, advisory, managed services & outsourcing, technology products and solutions, and digital transformation. It serves diverse industries such as manufacturing, pharmaceuticals, financial services, and technology. BDO India also supports its reach to international clients.

8. Lodha & Co.

Lodha & Co. was founded in 1941 and became part of the top accounting firms in India, and it offers a wide range of services, including audit, tax, advisory, and outsourcing. It has employed more than 500 employees throughout 6 offices in India.

Additionally, it serves various industries such as manufacturing, real estate, technology, and healthcare. Likewise, it also maintains a strong international presence in countries like the UAE, the US, and the UK, providing tailored financial solutions, and has also earned recognition for its exceptional financial services.

9. SS Kothari Mehta & Co. India

SS Kothari Mehta & Co. India was established in India and is currently operating in New Delhi, Mumbai, and Chandigarh, and has become part of the top accounting firms in India. It has employed more than 1,000 employees across India.

SS Kothari Mehta & Co. provides a comprehensive range of services, including audit & assurance, risk advisory, taxation, merger and acquisition advisory, information technology advisory, accounting and business process outsourcing, and legal and compliance. They are involved in serving industries such as manufacturing, IT, and financial services, and they maintain a strong network by collaborating with associates.

10. Luthra & Luthra

Luthra & Luthra, which established its presence in India in 1979, has become part of the top outsource accounting firms in India, New Delhi. It has provided employment to more than 200 professionals and has established its offices in metro cities such as New Delhi, Mumbai, Bangalore, and Hyderabad.

Additionally, it provides a wide range of services, including audit, tax, advisory, corporate taxation, International Financial Reporting Standards (IFRS), and accounting. Luthra & Luthra serves their clients operating in large corporations, multinational companies, financial institutions, and government organizations.

What are the Big Six Accounting Firms?

Big Six Definition:

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

Explanation:

The term “Big Six” emerged from a listicle of financial firms that were renowned as the six largest accounting firms in the world. Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), Klynveld Peat Marwick Goerdeler (KPMG), Grant Thornton, and BDO are listed as the Big Six financial firms, based on the annual income generated by them.

These firms are well recognized for offering accounting services such as payroll, market research, tax planning and preparation, business development and valuation, legal advisory services, assurance, management advisory services, and auditing services. These firms are the ideal sources for law interpretation and accounting audit standards.

Key Insights:

• The arrangement of the Big Six accounting firms changes over the period because of mergers and the emergence of new financial firms, but the top firms are always involve in the national and international markets.
• The term “Big Six” comes from the smaller group of eight firms formerly known as the Big Eight, which were merge later, and it became the Big Six.
• The Big Six include the Big Four firms Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), Klynveld Peat Marwick Goerdeler (KPMG), in addition to Grant Thornton and BDO.
• They have an extensive global presence and are known for their market share and suit process within large corporations.

Conclusion –

By concluding this article, we can say that the top accounting firms in India are performing a remarkable role in handling business finances and regulatory compliance. The Big Six—Deloitte, PwC, EY, KPMG, Grant Thornton, and BDO—are still setting their standards high with their expertise, but The Algebra Group (TAG), the best accounting firm in India, has filled the gap of financial challenges through its advanced and technology-driven solutions. These emerging financial firms are empowering organizations by focusing on their clients’ success, making India a prime destination for accounting services.

Frequently Asked Questions (FAQs) –

1. Define outsourced accounting firms in India.

An outsourced accounting firm in India relates to appointing an external or third-party firm to handle a company’s finance and accounting functions or department. The functions include handling accounts receivable, accounts payable, handling payroll, monthly bank statement review, tax planning and preparation, lawful compliance, financial reporting, and many others.

2. What are the upcoming trends of accounting firms?

The upcoming trends of accounting firms are entirely based on artificial intelligence (AI), as it supports success in the tax, audit & accounting industry. The firms that leverage AI enable them to cover the management of the overall financial system and help them extend their services to their clients.

3. What are the four major types of accountants?

The four major types of accounting involve:

• Corporate
• Public
• Government
• Forensic auditing

4. Who are the Big Six accounting firms?

The Big Six accounting firms—Deloitte, PwC, EY, KPMG, Grant Thornton, and BDO—offer a wide range of services that help in building the world economy.

5. What industrial sectors are served by outsourced accounting firms in India?

The industrial sectors served by outsourced accounting firms in India are:

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