Starting with the most obvious, one of the most significant benefits of offshoring is the potential for substantial cost savings. Labor costs in countries like the Philippines are significantly lower than in developed countries, allowing firms to reduce their payroll expenses without compromising on quality. Maybe you’ve thought of offshoring your accounting before but weren’t exactly sure of what it entails. TOA Global for one leverages the Philippines as its offshoring destination due to its massive CPA talent pool, and high the allowance method definition English proficiency rate.
One good thing about hiring offshore services is that they get to hire a team for a short period, either within their peak season or on red dates. Offshoring is a type of outsourcing practice wherein your service provider is in another country, far away from your geographical location. Hammerjack is an Australian-owned company based in the Philippines, employing accounting experts. This accounting firm has worked with global brands like American Express, General Electric, and AT&T Inc. Additionally, you should ensure that they have employee performance monitoring software like Time Doctor in place.
- Ensure the offshore partner’s culture aligns with your firm’s values and work practices.
- An offshore accounting company also helps you monitor your company’s finances and spending, allowing you to see your company’s cash flow and accounting books.
- This is especially beneficial for tasks that require quick turnaround times, such as financial reporting and client support.
- Offshore accounting involves assigning accounting and financial operations to an offshore service provider.
- It’s not just your offshore team fitting into your firm’s culture, it’s also about you fitting into theirs.
Qualities of good offshore accounting service providers
According to Indeed, the average cost for a Philippines-based offshore accountant is just over $1,000 USD per month. Offshoring frees you from routine accounting functions, allowing you to focus on strategic processes often overlooked. Offshoring enables asynchronous work, which means accounting tasks can be completed at different times without requiring real-time coordination.
Quality Control and Compliance
Understanding and bridging these cultural gaps is essential for building strong working relationships with offshore teams. By leveraging time zone differences, firms can also achieve round-the-clock operations, improving efficiency and responsiveness. This is especially beneficial for tasks that require quick turnaround times, such as financial reporting and client support. Firm Forward is a guide for accounting firm leaders looking to add a global team to their business or have already done so. Offshore banking involves securing assets in financial institutions in foreign countries, which may be limited by the laws of the customer’s home nation—much like offshore investing. Think of the famed Swiss bank account— that James Bond-like account that puts rich people’s money out of reach of their own country’s government.
Refers to a broad range of business accounting services that are done from another country through an outsourcing supplier or offshore accounting practice. The services can include everything from basic bookkeeping, to management accounts to tax accounting and even CFO advisory. One of the major reasons for recruiting an offshore accounting firm is to save money.
Setting Up Offshore Accounts
You’ll also be able to pay your offshore accounting firm based on the number of hours they work for you. You can partner with a cloud outsourcing firm that is more cost-effective when compared to businesses having on-premise servers. You can also avail accounting services at a cheaper rate by offshoring to a developing country. You can also close your books on time as offshore accounting firms usually submit accurate accounting records on time.
State of the Accounting Industry
There are thousands of outsourcing providers available everywhere around the world nowadays. Choose the right offshore accounting service provider that understands your type of industry and needs. Offshoring your tax preparation and filing ensures that you stay compliant with your local, state, and federal laws. This process includes cross-checking financial statements, receipts, bookkeeping, and payroll. For instance, Time Doctor can help you track the time your offshore accountant works on your tasks and projects.