According to the US Bureau of Labour Statistics, since 2019, more than 312,000 accountants and auditors have quit and 2/3rd of them had experience of over 10 years. Due to the shortage and lack of experienced accountants, the demand for not only skilled but also semi-skilled accountants has risen, and with that expected compensation, too, has increased which puts additional woes of the increased cost on small and independent CPA firms.
And, according to AICPA’s 2022 PCPS CPA firm top issues survey, “Finding qualified staff (at all levels)” remains the top 5 concerts for all CPA firms irrespective of size of the firm.
As the world becomes increasingly connected and globalized, many businesses are turning to offshore companies to handle their finance and accounting needs. This shortage of accountants partially attributed to Big Quit is prompting small and midsize accounting and CPA firms to hire overseas for the first time as they seek workers to do Bookkeeping and prepare US tax returns. While this may seem like a daunting prospect at first, there are many advantages to working with an offshoring company that specializes in finance and accounting. In this article, we will explore some of the key benefits of this approach.
1: Access to specialized expertise
One of the most significant advantages of working with an offshoring company that specializes in finance and accounting is the access to specialized expertise. These companies typically employ highly skilled professionals who have extensive experience in handling complex financial transactions, analyzing data, and creating reports.
In contrast, as a small independent CPA you may only have a few financial analysts on staff, which can limit their ability to handle complex financial issues or respond to rapidly changing market conditions. By working with an offshoring company, businesses can tap into a much larger pool of expertise and leverage the skills and knowledge of experienced financial professionals.
2: Cost savings
Another major advantage of working with an offshoring company that specializes in finance and accounting is the potential for cost savings. Offshoring companies are often based in countries where labor costs are lower than in the United States, which can result in significant savings for businesses.
For example, a business that needs to hire a team of financial analysts or accountants in the United States would need to pay higher salaries and benefits than they would if they were working with an offshoring company. Additionally, businesses may be able to save on office space, equipment, and other overhead costs by outsourcing their finance and accounting needs.
3: Flexibility and scalability
Offshoring companies that specialize in finance and accounting can also offer businesses greater flexibility and scalability than they would have if they were relying solely on their own staff. These companies often have the capacity to scale up or down quickly to meet the changing needs of their clients.
For example, if a business needs to ramp up its financial reporting and analysis during tax season, they can work with their offshoring partner to quickly increase the size of their team. Conversely, if the business experiences a downturn or changes in market conditions, they can scale back their finance and accounting team without having to worry about layoffs or other personnel issues.
4: Improved efficiency
Another advantage of working with an offshoring company that specializes in finance and accounting is the potential for improved efficiency. These companies typically use advanced technologies and processes to streamline financial operations and reduce the risk of errors or delays.
For example, an offshoring company may use automated software to handle routine accounting tasks, such as data entry or reconciliations, which can free up their team to focus on more complex issues. Additionally, offshoring companies often have robust quality control processes in place to ensure that financial reports and other documents are accurate and error-free.
5: Access to cutting-edge technology
Offshoring companies that specialize in finance and accounting often invest heavily in the latest technology and tools to stay ahead of the competition. This means that businesses that work with these companies can benefit from access to cutting-edge software, data analytics platforms, and other technology solutions that they may not be able to afford on their own.
For example, an offshoring company may use artificial intelligence (AI) or machine learning (ML) algorithms to identify patterns in financial data or automate routine tasks. These technologies can help businesses to gain deeper insights into their financial performance, improve forecasting accuracy, and reduce the risk of errors or fraud.
6: Improved risk management
Another benefit of working with an offshoring company that specializes in finance and accounting is improved risk management. These companies typically have a strong understanding of financial regulations and compliance requirements in their respective countries, which can help businesses to navigate complex regulatory environments and avoid costly penalties.
Additionally, offshoring companies often have robust security protocols in place to protect sensitive financial data from cyber threats or other security breaches. This can give businesses peace of mind knowing that their financial information is in good hands and reduce the risk of financial fraud or other security incidents.
7: Access to a global talent pool
Finally, working with an offshoring company that specializes in finance and accounting can give businesses access to a global talent pool. These companies often employ financial professionals from around the world who have diverse backgrounds and perspectives.
This can be particularly valuable for small & independent CPAs to scale their business with clients that operate in multiple states in the US or have a global customer base. Working with a team of financial experts who understand different cultural norms, languages, and business practices can help businesses to better serve their customers and make informed financial decisions.
In conclusion, while offshoring finance and accounting functions may seem like a daunting prospect for small & independent CPAs, there are many advantages to working with an offshoring company that specializes in this area. From access to specialized expertise and cost savings to improved efficiency and risk management, you can benefit in many ways from partnering with an offshoring company.
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Finsmart Accounting with its 15 years of outsourced accounting space uses its own proprietary framework called DPPT - Definition, Process, Precision & TAT that has been the success mantra for supporting the firms in the US to stay ahead of the competition.
By partnering with an experienced offshore bookkeeping services provider in India like Finsmart Accounting, CPA firms can access a team of professionals who are knowledgeable about the latest technologies, up to date with ever-evolving accounting norms, and also domain experts in US accounting
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