WHAT WOULD MY STAFF THINK ABOUT ACCOUNTING OFFSHORING?

Jacob Scott, CPA     Jul 25, 2023     1350
WHAT WOULD MY STAFF THINK ABOUT ACCOUNTING OFFSHORING?

How would my staff perceive the concept of accounting offshoring and how to alleviate their concerns?

As accounting firms explore new avenues for growth and expansion, outsourcing has emerged as the go-to strategy. Firms now understand that offshoring is not just about cost savings and if it's maximized correctly they can build a million dollar firm.

Once you have decided to move forward with remote staffing solutions, you will inevitably have to break the news to your onshore team. And unless they have already cleared up their doubts, they will probably not take the news well.

Most likely, the first question they will ask is, “What about my job?” And it's a valid concern. When most individuals hear the terms "offshoring" or " outsourcing," they think of large multinational corporations that relocated thousands of jobs overseas solely to reduce expenses.

At Entigrity, we work with over 725 accounting firms in the US, Canada, and the UK, and this is one of the main concerns raised by most owners. Rest assured, accounting outsourcing will have a huge impact on your team, and it will be a positive one!

 

Let’s look at the most common concerns and how to address them when your staff hear that you’re going to start outsourcing accounting services.

1. Job Security:

When faced with the prospect of offshoring, one of the primary concerns for staff is job security. To address this concern, transparent communication is key. Leaders in the firm need to proactively engage in open dialogue with staff, providing reassurance about the long-term stability of their roles. Emphasize that accounting offshoring is not about replacing their jobs but rather about optimizing the firm's resources and expanding its services.

2. Lack of Clarity:

Staff may feel uncertain about how accounting outsourcing will impact their day-to-day responsibilities and overall workflow. To alleviate this concern, providing clear and concise information about the offshoring process is crucial. Offer detailed explanations regarding how the offshore accounting specialists for U.S. CPA firms will complement and support the existing onshore staff, highlighting the seamless integration of resources for enhanced productivity.

3. What About My Role?

When the decision to offshore accounting services to India is made, employees will question the relevance of their own roles within the firm. It is essential to involve them in the process from the outset. Seek their input and suggestions on streamlining workflows, delegating tasks, and leveraging the expertise of an offshore accounting company. This involvement fosters a sense of ownership and helps employees see how their roles will adapt and evolve in the new structure.

4. What About My Future?

Career growth and progression concerns may arise when staff learn about accounting offshoring. Appease these worries by explaining the rationale behind offshoring and the long-term benefits it brings to the firm. Emphasize that by offloading repetitive tasks to an offshore accounting services provider; onshore staff will have the opportunity to engage in more strategic and value-based work. This shift in responsibilities allows them to upskill and acquire specialized knowledge, opening doors to new career opportunities within the firm.

5. Everything is Global Now and the World is Moving in this Direction:

In today's interconnected world, businesses are increasingly embracing global collaborations and resource optimization. Make staff aware that accounting offshoring is not an isolated phenomenon but rather a reflection of the changing dynamics of the global market. By leveraging offshore accounting services, the firm can tap into a broader talent pool, operate around the clock, and serve clients more efficiently. Demonstrating the global perspective helps staff understand the necessity and relevance of accounting offshoring.

6. Get Ahead of the Curve:

Finally, highlight the importance of embracing change and staying ahead of the curve in the competitive accounting industry. The decision to work with an offshore accounting company positions your firm as an early adopter of innovative strategies, demonstrating its commitment to growth and adaptability. By proactively addressing the concerns and integrating offshoring practices, your firm sets itself apart as an industry leader, fostering a culture of continuous improvement.

Infographic about what your staff would think about accounting offshoring

Point to note*

Avoiding Onshore Staff Bias

In certain instances, you may encounter a scenario where an onshore staff member, despite receiving clear instructions, exhibits hesitancy or resistance towards offshoring. Such a situation can give rise to several detrimental consequences:

  • It can foster a sense of unwelcome among offshore staff within the organization.
  • The offshoring process may encounter obstacles due to inaccurate feedback, inadequate training of personnel, suboptimal onboarding practices, and improper workload allocation, among other factors.
  • Owners and partners may also not understand the situation accurately if they do not directly interact with the offshore accounting consultants for cpa firms. To address this issue, we propose the implementation of joint meetings, particularly during the initial stages, involving both the offshore accounting professionals and the onshore team.

Introducing the concept of an onshore anchor can play a pivotal role in ensuring the successful execution of the offshoring initiative.

Conclusion:

While concerns are natural when accounting staff learns about offshoring, it is important to view this development as a positive change. Transparent communication, involvement in the decision-making process, and a clear explanation of the long-term value are essential for dispelling fears and garnering support. By embracing accounting offshoring, firms can optimize resources, enhance staff skills, and expand their services, ultimately positioning themselves for sustained growth and success in an evolving global landscape.

FAQ’s

1. What would my clients think about offshoring?

It is common for clients to feel apprehensive when considering something new, such as offshoring. However, by effectively explaining the benefits to both parties involved, we can help change their perspective. It is equally important to acknowledge and address the concerns of our employees regarding offshoring. To ensure a comprehensive solution, we have devised an approach that aims to address these apprehensions. If you’re an accounting firm owner who is unsure about how to talk to your clients about offshoring, we recommend you read our blog about this topic.

2. What communication channels should be in place to ensure transparency and understanding between in-house teams and offshore counterparts?

The following should be established when integrating your onshore and offshore teams to ensure collaboration and efficiency.

  • Establish an ‘Onshore Anchor’ to handle operations, manage, build, and create trust with onshore and offshore staff. They are an advocate of offshore accounting, bridging the gap that is often evident when an offshore team newly joins a firm. Someone must work towards establishing a positive rapport and building trust between the onshore and offshore teams. You’ll need a committed and qualified individual to train and assist both teams in getting on the same page.
  • Have a preferred mode of communication, such as email, Skype, or Zoom. At the start, you should use video and encourage offshore team members to do so. Video helps to bridge communication gaps that may occur.
  • If you’re already using a project management tool, creating a channel for the offshore team would be advisable so tasks can be allocated and managed accordingly.
  • Regular meetings include at least one member of the offshore team if not all of them.

3. How can an accounting firm ensure that the quality of services and data security is maintained when offshoring accounting tasks?

When vetting potential offshore accounting professionals, you must confirm they have certifications such as AICPA SOC type 2, ISO 27001, and GDPR Compliance in place. The offshore team should work on remote systems to minimize data breach risks.

To ensure the quality of services, the accounting firm should conduct regular audits. Many accounting offshoring professionals will have CSAT or Quality Assurance Metrics to maintain quality.

4. What steps should be taken to address employees' questions or doubts about accounting offshoring/outsourcing?

  • Reassure them that your decision to offshore is not about replacing them.
  • Involve them in the process so they feel valued and will take ownership of their role.
  • Share your vision about the future of the firm and the role they will play.

 

Entigrity™ is a trusted offshore staffing partner to 725+ 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 the least to worry about compliance, payroll taxes, overheads or any other benefits. Let's have a quick call to explore a tailored solution that fits your requirements.


About The Author

Jacob Scott, CPA

Member, Advisory Board

Jacob Scott is a CPA with over 20 years of experience in the area of accounting & finance and has worked as a Senior Audit Associate at EY. Jacob drives the financial planning of the company by analyzing its performance and risks. He retains constant awareness of the companyโ€™s financial position and acts to prevent problems. He also sets up and oversees the companyโ€™s finance IT system as well as sets targets for and supervise all accounting and finance personnel (management accountants, internal auditors, etc.) Besides overseeing all audit and internal control operations, Jacob develops the corporate fundraising strategy and manage relationships with partners and investors. His roles also include preparing timely and detailed reports on financial performance on a quarterly and annual basis and conducting analysis to make forecasts and report to upper executives. He ensures adherence to financial laws and guidelines.ย  He has a keen interest in activities and societies, industry tours, educational seminars, cultural activities, sports, and most importantly attending conferences.

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