How do I check if an Indian CA firm is ICAI registered?

Go to icai.org and use the 'Know Your Member' or 'Firm Search' function. Ask the firm for their Firm Registration Number (FRN) and search by that number. A legitimate registered firm will appear with their registration status, address, and partner details. You can also verify individual CAs by their membership number on the same portal. Any firm unwilling to share their FRN should be immediately disqualified.

How do I verify a Xero Partner or Advisor certification for an Indian firm?

Go to xero.com/find-an-advisor and search by location (India) and firm name. Xero Partner status (Gold, Platinum) requires multiple certified staff and an active client base — it is more credible than an individual Xero Advisor Certification (which is a free online test). If the firm claims to be a Xero Partner, they should appear in the Xero Advisor Directory. If they don't appear, ask why and verify their certification number directly.

What is a Data Processing Agreement and why do I need one with my Indian bookkeeper?

A Data Processing Agreement (DPA) is a contract specifying how the Indian CA firm will handle your Australian business and personal data. It is required under Australian Privacy Act APP 8, which obliges you to take reasonable steps to ensure that overseas recipients handle personal information in accordance with Australian Privacy Principles. The DPA should cover: data types processed, purpose limitation, security measures, breach notification, data return/deletion on termination, and sub-contractor restrictions.

What professional indemnity insurance should an Indian CA firm carry?

ICAI members in practice are required to carry professional indemnity insurance — this is a mandatory requirement under ICAI's Council General Guidelines. Ask for the insurance certificate showing the policy number, insurer, coverage amount, and expiry date. A minimum coverage of ₹5–10 lakh (approximately A$10,000–20,000) per claim is standard for smaller Indian CA firms; larger firms carry significantly more. Ask specifically what errors and omissions in Australian bookkeeping work would be covered.

What should a service agreement with an Indian CA firm include?

A complete service agreement should include: scope of services (exactly what is included and excluded), monthly fee and billing terms, turnaround SLAs, confidentiality and NDA terms, data security obligations, professional indemnity coverage, termination notice period (30–60 days is standard), data return process on termination, and governing law. If the firm provides a template agreement, read it carefully — some Indian CA firm templates use Indian governing law, which complicates dispute resolution for Australian clients. Request Australian or neutral governing law.

How to Verify an Indian CA Firm Before Hiring

Step 1 — Verify ICAI Registration

How to check: Go to icai.org → Search for Members/Firms → enter the Firm Registration Number (FRN) provided by the firm.

What to look for:

Firm name matches exactly
Registration status is "Active" (not "Cancelled" or "Suspended")
Registered address appears legitimate
Partner names match who you have spoken to

Also verify the individual CA partner you'll be working with: search their membership number and confirm their Certificate of Practice (COP) is current — this confirms they are in active practice, not just a member.

For a full explanation of what ICAI registration means and how it compares to CPA Australia, see our ICAI qualifications guide.

Step 2 — Verify Xero or MYOB Partner Status

How to check Xero: go to xero.com → Find an Advisor → search India → enter firm name.

How to check MYOB: myob.com → Find a Partner → search by firm name.

Xero partner tiers (Bronze, Silver, Gold, Platinum) require increasing numbers of certified staff and active Xero clients. A Gold or Platinum partner is a stronger credential than Bronze. If the firm claims Xero Advisor Certification only (individual level, not firm), ask how many staff are certified — a solo certification for one staff member in a firm of 20 is less meaningful than firm-level partner status.

Step 3 — Call Australian Client References

Email or call — do not just exchange messages. Ask the reference:

How long have they used the Indian CA firm?
What services does the Indian firm handle?
Have there been any errors on BAS or payroll? How were they handled?
How is communication — turnaround times, responsiveness?
Would they recommend the firm without reservation?

A genuine reference will answer all of these directly. If the reference is very brief ("yes they're great, very happy"), probe further — "Can you give me a specific example of a problem they solved well?"

Step 4 — Review and Sign the Data Processing Agreement

A Data Processing Agreement (DPA) is your legal protection under the Australian Privacy Act (APP 8). It should include:

DPA Element	What to Check
Data types	Lists exactly what personal data will be processed (employee names, TFN, bank details, etc.)
Purpose limitation	Data used only for providing bookkeeping services — not shared or used for other purposes
Security measures	Encryption, access controls, browser-only access, no local downloads
Breach notification	Firm must notify you within 72 hours of any suspected data breach
Sub-processors	Lists any third parties that handle your data (cloud software providers are usually pre-approved)
Data return / deletion	On termination, what happens to your data — returned in standard format, deleted within X days
Governing law	Should be Australian law or neutral international arbitration — not Indian law only

Step 5 — Sight the Professional Indemnity Insurance Certificate

Ask for the current PI insurance certificate. Verify:

Policy is current (not expired)
Coverage amount is stated — minimum A$100,000 per claim for smaller firms
Insurer is a recognisable insurance company (not a shell or informal arrangement)
The coverage explicitly includes professional services errors and omissions

ICAI members in practice are required to carry PI insurance under ICAI guidelines. Any firm in practice that does not carry PI insurance is not complying with ICAI's own requirements — which should call their ICAI membership claims into question.

Step 6 — Review the Service Agreement

The service agreement is your commercial protection. Before signing:

Scope is specific — exactly which services are included (BAS, payroll, accounts payable, etc.) and what is extra
Monthly fee and billing terms are clear
SLAs are written in, not verbal commitments
Termination notice period — 30–60 days is standard
What happens to work in progress if you terminate
Governing law — push back on Indian law only

Verification Summary Checklist

Verification	How	Pass Condition
ICAI registration	icai.org FRN search	Active registration, matching firm and partner details
Xero/MYOB partner	Advisor directory search	Appears in directory; firm-level status preferred
Australian client references	Phone calls to 2 references	Both references give specific, positive, unprompted feedback
Data Processing Agreement	Review and sign before starting	All 7 DPA elements present; governing law acceptable
PI insurance	Certificate sighted	Current policy, recognisable insurer, stated coverage amount
Service agreement	Full review before signing	Specific scope, written SLAs, acceptable termination and governing law

About This Article
Written by Sharma Jyoti, CA (ICAI) — Founder, Sharma Jyoti and Co. We are an ICAI-registered Chartered Accountant firm providing outsourced bookkeeping and accounting services to Australian, US, UK and Canadian businesses. Learn more about our firm →

Frequently Asked Questions

Go to icai.org, use the Firm Search or Know Your Member function, and enter the FRN (Firm Registration Number) provided by the firm. Check: Active status, firm name matches, partner details match who you've spoken to, Certificate of Practice current for any partner signing off on your work.

Search xero.com/find-an-advisor by location (India) and firm name. Gold or Platinum partner status is more credible than Bronze. If the firm doesn't appear, ask for their Xero certification number — individual Advisor Certification is a free online test; firm Partner status requires an active client base and multiple certified staff.

A contract covering how the Indian firm handles your Australian personal data — required under Australian Privacy Act APP 8. Must include: data types, purpose limitation, security measures, breach notification (72 hours), data return on termination, and acceptable governing law. See our full Privacy Act guide.

Current certificate, recognisable insurer, minimum A$100,000 per claim coverage, explicit coverage for professional services errors and omissions. ICAI members in practice are required to carry PI insurance under ICAI guidelines — a firm without PI is non-compliant with ICAI's own rules.

Specific scope (what's included and excluded), monthly fee, written SLAs, confidentiality, Data Processing Agreement reference, PI insurance confirmation, 30–60 day termination notice, data return process, and governing law. Push back on Indian governing law only — request Australian law or neutral international arbitration.

How to Verify an Indian CA Firm Before Outsourcing Your Australian Bookkeeping