Offshore Accounting for CPA Firm Owners: How to Do It Properly

1. Cost Efficiency Without Compromising Quality

Labor costs in countries like the Philippines are significantly lower than in the U.S., Australia, or the U.K. This doesn’t mean you’re sacrificing quality. In fact, offshore accountants are often highly qualified and have extensive experience in international accounting processes and standards.

2. Access to a Global Talent Pool 

83% of CFOs and other senior leaders believe there’s still an accounting talent shortage, according to the CFO Pulse report by Personiv. That’s 13% more than two years ago.

The competition for skilled accountants—not just locally but internationally—is getting worse, but offshoring opens up a much larger talent pool. Offshore accounting professionals are well-versed in international accounting standards, accounting tools like QuickBooks and Xero, and compliance requirements across multiple jurisdictions.

5. Improved Work-Life Balance

Not having a work-life balance has always been a top pain point for accountants. Offshore accounting helps redistribute workloads, reducing burnout and improving morale within your onshore team.

Start by Identifying Tasks, Not Roles

The first step is to step back and map out your firm’s workflows. Consider everything from routine daily tasks to more complex accounting tasks and processes. Ask yourself:

• Which tasks are repetitive, time-consuming, or administrative? 
• Which tasks require face-to-face interaction or a deep understanding of local regulations? 
• Which tasks demand high-level strategy or client-facing expertise?

From there, categorize these tasks into two groups: 

1. Tasks to Be Done Locally by Your Onshore Team – These are high-value, client-facing, or strategic activities that require your onshore team’s expertise and deep understanding of the clients. 
2. Tasks to Be Offshored to Your Global Team – Routine, process-driven, or administrative tasks that don’t require a physical presence or deep local knowledge.

Focus on Routine Tasks First

When building an offshore accounting team, start with routine and mundane tasks. Here are the common offshoring accounting services that you should include: 

• Bookkeeping – Daily transactional accounting tasks like data entry, bank reconciliations, and AP/AR are perfect for offshoring. These accounting tasks require precision and consistency but don’t necessarily need to be handled onshore. 
• Payroll Processing – Payroll processing is a repetitive and time-sensitive task that offshore accounting teams can manage effectively, ensuring compliance with regulations and timely payments. 
• Tax Preparation – Tax season can overwhelm your local team, but offshore accounting professionals can handle tax preparation tasks, including data collection and initial filings, leaving final reviews to your onshore staff. 
• Financial Reporting – Generating monthly, quarterly, or annual financial statements can be efficiently handled offshore, allowing your team to focus on strategic analysis. 
• Administrative Tasks – Beyond accounting, you can offshore administrative work like scheduling, client onboarding, and document management to further optimize your operations.

These tasks are typically easier to train for, allowing your offshore accounting team to get up to speed quickly and deliver measurable results. Once you’ve identified these tasks, delegating responsibilities between your local and offshore accounting team members becomes easier.

Adapt as Your Offshore Team Grows

While your offshore accounting team may start with routine accounting tasks, their responsibilities can and should evolve as they gain experience and familiarity with your firm’s processes. Over time, they can take on more complex and high-value work, such as advisory support. 

By beginning with accounting tasks rather than roles, you set the foundation for a more effective and integrated offshoring strategy. You ensure that your team is aligned, your processes are clear, and your accounting firm is positioned to maximize the benefits of offshoring from day one. 

Treat Your Offshore Team as Your Own

Your offshore team should feel like they’re part of your firm’s culture, mission, and values. This means extending the same respect, support, and recognition you give to your in-house accounting staff. 

Celebrate their wins, acknowledge their contributions, and include them in team meetings and events whenever possible. Simple gestures, like inviting them to virtual celebrations or sending personalized messages of appreciation, can go a long way in building loyalty and trust. 

Assign an Onshore Champion

One effective way to bridge the gap between your onshore and offshore teams is by designating an “onshore champion.” This person acts as the primary point of contact for the offshore team, providing guidance, answering questions, and ensuring alignment with your firm’s goals and expectations. The onshore champion helps streamline communication, resolves issues quickly, and nurtures a sense of unity between the two teams.

Cultivate a Collaborative Work Environment

Your offshore accounting professionals should feel like they’re working in the same office, even if they’re thousands of miles away. Here are some strategies to create a collaborative work environment:

• Use Technology to Bridge the Gap – Tools like Microsoft Teams, Zoom, and Slack can facilitate real-time communication, making it easy for your teams to stay connected. Set up regular video calls for team updates, brainstorming sessions, and check-ins. Seeing each other face-to-face—albeit virtually—builds stronger relationships and trust. 
• Encourage Team Integration – Involve your offshore accountants in firm-wide initiatives and projects. Whether participating in training sessions, contributing to process improvements, or strategizing for new ideas, these opportunities help them feel valued and included. 
• Promote Knowledge Sharing – Encourage your onshore team to share their expertise with their counterparts and vice versa. This two-way exchange enhances skills and strengthens collaboration and mutual respect. 
• Build a Unified Culture – Share your firm’s mission, vision, and values with your offshore team. Engage them in discussions about how their work contributes to the bigger picture. A shared sense of purpose can significantly boost morale and commitment.