How Offshore CPAs Complement Your In-House Accounting Team

If you are part of an organization that is considering having an offshore accountant, then the first thing you need to know is that offshore accountants are not a replacement for your in-house accounting team.  

They can, however, be a great addition to your organization if you have the right processes in place and are willing to invest time into training them in how your organization works. 

Understanding the differences between a staff accountant and an offshore CPA (certified public accountant) can clarify how these professionals complement each other, enhancing the overall effectiveness of your accounting processes.  

In this blog, we’ll explain the roles of in-house and offshore accountants, how they can work well together, and why hiring an offshore CPA might be the right move for your organization. 

Related: In-House Vs. Outsource Accounting: The Difference 

In-House Staff Accountant vs. Offshore Accountant: What's the Difference? 

Before we talk about why having an offshore CPA can be great for your in-house team, let's first look at what both in-house and offshore accountants do. 

What Does an In-House Accountant Do? 

In-house accountants are key members of your finance team who handle day-to-day accounting tasks.  

Their responsibilities typically include: 

• General Ledger Management: Handling financial records, transactions, and account reconciliations. 

• Accounts Payable/Receivable: Managing invoices, tracking payments, and ensuring timely collection of receivables. 

• Tax Preparation: Assisting with tax compliance, deductions, and filing requirements 

• Internal Reporting: Providing regular financial reports and analysis to the managers. 

• Payroll Management: Managing employee payments, benefits, and deductions. 

What Does an Offshore Accountant Do? 

On the other hand, offshore accountants are professionals located in a different country. They are often employed by third parties (outsourcing companies) and can act as back end support to your in-house accounting team.  

They offer specialized services that can complement your in-house team, such as: 

• Bookkeeping: Recording daily transactions and keeping things organized. 

• Financial Reporting: Preparing monthly reports and helping with budgeting. 

• Account Reconciliation: Checking for any mistakes or missing info in financial records. 

• Financial Analysis: Conducting in-depth financial analysis into your organization finances to give useful advice to the top management for key decision making. 

• Tax Support: For companies that need help with preparing specific tax requirements, offshore CPAs can be an excellent option. 

• Audit Support: For organizations that needs help with audit, offshore accountants can assist in the preparation for both internal and external audits. 

• Cost Management: Offshore accountants can also help identify cost-saving opportunities and advise on efficient resource allocation. 

Read: A Comprehensive Guide to Accounting Outsourcing Services  

Key Differences Between In-house Staff Accountants and Offshore Accountants 

Here’s a table comparing an in-house staff accountant and an offshore accountant so you can see how they complement each other: 

An accountant from offshore outsourcing companies can be a great addition to your team. They can assist in managing day-to-day work, offering insights from global financial practices, and helping your team scale up during peak times while your in-house staff focuses their efforts on higher-level tasks. 

How Offshore CPAs Complement Your In-House Team 

Offshore CPAs can provide several benefits to your organization. Here are a few ways they can support your in-house team: 

1. Reducing Workload by Taking Over Repetitive Tasks

When offshore CPAs take on tasks like data entry, account checking, and report preparation, it lightens the load on your in-house team. This gives your in-house accountants time to focus on other strategic tasks. 

2. Lowering Costs Without Sacrificing Quality

Hiring an offshore accountant can be much cheaper than adding more in-house staff. By cutting costs, you can put more resources toward important areas like technology upgrades or training. 

For example, the latest data from the US Bureau of Labor Statistics reported that US-based accountants and auditors receive a median pay of $79,880 per year or $6,650 per month. On the other hand, working with accountants from offshore locations like the Philippines tend to cost you less. The median yearly salary of full-time Filipino accountants, for instance, is $5,857.49 or $488.12 monthly. This mean hiring an offshore accountant from the Philippines can lower your overhead cost and help you to save you up on your monthly expenses. 

*Based on the converted amount. The original data shows that the average yearly salary of accountants in the Philippines is Php343,073. As of 28 October 2024, $1 is equivalent to Php58.57. 

3. Providing Fresh Perspectives

Offshore accountants often have a range of experiences and can offer fresh ideas to improve processes. They may have worked with different types of clients and can suggest ways to make your workflows or processes more efficient. 

4. Round-the-Clock Productivity

Time zones can work in your favor. When your in-house team finishes for the day, your offshore team can keep the operation working.  

This means that you can have a 24/7 operation, which is especially useful if you have clients in different time zones and helpful if you’re working on a tight deadline.  

You’ll also have access to a larger pool of talent, which means that you can find accountants with specific skills and experience that are hard to find locally. 

You might be interested: How Can You Manage the Risks of Offshore Outsourcing? 

When Should You Consider an Offshore CPA? 

Adding an offshore CPA may be helpful if: 

• Your team is overloaded with routine tasks. 

• You want to control costs without adding more in-house staff. 

• You need temporary support during peak times. 

• You’re looking for specific skills that an offshore accountant can offer. 

If any of these points sound familiar, it might be time to think about hiring an outsourced accountant. 

Read Next: 6 Tips on How to Make your Accounting Outsourcing Engagement Work 

Tips for a Smooth Offshore and In-House Partnership 

For your in-house and offshore teams to work well together, good communication and smart processes are key. Here’s how to make this partnership work: 

Set Up Clear Ways to Communicate 

One way to make the partnership work is to make sure to have centralized communication tools such as Slack, Microsoft Teams, or email. This way, you can ensure that everyone is working on the same page. Regular meetings and updates can also be facilitated through these tools, promoting consistency and clarity in the workflow of your organization. 

Define Roles and Responsibilities 

You must also see to it that everyone knows their task. By clearly defining their job description, it prevents confusion and duplication of efforts within the team. 

Set-Up Shared Platforms 

To make the collaboration easy, you may use cloud-based software for real-time collaboration and data sharing. Platforms like QuickBooks, Xero, or Google Workspace can help both teams work well together. 

Create Standard Operating Procedures (SOPs) 

Consistency is the key to running a successful organization. Hence, creating an SOP within the organization can facilitate a more consistent collaboration between your in-house and offshore accounting teams. 

Check-In Regularly 

Schedule regular performance reviews to see how things are going within your team. This helps spot any issues early on and make improvements if necessary. 

Encourage Team-Building Activities 

Even if your teams are in different locations, it is still important to conduct virtual team-building activities since it will help build rapport and foster a sense of unity within your accounting functions. 

Invest in Training and Development 

Offer ongoing training for both in-house and offshore teams. This ensures everyone stays updated with the latest accounting practices and software. 

By following these tips, you can create a friendly and productive partnership between your in-house and offshore accounting teams. 

Find the Support You Need 

Adding an offshore CPA to your team doesn’t mean cutting back on your in-house staff—it’s about adding support where you need it most.  

By bringing in offshore CPAs, you can free up your in-house team to focus on the tasks that require their expertise and experience; while still getting the support you need to meet your financial goals. Contact us today and we'll help you find the right solution for your needs. 

You can also download our case study, How a US based Accounting and Audit Firm Resolve their Talent Shortages Through Accounting Outsourcing to learn how we helped our US client overcame talent shortages by outsourcing their accounting needs.