Major transformations are underway in the fast-changing landscape of the accounting industry. Besides technological advancements, offshore accounting is the latest trend that has taken the industry by storm.
Offshore accounting is engaged when a company outsources all its financial transactions and accounting requirements to an external accounting company from a foreign country.
After the pandemic incited a mass exodus of employees from their day jobs and offices, businesses have been trying to find a way to cope with this sudden change. Offshore accounting has emerged as one of the most effective ways of dealing with talent shortages and instability in the accounting industry.
In fact, the global outsourcing market is set to hit USD 405.6 billion by 2027, while the financial offshore market is expected to cross over USD 130 billion! Despite the tremendous growth awaiting the industry of offshore accounting, as predicted by these vital statistics, there are some truths about offshore accounting that people still need to know and understand.
Let’s bust some of the most common misconceptions to clear the road for a more developed understanding of how offshore accounting can benefit your business!
Fact: One of the biggest misconceptions revolves around the very meaning of offshore and outsourced accounting. While outsourced accounting involves hiring a third-party service provider (within or outside the country), offshore accounting means outsourcing your accounting tasks to a foreign country.
Fact: Many companies believe sensitive data to be one of the biggest risks of offshoring accounting. While this is an understandable fear, it’s not completely reasonable. Most offshore accounting companies follow one of the strictest safety protocols because the very foundation of their business relies on data security - it’s one of the core ethics of offshore accounting that most businesses can’t do without. In fact, offshore accounting companies, more often than not, are even safer than your in-house accounts team.
Fact: Hiring an in-house accountant after already offshoring your accounting tasks can prove to be an ineffectual investment, especially if you are a small and medium-sized business (SMB). Keeping an in-house accountant makes no sense unless a significant amount of your accounting tasks still run in-house.
Fact: Instead of depriving local job seekers of new opportunities, partnering with offshore accounting companies can help them upskill, and find more value-based jobs. You can tap into a superior talent pool, both offshore and onshore.
Fact: Many business owners are concerned that offshoring their accounts might mean they have less control over how things get done. If you go with a trusted partner, you can mutually settle upon all the business regulations, procedures, and working practices. Just give up control of some minimal aspects of your business, so that your offshore partner can execute their end of the deal effectively.
Fact: This is one of the most prevalent offshore accounting myths. On the contrary, offshore accounting is particularly beneficial for small and medium-sized businesses. You can access specialised talent without having to invest in overhead costs and technological & infrastructural investments.
Fact: Many businesses often mistake offshore accounting to be a tactic to cut costs, and access professional talent at a low budget. Instead, offshore can help you go beyond local options, and explore a global talent pool. You can cut costs, while engaging a high-value team.
Fact: You might worry that your offshore partner would be unable to provide quality deliverables for several reasons, but put your worries to rest. If you can find a reputable offshore partner, they will make every effort to understand, and analyse your business requirements from every possible angle to provide optimum results. The key is to find that perfect offshore partner.
Fact: Fallible as it is, this is another misconception that stops many businesses from considering offshore accounting partners. Dismiss your distress because a long-term partnership requires clear and open communication, mutual trust, shared goals, and professional collaboration - onshore and offshore.
Partnering with an offshore accounting company can seem daunting at first, but it provides strategic and practical leverage, especially for an SMB looking to expand its business. It will enable your business to expand its reach worldwide, and unlock the boundless potential of a global talent pool.
Instead of being weighed down by in-house responsibilities and overhead costs, your business will be able to handle its accounts and finances more flexibly, allowing you to upscale and downscale as per your business needs. The future of offshore accounting is bright. Don’t let these financial misconceptions and fears keep you from the benefits of offshore accounting.
Partnering with a reputable and authorised offshore accounting company like IMS Decimal can help you reach a team of experts to manage your accounting functions, leading to minimised errors and maximised results. You can channel your in-house resources towards more pressing needs, and focus on what you do best - grow your business.