Case Studies

Manufacturing Company Achieves Cost Savings Through Accounting Outsourcing

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Background:
A medium-sized manufacturing company in India faced high overhead costs in maintaining an in-house accounting department. With a growing workforce and increasing transactional volume, the company struggled to keep up with payroll management, inventory reconciliation, and regular GST compliance. The in-house team was overwhelmed, leading to delays in financial reporting and risk of non-compliance with tax regulations.

Solution:
The company decided to outsource its accounting functions to a third-party service provider that could manage both financial accounting and compliance with GST laws. The outsourcing partner introduced automated software to streamline the invoicing and inventory reconciliation process, making accounting more efficient. The outsourcing firm also took responsibility for payroll processing, GST filings, and month-end financial reporting, ensuring accuracy and timeliness.

Results:
Outsourcing accounting functions led to a significant reduction in overhead costs by eliminating the need to hire and maintain a large in-house accounting team. The company saw a 15% reduction in operating costs within the first six months. Additionally, the company was able to receive real-time financial reports, which enabled better decision-making. By outsourcing the complex tasks of GST filing and payroll management, the company remained compliant with regulations while freeing up resources to focus on production and market expansion.

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