Onshore Vs. Offshore Bookkeeping Services: Which is better for your CPA Firm?

Accounting firms often choose to keep bookkeeping in-house. But that might work fine only until they want to grow or get stuck in operational challenges. They then make the leap to outsource their operations, such as bookkeeping, to third-party services. To access expert services, ensure data security, and stay compliant alongside cutting down on costs, offshore bookkeeping services remain the go-to choice for CPA firms looking to scale quickly.

Nothing beats outsourcing when it comes to bringing down costs and still getting the job done perfectly and on time. Outsourcing can be carried out in several forms, depending on the needs of a business and from different locations based on preferences.

Today, outsourcing isn’t limited to only companies or organizations. In fact, you can hire anyone from any place to perform specific tasks to increase the effectiveness and efficiency of your firm. Nearshoring, onshoring, and offshoring are different forms of bookkeeping outsourcing, and the distinction between them is based on the location. 

ONSHORE, NEARSHORE, OR OFFSHORE BOOKKEEPING SERVICES: WHAT IS THE DIFFERENCE?

Onshore bookkeeping services, a.k.a. domestic bookkeeping outsourcing, is all about obtaining outsourced bookkeeping services from people outside your company but within the same country. Accounting firms can reduce labor costs and benefit from highly skilled professionals without language or cultural barriers. But the cost of such operations can be higher than that of offshore outsourcing bookkeeping.

Nearshore bookkeeping services refer to outsourcing an accounting firm’s bookkeeping to third-party service providers in nearby countries with similar cultures and language skills. Nearshore outsourcing also offers some cost savings better than onshore outsourcing. It also provides access to a highly skilled labor pool and the benefit of proximity for frequent site visits.

Offshore bookkeeping services are outsourced bookkeeping services offered by third-party service providers in a foreign country. Despite cultural differences, offshore bookkeepers can communicate well and work as an extension of your team. From cost savings and access to top talents to state-of-the-art infrastructure and comprehensive data security measures, offshore outsourcing services can enormously benefit accounting firms. 

SO, WHAT KIND OF BOOKKEEPING OUTSOURCING SHOULD YOU CHOOSE- ONSHORING, NEARSHORING, OR OFFSHORING?

To make the right choice for your CPA firm, you should compare the aspects and pros and cons of each.

Cost-savings:

Cost reduction is one of the most important reasons accounting firms outsource their bookkeeping. While onshore can be expensive, offshore bookkeeping services can help you save up to 50% or even more. With offshoring, accounting firms can obtain high-quality services at a meager operational cost. A decrease in labor costs, access to highly skilled labor, and an advantageous time zone make offshoring to a country like India benefit CPA firms enormously.

Quality & Expertise:

You will likely gain access to highly skilled bookkeepers, irrespective of their location. Some offshore bookkeeping outsourcing companies like QX global lets you interview and onboard certified bookkeepers. If you wonder if language and cultural barriers might impact the quality of services offered by offshore bookkeepers, you can certainly close the gap via quality control. Also, when you partner with the best offshore bookkeeping services company in countries like India, there will be no communication barriers or compromise in service quality or timely delivery.

Execution Speed & Risk:

The execution speed depends upon the requirement’s complexity and the capability of the onshore or offshore outsourcing services provider. The availability of trained and certified professional bookkeepers and a clear definition of requirements are critical aspects that can affect the speed of execution. Offshore bookkeeping outsourcing companies have a greater advantage and flexibility in piling on resources in advance of a project and will be readily available whenever you want to hire them. Onshore bookkeeping outsourcing companies cannot afford to maintain idle resources and must hire and train new resources when there is a requirement. As far as risks are concerned, every outsourced project is prone to errors, irrespective of where the resources are located. However, you can mitigate execution risks and significantly reduce them via risk management plans and, more importantly, an effective management plan.

WHICH IS BETTER FOR YOUR CPA FIRM – ONSHORE, NEARSHORE, OR OFFSHORE BOOKKEEPING SERVICES?

Considering all the above arguments regarding offshore bookkeeping services would be the best option for your accounting firm. As you can see, only offshore bookkeeping outsourcing appears to be the most cost, skill, time-effective, and secure staffing option for growth-aspiring CPA firms. 

If you are considering offshore bookkeeping services, look for third-party providers in countries like India, which also has an advantageous time-zone difference. You can assign tasks at the end of the day, which will be delivered before you log in the following day. 

Let’s be direct- the price factor carries the heaviest weighting in outsourcing decisions and is why companies decide to transition to outsourced bookkeeping services. If cost were absolutely no object, accounting firms could simply maintain a huge team of expert in-house bookkeepers with the skillset to execute their firm’s bookkeeping requirements. But even for the largest and wealthiest CPA firm, doing so would be absurd. Doesn’t it make sense to outsource your bookkeeping to an offshore bookkeeping services company that helps you save up to 50% on operational costs? 

MUST READ: The Definitive Guide To Outsourced Bookkeeping Services

OVER TO YOU

As you can see, offshore bookkeeping services have numerous benefits for CPA firms over onshore and nearshore bookkeeping outsourcing. Offshoring is a win-win solution, especially for accounting firms looking to scale quickly. When partnering with an offshore bookkeeping outsourcing company, find out if they also have flexible engagement models to suit your firm’s requirements. And take the time to weigh what’s important to your accounting firm in your choice of bookkeeping outsourcing partner. The variables highlighted in this blog are, in our long experience, those that top sustainable outsourcing decisions take into consideration.

SCALE QUICKLY WITH QXAS’ OFFSHORE BOOKKEEPING SERVICES 

QXAS is one of the most preferred bookkeeping outsourcing services providers by top accounting firms in the USA. We offer custom-made accounting solutions to accounting firms looking to grow and scale. Ours is a dedicated team of 1000+ offshore experts who is here to help you save time, effort, and money alongside reducing risks. With state-of-the-art infrastructure and the latest bookkeeping tools and software, we bring you increased profits, operational efficiency, and agility. You also get to choose from our multiple engagement models designed to suit every requirement at a reduced cost.

THE QXAS ADVANTAGE

• Access to top talent: Interview and hire expert offshore bookkeepers with a minimum of 5+ years of experience
• Substantial cost reduction: Save up to 50% on operational costs
• Fully compliant: SOC 2 Type II compliant accounts outsourcing services company
• Build immediate capacity: Add certified, dedicated, outsourced bookkeepers to your team within 48 hours
• Use the time saved to focus on innovation & growth avenues and increase scalability
• Multiple engagement models to suit your firm’s requirements
• Comprehensive data security measures: Our offshore bookkeeping services leverages an IT infrastructure with ISO 27001:2013 certification for data security management systems.