Posted by Angelica Garcia
Apr 29, 2025
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For many finance and accounting firms today, growth is both an opportunity and a challenge. On the opportunity side, growth typically means an increase in revenue, client base, staff and market share.
Read: Bookkeeper vs. Accountant vs. CPA: Which One Should You Hire?
Why Is It So Hard to Hire the Right People Today?
On the other hand, growth also brings challenges —especially when it comes to hiring the right talent. Below is a list of common difficulties many accounting firms are currently facing:
1. The Ongoing Talent Shortage
According to the American Insitute of CPAs (AICPA), 75% OF CPAs are expected to retire within the next 15 years, which means the industry is currently in the era of facing a well-documented talent shortage, leaving firms a sense of urgency to find qualified replacement in their organization.
In light of this situation, it is understandable that firms are now in the verge of asking themselves a tough question: “Should we still continue hiring local accounting staff — or do we consider offshore accounting support instead?”
This question isn’t just a matter of comparing what’s cheaper in terms of cost and labor availability. It’s about having a contingency plan in place for a scenario that could potentially disrupt service delivery, client relationships, and the long-term sustainability of your company.
2. Rising Labor Cost
As the demand for skilled accountants increases, so do the labor costs. Accounting firms are facing higher salaries and compensation packages to attract top talent, making it more difficult to keep up with the rising costs.
This is especially true for small and medium-sized firms that don’t have the resources to compete with larger companies.
In addition, as inflation continues to rise, so do salaries and wages, which means that accountants are more likely to leave their current positions for better opportunities. As a result, accounting firms are paying more for the same amount of work, which can cause a significant drain on their bottom line.
3. Retention Issues
Even after hiring the right people, retaining them has become another challenge for many organizations. Accounting professionals can be enticed by better opportunities elsewhere, and turnover rates in the industry are high.
This not only affects team morale but also leads to the increased cost of recruitment, onboarding, and training new employees again and again. As such, organizations need to develop strong employee retention strategies that go beyond salary and benefits.
For example, companies can help employees grow in their careers. This means giving them chances to learn new skills, get trained in different roles, and have mentors to guide them. When people see a future in the company, they’re more likely to stay as they feel valued and invested in.
4. Cultural Fit and Alignment
Let's face the fact that the accounting industry is a highly specialized field, and it’s important for firms to hire people who are not only skilled but also have the right cultural fit.
This means that they should share the same values, work ethic, and goals as your organization. If you don’t take this into account when hiring new employees, you could end up with a team that doesn’t work well together at all or doesn’t perform at their best. To know more about the importance of it, you may refer to this article.
4. Skills Gap and Specialization
As the industry becomes more competitive, clients are looking for qualified talents who specialize in a certain area. This means that they want to work with someone who has a deep understanding of their industry or processes and can provide them with the best possible solution.
If you don’t have this specialized talent on your team, it could be difficult for you to win new business or retain existing clients.
6. The Rise of Remote and Hybrid Work Set Up
Lastly, with the increasing demand for remote and hybrid work set up, more and more people are looking for jobs that allow them to work from home or anywhere in the world. This is especially true for Gen Z or generation Z, who are now entering the workforce and have different expectations than previous generations.
On top of this, a survey conducted by Gallup shows that six in 10 employees with remote-capable jobs want a hybrid work arrangement. About one-third prefer fully remote work, and less than 10% prefer to work on-site. This means that if you don’t offer this type of flexibility on your team, it could be difficult for you to attract top talent or retain existing employees.
How to Know if Offshore Accounting Is Right for You?
Now that we’ve discussed the challenges of finding the right talent, the next step is to assess whether offshore accounting fits your firm’s current situation and future goals.
Offshoring isn’t a one-size-fits-all solution — but for firms facing hiring delays, rising costs, or limited access to specialized talent, it could be the strategic support you need.
Here are a few questions to help you evaluate if it’s the right move:
1. Are you struggling to find specialized talent?
If you’ve been trying to fill roles for months with no success, then offshore support can bridge that gap — quickly and cost-effectively for your organization.
2. Are increasing labor costs slowing down your growth?
If you’re finding that the cost of hiring locally is becoming a burden, then it is a sign to reach out to a reputable third-party service provider.
3. Do you need to expand your team but lack the bandwidth?
If your current team is stretched thin, and you’re finding that you need to hire more people but don’t have the time or resources to do so, then it may be worth considering reaching out to the right provider who offers the services you need.
4. Do you want your team to focus on higher-level tasks?
Lastly, if you're in the middle of thinking about whether or not to offload the repetitive tasks of your in-house team, it’s essential to consider the value of your team’s time.
Think about routine tasks such as data entry, payroll processing, or basic bookkeeping that can be time-consuming and may not require the expertise of your highly trained staff. By offshoring these routine tasks, your team can focus on more strategic activities like financial analysis, planning, and advisory services, giving your organization more time to process things quickly.
If you found yourself answering “yes” to two or more of these questions, offshoring may be worth exploring. But before deciding, it’s important to understand how offshore accounting actually works — and what it looks like in practice.
Read Next: 7 Reasons Why You Should Work with Offshore Accountants
Understanding Offshore Accounting
Offshore accounting is the practice of subcontracting accounting services to external providers. It’s best for firms that are looking for talents who are not available in their local area. This type of service is usually offered by companies that have offices in different countries and can provide you with the same quality of work as your local accountants.
What’s Fueling the Move Towards Offshore Accounting?
Now that we’ve covered what offshore accounting is, let’s look at the reasons why more firms are making the shift.
In recent years, more and more accounting firms — both large and small — have started to rethink how they build their team structure. The decision to go offshore isn’t just about cutting costs anymore. It's now driven by a mix of practical needs, industry changes, and long-term business goals.
Below are more reasons why firms are embracing offshore accounting:
1. Cost-efficient labor and overhead costs
One of the most prominent reasons why organizations outsource is that they can reduce labor and overhead cost by up to 50%.
In countries like the Philippines, for example, the cost of living is much lower than in the US. This means that accountant salaries are also lower, making it more affordable for companies to hire qualified professionals at a fraction of what they would pay locally. To see a detailed comparison between the salaries of in-house and outsourced accountants, you may refer to this article.
2. Talent Shortage in the Local Market
Given the ongoing challenges in recruitment and talent retention, plus the increasing demand for experienced accountants and specialized skills, it is becoming more and more difficult for organizations to find the right talent in their local market.
This is especially true for small and medium-sized businesses, which often lack the resources to compete for top talent in their local job markets. In addition, many organizations are finding that they need to hire more accountants than they can find locally due to increased regulation and compliance requirements.
As a result, there is no doubt that offshoring has become a strategic move for any firm that are on the lookout for hiring and finding a qualified candidate. Not only do these service providers offer access to a wider talent pool, but they also provide round-the-clock support to your in-house team.
3. Demand for Greater Flexibility
As client demand increases, firms are also finding that they need to be more flexible to meet the needs of their clients. If not, then this might mean that they may lose the client to another firm that can offer this service.
For example, if a client wants to work with an accounting firm that has experience in international tax planning, then it’s important for the firm to be able to provide this service. By outsourcing services that are not available in-house, firms can still deliver the exact support their client needs.
4. Enhance Business Continuity
A distributed workforce provides a natural layer of resilience in the organization. With offshore accounting, you’re not relying solely on one location to manage your financial operations.
If in case disruptions happen — whether due to local power outages, natural disasters, or unforeseen staff turnover — your offshore accountants can keep the organization working without delays, giving you the upper hand and safety net in times of uncertainty.
5. Boost Company Productivity
Lastly, organizations want their staff to be more productive — not just busier. That’s a big part of why offshore accounting has become such a smart move for firms looking to maximize their internal resources.
By delegating routine and time-consuming tasks to offshore professionals, in-house teams can focus more on higher-level tasks and client-facing responsibilities. This shift doesn’t just lighten the load — it elevates the quality of work and improves employee morale.
What to Look for in an Offshore Accounting Partner
If you’re thinking about working with an offshore team, choosing the right partner matters. Here's what to check before signing any deal:
a. Experience
The first thing you need to consider is to look for a partner with experience in your industry, as well as with similar-sized companies. You want to work with someone who understands the unique challenges of your business and can help you overcome them.
b. Reputation
Another thing to check out is their reputation online. See if they have good reviews from their clients and check if they have a testimonial page, so you can assess whether or if they are a right fit for your organization.
c. Communication
Check their communication protocols and processes, as these are crucial aspects that can make or break the partnership. Make sure to work with someone who is responsive and can communicate clearly. This helps you avoid being left hanging when you have questions or need help.
d. Data Security and Privacy
One of the most important aspects when reaching out to an accounting outsourcing provider is making sure that they have the right data security and privacy in place. This is especially important if you’re outsourcing your accounting to a company that’s located outside your country.
You want to make sure that they have the right security measures in place because it involves sensitive information like social security numbers, bank account numbers and more. Make sure that the provider has a secure system in place that will protect your data from being hacked or stolen.
e. Flexibility and Scalability
As your firm grows, your offshore team should be able to grow with you. Choose a provider that offers flexible services, so you can scale your team up or down when needed.
f. Clear Onboarding and Support
Lastly, a good partner will guide you through the setup process. They’ll help with onboarding, training, and support — so your team can start strong and keep improving along the way.
Bottom Line
Whether you choose to hire locally or offshore, the key is making a decision that supports your organization’s future. Yes, offshore accounting might be worth exploring — especially if your current setup is holding you back from growing or serving clients.
But make sure to take time to assess your needs, understand what offshore partners offer, and choose what’s best for your team and clients.
In Need of a Reliable Accounting Outsourcing Partner?
Consider D&V Philippines. D&V Philippines is a business process outsourcing firm specializing in finance and accounting that has been in the industry for more than a decade.
Serving clients all around the globe, we pride ourselves on delivering quality accounting solutions. You may talk directly with our expert today to find out more about how we can help you.
You can also read testimonials from our clients and access our whitepaper D&V Philippines’ Solutions for Modern Accounting Firms to know how we can build a great back-office support for your organization.
