The Accounting Profession in US is in crisis. Offshore Accounting is a solution to keep the deliverables moving and even use it as a strategic way to scale the accounting firm. But how to get the dream “offshore accounting team”? The one who could solve the talent crunch problem without making the accounting firm compromise in quality. First step is to look for skills your offshore team must have. And that’s what this blog is about.
The National Association of State Boards of Accountancy (NASBA) and AICPA have both highlighted a “talent pipeline issue,” noting that nearly 75% of AICPA members are at or near retirement age and that the number of accountants and auditors in the U.S. has dropped.
Clearly finding and retaining skilled talent is a big issue. Lack of interest of youth in the profession is fueling the problem.
With a limited pool of accounting talent, offshore accounting teams have emerged as a strategic solution for various companies. Accounting firms of all sizes are increasingly recognizing the advantages of outsourcing their accounting functions to offshore teams.
Many believe that the benefits of offshore accounting is limited to lower labor costs in countries like India. The benefits go beyond saving overhead costs. By offshoring accounting services, firms can:
1) Reallocate their resources more effectively
2) Invest in high value accounting services such as Advisory (CAAS) and growth initiatives
3)Avoid burnout of onshore employees
Offshore accounting teams also provide businesses with increased flexibility and scalability. As workloads fluctuate or new projects arise, offshore teams can quickly adapt and scale their resources accordingly, ensuring that businesses receive the support they need without the overhead costs associated with hiring and training new in-house staff.
The growing trend of outsourcing accounting functions to offshore teams is further fueled by technological advancements and the rise of Virtual accounting.
If you have also burnt your hands with offshoring or you are planning to offshore for the very first time, and don’t want to have a bad experience, I have a checklist for you. DM on LinkedIn and I’ll share it with you.
When outsourcing accounting tasks to an offshore team, it’s crucial to ensure they possess the necessary skills to handle your business’s financial operations efficiently and accurately.
Here’s a list of skills you should look for in an offshore accounting team:
An offshore accounting team must possess expertise in utilizing practice management software to streamline operations and enhance productivity. This includes proficiency in setting up clients, creating projects, assigning tasks, and delegating work effectively.
Setting up clients in the practice management system is a crucial first step. The team should be adept at gathering relevant client information, creating profiles, and ensuring accurate data entry. This lays the foundation for efficient client management and communication.
Once clients are set up, the team should be skilled in creating projects within the system. This involves understanding the scope of work, defining project milestones, and allocating appropriate resources. Proper project setup facilitates better organization and tracking of deliverables.
This tax season, we worked with firms filing 500+ returns to set up their workflows inside Canopy. Our focus wasn’t just on preparing returns — we also helped with review and finalization, making sure the whole process ran smoothly. When you’re dealing with volume, having a clear, automated system matters. Here’s what we helped implement:
Let’s explore what Practice Management Software will be best for you and how we can support your goals.
An offshore accounting team must possess the skills to document processes effectively, implement automation tools, and set up robust reporting infrastructure. By documenting processes meticulously, the team can ensure consistency, efficiency, and knowledge transfer across team members. This documentation should cover tasks such as setting up clients, creating checklists, and assigning responsibilities.
Creating and maintaining SOPs are critical for maintaining consistency and quality across different time zones and locations. Good SOP development involves:
A crucial skill for any offshore accounting team is the ability to communicate effectively with clients. This involves not only responding promptly to client inquiries but also proactively following up and maintaining strong relationships. Effective communication helps build trust, ensures that tasks are completed accurately and on time, and ultimately leads to a smoother working relationship.
Your offshore accounting team should have clear protocols in place for client communication, such as:
Additionally, your team should be trained in building and maintaining positive client relationships. This includes:
By prioritizing effective client communication and relationship building, your offshore accounting team can provide a superior level of service, foster trust and loyalty with clients, and ensure long-term success for your business.
Related Read – Can Offshore Accounting Team Manage Client Communication?
Building an effective offshore accounting team requires careful consideration of team structure, working styles, and clear communication channels. By aligning these crucial elements, accounting firms can unlock the full potential of their offshore accounting operations.
Firstly, establishing the right team structure is paramount. This involves identifying the appropriate mix of roles, such as bookkeepers, accountants, and managers, to ensure a well-rounded skill set and efficient workflow. Additionally, it’s essential to align team members’ working styles with their respective responsibilities. For instance, assigning detail-oriented individuals to tasks that require meticulous attention, while delegating strategic planning to those with a broader vision.
By aligning team structure, working styles, and communication protocols, businesses can create a cohesive and efficient offshore accounting team that delivers exceptional results while maintaining a high level of client satisfaction.
An offshore accounting team must have a structured process for continuous improvement through regular feedback and iteration. Bi-weekly feedback sessions should be held to assess the team’s performance, identify areas for improvement, and develop actionable plans to address any gaps or inefficiencies.
This feedback process should be a two-way street, where both the client and the offshore team can provide insights and suggestions. The offshore team should be encouraged to share their perspectives on process optimization, communication challenges, and any other areas that could benefit from improvement.
Furthermore, a well-defined process for incorporating feedback should be in place. This process should outline how feedback is collected, analyzed, and implemented into the team’s workflows. It should also include mechanisms for tracking the impact of implemented changes and making further adjustments as necessary.
Related Read – Top 9 Reasons to Hire an Indian Virtual Bookkeeper
When it comes to choosing the right offshore accounting team for your accounting firm, there are several key factors to consider. Firstly, it’s crucial to assess the team’s expertise and experience in handling the specific accounting tasks and processes relevant to your industry and business needs. Look for teams that have a proven track record of working with similar businesses and demonstrate a deep understanding of the latest accounting standards and regulations.
Furthermore, it’s advisable to assess the team’s ability to adapt to changing business needs and their willingness to continuously improve their processes. A flexible and proactive team that can quickly adjust to new requirements or implement process improvements can be invaluable in supporting your business’s growth and evolution.
Finally, consider the team’s pricing structure and value proposition. While cost-effectiveness is often a driving factor for outsourcing accounting functions, it’s essential to strike a balance between affordability and quality of service. Evaluate the team’s pricing models, the scope of services included, and any additional fees or charges that may apply. Ultimately, the goal should be to find an offshore accounting team that can provide high-quality services and also being first runner in technology to keep you ahead.
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