Why Accounting Firms in the US Should Consider Offshore Staffing
In the current economic environment, accounting firms in the US are facing increased pressure to find ways to reduce costs while maintaining high-quality service. According to a recent survey, 56% of accounting firms in the US reported that they are looking to reduce costs while maintaining quality.
Offshore Staffing is becoming a more attractive option for many US accounting firms, as it allows them to take advantage of lower labor costs in foreign countries. According to a recent report, the average cost of labor for accounting professionals in the US is approximately $26-$30 per hour, while the average cost of labor for accounting professionals in countries like India and the Philippines is only $10-$15 per hour.
Offshore accounting staff can also provide increased flexibility in resource allocation, allowing US accounting firms to respond quickly to changes in demand.
Furthermore, offshore staffing can also result in improved quality of service.
There are several reasons why US accounting firms should consider Offshore Staffing:
1. Cost savings:
Offshore staffing can be a practical and cost-effective solution for US accounting firms as it helps to reduce overhead expenses such as salaries, hiring stress, on-boarding, training and development, and retention costs. By outsourcing, firms can save on insurance, office infrastructure such as computers, desks, chairs, etc., and other expenses associated with maintaining an in-house team.
Hiring employees in-house can be expensive due to the costs associated with salaries, equipment, software, training, office space, and more. Moreover, hiring employees can be risky because they may leave the company at any time, which can result in a loss of time and resources invested in training and development.
By outsourcing or by leveraging offshore staffing options, firms can avoid the overhead of hiring new employees, such as the cost of a laptop or server space, and rely on the contact center to manage these costs for them. With the support they need to grow their team and business, outsourcing enables firms to achieve their objectives with fewer workspace and equipment requirements, thereby reducing overall costs.
In summary, outsourcing is a viable strategy that can help accounting firms reduce costs and improve efficiency while avoiding the risks associated with hiring in-house employees.
2. Access to specialized skills:
Offshoring offers US accounting firms access to specialized skills and expertise in countries like India and the Philippines, where there is a large pool of skilled accounting professionals. This allows US firms or CPA firms to access the expertise they may need help to find or afford locally. Offshore staffing also enables easier scaling of operations, as firms have access to a large pool of accounting, bookkeeping, tax, and audit professionals with a wide range of skills. This helps US firms respond quickly to changes in demand. Offshoring enhances the quality of services, expands offerings, and meets changing needs.
3. Improved quality:
Accounting offshoring can improve the quality of service and efficiency for US accounting firms. By outsourcing or partnering with offshore staffing firms, accounting firms can access expertise that enhances their services. Accounting offshoring can also provide quick turn-around times by having work performed around the clock.
Improved service delivery benefits clients who need 24/7 access to financial information. Offshore staffing also provides access to advanced technologies and best practices, streamlining processes and improving the accuracy and speed of service delivery. US accounting firms can benefit from the offshore staff expertise, technologies, and best practices offered by offshored service providers, resulting in improved quality of service and more efficient service delivery.
4. Increased flexibility:
Staffing accountants, bookkeepers, and tax and audit experts offer increased flexibility for US accounting firms, allowing them to respond quickly to changes in demand by scaling up or down resources as needed. This eliminates the cost and time implications of hiring and training new employees. Offshore remote resources can be easily adjusted based on demand changes, providing financial stability and ensuring competitiveness in the market. Accounting Offshoring also helps firms better manage their operational costs by only paying for used resources. The increased flexibility in resource allocation provided by accounting offshoring enables US accounting firms to respond quickly to demand changes, better manage costs, and remain competitive.
In conclusion, working with an offshore staffing firm will be a viable decision for US accounting firms looking to reduce costs and maintain high-quality services. Offshoring offers significant cost savings, access to specialized skills, improved quality of service, and increased flexibility in resource allocation.
By outsourcing or offshoring staff to countries with lower labor costs and access to specialized skills, US accounting firms can reduce overhead expenses and improve the quality of their services. Offshoring also provides quick turn-around times and 24/7 service delivery, helping US firms to remain competitive and meet the changing needs of their clients. Overall, offshore staffing is numerous advantages, as we discuss. Offshoring is a promising solution for US accounting firms looking to reduce costs while maintaining high-quality services.
Entigrity™ is a trusted offshore staffing partner to 725+ accountants, CPAs, and tax firms across the US and Canada. Our flexible and transparent offshore 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.