Learn About 7216 Consent Before Hiring Offshore Tax Preparer
Tax firms planning 1040 outsourcing to India often come across myths like quality of work, legality concerns etc. This blog is all about facts!
Accounting firm owners often weigh how their strategic move toward offshore accounting staffing will be perceived. Having an Offshore accounting team carries certain taboos –
There’s worry over how clients might view it.
How the onshore team will react.
And, in some cases, these concerns are legitimate.
I’ve seen many Reddit threads where accountants voice frustration, venting about the downsides of offshoring.
Going through those threads, I can spot exactly where things likely went wrong—and more importantly, what could have been done differently.
I have the solution.
This blog aims to address your team’s concerns about offshoring accounting and explain how to navigate this change to get your onshore staff on board.
Without further ado, let’s begin!
Consider it from your employees’ perspective: why would offshoring accounting services impact them?
Once you identify the specific concerns affecting your onshore team, you can shape the messaging to present offshore accounting in a way they’ll understand and accept.
It all comes down to clear, thoughtful communication.
I can break down the offshore accounting concerns your onshore team might have into three key categories:
A. Job Security Concerns
B. Operational Efficiency Concerns
C. Ethical Concerns
Just a note: don’t confuse offshoring with outsourced accounting. While they’re often used interchangeably, there’s a big difference. Outsourcing is more of a “black box” approach and is often set up to fall short. For a deeper dive into offshore vs. outsourced accounting, check out this blog post.
Yes, some jobs have moved offshore, and more likely will. But if you look at it carefully, the jobs moving offshore are usually low-value-adding services.
The kind of accounting tasks that the onshore accounting team dreads to do such as Reconciliation, AP/AR support, Data Entry, Month End Closing, etc. These services are going offshore.
Considering the ongoing talent shortage, having an offshore team also gives a strategic advantage to keep the client’s work moving.
Client-facing staff stay local, while processing tasks—bookkeeping, basic tax prep, financial statements, compliance—move offshore to a more cost-effective location.
Accounting staff indulged in the role that requires technical expertise—like handling complex tax issues or engaging directly with clients—their job isn’t going anywhere. That kind of work won’t be offshored anytime soon.
And, firm owners need to convey the same to their team motivating them to upskill and get ready for more challenging, high value and exciting accounting work.
And here’s another truth: even with a substantial offshore team, we haven’t seen job losses in Western offices. Instead, onshore staff have moved into more value-added, client-facing work, while the offshore team handles the essential but routine tasks.
Experience faster turnarounds and happier clients—explore our offshore accounting solution.
Many accountants argue that offshore teams lack critical thinking skills, often relegating them to basic accounting tasks only. However, from working closely with hundreds of CPAs and firm owners, I’ve found that these issues typically stem from partnering with a staffing provider who hasn’t truly mastered the nuances of outsourcing.
Quality issues and errors don’t result from location—they arise when unskilled individuals handle critical tasks or when layers of quality control are missing. Remote accounting requires a bit more diligence and structure to ensure the same standards. When done right, offshore teams can add substantial value beyond the basics.
With the right partner—one who understands the demands of remote accounting—these concerns quickly fade.
At Credfino, we recommend hiring a step above what you think you need.
If you’re considering a seasoned bookkeeper, go for a mid-level accountant instead.
This way, you can confidently offload work, knowing it’s in capable hands.
1. Working Conditions of Offshore Accounting Team
There’s a persistent myth that all offices in India operate under poor conditions. A quick Google search might show famous monuments like the Taj Mahal or crowded streets, reinforcing this misconception that India lags in work environments.
But the reality couldn’t be further from this stereotype.
If your team is worried about offshore work being done in cramped or substandard spaces, it’s time to reset the narrative.
Let me give you a look inside the typical workspace at Credfino:
AND
We make an effort to create a positive culture by celebrating birthdays, festivals, and holding monthly all-hands meetings to keep our remote team engaged.
It’s a work environment built for productivity.
2. Fair Compensation Concerns: Are Offshore Staff Paid Fairly?
Many onshore employees feel uneasy when they see offshore counterparts earning significantly less for similar work, sometimes leading to imposter syndrome. But here’s the reality—income levels differ because living costs differ. Here’s how:
Purchasing Power Parity (PPP)
While a US bookkeeper earns a higher salary, PPP indicates that a bookkeeper’s salary in India can offer a comparable lifestyle.
By PPP standards, a bookkeeper’s salary in India is roughly equivalent in purchasing power to about USD 30,000 in the US.
Expense Ratio
Let’s look at day-to-day expenses for perspective:
These comparisons highlight the stark difference in living costs. Offshore currency value and local purchasing power balance this gap.
Discover the benefits of offshoring without disrupting your onshore team—Let’s Talk!
Getting your team on board with offshoring starts with understanding and addressing their concerns head-on.
Here’s how you can make it clear, practical, and meaningful for everyone:
Clear Up Misconceptions
Show your team what an offshore work environment really looks like.
For instance, share that Credfino’s offices in Indore are modern, with air conditioning, up-to-date tech, and employee perks like paid leave, health benefits, and a strong focus on well-being.
Explain Fair Compensation in Real Terms:
Offshore staff are compensated fairly for their region, and they enjoy a quality of life suited to their local costs. Educate your team on how cost of living differences work, using concepts like Purchasing Power Parity (PPP) to show that wages go further in these regions.
Make the Purpose Clear:
Emphasize that offshoring is about growth, not replacement. By shifting routine tasks offshore—like data entry or compliance—your onshore team can focus on more strategic, client-centered work that won’t go offshore.
Highlight New Opportunities:
Freeing up your onshore team from routine work allows them to grow in client-facing roles, advance their skills, and take on higher-value tasks. This change is designed to add depth to their roles, not take them away.
Redistribute Workload for Efficiency:
Offshoring reduces the pressure on your onshore team by handling the day-to-day tasks. This lets them focus on complex work that uses their expertise while boosting overall productivity and service quality.
Reassure with Quality Control Measures:
Explain that quality won’t slip—your offshore partner has rigorous quality checks and skilled staff in place to ensure consistency. Offshoring is designed to complement your team, not compromise it.
Hold an Open Forum: Host a Q&A session where the team can voice concerns and ask questions. Use this time to debunk myths about offshoring vs. outsourcing and share the positive outcomes seen by other firms that have taken this step.
Share the Big Picture: Show how offshoring will help the firm grow, allow for more client value, and position your firm as an industry leader. By keeping this transition transparent, you give the team a stake in the benefits that come from this move.
When you take these steps to address your onshore accounting team’s concerns, you’re building trust and making your team feel like valued partners in your growth strategy.
Offshoring isn’t a one-size-fits-all solution. Sometimes, it’s a matter of timing—your firm may not be ready. Other times, it’s about finding the right partner who truly understands offshoring.
Without the right offshore staffing partner you can get your hands burned making these mistakes and blame offshoring. Be careful.
Either way, choosing carefully is essential. A trusted partner can make all the difference. That’s where Credfino comes in.
Schedule a call to know how you can make best of offshore accounting.
Outsourcing to India gives U.S. accounting firms access to skilled, cost-effective talent familiar with U.S. standards. By handling routine tasks offshore, firms can reduce overhead without sacrificing quality, freeing up their onshore teams to focus on high-value client work.
The time zone difference also enables a 24/7 workflow, allowing faster turnaround on client deliverables. Additionally, Indian outsourcing provides scalability, letting firms adjust resources as needed without the expense of local hiring. Altogether, outsourcing to India enables U.S. firms to operate more efficiently, deliver added client value, and remain competitive in a rapidly evolving market.
The time zone difference enables Indian teams to work while U.S. teams are offline, creating a 24/7 workflow that speeds up task completion and delivery.
Tax firms planning 1040 outsourcing to India often come across myths like quality of work, legality concerns etc. This blog is all about facts!
Tax firms planning 1040 outsourcing to India often come across myths like quality of work, legality concerns etc. This blog is all about facts!
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.