Steps to Flawlessly Outsourcing Tax Return Preparation to IndiaÂ
You are ready for outsourcing tax return preparation to India but not sure of exact steps? This blog has got answers.
Jackie launched her CPA firm back in 2012. After 11 years of running her firm, she finally made the leap to partner with an offshore CPA back office. Â
So, what changed? What made her decide to offload her day-to-day accounting work overseas, and how did she know Credfino was the right offshore partner? (Access to due diligence checklist shared in the end)Â
That’s exactly what this blog dives into!
An offshore CPA back office is a team of skilled accounting professionals based in a different country (typically with lower labor costs). They handle all the backend compliance work —like bookkeeping, tax prep, and financial reporting—so you and your team can focus on client relationships, strategy, and growth.Â
But here’s the catch:Â
Offshoring isn’t just about saving costs (although it does help with that). Yes, you get top-notch work done at a fraction of the cost, but the true value of having an offshore team?Â
FREEDOM.Â
Freedom to:Â
That’s what Jackie did!
Check out Jackie’s video testimonial hereÂ
Want to have an offshore CPA back office just like Jackie? Schedule a call here to get started
Source: JoFaÂ
The accounting talent pipeline issue is no secret. Efforts are being made to address the current shortage, but let’s face it—it’s not going to resolve overnight. So, what can you do in the meantime?Â
The work doesn’t stop:Â
Where Did All the Accounting Talent Go?Â
To truly understand the talent shortage, it helps to look at the workforce by generation—Baby Boomers, Gen X, Millennials (Gen Y), and Gen Z. Each group has distinct characteristics, and as older generations retire, the gap left behind is widening faster than firms can fill it.Â
Firms Taking ActionÂ
Forward-thinking firms are already adapting. Offshoring is no longer just a backup plan; it’s becoming a strategic solution.Â
According to the AICPA’s 2023 National Management of an Accounting Practice (MAP) survey:Â
The demand for accounting services is climbing, and the CPA talent pool isn’t growing fast enough to keep up. Firms that are navigating these challenges successfully are expanding their horizons and tapping into the global talent pool.Â
Saving costs shouldn’t be your primary motive for offshoring. But hey, it’s a perk that’s hard to overlook.Â
According to a quick Google search by Going Concern Article, the median salary for a tax accountant in India is ₹600,000 (around $7,100 USD). Compare that to the average tax associate in Atlanta earning $61,866 per year. That’s nearly 8.7 times more. Â
These numbers are super-misleading. Forget getting an equally capable tax associate at $7,100 USD that too with the quality controls that come with working with an offshore CPA Back office. Â
I am talking about getting an offshore accounting team which brings the real benefits onboard.Â
Those numbers might look too good to be true. Here’s the actual breakdown:Â
The average salary for a tax preparer in the U.S. is around $80,000 annually.Â
Offshore CPA back offices can source similar high-caliber talent in the range of $40,000 to $55,000.Â
That’s up to 50% savings—and without the headaches of W2 forms, payroll taxes, or additional HR costs.Â
What does that mean for you?Â
This isn’t just about saving money—it’s about reallocating those savings. That 50% reduction in overhead? It can fuel growth activities, enhance client service, or invest in new technology to drive efficiency. Â
Many CPAs kick off their firm journey with a handful of clients, focusing on delivering exceptional service. As their reputation grows, so does their revenue—and naturally, the workload piles up.Â
But here’s the challenge: scaling in the midst of a talent shortage can feel like an impossible dream.Â
That’s where an offshore CPA back office steps in.Â
By offloading the backend work—like bookkeeping, tax prep, and financial reporting—you free up your onshore team to focus on high-value client interactions and strategic growth.Â
An offshore tax prep team can be your secret weapon for faster turnaround times. Here’s why:Â
With the right offshore setup, your workflow doesn’t stop when your onshore team clocks out. While you’re winding down, your offshore team ramps up, handling tasks like data entry, document verification, and initial tax prep.Â
By the time your onshore team logs in the next morning, the groundwork is already done. That means they can skip the basics and dive straight into reviews, client calls, and high-value work.Â
It’s like having a team that never sleeps—efficient, seamless, and always a step ahead.
Forward-thinking accounting firms are already unlocking the high-revenue potential of Client Accounting Advisory Services (CAAS).Â
It’s not a new concept, yet many accounting and tax firms still overlook the goldmine that advisory services represent.Â
Here’s a jaw-dropping stat: In 2023, the Big 4 firms pulled in over $80 billion from consulting services alone.
If that doesn’t highlight the growth potential of CAAS, what will?Â
CAAS isn’t just about compliance or bookkeeping. It’s about offering strategic, high-value advisory services that help your clients make smarter decisions, improve profitability, and achieve their goals.Â
But here’s the kicker: before diving into CAAS, your core services need to be rock solid. And your team? They need to be trained and ready to deliver value-driven insights.Â
That’s where an offshore CPA back office becomes a solution:Â
By offloading the operational grind, your firm gets the bandwidth to focus on what matters most—building relationships and delivering top-notch advisory services.Â
If you’ve been feeling the pinch of talent shortages or struggling to scale, it might be time to rethink your operations. Â
Here are five clear indicators that your firm could benefit from an offshore CPA back office:Â
The talent pool is shrinking—and it’s not just about finding skilled accountants in the U.S., it’s about finding them within budget.Â
Here’s the deal: demand for accountants has skyrocketed, but the supply is dropping. Basic economics—when demand outweighs supply, top talent demands top dollar. And for small and mid-sized accounting firms, those wages simply aren’t feasible.Â
Take one of our clients, for example.Â
Robin started her firm by taking on low-price clients just to get her business off the ground. But as demand grew, so did the pressure.Â
She tried hiring and training onsite employees to keep quality in check, but retaining them? That became her biggest challenge.Â
Meanwhile, her workload was overflowing, client deliverables started slipping, and the quality of service took a hit.Â
That’s when she made the switch to an offshore CPA back office—and it changed everything.Â
An offshore back office opened the door to a global talent pool. No more endless job postings. No more empty seats. Just a team of skilled professionals keeping her firm running smoothly—without breaking the bank.Â
If this sounds familiar, it might be time to explore what an offshore CPA back office can do for your firm. Start here. Â
Let’s be real—U.S. salaries are through the roof, and it all comes down to supply and demand. But here’s the thing: no matter what, your client work needs to keep moving.Â
Robin found herself stuck in this exact situation.Â
She couldn’t retain staff because she couldn’t compete with higher-paying firms.Â
So, she turned to hiring freshers, pouring time and money into training them. And just when they started getting good? They’d leave for better pay.Â
Robin was trapped in a never-ending training treadmill, with no way to scale her firm.Â
That’s when offshore staffing entered the picture.Â
With offshore talent, Robin gained access to the same level of skill at a fraction of the cost. Now, instead of blowing her budget on payroll, she’s able to reinvest in growth priorities and finally break free from the cycle.Â
Struggling with similar issues? Offshore staffing might just be your golden ticket. Get started hereÂ
Growth is exciting—but let’s be honest, it comes with its share of headaches.Â
As your firm expands, so does the demand for more hands on deck. But in today’s talent shortage, finding those hands? Not so easy.Â
That’s where an offshore back office comes in. It gives you the ability to scale without burning out your onshore team—or compromising client satisfaction. Win-win.Â
Often different time zone is seen as the challenging part of working with an offshore team, but it has worked in our client’s favor multiple times, Â
Time zones can be your best friend. While your onshore team sleeps, your offshore team is tackling prep work, ensuring that when the day starts, the heavy lifting is already done.Â
Let me tell you about Mr. Johnson, a small business owner in New York, who found himself in a tax nightmare—$15,000 worth of business expense deductions under scrutiny.Â
The notice flagged “improper classification” of expenses as operational costs instead of capital investments.Â
Panic mode: activated.Â
But here’s the twist—his CPA (our client) was already swamped. It was 8 PM, and there was no time to lose.Â
This is where the offshore magic came into play.Â
With India being 9.5 hours ahead of New York, my team stepped in seamlessly.Â
By 11 PM PST:Â
Engagement signedÂ
Authorization completedÂ
Documents receivedÂ
And by the next morning in the US, we delivered.Â
Our team worked through the night, analyzing the disagreement points—capitalization thresholds, asset categorization, and tax treatment.Â
We drafted a comprehensive response, backed with all the necessary documentation and an updated tax return.Â
What looked like a crisis turned into a win for Mr. Johnson—and his CPA.Â
You know where the real revenue lies – Client Accounting Advisory ServicesÂ
And if you are ready to make a leap into it but not having a strong compliance service delivery system is stopping you, then having an offshore CPA back office is the perfect solution. Â
Your onshore team shouldn’t be buried in day-to-day tasks like data entry or reconciliations. An offshore team frees them up to build client relationships, offer advisory services, and focus on growth.Â
Related Read – 5 Common Advisory in Accounting Myths You Shouldn’t BelieveÂ
It’s not just outsourcing—it’s creating seamless collaboration between your onshore and offshore teams.
There’s no shortage of opinions on outsourcing accounting to India.Â
Some swear by it, others love to throw shade.Â
Here’s the deal:Â
It’s not about who’s right or wrong—it’s about what works for your firm.Â
If you’re dealing with any of the challenges we’ve talked about, it’s time to consider making the move.Â
But let me say this loud and clear:Â
The success of your decision depends on partnering with the right offshore team.Â
Don’t wing it.Â
Grab our Due Diligence Checklist for Hiring an Offshore CPA Back Office and make an informed choice.
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You are ready for outsourcing tax return preparation to India but not sure of exact steps? This blog has got answers.
When offshore tax preparation doesn’t work, it’s rarely one-sided. The challenges often stem from both the tax firm and the staffing partner.
Something no offshore accounting partner will tell you – signs that can tell whether a partnership will work before you even get onboard.