CPA firms and accounting businesses all over the U.S. have made offshoring and outsourcing tax services part of their strategy for success for a number of years now, and its many advantages continue to grow exponentially.

For tax services in particular, one country stands head and shoulders above the rest of the world in terms of its ability to provide companies with skilled, accurate and timely tax preparation, accounting and bookkeeping services: India. More companies than ever before are outsourcing tax preparation to India, and reaping the multitude of benefits, including access to a highly skilled workforce, affordable costings, and advanced capabilities in terms of technology.

But is offshoring right for you and your company?

To help you decide whether to work with an offshoring partner as an accounting professional, here are some things to think about and questions to ask:

Do you really need them?

Ultimately, if you’re frequently struggling to complete your workload in a timely fashion, are struggling to find local talent to help you run your business effectively, need to reduce overheads while maintaining a high level of service, or want to shift your focus towards more client-centric operations, offshoring could prove to be the right solution.

What services should you choose to offshore?

To maximize your firm’s efficiency, deciding which tasks you should assign to an offshoring firm, is crucial. Below are some popular offshore accounting services:

  • Bookkeeping
  • Tax preparation
  • Payroll management
  • Financial analysis
  • Advisory services

It makes sense for most accounting firms to offshore those tasks that are labor or time-intensive, and highly repetitive.

If your client list expands, will the offshore partner be able to cope?

Long-term success is rarely achieved without some degree of scalability, and you will want to feel satisfied that your chosen offshoring partner can do the following:

  • Adapt to changing or increasing demands without the quality of their work suffering
  • Be able to allocate resources according to priorities and workload
  • Be capable of expertly handling surges in workload due to such periods as tax season

What are the financial implications of offshoring?

Offshoring (providing you choose the right partner) can save companies a significant amount of money in the long term, but it’s still important to evaluate those cost savings, and ensure that your chosen partner is demonstrating transparency with their pricing.

Here’s how offshoring can save you money:

  • Without overheads such as equipment, office space and employee benefits, your firm can save on operational costs
  • With hourly rates options, as well as fixed fees or pricing based upon specific tasks, you can save money on pricing models that are flexible
  • The consistently accurate and compliant work provided by your offshoring partner, can save you money in terms of rework and penalties

What if my clients don’t approve of offshoring?

In the majority of instances, clients may disapprove of offshoring due to concerns related to the following:

  • The security of their financial data; you will need to be able to prove to clients that your chosen offshoring partner practices robust encryption, has secure systems in place, and complies with SOC 2
  • The quality of deliverables; again, it’s up to you to reassure your clients that by offshoring, you’re giving them services that are more accurate, and more efficient

Trust; by being proactive in addressing your clients’ concerns, you can help build trust and maintain a strong working relationship. Communicate clearly with them, and don’t leave them with unanswered questions about offshore bookkeeping services, or any type of service.

There are a whole host of advantages to be gained from offshoring tax and accounting services to a country like India, and by carefully assessing your own firms needs, as well as those of your clients, there’s no reason why you shouldn’t enjoy a healthy partnership that benefits both parties.