Outsourcing is becoming a trending strategy for modern businesses, especially in accounting, allowing firms to leverage professional skills with the cost-efficiency benefit of global markets. Among various key areas, outsourcing has made a significant impact on the accounting industry. Accounting Firms, large and small, are increasingly turning to outsourcing their tasks to providers from different countries that offer them competitive advantages in terms of cost, expertise, and reliability.
In this blog, we are covering the top accounting outsourcing destinations, comparing their benefits, strengths, and what makes them a popular choice for accounting firms worldwide.
India is one of the leading outsourcing countries. The country has the highest education system in the world, which gives rise to the best and most reputable professionals in the world. If you are looking to outsource then certainly India is one of the best outsourcing destinations for this. The country has no doubt solidified its position as the topmost destination for accounting outsourcing in the world.
Cost Efficiency: India is a cost-effective solution for your firms. The country has a lower cost of living and wages than countries abroad. The best part is that India provides cost-effectiveness without compromising quality.
Skilled Workforce: India has a highly skilled talent pool, with so many well-educated and skilled professionals, many of whom are CA (Chartered Accountant) or have qualifications like a CPA (Certified Public Accountant).
Work Ethics: Indian work ethics are recognized globally. Professionals here are diligent, determined, and committed to continuous learning and evolving. Moreover, being punctual is an integral aspect of Indian work culture. This reduces time zone concerns for firms.
Security Standards: Leading Indian outsourcing companies maintain high-security standards such as ISO, ensuring high-quality services based on updated standards and policies.
English Language Skills: Though English is not an official language of India, yet India ranks second among the countries with the highest English-speaking population. Why does this matter? English is the most preferably used communication language globally, and when you have outsourced partners with a great communication skill then it will definitely help your firms with smooth work process, eliminating communication barriers.
Technological Proficiency: India is always ahead in automation and technological aspects. Eventually, advanced technological solutions enhance efficiency for your firms, adding to the benefits of accounting outsourcing.
The Philippines has no doubt come out as a strong competitor in the outsourcing industry, with its skilled and professional English-speaking workforce and favorable working environment. All these aspects make outsourcing for accounting firms in the Philippines a worthwhile investment.
Language Proficiency: As discussed already, English is the most widely used communication language globally. So, it's always an advantage to choose an outsourcing partner with excellent English-speaking ability. Filipinos are well-known for their exceptional English language skills.
Cultural Compatibility: The country has a rich and colorful history that helps people to be more open to other cultures. They even carry this value in their workplace. It’s not wrong to say that many people consider cultural peculiarities as a burden, but for Filipinos, this is not true! They easily adapt to new cultures and make good friends with them. Their respect for foreign environments and diverse cultures helps in collaboration and mutual learning.
Work Ethics: Filipinos have strong work ethic, adaptability, and customer service orientation. These qualities are very much crucial for client-facing roles in accounting. Outsource partners in Philippines are known for being hardworking and resilient.
Strategic Location: You might be thinking how a location can play crucial role in choosing outsource partner, but to your shocker, it can. Philippines is in Southeast Asia and so it offers a quite convenient time zone that overlaps with Western countries, facilitating real-time communication and collaboration.
Vietnam is becoming a prominent destination for accounting outsourcing. It is from the mid-2000s that the country is among the top 10 lists of the best accounting outsourcing destinations globally. There are several key factors leading to this, some of which include:
Cost-Effective Labor: Vietnam offers competitive costs, making it an attractive option for firms seeking cost-effective outsourcing solutions. As it is clear in the Deloitte Global Outsourcing Survey 2020, firms are outsourcing their accounting task with the main reason of cost savings. And here, Vietnam is among the top 10 choices for this with low labor costs and high-quality value.
Savvy Workforce: The country’s expanding pool of savvy professionals proves to be another reason firms are outsourcing their tasks to Vietnam. Professionals here have a great familiarity with international accounting standards that helps them meet diverse client needs and industry demands.
Strategic Location: The geographical location of Vietnam in Southeast Asia is another factor making it a prime choice for outsourcing destinations. It is convenient for firms from different global regions to outsource their accounting functions.
Improving Infrastructure: A better infrastructure is crucial for the right outsourcing. It includes better internet connectivity and communication systems. It then supports seamless outsourcing operations.
Government Support: The supportive government policies of Vietnam in foreign investment and operations cement its status among top outsourcing countries.
The evolution of China as an outsourcing destination is deeply rooted in its rich history, which goes back to the late 20th century. It has been becoming a prominent destination for outsourcing across different sectors, in which accounting is at the top.
Cost Advantage: China, as similar to India, is an effective solution for accounting outsourcing. This is the reason that makes the country one of the attractive solutions for firms looking to outsource their tasks with cost-effective solutions.
Technical Expertise: China is always ahead in technology automation, which enhanced its demand as a preferable outsourcing destination. Cities like Beijing, Shanghai, and Shenzhen have been preferably emerging as an outsourcing destination due to their technological advancement and substantial investments in updated infrastructure.
Scale and Capacity: The large population with high talent pool is the reason that accounting and CPA firms are choosing China for their outsourcing partner.
Poland, Romania, and Ukraine are some of the countries in Eastern Europe that have been gaining popularity as nearshore destinations for outsourcing for accounting firms. There are several key factors that make it a top choice for accounting and CPA firms to outsource their functions.
Proximity to Western Europe: This is a significant advantage for Eastern European countries. They have close geographical proximity to Western Europe which allows easy collaboration and communication.
Education and Skills: Poland, Ukraine, and Romania have workforce holding high education knowledge and strong technical skills. They have exceptional language skills, making them well-suited for even complex accounting tasks.
Cultural Affinity: Having close proximity with Western European countries brings a greater cultural understanding between them. How is this helpful in accounting outsourcing? This is very much crucial to enhance client relationships.
Advanced Data Security: One significant advantage of choosing Eastern European countries for outsourcing accounting is their advanced data security measures. Outsourcing companies there, especially in Poland adhere to GDPR (General Data Protection Regulation). It ensures strong data and cyber security.
Companies in Latin America like Mexico, Brazil, and Colombia are emerging as prominent options for firms looking to outsource their accounting tasks. Their supportive regulations, strong infrastructure, time zone compatibility, and language proficiency play a significant role in putting them on the list of top choices for accounting and CPA firms.
Time Zone Compatibility: Sharing the same time zones as North America benefits Latin American countries in outsourcing. It helps in real-time collaboration and operates smoothly functioning.
Language Skills: Language is not a barrier in Latin American and it makes easier for them to communicate swiftly with accounting and CPA firms globally. This becomes a reason that Latin American countries are becoming a preferable choice for outsourcing destination.
Cultural Similarity: Countries of Latin America has cultural similarity with North American countries. It makes a clear understanding between onshore and offshore teams. It is no doubt a crucial factor in enhancing business relationships and client satisfaction.
When it comes to the best outsourcing destinations, it's like choosing the perfect avocado that is ripe, ready, and oh-so-satisfying! For accounting outsourcing, India is that ripe avocado, offering a blend of cost-efficiency, skilled talent, and cultural affinity that's hard to beat.
With a vast pool of qualified accountants who are fluent in English and well-versed in the global accounting standards, India has emerged as the go-to destination for firms looking to streamline operations without breaking the bank.
But let's not just stop at the basics. The magic lies in the partnership! When you choose India for accounting outsourcing, you're not just hiring a service; you're joining forces with a team that understands your needs, shares your values, and is ready to tackle the complexities of the accounting world alongside you.
With Entigrity by your side, you can navigate the outsourcing landscape like a pro, ensuring that every financial statement and tax return is handled with precision and care. Think of us as your trusty GPS guiding you through the winding roads of operational excellence! We help you in determining the various factors that should be considered when choosing an outsourcing partner. With our extensive experience and professional track record, we are happy to partner with you.
1. Is outsourcing for accounting-related tasks safe?
Ans: This is the most common and genuine concern of accounting and CPA firms. It should be cleared in starting to maintain a smooth process. Accounting outsourcing is absolutely safe is you choose a reputable partner. Look for outsourcing company with a good and secure history, and of course, with great reviews. Also ensure that they comply with data protection regulations like GDPR and have certificates like ISO and SOC Type I & II.
2. How does the time zone be managed if I have my firm in North America and I’m outsourcing partner from India?
Ans: Time zone difference is never a problem. It’s just people are over hyping it. All you need to plan effectively and fostering a continuos communication. Consider overlapping work hours for real-time collaboration. Schedule review meeting weekly or in 10 days via zoom, slack,etc. If you and your outsource partner are effectively following this, then no doubt, you can overcome the challenge of time zone difference.
Entigrity™ is a reliable offshore staffing partner for 850+ accounting and CPA firms, 200+ CFOs & businesses across the US, Canada, and the UK, positioning itself among the top outsourced accounting firms. With a flexible and transparent model, the company enables firms of all sizes to acquire skilled accounting, bookkeeping, and tax preparation staff. As a pioneer in offshore accounting, Entigrity ensures precise alignment with the hiring needs of accounting firms, providing staff under your control and management and minimizing concerns about compliance, payroll taxes, overheads, or benefits. Trusted by 40+ of the top 200 US accounting firms, we specialize in supplying highly skilled personnel from India. We have 39 global offices across India. We are GDPR compliant, ISO 27001:2013, and SOC 2 Type II certified. We are now "Great Place to Work Certified™," "KPO Organization of the Year," and "Dream Companies to Work For" among accounting industries. Entigrity is also recognized as a platinum partner by the Institute of Management Accountants (IMA). The company is strategically partnered with Boomer, a BDO Alliance USA and Abacus Alliance member.
Tushar is an Offshoring Strategic Advisor for Accounting Firms with 21 years of experience in Business Development, Customer Success, and Client servicing. He has a proven track record of managing key accounts. Tushar is an experienced professional with about 8 years of experience in the North American market with Healthcare IT and Accounting and offshoring industries. He has a team-handling ability and is proficient in leading project development and ensuring compliance with quality standards. He is a team player and a a leader with exemplary analytical and problem-solving skills.