Insights from Accounting Experts on Offshore Accounting Services in 2024

Insights from Accounting Experts

Offshore accounting is one of the most effective business strategies for streamlining processes and enhancing a CPA firm's reach. With about 300,000 jobs being outsourced from the US annually, understanding the broader context of outsourcing or offshoring qualified global staff becomes crucial.

Accounting offshoring partners provide top-notch services at a fraction of the cost, and with the advances in technology, they operate just like your current team. An offshore accounting firm can take on everything from basic bookkeeping and auditing to tax accounting and CFO advisory services.

Your CPA firm might only audit your company's accounting records at the end of the financial year, which may add to your team’s to-do list. This added stress in addition to the sudden rise in workloads, can increase the probability of errors. You can minimize your in-house accounting team's tasks by offshoring remedial accounting work to an offshore accounting firm.  Applying this practice can really help transform your accounting firm.

Accounting offshoring is no longer limited to the ‘Big 4’ or just medium to large size CPA firms. As the world moves to new ways of working and operating, it just makes business sense for accounting firms to embrace offshoring. 

From a large established CPA firm to an accounting start-up, offshore accounting services can be utilized by anyone. This article compiles insights from respected accounting experts, shedding light on the transformative impact of offshore accounting solutions and their relevance across different firm sizes. 

1. Blake Oliver:

A renowned CPA specializing in accounting technology and the co-host of "The Accounting Podcast," the industry's most popular show for accountants and bookkeepers. Recognized for exceptional achievements, Blake has been named twice to CPA Practice Advisor's "40 Under 40" list and featured in Accounting Today’s "Top 100 Most Influential People."

 

2. Julie Smith:

The dynamic Practice Manager at Harper & Company CPAs Plus in Powell, Ohio. With over 13 years of leadership experience, Julie is on a mission to revolutionize the way accountants operate in response to evolving client demands.

Julie is not your typical manager – she thrives on empowering individuals to unleash their professional potential. Her unique superpower lies in teaching people how to overcome self-imposed obstacles, enabling them to drive change, foster great cultures, and propel their enterprises forward. A sought-after national speaker, Julie is passionate about motivating professionals in the accounting industry to embrace action, change, and growth.

Having a deep understanding of the challenges in steering an organization and implementing change, Julie has collaborated with numerous firms and business owners. Her expertise lies in crafting replicable processes and cultivating cultures that attract top talent. Julie is not just a manager; she's a catalyst for transformation in the world of public accounting.

 

3. Rob Nixon:

Rob Nixon is a self-made accounting firm marketing expert with an unmatched wealth of experience and knowledge. Starting his journey in 1994 in a small Australian town, he stumbled upon the influence of accountants when an accountant named Ellis Ryan invited his clients to a seminar, turning it into a profitable initiative and sparking a revelation.

After honing his skills, he joined Results Accountants Systems in 1994, working with legends Paul Dunn and Ric Payne. Over six years, he traveled the world, transforming the operations of 7,500 accounting firms through seminars. Later, he took on a role with an accounting firm consolidator, overseeing mergers and acquisitions and analyzing data from 105 firms, leading to the creation of "The Good, the Bad and the Ugly of the Accounting Profession."

This experience birthed his first startup, Business Fitness, with $1M in capital. The company, now in its 18th year, operates successfully, showcasing Rob Nixon's entrepreneurial prowess.
 

 

4. Phil Whitman:

Phill Whitman is a seasoned professional with over 25 years of expertise in CPA firms. Specializing in succession planning, he navigates internal transitions, mergers & acquisitions, practice sales, and strategic joint ventures. Phil's guidance has played a pivotal role in over 1,000 CPA firm acquisitions, sales, and mergers. With his assistance, you can confidently transition to your CPA firm, ensuring a smooth and successful process.

 

 

5. Erik Solbakken:

A seasoned CPA with over 26 years of experience in public practice. As the innovative mind behind the Accountant Success Formula™, Erik has revolutionized the accounting game.

With his proven business MODEL, Erik tripled his net income without sacrificing a single hour of overtime. Now, as a coach, he empowers fellow accountants to replicate his success.

 

Why offshore accounting solutions will be the best choice in 2024?

In global finance, offshore accounting services have become indispensable for businesses seeking efficient financial management. Accounting Firms in the United States have witnessed significant changes, influenced by many factors such as globalization, technological advancements, and evolving regulatory landscapes. As discussed earlier, seasoned accounting experts unanimously agreed that leveraging these services is not merely a trend but a strategic move toward enhanced fiscal control. They emphasize the importance of adeptly managing cross-border financial transactions to ensure compliance with diverse international standards.
As accounting firm owners or accounting professionals adapt to the changing landscape, embracing offshore services can offer your CPA firm many advantages in 2024. It includes efficient tax planning and reduced overhead costs, making offshore accounting services attractive for businesses of all sizes.

It’s not just about reducing costs: Offshoring allows Accounting firms to enhance their capacity without compromising on quality.

• Global Talent Pool: Accounting Offshoring not only broadens your talent pool but also provides access to diverse skills and expertise, contributing to the overall growth of your firm.

• Capacity Expansion: Offshoring allows your accounting firm to handle increased workloads without overwhelming your in-house team, preventing errors and maintaining a high level of service.

• Strategic Growth: Offshoring goes beyond cost savings, offering significant leverage and flexibility, particularly in an environment where controlling staff costs and overheads is crucial.

• Business Model Optimization: Offshoring, when integrated into the expense model, becomes a powerful tool for driving down costs, reducing headaches, and ultimately increasing net income. Offshoring your accounting functions is not just about reducing costs; it's a strategic move that empowers your firm to adapt, grow, and thrive in the dynamic landscape of the accounting industry.

• Efficient Handling of Peak Season Workload: Your firm might audit its financial records at the end of the year, which might cause your accountants to overwork. They might get stressed out due to a sudden increase in workload. So, the likelihood of mistakes will increase. Once you outsource your accounting responsibilities to offshore accounting experts, you won’t have to get involved in time-consuming activities like bookkeeping, audit, tax calculation, etc.  By outsourcing your accounting chores to an overseas accounting firm, you can offload time-consuming duties like bookkeeping, financial reporting, auditing, tax calculation, preparing trial balances, MIS (Management Information System) reporting, etc.

• In-House Team Can Fulfil Its Priorities: As an accounting firm grows, there is an increase in productivity. Meeting deadlines can be a challenge. Your in-house team may get worn out. This might impact the quality of their work. Offshore accounting firms help to reduce the burden of in-house teams. Therefore, there is a remarkable improvement in the quality of their work, which ensures additional profits. Offshore accounting services providers also help in-house teams to focus on their core tasks and improve their abilities.

• Enhanced Quality Control: Accounting is highly competitive and requires considerable experience and an eye for detail. As an entrepreneur you may be able to handle several responsibilities simultaneously, but bookkeeping and accounting is a time taking process. You may be penalized with fines just for errors in your firm’s financial statements. Offshore accounting firms are skilled in developing large volumes of papers, bills, and books for firms of all sizes. You can save time by outsourcing your accounting process to them and ensuring that your documents are updated correctly and on time for tax deadlines. 

• Integration of Technology: Accounting outsourcing firms use cloud-based solutions to ensure safe storage of customer data. Apart from data security, cloud storage ensures that data remains confidential. To ensure that customer data stays confidential, offshore accounting firms use secure protocols to secure data from unauthorized access. 

Conclusion:

The world has definitely shifted, and it makes sense for accounting firms to explore ways of maximizing their efforts. Accounting offshoring has embraced the shift and is fast becoming a crucial development strategy for many firms. Also, embracing technologies like artificial intelligence, blockchain, and cloud-based accounting solutions ensures your financial strategies align with the future. Offshoring not only helps accounting firms to reduce costs but also offers them greater flexibility to scale up.

FAQs

1. Why should accounting firms consider offshore accounting services in 2024?

Ans: Offshore accounting services, exemplified by Entigrity™, provide accounting firms in 2024 with strategic benefits such as cost reduction, global talent access, and efficient workload handling, enabling enhanced quality control and optimized business models through technology integration.

2. How can offshore accounting services benefit accounting firms in the evolving industry landscape?

Ans: Offshore accounting firms have a flexible hiring model to efficiently manage peak-season workloads and integrate advanced technologies, enabling in-house teams to prioritize core tasks and ensure enhanced quality control.

3. What transformative impact do seasoned accounting experts see in offshore accounting solutions?

Ans: Accounting experts, including Blake Oliver and Julie Smith, stress offshore accounting's pivotal role in fostering growth through leverage, cost reduction, expanded capacity, and strategic business model optimization amid globalization, technology, and regulatory changes.

 

Entigrity™ is a reliable offshore staffing partner for 850+ accounting and CPA firms, 200+ CFOs & businesses across the US, Canada, and the UK. 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 45+ 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.