Strategies for Successful Offshore Accounting: What You Need To Know

Offshoring accounting has become a popular trend among US employers in recent years, with many companies looking to save costs and improve efficiency by outsourcing their accounting tasks to overseas locations. 

However, the success of offshoring accounting depends on more than just reducing expenses. It requires careful planning and execution to ensure that the offshore team is integrated seamlessly into your company’s financial operations and delivers high-quality work. 

In this article, we will discuss how to make offshoring accounting successful. From recruitment to sustaining success in the long run, we will provide practical tips and advice to help you navigate through this process smoothly.

Why Is Offshoring Accounting Important?

Before we get into the strategies, let’s first understand why offshoring accounting is important.

As mentioned earlier, one of the main reasons for offshoring is cost savings. By outsourcing accounting to a location with lower labor costs, you can save significant amounts of money on salaries and overhead expenses.

Another benefit is access to a larger pool of skilled professionals. Offshore locations such as Latin America (LatAm) have a growing number of highly qualified and experienced accountants who are fluent in English and familiar with international accounting standards. 

Moreover, by delegating complex and non-core operations like bookkeeping, payroll processing, and tax compliance and preparation to an offshore finance team, you can free up your in-house staff to focus on critical tasks, leading to increased productivity and efficiency. 

Offshoring may also allow you to operate 24/7 depending on the time zone of your offshore provider. This can be especially beneficial for businesses with clients or operations in different parts of the world. 

You can also often find a team in the same time zone as you, such as in LatAm, if you are looking for real-time collaboration or support.

How To Ensure Success When Offshoring Accounting

Though the advantages mentioned above are compelling, offshoring accounting also comes with its own set of challenges. 

Here are some essential strategies to make offshoring accounting successful for your business:

Select the ideal offshoring location

Choosing the right offshoring location is crucial for the success of your accounting team. Some factors to consider when selecting a location include:

• Time zone differences
• Availability of skilled offshore accounting professionals
• Cultural alignment
• Infrastructure capabilities

For example, if you are based in the US and want to outsource accounting to LatAm, countries like Mexico or Colombia may be ideal due to their proximity and similar time zones. 

Additionally, these countries have a large pool of highly educated finance professionals who can provide high-quality services at competitive rates.

Choose the right offshore accounting service provider

Partnering with the right offshore accounting service provider is crucial for the success of your offshoring venture. Consider factors such as their reputation, experience, and expertise in providing finance and accounting services. 

They must also comply with all legal and regulatory compliance requirements in both your home country and the offshoring location. 

Additionally, communication and cultural fit are essential when selecting an offshoring provider. You want to work with a team that understands your business goals, values, and internal processes to ensure seamless integration.

Effectively communicate with the offshore accounting team

Effective communication is key when it comes to offshoring accounting. Establish clear communication channels and protocols from the start, such as using project management tools or videoconferencing software. 

Properly onboard the offshore team by setting expectations, providing training on company accounting processes and systems, and introducing them to your company’s culture. Regular communication with the offshore team is also crucial for success. 

Provide constructive feedback regularly and evaluate their performance to ensure that they are meeting your expectations.

Implement best practices for long-term success

Offshoring accounting is not a one-time process. It requires continuous monitoring and improvement to sustain success in the long run. 

Implement best practices such as establishing key performance indicators (KPIs) and metrics to measure the offshore team’s performance. This will help you identify areas for process improvements and make necessary adjustments. 

Maintaining a strong working relationship with the offshore team is also crucial for long-term success. Schedule regular check-ins, celebrate milestones together, and foster a collaborative environment to build trust and camaraderie.

Top 8 Companies To Make Offshoring Accounting Successful

To make your choice a little easier, here are our picks for the top recruiting and accounting firms that can help make your offshore accounting endeavors successful, in no particular order:

1. Near

At Near, we specialize in recruiting top talent from LatAm to help companies scale their teams at speed. 

Our team has years of experience sourcing and placing highly skilled accounting professionals who are well versed in international regulatory standards. We also provide ongoing support to ensure a smooth integration and sustained success for our clients.

Need more proof? Cybersecurity firm CyberFortress hired the finance and accounting professionals they couldn’t find in the US with our help, saving them $500,000 and a third of their hiring time. We can help you achieve results that are just as exciting!

2. Velan Bookkeeping

Velan is an internationally certified bookkeeping service that helps companies of all sizes with their finances. It is based in Dover, Delaware, and has expertise in most accounting software, including QuickBooks, Sage, and Xero.

Its offshore bookkeeping and accounting services include setup of accounts, cleanup of books, accounts payable and receivable, consolidated financial reporting, MIS reporting, budgeting, forecasting, custom bookkeeping tasks, and more.

3. Entigrity

Sugar Land, Texas-based firm Entigrity is an offshoring company specializing in recruiting for accounting firms from India and the Philippines. It is trusted by over 850 accounting firms and is ISO-certified.

The company provides staff to perform a variety of financial services, including auditing, assurance, accounting, back office, and tax activities. With over 200,000 pre-screened professionals, there is sure to be someone who can fill your vacancy.

4. CapActix Business Solutions

CapActix is an accounting outsourcing and tax preparation firm with a corporate presence in the US, India, Australia, Dubai, and East Africa. Its team consists of certified advisors in QuickBooks and Xero, and it was one of Clutch’s Top B2B Companies for 2021.

Its offshore staff can handle roles like accountants, bookkeepers, tax preparers, tax reviewers, accountant supervisors, staff accountants, AR/AP billing executives, audit support staff, QuickBooks experts, virtual CFOs, virtual assistants, and more.

5. MicroSourcing 

A subsidiary of Probe CX, MicroSourcing is an offshore team builder that offers accounting outsourcing to the Philippines. With 13 offices in the US and globally, it is a member of several Filipino organizations and Great Place to Work certified.

The accounting roles MicroSourcing can fill include accountants, accounts payable officers, finance specialists, bookkeepers, accounts receivable officers, auditors, payroll specialists, tax specialists, and quality assurance specialists.

6. Credfino

Credfino is a Boston, Massachusetts-based smart sourcing and remote staffing firm that provides offshore accounting and bookkeeping services to certified public accountant (CPA) firms. It is trusted by global firms of all sizes.

Credfino offers resources for bookkeeping and admin, accounting, audit support, and CFO functions. Its offshore accountants are also equipped with blended skills, meaning one person can fill multiple roles and needs.

7. Safebooks Global

Offshore staffer Safebooks provides offshore accounting solutions for US-based CPA firms from its location in Sheridan, Wyoming. The firm has helped over 100 clients and has filed over 1,500 US tax returns.

The roles it can staff include associate bookkeepers, associate payroll accountants, senior associate accounts payable/receivable offshore accountants, and senior associate accountants. Its accountants from India are experts in Xero, Sage, FreshBooks, Wave, and QuickBooks.

8. Datamatics Business Solutions

Datamatics is an outsourcing partner for global CPA practices that offers bookkeeping and offshore accounting services. It has over 40 years of experience and received multiple awards at the 2022 UBS BPO Innovation Summit and Awards.

Its bookkeeping services include accounts receivable and payable, aging reports and summaries preparation, bank account reconciliation, credit card reconciliation, inventory reconciliation, fixed assets accounting, and month-end closing and reporting.

Final Thoughts

Offshoring accounting can be a game-changer for your business, but it requires strategic planning and execution to ensure success. 

By selecting the right location and service provider, communicating effectively, and establishing best practices from the start, you can maximize the benefits of offshoring while avoiding potential pitfalls. 

At Near, we specialize in recruiting top talent from LatAm to help businesses like yours succeed in offshoring accounting. Our team of experts will guide you through every step of the process and provide ongoing support to sustain success in the long run. 

So why wait? Contact us today to learn more about how Near can help make your offshoring accounting a successful and seamless experience. Book a free consultation call or fill out our form to get a list of pre-vetted accounting candidates. 

Don’t miss out on the opportunity to save costs, increase efficiency, and take your business to new heights with offshore accounting!