In a 2020 article for Accounting Today, Accounting consultant, August Aquila emphasizes on offshoring as a strategic tool for CPA firms. He says that it helps such firms to keep up with increasing competition and in the growth of the business. Increasing capacity, reduced labor expenses, and access to specialized expertise that may not be available in-house can be achieved through outsourcing.
The offshoring industry has been witnessing tremendous growth. Several industries like IT, legal, marketing, and HR have found refuge and success in offshoring as a business model. However, Finance and Accounting have been known to lead the way. The revenue forecast of this industry in terms of their business process outsourcing is expected to be 110.74 billion dollars in 2030. Offshoring has become popular and there is no doubt about it. But the question lies are the firms gaining the success that they deserve with offshoring?
Offshoring accounting, bookkeeping, and taxation is often tricky, especially for small CPA firms. From budget to resource constraints, lack of time to lack of technological knowledge – there are several shortcomings for these firms. Such firms need to take advantage of the business model in the right way to ensure that they attain maximum benefits.
These are the reasons why Finsmart Accounting – trusted globally for accounting outsourcing services – decided to share offshore staffing recommendations and qualities to look for in your offshore accounting partner. Let’s start with the process.
Essential processes to ensure efficient offshoring:
1. The right way to interview: Before onboarding, when you talk to the prospective offshore partners, it is essential to establish a personal connection. Switch to a video call instead of an audio one. Get a clear understanding of their technical expertise, communication skills, cultural fit, and willingness to adapt and learn. Have your questions ready before entering the meeting. If needed, conduct multiple rounds with the relevant stakeholders, which will help the leaders make informed decisions.
2. Dedicate an anchor: Just like to hire an internal member there is a designated HR resource, you should follow the same approach when onboarding an offshore partner. A dedicated account manager not only helps the team with someone to reach out to understand the goals, expectations, and objectives of the firm but also helps them navigate smoothly through the process. The account manager can also oversee the offshore accountant’s day-to-day activities. This resource must possess excellent leadership and communication skills and knowledge of accounting. In short, this is critical for offshore staffing!
3. Onboarding process: The onboarding process for your new offshore partner should be comprehensive and should include everything about the company – culture, values, and goals. Your new team will also need the tools, software, and resources needed to succeed. During this process, it is also essential to set out clear roles and responsibilities, expectations, deadlines, and proper knowledge transfer. Make sure that this session has an agenda and objective, and is not extended unnecessarily.
4. Thorough training: No matter how experienced the offshore team is, every CPA firm is different – their way of operating, their flow of work, the software they use, and the kind of client base they have. In the initial days, the team needs thorough training. Make sure to provide detailed instructions, document the process thoroughly, and conduct informative training sessions to ensure that the team is on the same page. Before they start working on clients, make sure that they familiarize themselves with the roles.
5. Clear and right expectations: The success of the offshore staffing partnership is a responsibility that lies on both parties. Besides letting the team know all about the company, it is also imperative to be clear on other expectations – performance, deliverables, and quality to be maintained, if they need to interact with the client, client expectations, frequency of calls, scope of work, etc. Make sure there is no space for assumptions that lead to error.
6. Documented process: Verbal communication always leaves room for error. To ensure end-to-end success, small CPA firms must establish a documented process that includes the best offshoring practices. Documentation that includes standard operating procedures, detailed workflows, and guidelines about the work or software. This helps build consistency, reduce errors, and much-needed clarity.
7. Phase-wise building of the offshore team: Building an offshore accounting staff needs time, patience, and strategy. Small CPA firms should not transfer all the tasks they need to outsource in one go. The ideal way is to start small and start right – outsource with one task and move on to increase the responsibilities. Gradual and effective training, adjustment of process, feedback sessions, and minimal disruption can lead to a long-term and successful partnership.
Now that you understand the right approach for efficient offshore staffing, it’s time to understand qualities to look for in your offshore partner. Below are the signs that you have made the right choice with your offshore partner.
Must-have offshore accounting partner qualities
1. Professionalism: The right offshore partner should be confident, ethical, and know how to work with their clients (CPA firms) and the end client. From being responsive to queries or concerns to providing clearer explanations in case of an error and owning their mistakes – the offshore partner should be progressing positively in the partnership.
2. Communication: A good offshore staffing team should be able to and agree to effective communication through email, chat, phone, and video calls depending upon the needs of the project and the firm. This helps maintain transparency between both parties and avoid miscommunication.
3. Pricing: Partnering with an offshore firm can be truly daunting for a CPA firm. There are so many differentiating factors; transparency in pricing should be the least of their worries. Offshore partners like Finsmart accounting make sure that the pricing is transparent and the small CPA firms can make an informed decision even before they speak with the offshore team.
4. Seasoned staff: Offshore staffing providers can truly help the CPAs when they are experienced and qualified, and have the urge to learn new processes or technology. With offshore bookkeeping staff adept in bookkeeping, taxation, AR and AP, and CFO services, small CPA firms can offload their tasks sooner, need less hand-holding, and can expect higher accuracy.
5. Up-to-date with technology: The right offshore staffing partner must have access to new-edge technology. The team should have used, and be willing to learn new software, platforms, etc. By choosing the right partner and leveraging their expertise, CPA firms can work faster, perform better, cater to more clients, and ensure security.
Smart Accounting Offshoring With Finsmart
When done right, accounting staff offshoring can be a game-changer for small CPA firms. Reduced operational costs, increased efficiency and better service to the clients are some of the common benefits that they can achieve.
The world is advancing at a rapid speed; for CPA firms, faster than ever. Bookkeeping offshoring is no longer just an option, it’s a strategic move that helps CPA firms thrive and grow. A well-planned approach and a commitment to grow continuously with offshoring can help small CPA firms find their place in the market and succeed in the evolving space of accounting.
Want to partner with the right offshore team? Write to us about your accounting needs at connect@finsmartaccounting.com.
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Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
