The trend of offshore accounting services is not new, and barely a business person is unaware of their benefits. Offshore accounting services are actually a kind of outsourced accounting services.
However, not all outsourced accounting services are offshore, and not all offshore services are beneficial. Therefore, it is crucial that when you wish to delegate your accounting operations to a third party, you should know how to find a suitable service provider.
Moreover, depending on your business requirements, you must evaluate whether you’d be more at an advantage with offshore accounting services or onshore.
In this blog, we will discuss what offshore and onshore accounting services are, the differences between the two, and how to choose between them. Additionally, we will also guide you in finding the best offshore accounting services. Alright then, hop in.
Outsourced Accounting – Onshore and Offshore
Outsourced accounting is when you delegate financial operations to a third party to execute and manage. In this act, you share your data with a third party and put your faith in them in exchange for the money you pay for the services. The services offered in this arrangement are termed outsourced accounting services.
Now, outsourcing can be of two kinds on the basis of location – onshore accounting and offshore accounting.
What is onshore accounting?
Onshore accounting is when you outsource the accounting operations to a third party that operates in the same country as yours. In this case, you do not have to deal with cultural, language, international, and geographical barriers.
What is offshore accounting?
Offshore accounting is when you delegate the accounting operations to a third party located in a different nation. Offshore accounting has to tackle the discrepancies in time zones, language, culture, and trade regulations, to name a few.
Onshore Accounting vs Offshore Accounting
Let us take a comparative approach to understand the differences between onshore and offshore accounting.
|The business delegates the operations to a third party that operates in the same nation.
|The business delegates the operations to a third party that operates in a different nation.
|Both parties operate in the same time zone and face negligible differences in culture, language, etc.
|The service provider usually operates in the client’s time zone, and there is a difference in culture and native language
|The business environment, tax regulations, foreign policies, currency, etc., are similar for both parties
|The two parties experience different business environments, tax regulations, foreign policies, currencies, etc.
|There is usually no big difference between the cost of financial services in the two regions.
|There might be a drastic difference between the cost of financial services in the two regions
|American companies outsource to third parties located in the same nation to benefit from comparatively low cost and high quality.
|American companies outsource to third parties in different nations like India and the Philippines to save highly on cost and experience satisfactory quality.
Onshore vs Offshore Accounting Services – Which is Better for Your Business?
Although there is no direct way to say which of the two is better for you, there are some things that generally hold true.
For instance, onshore accounting services are more likely to offer high quality and would cost you more because of the high labor cost in the USA. In comparison, offshore accounting services might compromise quality or deliver rich quality services depending on the provider. Moreover, they cost quite less when outsourced to India and the Philippines.
Moreover, in both scenarios, you’d face some challenges in outsourcing accounting operations. With the rapid advancement of technology in developing nations in the last decade, offshore accounting service providers offer rich quality at a much lower cost these days.
Getting Started with Offshore Accounting Services
While onshore accounting services come with limited challenges, getting started with offshore accounting services can be overwhelming. Moreover, the service provider might be located in another part of the planet, and there might be different barriers. Thus, switching to offshore accounting might get tricky.
When businesses outsource to a party located in a different nation that they cannot see in person, and the only way of communication is Skype or alternate digital media, they find it hard to trust. This is not surprising, as paying a service provider after talking on a phone call without a physical meeting is hard.
Not many service providers offer a demo, and you might be worried that they will scam you after you are satisfied with the demo and make the payment. Although you can sue them and get your money back, it might take a lot of time and waste money on trials.
Benefits of Offshore Accounting Services
You might wonder why, when offshore accounting services are full of challenges, businesses are opting for it. The answer is the benefits of outsourcing to a firm in a developing nation.
These firms offer comparable service quality to that of the onshore accounting service providers. Therefore, at an affordable rate, small and mid-sized businesses or large corporations can experience peace of mind and leave the financial operations to the firm. Moreover, technologies like cloud accounting and high-speed connectivity ensure that you get real-time support for your queries and issues.
Offshore accounting is full of challenges. This is why we felt it crucial to guide you in finding the best offshore accounting services. However, the bottom line is finding an excellent offshore accounting services provider for your budget.
Find the Best Offshore Accounting Services in No Time
When you start browsing offshore accounting services, keep the tips below in mind. These points will help you find the right accounting service provider for you.
1. Consider Many Options
The financial industry is a large one, and there are many firms offering offshore accounting services. Therefore, when you browse the options, check out many companies, as this will help you understand the different kinds of services provided and the rates in different regions. Moreover, consult your network of business professionals for references and get their opinions on the service providers. This will add more ideas and thought into the pool and might bring to your attention the things you might have missed.
2. Check Testimonials and Reviews
You can get to know about the offshore accounting services provider via their About page and client testimonials. However, more often than not, this information is not reliable. Therefore, to really know about the firm, check for reviews and ratings on other platforms over the internet.
Read what clients, customers, and employees have to say. This will give you a clear idea of their services and how they operate.
3. Browse All the Services They Provide
Although you might start with one or a few accounting services, you might need related services in the future. For example, let’s say you opted for bookkeeping and tax accounting in the beginning. But with the passage of time, you felt the need for a financial audit. If your service provider doesn’t conduct financial audits and assurances, you might have to go through the hassle of finding a new service provider again.
Therefore, check the services the firm provides and ensure they are equipped for your future requirements.
4. Ask Yourself – Quality or Saving on Cost
Some offshore accounting services might cost you considerably less than others. However, they might also offer reduced quality, less satisfactory end results, and non-reliable support. If you can find a firm that offers premium quality at an affordable price, and is credible and offers real-time reliable support, you should consider yourself lucky.
Ask yourself, where do you want to compromise on – the quality or the money you might save in outsourcing? However, always remember to go for a credible firm that offers reliable support.
5. Get a Quote and Compare Them
Shortlist a handful of the offshore accounting services providers on the basis of their reviews and ratings on the digital platforms, and check their prices. Moreover, request a quote to learn the personalized prices they can offer for your business and available discounts.
Now, compare these quotes and evaluate the value for money they offer.
This was all about offshore accounting services and how to find the right service provider. The above article will be helpful in getting you started with offshore accounting services. Moreover, here is an in-depth guide to finding the best accounting and bookkeeping services in minutes if you are looking for bookkeeping services as well.
Take a Free Trial of Our Offshore Accounting Services
A demo is quite important to get an idea of the accounting services a firm offers and to understand if they suit your company’s requirements. This is why we offer a free trial of our accounting, tax, and advisory services.
Our firm offers services ranging from virtual bookkeeping to business financial planning. Whichever services you might need, dial +1(800) 580-5375 and schedule your demo for the same.