Accounting firms of all sizes are increasingly turning to offshore talent to address capacity constraints, manage costs, and improve service delivery. But not all accounting functions are equally suitable for offshoring. This comprehensive guide examines which accounting tasks can be most effectively handled by offshore teams, helping you make strategic decisions about your firm's global staffing approach.
Offshore accounting has evolved significantly from its early days of basic data entry to now encompassing sophisticated accounting functions. According to Future Firm, "The scope of work that can be effectively offshored has expanded dramatically as global accounting talent, technology, and process standardization have matured."
Today's offshore accounting professionals often hold advanced degrees and certifications, with Expertise Accelerated noting that many offshore accountants are qualified Chartered Accountants, CPAs, or hold equivalent credentials, enabling them to handle increasingly complex tasks.
Bookkeeping functions represent the most commonly offshored accounting activities, with Accritic Offshore Accounting reporting high success rates for these services. Let's examine the specific bookkeeping tasks most suitable for offshore teams:
Basic transaction coding and data entry remain among the most frequently offshored functions. ToaGlobal reports that these repetitive tasks can be handled with high accuracy by offshore teams when proper systems and training are in place.
Specific tasks include:
The accounts payable process is particularly well-suited for offshoring due to its standardized workflows. According to IBN Tech, offshore teams can effectively manage:
Similarly, accounts receivable functions follow consistent processes that offshore teams can efficiently handle. Time Doctor highlights these AR tasks as highly suitable for offshoring:
Regular reconciliation work is another area where offshore teams excel. Whiz Consulting notes the following reconciliation tasks as appropriate for offshore handling:
As offshore teams have become more sophisticated, financial statement preparation has increasingly moved offshore. Outsource Accelerator indicates these financial reporting tasks can be effectively offshored:
Tax preparation represents another significant category of accounting work that can be effectively offshored, though with important considerations around review and oversight. Accritic specializes in offshore tax preparation support and highlights these tax functions as suitable for offshoring:
Individual tax returns, particularly less complex returns, are frequently handled by offshore teams. According to Journal of Accountancy, specific components include:
Business tax preparation can also be effectively offshored, particularly for less complex entities. Hire With Near notes these business tax functions as appropriate for offshore handling:
While strategic tax planning typically remains onshore, supporting research can be effectively offshored. KMK Ventures highlights these tax research activities for offshore teams:
The repetitive nature of sales tax compliance makes it well-suited for offshoring. Unison Globus identifies these sales tax tasks as highly effective for offshore handling:
While final audit opinions and client interactions typically remain onshore, significant audit preparation and support can be effectively offshored. Accritic provides specialized offshore audit support services, including these functions:
Pre-audit work is particularly suitable for offshore handling. Innovature Inc highlights these audit preparation tasks:
Many substantive testing procedures can be effectively offshored. 2020 Innovation notes these testing activities as appropriate for offshore teams:
The documentation of audit procedures is frequently offshored. Over Easy Office identifies these documentation tasks as suitable for offshore handling:
As accounting firms expand into client accounting services, many CAS functions can be effectively offshored. Credfino specializes in offshore CAS support and highlights these functions:
Certain controller-level activities can be offshored with appropriate oversight. CFO Club identifies these controller tasks for offshore handling:
Payroll functions, particularly the processing components, are frequently offshored. Accritic provides specialized offshore payroll services including:
As offshore talent becomes more sophisticated, advanced analysis is increasingly offshored. LinkedIn Pulse highlights these analytical functions:
The scope of offshore accounting continues to expand as global talent and technology evolve. Remote Acc identifies these emerging areas for offshore support:
Data analytics increasingly supports accounting functions and can be effectively offshored. Offsite Office notes these analytics tasks:
Offshore teams can provide valuable support for accounting technology projects. Vintti highlights these technology support functions:
As offshore teams develop deeper expertise, industry-specific accounting is increasingly offshored. The Offshore Accountants notes growing capabilities in:
While numerous accounting functions can be effectively offshored, certain activities generally remain onshore. Jetpack Workflow identifies these functions as typically staying local:
Direct client interaction usually remains onshore, including:
High-value advisory work typically stays onshore, including:
Professional standards often require local review and sign-off, including:
To maximize success with offshore accounting, StaffDomain recommends these best practices:
Standardize your processes before transferring them offshore. Accounting Websites emphasizes the importance of detailed procedures, noting that "standardized processes with clear instructions and quality checkpoints are 3-4 times more successful when offshored compared to ad-hoc workflows."
Establish clear boundaries between onshore and offshore responsibilities. Outbooks recommends documenting "who does what" with clear handoff points between teams.
Implement appropriate technology to support collaboration. Future Firm emphasizes the importance of cloud-based systems, collaborative work platforms, and secure document sharing tools.
Develop robust quality assurance processes. FinSmart Accounting recommends multi-level review systems, standardized checklists, and regular quality audits.
Foster collaboration between onshore and offshore teams. Multiplymii suggests regular joint meetings, cross-team projects, and relationship-building activities.
Firms considering offshore accounting often raise important concerns. Here's how to address the most common issues:
Data security remains a top concern when offshoring. Capactix recommends:
Maintaining consistent quality across global teams requires attention. Velan Bookkeeping suggests:
Bridging communication across time zones and cultures requires effort. Offshore Business Processing recommends:
Accritic documented how Summit Accounting Partners, a 25-person regional CPA firm, successfully implemented offshore accounting with the following task distribution:
The result was a 45% increase in client capacity, 38% improvement in profitability, and reduced staff overtime during busy seasons.
If you're considering offshore accounting, Accritic recommends this evaluation process:
Successfully implementing offshore accounting requires thoughtful analysis of which tasks to offshore and which to keep local. The most effective offshore accounting strategies focus not simply on cost savings but on strategic work distribution that leverages the strengths of both onshore and offshore teams.
By carefully evaluating your firm's services against the suitability factors outlined in this article, you can develop an offshore accounting strategy that enhances your capacity, improves service delivery, and supports sustainable growth.
Ready to explore which accounting tasks your firm should consider offshoring? Contact Accritic to learn how our specialized offshore accounting services can help your firm develop an effective global staffing strategy.
