Offshore Accounting: Mitigating The Myths, Finding The Facts

Bursting The Bubble - Separating Offshore Accounting Myths From Facts

Myth 1: Outsourcing and offshoring are the same.

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.

Myth 2: Offshore accounting is not secure for your data.

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.

Myth 3: It’s still compulsory to have an in-house accountant.

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.

Myth 4: It takes jobs to foreign countries, and deprives job seekers of their home country.

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.

Myth 5: Lose control over your business’ accounting division.

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.

Myth 6: It’s only for big companies.

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.

Myth 7: Offshoring is beneficial ONLY if you want to cut costs.

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.

Myth 8: Offshore accounting services give only average results.

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.

Myth 9: There is no scope for long-term partnerships.

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.