Offshore accounting firms can take care of your financial statement preparations either periodically or yearly, based on your business needs. Offshoring accounting functions provides tangible benefits for firms looking to enhance their service delivery. However, there’s also a right way to do it and it requires careful consideration and tactical planning. By understanding the intricacies of offshore accounting and implementing best practices, firms can navigate these challenges and unlock the full potential of offshoring.
Cost-Effective
Hammerjack is a Philippines-based company that provides accounting experts to clients. This accounting firm has global clients like General Electric, American Express, AT&T Inc, and many more. Additionally, offshore countries have their own tax and other enforceable laws for the parent companies. For example, Mexican labor law has made it mandatory for offshoring and outsourcing companies to share 10% of their business profits with their employees.
- However, there’s also a right way to do it and it requires careful consideration and tactical planning.
- Your accounting staff or accountant may na have enough skills or experience to handle complex accounting tasks.
- These offshore teams can handle fundamental accounting functions such as bookkeeping, bank reconciliation, accounts payable, accounts receivable, invoicing, and more.
- This accounting firm has worked with global brands like American Express, General Electric, and AT&T Inc.
- Tax preparation services can also help you with international tax compliance so you can avoid charges related to tax evasion.
Where to find offshore accounting services
If you do not have enough employees to handle specific tasks, the tendency is your in-house team will fill in more roles and tasks. They should also be able to complete accounting and finance work without making any mistakes. If not, your in-house accountant may have to cross-check all the calculations — making outsourcing accounting unbeneficial.
Best Practices for Offshoring Accounting
This helps you get accurate data about the total hours your offshore team works. Your accountant’s workload could increase, especially during certain days or a time of the year – which may burden them and increase the chances of errors. By outsourcing accounting, you can get error-free data without overburdening your employees. You can also delegate bookkeeping to an offshore bookkeeping service so that your employees can concentrate on core business tasks that require their attention. Moreover, the accountant in your outsourced firm may know more about the accounting trends as they deal with different types of clients.
Employers get to hire global talent that is suitable for the role they need at a quarter of a local talent’s cost. Businesses often opt to utilize offshore accounting, primarily due to the advantages offered by offshore bookkeeping services. Offshore accounting offers high-quality services at a fraction of the cost of hiring in-house staff, and the outsourced team can feel almost the same as an in-house staff. While most businesses take care of these in-house jobs, some prefer to hire an offshore team from other countries such as India and the Philippines. Note that your offshore accounting team should not cost you more than or equally if you are to hire in-house accounting staff.
Tools and advice for accounting business leaders who do more than solve their clients’ day-to-day problems. Join us at our webinars, live events, or find transposition errors before they turn into a bigger issue leading industry conferences for knowledge-sharing that grows firms and individuals alike. Going offshore is usually an option meant only for corporations or people with a high net worth. Those who do go offshore do business, open bank accounts, or hold investments anywhere overseas. Offshore banking describes a relationship that a company or individual has with a financial institution outside the country of their residence. This requires opening a bank account, and making deposits, withdrawals, and transfers from that account—the exact same way you would with a bank account at home.
Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing. With 15,000+ articles, and 2,500+ firms, the platform covers all major outsourcing destinations, including the Philippines, India, Colombia, and others. You may request a breakdown of all expenses, service fees, and seat overhead charges before giving it a go.
