Why Accounting Firms in the US Should Consider Offshore Staffing

While maintaining high-quality service, it has become a challenge for accounting firms in the US to reduce cost, and that too in the current scenario of the economic environment. As per the recent survey, it is concluded that around 56% of accounting firms in the US are seeking a way to reduce costs while adhering to better quality standards.

Offshore staffing is coming as a solution for many US accounting firms in managing the quality and cost at the same time. It allows firms to take the benefits of low labor costs in foreign countries. As we go through the recent report, the comparison of the average labor costs in foreign countries and countries like India and the Philippines came into the limelight. It reveals that the US has approximately  $26-$30 per hour average cost of labor for accounting professionals while India and the Philippines have an average cost of only $11-$15 per hour.

Offshore accounting staff has a major advantage as it provides flexibility in resource allocation, allowing US accounting firms to respond quickly to changes in demand. More than this, offshore staffing proves as an attractive option as it results in improved quality of service.

Let’s talk over the several reasons why US accounting firms should consider Offshore Staffing.

1. Cost savings:

Offshore staffing is undoubtedly a practical and cost-friendly solution for US accounting firms. It helps in reducing various types of overhead expenses including salaries, hiring stress, onboarding, training and development, and retention costs. If a firm opts for an option for outsourcing, it can save on insurance, office infrastructure such as computers, desks, chairs, etc., and other expenses associated with maintaining an in-house team.

Hiring employees is also associated with the risk of them leaving the company at any time and so time and resources invested in their training and development process get wasted. Outsourcing solely manages the hiring process and also allows firms to achieve their objectives with fewer workspaces and a minimum requirement of equipment. It thereby, reduced the overall costs. 

Summarizing the point concludes that offshore staffing is the feasible strategy for accounting firms to reduce costs and improve efficiency and that too while avoiding the risks of hiring in-house employees.

2. Access to specialized skills:

US accounting firms get members with specialized skills and expertise from countries like India and the Philippines with offshoring. This allows firms or CPA firms to access the expertise they may need help to find or afford locally. Offshore staffing brings up easier scaling of operations, as firms have access to a large pool of accounting, bookkeeping, tax, and audit professionals with varied skills and expertise. This helps US accounting firms respond quickly to changes in demand. Offshoring enhances the quality of services, expands offerings, and meets changing needs.

3. Improved quality:

Offshore accounting also leads to better quality of service and efficiency for US accounting firms. Accounting firms can even enhance their services with the expertise they get by outsourcing or partnering with offshore staffing. Accounting offshoring also lets the work be performed timely and provides quick turnaround times.

The improved service of offshore staffing also benefits clients who need 24/7 access to financial information. Offshore staffing is the best way to manage firms as it also provides access to advanced technologies and best practices. Further, it streamlines the processes and improves the accuracy. US accounting firms get various benefits from offshore accounting as it provides you with staff expertise, technologies, and best practices. This eventually results in an improved quality of service and more efficient service delivery.

4. Increased flexibility:

Bookkeepers, staffing accountants, and tax and audit professionals offer increased flexibility for US accounting firms. It allows them to respond quickly to changes in demand by scaling up or down resources as needed. With this, the time and cost of hiring and training new employees get eliminated. 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 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.

5. Better Business Compliance:

Offshore staffing helps ensure that your firm follows existing regulations. Once you hire an offshore partner, you won't have to face issues like missed tax deadlines. The offshore staffing partner will handle them on your behalf. Offshore accountants based in overseas locations like India keep track of the US's changing accounting and tax-related regulations. They also understand the various laws and regulations in different jurisdictions, enabling them to advise firms on handling their operations while complying with them.  

Offshore staffing partners also conduct regular compliance audits to evaluate their adherence to regulatory requirements. They also train their staff on compliance matters to ensure everyone within the company knows their responsibilities and stays updated with regulation changes.

6. Rigorous Data Security:

Most CPA firms are concerned about data security when hiring overseas accounting staffing partners. However, offshore accounting partners in countries like India adopt tight security measures to protect their clients' financial information. They follow existing international standards and data privacy laws while implementing standard methods. 

Offshore partners use cloud-based solutions to safeguard client data. Cloud storage also helps to keep client data confidential. To maintain the confidentiality of client data, offshore accounting partners use secure protocols to protect data from unauthorized access. 

7. Enhanced Risk Management:

One significant benefit of hiring an accounting staffing partner is improving the risk management process. Experienced offshore staffing partners have a good understanding of existing accounting regulations in the US. They can also help your firm avoid paying hefty penalties. By auditing your financial data, they can track early warning signs of risks. So, you can take protective measures to resolve issues before they escalate and there are mistakes in financial reporting. 

By assessing your firm's controls, processes, and reporting, offshore partners play a major role in enhancing the accuracy, compliance, and transparency of your financial reports. You can rely on these reports to make informed decisions. 

8. Better Handling of Work During Peak Season:

CPA firms face challenges at specific times of the year, especially tax season. Building an offshore team can help you deal with these situations. Offshore teams handle time-consuming daily work like bookkeeping, tax preparation, and audit with perfection and reduce the workload of your in-house team. They can manage your day-to-day financial transactions like sales records and expenses, reconcile bank statements, and maintain ledgers. So, when you have high transaction volumes during the tax season, you can rely on them to complete bookkeeping tasks accurately and on time. 

9. Access To The Latest Technology:

Accounting staffing agencies offer affordable access to new technologies, improving the efficiency of your accounting process. These technologies can also provide scalability options. For instance, cloud-based accounting platforms help CPA firms scale up or down according to fluctuating needs without making investments in upgrading infrastructure. 

These technologies can help you share valuable insights, interactive dashboards, and customized reporting with clients. Integrating new technologies within your service delivery model will help you improve your service quality.

Conclusion

In conclusion, working with an offshore staffing firm will be a viable option for US accounting firms. Offshoring reduces costs while maintaining high-quality services. It also results in access to specialized skills and increased resource allocation flexibility.

Not limited to this, offshoring also provides quick turnaround times that help US firms remain competitive and meet the changing needs of their clients.

Overall, offshore staffing has numerous advantages. Offshoring is a promising solution for US accounting firms looking to reduce costs while maintaining high-quality services.

FAQ

Q: Why should US accounting firms consider offshore staffing?

Ans: Offshore staffing offers US accounting firms cost-effective solutions, access to specialized expertise, and the ability to scale their operations efficiently.

Q: How can offshore staffing benefit US accounting firms?

Ans: Offshore staffing enables US firms to streamline processes, enhance service quality, and stay competitive in a global market while reducing operational expenses.

Q: What should be considered by US accounting firms while opting for offshore staffing?
Ans: US firms should carefully evaluate cultural compatibility, time zone differences, and regulatory compliance when implementing offshore staffing. Effective communication strategies and robust oversight mechanisms are essential for successful integration.

Entigrity™ is a trusted offshore staffing partner to 800+ accountants, CPAs, and tax firms across the US, UK, and Canada. Our flexible and transparent offshore hiring model helps firms of all sizes hire staff for accounting, bookkeeping, tax preparation, or any other task for 75% less. 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. Trusted by 40 of the top 200 US accounting firms, we specialize in supplying highly skilled personnel from India. We have 28 global offices across India. We are GDPR compliant, ISO 27001:2013, and SOC 2 Type II certified. With our presence in Houston, Toronto, Texas, Ontario, and 25 Indian cities, we are now “Great Place to Work Certified™”, “KPO Organisation 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 and is a member of BDO Alliance USA and Abacus Alliance. 

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 company’s financial position and acts to prevent problems. He also sets up and oversees the company’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.  He has a keen interest in activities and societies, industry tours, educational seminars, cultural activities, sports, and most importantly attending conferences.