HOW OFFSHORING CAN TRANSFORM ACCOUNTING FIRMS

Mike Goossen, CPA     Oct 01, 2021     268
HOW OFFSHORING CAN TRANSFORM ACCOUNTING FIRMS

It's now normal for accounting firms to solve their workforce issues by hiring extra offshore staff. Even the smallest of the firms have started to build their offshore team to minimize the costs.   

Outsourcing for accountants is now widely accepted by accounting firms and clients as working remotely has become a common occurrence. And most firms go about it by hiring a pre-managed team of trained accounting, audit, and tax professionals to support their core team onshore.

"Many firms dragged their heels on offshore staffing before March 2020 and have only grudgingly accepted or ignored offshore staffing, but like many other expedients, you started looking toward outsourced accounting services as a stop-gap solution during this pandemic. However, in my opinion, it is a long-term solution, and it is worth continuing once things return to normal," CPA Melvin Caine, President, MC Accounting Services, Calgary, AL

 

Whether working remotely from 'Boston or Bangalore,' 'Miami or Mumbai, 'New York or New Delhi,' is all the same, as long as your staff has the right skillset and attitude speaks the same language. Many firms have even gone a step ahead and started building their offshoring teams to India and have leveraged the "Global Talent Pool". 

More and more accounting outsourcing firms are opening, and more and more accounting firms' clients are opening offshore! Many businesses are still dealing with the mindset problem. Entigrity has expanded by around 90% in the last 15 months, meaning that we accomplished most of what we achieved in just the previous seven years.

 

Case Study of a Florida Firm, how they accelerated their firm's growth

In 2017, we got in touch with an accounting firm based in Orlando, Florida, run by 4 partners (and still is). They already had a long-term plan in place, but they lacked the specific 'how to' on individual subjects. 

Before we started working with them, they had an onshore team of 16 people, and the average workweek was more than 40+ hours. It even went up as high as 48 to 52 hours during tax seasons. The revenue they were making was $4.1M, and profit before partner salary was around $1.2M and a client base of 1450.

When we first met, we learned that the tax season was taking a toll on each of the partners and all other team members alike. After analyzing their situation, we suggested that hiring offshore accountants will help the company cope up with the pressure. 

Moreover, 2 of the 4 partners showed interest almost instantly, while the other two were half-hearted about whether to step in or not. Being into the discussion for a few hours, they were convinced to go ahead with outsourced accounting services.

In 3 years with outsource accounting in India, they added a 7-person offshore team with 15 onshore staff. By the end of 3 years, they added nearly $5.6M of revenue (39% growth to what they made 3 years ago) to the firm. Their profit before partner salary almost doubled $2.3M (92% increase) even though there was a reduction in the number of clients from 1450 to 1310 (9.6%) during these 3 years. They focused on landing more lucrative projects and didn't need to accept low-priced ones.

Now, not all of their new revenue was converted into profit; to expand, they kept investing it into their workforce and infrastructure for 3 years to drive the revenue further. Partner average workweek decreased from 40.25 to 33.75 per week. The best thing of all, they have thought of having offshore teams as a long-term solution; tax season or not, the onshore and offshore teams are pretty much occupied throughout the year.

Offshoring Firms can accelerate your firm's growth.

It is becoming increasingly difficult and expensive to recruit talented people. While the appropriate team members can help you achieve your goals, they could be quite expensive. This talent is undoubtedly valuable, but it doesn't mean you can't discover brilliant people while still saving money. This is where Entigrity's offshore hiring comes into play.

It's your team, functioning out of our secure headquarters in India. You may delegate all back-end and administrative tasks to your offshore staff while your local team focuses on what they do best. Your A-team will have all of the resources it needs to focus on providing outstanding value to clients. 

Conclusion:

Entigrity as an accounting offshore staffing service provider can help reduce operational costs, offer better margins, save time for further innovations, and ensure a better work-life balance for CPAs and accounting professionals just like you. 

It's time to consider offshore accounting as a viable option for your business, as the benefits far outweigh the risks. It won't take too long for you to see the positive results after hiring a remote team.


Entigrity™ is a trusted offshore staffing partner to over 500+ accountants, CPAs, and tax firms across the US and Canada. Our flexible and transparent hiring model gives helps firms of all sizes to hire staff for accounting, bookkeeping, tax preparation, or any other task for 75% less cost. As a firm 'run by accountants, for the accountants', Entigrity captures the hiring needs of accounting firms most precisely, providing staff that works directly under your control and management, still, you are left with least to worry about compliance, payroll taxes, overheads or any other benefits. 


About The Author

Mike Goossen, CPA

Senior Vice President

Mike is a CPA and has over 30 years of experience in thought leadership and mentoring. His experience and constant efforts in solving prevalent issues of accounting industry is his biggest stand out point. He has been instrumental in mentoring scores of entrepreneurial accounting and finance professionals to get up on their feet and convert their practices into successful ones. He has authored a book called 'Principles of High Performance Leadership'

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