Offshoring accounting services has grown in popularity for CPA and accounting firms in recent years, with firms trying to reduce costs and boost efficiency by outsourcing their accounting services to firms in other countries.
Grand View Research projects that the global business process outsourcing market size will expand at a compound annual growth rate (CAGR) of 9.4% from 2023 to 2030.
The moment CPAs hear about offshoring accounting and bookkeeping services, they get confused with hundreds of doubts. Although resolving those doubts is very important, you can use them as filters when selecting the right outsourcing partner.
Here are some accounting experts’ perspectives on offshore accounting:
Jeff Bezos, the founder of Amazon, is a vocal supporter of outsourcing.
Bezos wrote about the benefits of outsourcing non-core services, such as accounting, to third-party providers in foreign countries in a letter to shareholders. He stated that this allowed Amazon to focus on its core business while saving millions of dollars.
Warren Buffet, One of the best-known fundamental investors in the world.
,has also spoken out in favor of offshoring. In an interview with CNBC, he stated that he believed offshoring was a “good thing” for the economy, as it allowed companies to become more efficient and competitive.
Accounting consultant Roman Kepczyk emphasized the benefits of offshoring for small to midsize CPA firms in an article for CPA Practice Advisor. He mentioned how outsourcing services like bookkeeping, tax preparation, and audit could free up significant time and resources for firms to focus on higher-value services like advisory and consulting.
Financial consultant David Prosser mentioned in a Forbes article that outsourcing accounting services can help firms of all sizes reduce costs and increase efficiency. He advised firms to seek out offshore providers with specialized expertise in areas like tax compliance and financial reporting and to work closely with them to ensure a seamless and effective outsourcing process.
Accounting consultant August Aquila emphasized the importance of offshore as a strategic tool for CPA firms to keep up with increasing competition and grow their business in a 2020 article for Accounting Today. He added that outsourcing can help firms increase capacity, reduce labor expenses, and gain access to specialized expertise that may not be available in-house.
With these observations by top professionals, it seems that outsourcing accounting services will continue to be a popular solution for CPA and accounting firms looking for growth opportunities. But, while selecting an outsourcing partner, firms must carefully evaluate all options and work closely with them to ensure the best possible outcomes.