With accounting that’s free from inaccuracies and errors, and which is highly efficient, you can help reduce your firm’s expenses, avoid making expensive mistakes, and make financial decisions that are well-informed and which will go on to fuel profitability and growth.
But skilled accountants are currently hard to come by, and when you do find them, they’re pretty costly to retain. So what’s the solution, and is there one?
Fortunately, offshore tax preparation is a convenient and cost-effective way to achieve great results, without breaking your budget, and here’s a bit more about it:
Offshore accounting explained
When a company outsources some of their accounting requirements to an accountant or third-party company overseas, this is known as offshore accounting. By helping businesses make significant savings on costs, giving them access to specialist expertise, and improving the efficiency of their operations, offshore tax and accounting is a strategic choice for many.
Simply by entrusting some (or all) of their routine and complex accounting tasks to an offshore provider, accounting firms can shift their focus to their core competencies, and concentrate on growth.
What are the benefits of offshore accounting?
Offering a number of advantages to CPA firms, offshore accounting enables them to streamline their operations, make the most of their costs, while enhancing the way in which they manage their finances.
Here are just some of the many advantages offshore accounting offers:
- Reduction in costs
Labor costs are exorbitantly high, and for smaller accounting firms in particular, this can hit them pretty hard. By using offshore services, however, accountants can take advantage of lower priced services from skilled professionals living in countries such as India, where salaries are much lower.
Offshoring also eliminates the need for office space (especially if you don’t have any in-house employees), investment in technology and software (the offshore company will have it all), and in-house training for employees.
- Specialist expertise
Highly skilled professionals who are more than competent in a range of accounting practices and standards, are generally available when you use an offshore accounting firm, giving firms access to all the expertise necessary to handle financial tasks with professionalism and compliance. Offshore accounting can also give U.S. companies a global outlook on accounting practices, and financial reporting that’s nuanced; vital for those companies who operate across borders or who are entering a new market.
- Scalability
It’s virtually impossible to replicate the kind of scalability offered by offshore accounting services, with a team in-house. If you want to scale down your operations for any reason, or scale them up, this is simple with offshore accounting in comparison to doing so with an in-house team. Hiring employees at a busy time is time consuming and expensive, while laying them off during quieter times may be even harder.
Accounting firms typically experience fluctuations in workload intensity during different seasons, or rapid growth, and having the flexibility that offshore accounting offers, can be a godsend for them at these times.
- Efficiency
By leveraging the best and latest applications in accounting, streamlining their accounting practices, and making sure all financial reporting is highly accurate and timely, offshore accounting services have the technological edge to help accounting firms be a lot more efficient.
- Financial insights
While offshore accounting firms can be incredibly helpful when managing a wide range of bookkeeping, compliance and tax functions, they are also in a very valuable position for offering financial analysis and insights. And when they offer this, accounting companies are able to get a clearer picture of their financial health, optimize their cash flow, and make plans for growth in the future.
By hiring offshore bookkeeping services, your accounting firm can benefit from all of the points listed above, and make a real name for itself within the industry. Plus, you can alleviate some of the burden that typically falls on your shoulders at certain times of the year, while maintaining a high level of service to your clients, new and existing.