Ever wonder if offshore accounting services are the right option for handling your company finances? Outsourcing your accounting is a big decision which can impact your business efficiency, scale and success. Offshore accounting services can enable you to simplify operations, save money and use global knowledge - but only if you select the right partner.
Top Questions to Ask Before Choosing Offshore Accounting Services
Below are 6 questions to ask before selecting an offshore accounting service provider. These questions can assist you with the process and find a provider fitting your goals and needs.
1. What Systems & Automation Do You Offer?
Contemporary businesses are built on technology and so should your offshore accounting provider. Ask potential providers which systems and automation tools they employ to manage outsourced accounting services. The right provider must offer tools to simplify bookkeeping, payroll and financial reporting. Automation can save you time, minimize mistakes and help scale your business.
For instance, does the provider use cloud accounting software? Do their systems integrate with your existing tools? In case you are aiming to develop or transform your business, ask how their technology can help.
Keep in mind, a great offshore accounting partner will not only work with where you're right now but they will also get you ready for the future.
2. What Experience and Expertise Does The Team Have?
You are not hiring a service; you are doing more than that. You are hiring a team. Understand the qualifications and knowledge of those handling your finances. Ask about the team size, experience and credentials with clients in your business. For example, do they have CPAs or specialists on U.S. accounting regulations?
Find out who'll be your main contact, also. Will you have a dedicated accountant readily available or will you have a rotational team? Offshore accounting services are effective when you can believe in the team to know your requirements and deliver results.
3. How Will Communication Work?
A partnership requires consistent and clear communications. Ask the offshore accounting service provider how they handle communication. Will you hold regular updates or meetings? Are they available during your business hours or will time zone differences prove problematic?
Ask them how they prefer to communicate with you too. Do they utilize email, telephone calls and video conferencing? Choose a provider that reflects your communication style. This will keep you on the exact same page and reduce misunderstandings.
Another critical question: Will they devote the time to explain financial reports and decisions in plain English? In case you outsource your accounting duties , you need a partner who could translate technical financial figures into simple language.
4. Do You Understand My Industry?
Each industry has particular financial requirements and rules. Ask your offshore accounting provider about their experience with businesses like yours. Did they work for firms in your industry before? Can they give examples or case studies of similar clients they have helped?
For example, in case you operate an e-commerce site, you need a provider that knows sales tax compliance in all the states. In case you are in real estate you will want somebody with expertise in asset depreciation & lease accounting. Offshore accounting services are effective but must be customized to your industry.
5. What Other Services Do You Provide?
Offshore accounting services often go beyond bookkeeping. A great provider should provide extra services that complement your business. As an example, do they handle payroll administration, tax planning and financial forecasting?
You may even need help with operational things like creating accounting systems or maintaining compliance. Some providers actually offer VCFO services for companies who are not quite prepared to hire a full time Chief Financial Officer. Explore the entire range of the offerings to maximize the value of outsourced accounting services.
Ask about their network of partners too. Can they suggest lenders, insurance agents or some other specialists who could help your business?
6. What Are the Next Steps?
Ask about on boarding once you have chosen an offshore accounting provider. Now how will they get going on your account? What documentation would you have to submit? This can generally include previous financial statements, tax returns and access to your accounting methods.
Additionally, they need to define their prices. Are their fees set or do they differ by service? Knowing these details upfront can avoid surprises and facilitate a smooth transition.
Lastly, ask when things can get started. Most providers will provide a scoping call to understand your requirements and a proposal. Be comfortable with their process and timeline before moving forward.
Read Also | Top Questions to Ask When You Hire an Accountant for Your U.S. Business
Final Thoughts
With regards to handling your company finances, offshore accounting services could be a game changer. Asking the proper questions - about methods, industry knowledge, communication, expertise, extra services and on boarding - will make sure you discover a partner which suits your business.
Prepared to take the next step? Talk to the Fino Partners today about how we can assist you with your accounting requirements and expand your company.
