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Is ‘Offshore Accounting Services’ a Good Idea for My CPA Firm?

14-Aug-2023

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Setting up offshore accounting is a considerable strategic move for a CPA firm. And it becomes even more significant when you also decide to outsource it. But, you might also feel anxious about ‘offshore accounting services’. 

Because you’re not only building an overseas operation but also entrusting it to a third party.

You may even wonder: Is outsourcing with an offshore accounting firm truly a good move? Or should I stick with an in-house process or consider a local accounting service near me?

We get you!

Read to delve into the viability of offshoring your accounting process via outsourcing. We’ll uncover critical insights to help your CPA firm navigate this path successfully.

Offshore Accounting: What It Means For Your CPA Firm  

In essence, offshore accounting involves shifting the process to a foreign country.

A CPA firm may build its captive division. Or it can join forces with a client accounting services (CAS). The CAS provider performs and oversee the process on its client’s behalf.

In the latter scenario, you’ll not need to get involved in day-to-day operations. Your service provider handles the time-consuming routine accounting tasks. It also takes care of delivery and reporting. So, you achieve streamlined workflows without getting tied up and overwhelmed.

Despite this undeniable advantage, some firms are reluctant to outsource offshore accountants. They usually have have apprehensions about the quality of operation and service delivery. But, it is not an issue when you have a proficient offshore accounting services partner.

Let us delve into the benefits and challenges of offshore accounting services. Also, take a look at some considerations when outsourcing comes into picture.

Potential Benefits of Offshoring Accounting via Outsourcing

Cost-savings, enhanced productivity and scalability are among the most appealing features of the outsourcing-offshoring model. Here are some benefits of outsourcing offshore accounting services, in detail:

  • Cost Efficiency

First, outsourcing to an offshore destination means you can skip building in-house infrastructure. Plus, you can also save a significant amount of money on operational overheads. India, Mexico, and the Philippines are some globally-known business process outsourcing (BPO) hubs.

Additionally, you can save both time and expenses on hiring and training.

The outsourced accounting services provider maintains a dedicated team and other resources. And that frees you up from spending resources on recruitment and retention.

So, whether you’re working with limited resources or aiming to redirect efforts from internal accounting processes to other critical aspects of your CPA practice –   outsourcing to an offshore site can be an ideal option.

  • Productivity & Scalability 

In addition to time and cost efficiencies, outsourcing-offshoring model can also help increase productivity.

You can utilize in-house capacity to accommodate more clients by transferring workloads to offshore accountants. So, your CPA firm can now not only expand its client base but also scale up.

As the outsourced team handles routine tasks, your in-house team can transition to more specialized and value-added services. With more clients and higher-value services, you can generate better revenues.

Therefore, offshore accounting outsourcing can serve as a springboard for effectively growing your CPA practice.

key-elements-of-outsourced-offshore-accounting

  • Global Talent Access 

Outsourcing offshore enables access to a more diversified accounting workforce beyond geographical boundaries. Is your CPA firm situated in the UK, US, Canada, Australia, and elsewhere where English is a corporate language?

Prominent BPO hubs have an ample workforce fluent in the language. And they offer comparable skills and specialized knowledge at a fraction of the cost you would pay back home.

 Potential Challenges of Outsourcing Offshore Accounting  

While there are numerous benefits to outsourcing offshore accounting for CPAs, you should also take note of some challenges, such as:

  • Quality Control 

 Upholding the quality standards of client accounting services is crucial for a CPA firm. You can address this concern by clearly communicating your expectations to the offshore team. Typically, quality control is part of the best practices of a good accounting outsourcing services provider.

  • Data Security

While dealing with sensitive financial information, data breaches and loss can be primary concerns. Make sure your accounting services partner follows strict security measures for data security and safety.

  • Time Zone Difference

Working with an offshore team in different time zones can seem challenging. However, in today’s digital age, which enables seamless collaboration, these concerns become less significant. Time zone differences can also be advantageous as they enable round-the-clock operations. 

Fundamentals of Offshore Outsourcing ( Making Most of Offshore Accounting Services!)

Want to capitalize on the collective benefits of accounting outsourcing and offshoring for your CPA firm? Then, don’t overlook this:

A clear understanding of deliverables, schedules, and transparent communication is fundamental to a fruitful offshore operation. To ensure smooth execution, establish proper communication channels, protocols, and points of contact with your offshore partner.

The execution becomes easier when you are clear about your needs and team up with a proficient accounting services.  So do your research, choose a reputable offshore accounting firm with a good track record and experience. The one who clearly understand your goals.

How to Evaluate Offshore Accounting Services Provider 

Consider the following steps to ascertain whether the offshore accounting services provider aligns with your CPA firm’s goals:

  1. Assessment: Identify accounting functions suitable for viable outsourcing to an offshore partner. Based on your needs and goals, evaluate these tasks.benefits-of-outsourced-offshore-accounting-with-centelli
  2. Budgeting: Consider the complexity of the process and the skill requirements to arrive at a ballpark budget. A CPA firm may choose to outsource either its entire client accounting or a portion thereof.
  3. Research: Thoroughly research potential offshore accounting service companies. Verify their reputation, capabilities, and work culture. Also, find out whether they offer tailored solutions.
  4. Execution: Gain a comprehensive understanding of all aspects of the outsourced offshore accounting model in advance. Both parties should engage in clear discussions and reach a consensus on terms of service, pricing, and communication channels.

These are some key points to consider when evaluating your future service provider. A competent and reputable accounting outsourcing company can be a valuable asset for your CPA firm.

Final Thoughts

The outsourcing-offshoring model offers a practical and cost-effective solution for CPA firms. It can help them streamline their client accounting operations, drive productivity and growth. To reap the benefits while mitigating challenges, diligence and choosing the right offshore partner is key.

Are you looking for an offshore accounting services provider that can deliver effectively and consistently?  

You can consider Centelli! With headquarters in the UK and delivery centers in India, we serve extensively in Europe and the United States.

Take a look at our FAO services portfolio for more info. You can also contact us for a free consultation today to discover how our solutions can help you!

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