A 2024 IPA (Inside Public Accounting) survey found that nearly 50% of accounting firms have opted for offshoring or outsourcing accounting staffing models to tackle the ongoing talent crunch in the industry. Clearly, you’re not alone in facing this challenge. Offshore Accounting Staffing is a strategic solution, and if you’ve been hesitant about how your clients might react, there’s a way to gain their confidence and get them onboard.
In this blog, I’ll share actionable tips on how to make this happen.
According to the latest PCPS 2024 survey, attracting skilled professionals is the top concern for firms with 2-21+ professionals. The challenge of “Finding qualified staff” has become even more critical for smaller firms compared to 2022.
This highlights the growing urgency of addressing talent shortages to ensure firms can continue to provide high-quality services to their clients. In simple words, there’s a high demand for accounting work, but not enough supply of skilled professionals in the country.
Despite this, clients may still hesitate about offshore accounting staffing.
As an industry professional, you know these myths don’t hold ground, but your clients might not. They will, however, notice delays if the talent shortage isn’t addressed.
It’s your responsibility to present offshore accounting as a viable solution.
Start by presenting a clear picture of how a shortage of skilled staff affects the clients. When the workload exceeds the task-to-staff ideal ratio, it will affect clients by:
Delays, communication breakdowns, and missed opportunities for strategic advice can lead to client frustration and dissatisfaction with the accounting services they receive.
It’s highly likely that most of your clients won’t even question your decision to transition to offshore accounting. Typically, clients are more concerned about the quality of the output. If you continue to deliver the level of service they expect, whether with onsite staff or virtual accountants, it won’t matter to them.
For the few who might have concerns, it’s essential to craft your messaging thoughtfully. Put yourself in your clients’ shoes and consider the potential reasons they might be hesitant about offshore accounting staffing. Address these concerns. Even then if they are not convinced, present the successful pilot project outcomes.
Start by informing your clients about the ongoing talent shortage in the accounting industry and how it impacts on your work. Ensure them that your decision to transition to offshore accounting isn’t about cutting payroll costs. Emphasize that your onsite staff will remain, and the offshore team will act as additional support—more hands to handle work more efficiently.
Share your due diligence process in selecting the offshore partner, highlighting their success record and years of experience.
For example, our clients tell their clients, “Our staffing partner supports over 100 accounting firms,”. This builds a sense of trust and security.
Reassure your clients by sharing the credentials of your new offshore teammates and outlining the communication channels you’ll establish for seamless collaboration. By being transparent and proactive, you can foster confidence and demonstrate your commitment to maintaining high-quality service.
1. Increased Efficiency and Faster Turnaround Times:
Offshore accounting staffing allows your firm to delegate routine tasks like bookkeeping, data entry, and payroll processing to a skilled offshore team. This frees up your in-house staff to focus on higher-value services for your clients, such as complex tax planning, financial analysis, and strategic consulting.
With an offshore team working in a different time zone, tasks can be completed around the clock, potentially leading to faster turnaround times and improved efficiency overall.
2. Access to a Wider Talent Pool and Specialized Expertise:
The talent shortage in accounting can limit the availability of qualified professionals locally. Offshoring opens a global pool of talent, allowing you to find qualified accountants with specialized skills and experience that might be difficult to locate in your immediate area.
This can be particularly beneficial for clients with complex needs that require specific industry knowledge or international tax expertise.
3. Cost-Effectiveness and Potential Savings:
Salaries and benefits for accounting professionals can be lower in offshore locations such as India. This can translate into lower costs for your firm, which can then be passed on to your clients in the form of competitive pricing or additional services.
Offshoring can also help your firm manage workload fluctuations more efficiently. You can scale your offshore team up or down based on client needs, potentially reducing overall operating costs.
4. Communication and Accessibility:
Offshore teams often work in different time zones, making them readily available to answer client questions or address concerns outside of traditional business hours.
Depending on the location of your offshore team, they might have fluency in multiple languages, which can be an asset for clients with international operations
5. Improved Service Quality and Client Satisfaction:
By offloading routine tasks, your in-house staff has more time to focus on providing personalized attention to clients. This can lead to a deeper understanding of their needs and the development of more strategic financial solutions.
Ultimately, offshoring, when implemented effectively, can lead to increased client satisfaction by improving service quality, efficiency, and potentially reducing costs
You’ve decided to leverage offshoring as a strategic solution for your accounting firm but are unsure how to transition your clients smoothly.
Here’s a guide to help you through the process with a focus on client segmentation.
1: Segment Your Client List
Understanding your clients’ comfort level with new technologies and service models is key to successful onboarding. Here’s how to segment your client list:
Example:
Based on the segmentation criteria, Client A and Client C seem more likely to be receptive to offshoring. Client B might need more convincing due to their established system.
2: Start Small and Showcase Success
Don’t overwhelm clients with a complete shift from the outset.
3: Gradual Expansion and Client Onboarding
As you demonstrate the value and success of offshoring with your pilot client, you can gradually expand:
4: Ongoing Communication and Client Feedback
Maintaining open communication is crucial throughout the process:
The talent shortage in accounting is a real challenge, but offshore accounting staffing offers a strategic solution. By addressing client concerns proactively and showcasing the benefits, you can navigate a smooth transition and gain client buy-in.
At Credfino, we specialize in helping first-time offshoring accounting firms get the best out of offshore accounting. As Professional Offshore Accounting Services Providers, we support over 100 CPAs and accounting firms in the USA and Canada.
We believe in helping you build your own team and develop your unique culture and relationships. We handle the hiring, training, and cultural challenges of managing a team in a foreign country, so you don’t have to.
Looking to expand your team while keeping your clients happy?
Reach out to us today to learn how Credfino can help you scale your accounting firm by building remote teams.
No, it’s about maximizing efficiency. Your in-house team focuses on high-value tasks while skilled offshore staff handles routine accounting functions.
Yes, maintaining personalized service is possible! The key lies in choosing a reputable offshore staffing partner who prioritizes strong communication and understanding your client needs. Your offshore team can take care of your client interactions as well. By establishing clear communication channels (regular meetings, video calls, project management tools) and a dedicated point of contact, you can ensure seamless service delivery even with an offshore team.
I’ve had conversations with hundreds of accounting and tax firm owners about their capacity and profitability challenges. A few of them trusted us as their staffing partner.
In cost-based pricing, you set your fees according to the overhead costs and other expenses you incur. With competition-based pricing, your charges align with what your competitors are charging.
We’ve all been there: what starts as a straightforward project balloon into something much bigger, straining your team, delaying timelines, and eroding your profits.