In today’s competitive business world, accounting firms are constantly seeking ways to streamline operations, improve efficiency, and cut costs. One proven strategy to achieve this is offshoring key tasks to remote teams in countries like India and the Philippine. Offshoring allows firms to access skilled professionals at a fraction of the cost, increase flexibility, and focus on core activities that drive business growth.
If you are considering hiring remote professionals but are unsure where to begin, here are 6 functions commonly offshored by accounting firms:
1. Bookkeeping
Bookkeeping is one of the most frequently offshored tasks by accounting firms. It involves recording daily financial transactions such as sales, expenses, receipts and payments. Offshored bookkeeping services cover a wide range of tasks, including ledger maintenance, bank reconciliations, and managing accounts for businesses of all sizes. This allows accounting firms to maintain up-to-date and accurate financial records without the need for in-house staff.
Offshore bookkeepers are trained to work with various accounting software, making the transition seamless and ensuring that firms continue operating smoothly. As the demand for accurate financial tracking grows, more firms rely on offshoring to handle these routine but critical tasks.
2. Tax Preparation and Compliance
Tax preparation is a labor-intensive and time-consuming task, especially during peak tax season. Accounting firms often outsource tax-related tasks to remote teams that assist in preparing tax returns for individuals and businesses. Offshore tax professionals are trained in various international tax laws and regulations, making them valuable resources for firms that serve clients across borders.
Tax preparation tasks commonly outsourced include reviewing financial data, filing returns, tax planning, and ensuring compliance with government regulations. This service is especially important for firms handling high volumes of tax returns during the busy season, as it allows them to meet tight deadlines without compromising quality.
3. Accounts Payable and Accounts Receivable
Managing accounts payable (AP) and accounts receivable (AR) is crucial for maintaining a healthy cash flow for businesses. Many accounting firms offshore these tasks to help their clients stay on top of their finances. AP tasks include processing vendor invoices, making payments, and managing vendor relationships, while AR tasks involve issuing invoices, tracking payments, and managing outstanding balances.
Remote teams are capable of handling the entire AP/AR process, ensuring that invoices are processed on time and payments are collected efficiently. Offshoring this task frees up time for accounting firms to focus on higher-level financial analysis and client advisory services.
4. Financial Statement Preparation
Preparing financial statements is a routine but important task that accounting firms often offshore. Financial statements include balance sheets, income statements, and cash flow reports, which are used by businesses to assess their financial health. Offshore teams help accounting firms prepare these statements by gathering and organizing financial data and ensuring that reports meet international accounting standards.
This function is typically offshored to experienced accounting professionals who are well-versed in handling financial data and preparing reports that comply with various regulatory requirements. By offshoring financial statement preparation, firms can focus on analyzing these reports and providing strategic advice to their clients. The time zone difference also provides an added advantage.
5. Payroll Processing
Payroll processing is another essential function that accounting firms frequently offshore. Payroll requires precise calculations and attention to detail to ensure that employees are paid correctly, tax deductions are accurate, and benefits are properly administered. Offshore teams manage payroll processing for companies of all sizes, ensuring compliance with local labor laws and tax regulations.
This task is particularly complex for firms with clients in multiple regions, as it involves managing different tax rates, benefits packages, and compliance requirements. Offshoring payroll helps firms manage these complexities while delivering timely and accurate payroll services to their clients.
6. Audit Support
Audit support is an increasingly popular service that accounting firms outsource to remote teams. Audits require thorough documentation, reconciliation of accounts, and verification of financial information. Offshore audit support teams handle these tasks, allowing in-house teams to focus on reviewing findings and providing recommendations to clients.
Offshore audit support professionals are often trained in international accounting standards, making them valuable partners for firms that serve clients in different regions. They have extensive experience and certifications, providing high-quality support at a lower cost.They assist with gathering audit evidence, preparing audit documentation, and ensuring that all financial data is accurately reconciled before submission to regulators.
Offshoring has become a critical strategy for accounting firms looking to optimize their operations, reduce costs, and access specialized talent. By outsourcing functions listed above, firms can improve efficiency and focus on delivering high-quality services to their clients. Offshoring allows firms to scale their operations, meet client demands, and stay competitive in an ever-evolving industry.
