While companies commonly view outsourced accounting as a strategy to fulfill their accounting needs despite limited resource – specifically those who cannot hire their own accounting team yet — it has also become quite common for professional services firms to use outsourced support as a strategy to remain competitive in the field of finance and accounting.
Nowadays, even big professional services firms such as Deloitte and RSM take advantage of the benefits of outsourcing. They usually employ consultants and service providers who specialize in finance and accounting to help with both their internal accounting needs and the services they offer their own clients.
In the end, offshore accounting support remains to be a strategic decision for companies in the finance and accounting industry to expand both their operations and expertise.
But why do they do this?
The world of finance and accounting is considered to be one of the more detail-oriented and tasking fields.
Because of the need for financial management efforts to always be accurate, the need for proper regulatory compliance to remain operational and the need for updated books to help with company direction and growth, all entities require a certain level of accounting expertise to handle their finances. Naturally, it means that accounting firms and other finance and accounting services providers are the ones tasked with handling and meeting these demands.
To meet these expectations, companies must:
Now, while most accountings firms have the quality talent to perform and deliver premium accounting support, the back-end efforts to remain compliant in various industries and localities and stay in-the-know in the latest accounting support may be taxing.
This is where outsourced accounting comes inc. Offshore accounting – which is a type of outsourced accounting — allows firms to tap into support from those who are also experts in the field. As outsourced partners are primarily focused on providing finance and accounting support, you can be assured that they continuously train their teams on the latest accounting trends and technologies and have the knowledge on regulatory requirements for several industries and localities.
Whether your firm decides to outsource because of cost-reduction efforts, want to be able to scale up your operations without hiring an in-house team or want to be able to have an extended team outside of your own locality, then outsourced accounting may just be for you.
While it is true that offshore and outsourced accounting is often seen purely as a cost-saving solution, especially for companies, that are just starting out but need accurate financial records – this is not the case for accounting firms and companies in the finance industry. For firms, this is more than just about savings.
Instead, it can be used as a growth strategy that helps you scale up as needed, offer increased quality outputs and overall remain competitive.
Here are some of the benefits of offshoring that can contribute to your firm's growth.
The flexibility and scalability that offshore support provides allows your company to expand without taking on the heavy investment that often comes with employing in-house talent.
If your company plans to take on new clients, explore new service offerings and/or streamline day-to-day accounting functions but are not completely able to handle the risks of a complete operational overhaul, then offshore team can help make sure that your growth is sustainable – allowing you to scale up or down as needed and putting less pressure on your existing resources and in-house talent.
If your growth involves onboarding several new clients whose requirements are outside of your team's current knowledge-base and experience, you may risk losing these clients because of the time needed to train your team to be able to meet the client's requirements.
To mitigate this, you can simply hire offshore accounting support with the ready skill to provide your clients’ needs. These partners already specialize in finance and accounting support, with processes already built to meet industry standards and have the knowledge, training and technology to comply with the accounting needs of diverse industries and locations.
With this level of expertise at your disposal, the potential to increase your client-base will increase, allowing you to sustainably expand your operations.
Having offshore partners as part of your growth strategy also positions your firm to become globally competitive.
You’re no longer bounded by your limited services or your location restrictions in terms of talent or service reach. With the right offshore support, you can enhance your operational efficiency, improve your accounting practices, gain access to quality talent regardless of location and be able to take on more clients around the globe.
For accounting firms, offshore accounting isn't just about reducing expenses. Instead, it can easily serve as the catalyst for your growth, opening doors to new opportunities. Using offshore accounting as a growth strategy gives your firm the breathing room it needs to scale up without exposing you to increased risks.
As discussed above, offshore accounting support is not only for companies that want to reduce costs. It is also being used by many firms and entities as a way to improve the way they operate, scale up their operations and perform and provide better finance and accounting services.
A wide range of companies now make use of offshore accounting support. From small businesses to large accounting firms, more and more companies are seeing the value of having an extended accounting team that can help their goals and drive their company towards success.
Here are some examples of organizations benefiting from offshore accounting:
One of the most common users of offshore support is companies that are looking for someone to perform their accounting tasks but lack the resources to employ an in-house team.
Hiring an in-house accountant may not always be possible, especially for startups or companies with limited resources. By partnering with an offshore accounting provider, they are still able to get professional and accurate accounting services and perform their accounting and bookkeeping needs without having to invest in in-house training and retention.
Companies that are looking to use offshore accounting support as a growth strategy and not just a way to cut labor costs also benefit greatly from outsourced support.
These companies usually already have an in-house team but are looking for ways to expand their operations without overwhelming their current staff or investing in new hires. With offshore employees for accounting firms, they are able to tap into skilled professionals who can help them scale up operations as needed. Whether that means taking on new clients, offering new services, or simply improving the way their own team works.
Accounting firms and companies in the finance and accounting industry also make use of offshore accounting support. These firms already have qualified accountants on staff, but with the many demands of industry, it is not always easy to keep up with accounting standards, regulatory changes and other developments in the finance world.
From staying on top of local and international compliance requirements to continuously learning new software and trends, having an offshore team that’s ready-trained and able to handle high-volume or complex work helps ease the pressure on their in-house team. It also adds value to the services they offer to their own clients.
Lastly, companies looking for an outside perspective on how they can better manage their company finances also turn to offshore accounting providers such as offshore accounting in the Philippines, Malaysia and India.
These partners do not only offer accounting offshoring services but can also give recommendations on how to make processes more efficient, how to track spending more effectively or how to plan for future financial goals. Getting expert insights from a third party is sometimes what companies need to improve their internal systems and make better business decisions.
Looking for an accounting outsourcing partner can be challenging, but once you select the right provider, everything else follows. But how do you make that decision? Here are some guidelines to follow:
Outsourced accounting services provide you with a more flexible working approach. To make sure that you get the most out of your outsourcing engagement, conduct thorough research about the accounting outsourcing companies that you can work with to help with your firm's operations. Get to know their client portfolio, and if they have worked for companies in the same industry and with the same service offerings as yours.
Find out if their finance and accounting (F&A) expertise can fit your business needs. Learn their workflow, their everyday operations, or how they keep up with the disruptions and innovations in the industry.
As technology disrupts the world of finance and accounting, you must find an offshore accounting services provider that uses top-of-the-line accounting software and offers automated solutions for your basic bookkeeping tasks.
Choose a team that knows how to navigate cloud-based programs such as Xero, QuickBooks, FreshBooks and others. If you have your own accounting software, it would be an advantage if you could train your people to use it to streamline your financial reporting and other accounting tasks.
Aside from these cloud accounting programs,; ask your team about third-party applications they use. Know what third-party applications best complement their accounting tasks and help them achieve optimum productivity.
Another thing to look for in an accounting partner is their agility in keeping up with the changes that innovation brings to the table. Accounting giants are always on the lookout for technological transformation to maintain their A-game. Being updated with the latest trends sets you higher against your competitors and gives you a credible reputation as an F&A outsourcing partner.
Keeping your business complaint is also important. Make sure your team knows the basic tax compliance you and your clients use. If regulations and accounting rules ever change, your outsourced accounting partner should be flexible enough to cope and implement the necessary changes in your system accordingly.
Outsourced accounting solutions efficiently caters to your need for an extended team to handle your finances, improve your cash flow, and contribute to growing your business. It also brings progress aside from giving you a helping hand in your everyday operations.
Effective communication and reliable support are essential to any successful partnership. Hence, you should do your due diligence and evaluate their customer support structure—are they available when you need them? Do they offer personalized advice, or are they more transactional?
A good accounting partner will take the time to understand your business and offer insights tailored to your specific needs. Doing this will help you assess if they align and match your expectations and needs.
Finally, consider the cost of their services relative to the value they provide. Yes, cost is always a factor, but it shouldn’t be the sole determinant in choosing an accounting partner.
Instead, focus on the value they bring to your business. A cheaper firm might save you money upfront, but if they lack expertise or fail to provide strategic insights, the long-term costs could outweigh the savings.
Remember, the cheapest option is not always the best; prioritize value and efficiency over low cost.
Consider D&V Philippines. With our outsourced finance and accounting services, you can stay on top of your core accounting operations while enjoying the benefits of outsourcing.
You may talk directly with our expert today and let us lend you a helping hand to your task. You can also download our D&V Philippines | Solutions for Modern Accounting Firms whitepaper to discover how we can add value to your accounting firm's operations.
This post was first published 17 December 2019 and edited 18 May 2025. Edited by: Aly Tagamolila