A recently published report suggested that over 70% of small businesses in the US find it difficult managing their cash flow & taxes? Increasing labor costs and escalating financial regulations make even well established businesses struggle to keep up. If you also want to bring down your expenses, improve accuracy and also grow your operation, a change from your in-house accounting model to an offshore accounting services model may be the best move for you.
But this kind of move takes planning, patience and wise execution. You don't want to sacrifice your financial accuracy or client trust. So how can you make the shift without interrupting your present workflow? Let us find out in this blog.
Moving from In-House Accounting to an Offshore Team Smoothly
Let us now understand the process in a step-by-step manner:
Step 1: Understand Why You are Making the Switch
Before you even start the transition ask yourself: why move your accounting functions offshore? Common reasons include:
- Decreasing operational costs.
- Accessing specialized skills.
- Scaling your team without hiring locally.
- Support for 24/7 operations.
In case you can not find an accountant with the abilities you need locally or your current team is simply too crowded, outsourcing accounting services might be the right decision for you. Offshore teams can provide the very same expertise (sometimes more) at a fraction of the price.
Step 2: Identify What to Outsource First
You don't have to shift everything right away. The transition becomes smoother when you begin with smaller tasks. Begin by outsourcing:
- Bookkeeping/data entry.
- Accounts payable & payable.
- Processing payroll.
- Tax preparation.
- Monthly reports.
These are time consuming but do not always require in-house handling. You leave the remainder of your local team to a remote accountant to do higher-level analysis and strategy by handing them over.
Tip: Pick routine tasks with clear procedures as your first outsourcing step.
Step 3: Map Your Current Accounting Workflow
Look at your existing setup. Ask yourself:
- Which software do you use now?
- How are documents stored and shared?
- How do your departments communicate?
Document all steps and touchpoints. This helps your offshore team understand your operations and get aligned quickly. A detailed workflow also makes it easier to convey your expectations when an outsourced accountant is hired onboard.
Step 4: Find the Right Offshore Accounting Partner
This is the most essential step. Your whole transition depends on the right service provider. This is what to look for:
- Experience in offshore accounting services.
- Good reviews & client testimonials.
- Certified or qualified staff (CPAs, accounting degrees, etc.).
- Knowledge of US accounting and tax laws.
- Strong data security policies.
- Flexible channels of communication and time zone coverage.
Do not settle for the most affordable. Pick somebody who knows your business and who could function as an extension of your team.
Tip: Ask for a fast trial or pilot project to find out the way they function before you go all in.
Step 5: Make a Transition Plan
When you select your offshore provider, you have to develop a transition plan. It should include:
- List of outsourced tasks.
- Timelines for handover.
- Access to accounting software/documentation.
- Steps associated with data migration.
- Communication tools used (email, Zoom, Slack, etc.
Your transition plan must also outline who does what - on your in-house team and offshore.
Don't forget about training. If your offshore team uses tools different than yours, either side might need to be trained. A few hours here will save you weeks of confusion later.
Step 6: Communicate Regularly & Clearly
Losing control is a top fear for individuals who outsource accounting services. That is why communication is essential. Create a schedule for:
- Weekly/biweekly meetings.
- Daily updates by email or chat.
- Shared dashboards or tasks lists (Asana or Trello).
Your remote accountant might be a number of miles away, but with frequent updates and opened channels, you will feel like you are sitting close to them.
Step 7: Use the Right Technology
Good tech supports offshore accounting best. Make your systems cloud based and secure.
Some helpful tools:
- Software for Accounting: QuickBooks Online, NetSuite, Xero.
- Document Sharing: Google Drive, OneDrive, Dropbox.
- Time Tracking: Hubstaff, Clockify.
- Project Management: Monday.com, ClickUp, Trello.
- Video Conferencing: Zoom, Microsoft Teams.
All these tools bridge the distance and build trust with your offshore team.
Step 8: Monitor Key Metrics
Once the transition goes live, your job isn't done. You have to see how it is going.
These are some some KPIs to track:
- Cost savings: Are you spending less than before?
- Error rate: Are mistakes reducing in your financial reports?
- Timeliness: Are deadlines met frequently?
- Client satisfaction: Feedback from your clients?
- Response time: How fast does your outsourced accountant return queries?
- Data security: Are there breaches or risks?
Checking these metrics regularly catches issues early and drives continuous improvement.
Step 9: Handle Time Zone Differences Well
Time zone gaps can be advantageous if handled properly. Your remote accountant can work while your US office is closed, lowering your turnaround time.
But it helps to define:
- Overlapping working hours.
- Response times anticipated.
- Emergency contacts.
- Clear expectations about timing avoid delays and frustration on both sides.
Step 10: Develop a Team Culture
Remoteness does not mean your offshore team must feel left out. Treat them like an integral team member. You can:
- Include them in team meetings occasionally.
- Celebrate little wins together.
- Give recognition and feedback.
- Offer growth or learning opportunities.
A motivated offshore team usually performs better than an isolated in-house team.
Also Read: Top Offshore Accounting Service Providers Trusted by USA Companies
Final Thoughts
It is true that moving to offshore accounting services will cut your costs. But with that, it provides you with expert professionals, more efficiency, and growth. Wasting less time on spreadsheets means you can spend more time concentrating on what truly counts, i.e., developing your business.
The move from in-house to offshore need not be tough. The transition could be beneficial, productive, and also empowering with the proper steps and the right partner. If you are considering hiring an accountant or creating a more mobile finance team, then look no further than offshore accounting solutions. Whether you run a startup, a small firm or a CPA with a number of clients, an offshore team could be your best asset.
Are you prepared to explore offshore accounting services? Start with a small pilot project, track your results and scale. Your financial future might just be a collaborative effort away with The Fino Partners.
