Why U.S. Accounting Firms Are Outsourcing in 2025 

16 July 2025

• Outsourcing accounting in 2025 is a strategic cost-saving move: Firms are cutting 15–30% in overhead by shifting compliance, bookkeeping, and tax to expert offshore teams. 
• U.S. firms are choosing outsourcing to solve staffing shortages: Reliable talent, quick ramp-ups, and full GAAP compliance drive adoption. 
• Outsourced teams are trained, certified, and updated on U.S. laws: From IRS rules to FASB standards, top partners ensure accuracy and audit-readiness. 

Outsourcing has become a critical operating model for U.S. accounting firms in 2025. According to recent research, 25% of firms are offshoring core functions such as tax preparation, bookkeeping, and payroll. Among firms already outsourcing, 65% plan to increase their offshore engagement within the next 12 months. 

The drivers are structural, not seasonal. 

• The U.S. accounting workforce has shrunk by more than 10% since 2019 
• Partner-level succession is slowing, while client demand for CAS and compliance support continues to grow 
• Staffing cost differentials remain strong, with firms saving up to 60% on overhead by shifting work offshore 
• Firms using offshore support report 25–30% faster turnaround during tax season 

Offshoring is especially common for tax-focused firms. More than 40% of tax practitioners with over $1 million in revenue now use some form of outsourced support, either directly or through a BPO relationship. 

This is no longer limited to high-volume firms. Mid-sized practices are also outsourcing to stabilize delivery, absorb turnover, and expand margins without hiring locally. 

1. Firms are Outsourcing to Stay Cost-Competitive

Labor accounts for more than 60% of overhead in most accounting firms. Depending on the task volume and complexity, outsourcing can reduce that by 15–30%. 

U.S. firms avoid hidden expenses such as software subscriptions, hardware, benefits, and ongoing training. The outsourcing provider absorbs those costs. Firms pay only for what they use, which keeps margins healthy in a high-pressure environment. 

 2. Offshore Teams Fill Gaps, U.S. Hiring Can’t

The number of U.S. accountants has declined by over 10% since 2019. Experienced CPAs are aging out, and fewer graduates are pursuing public accounting careers. 

Outsourcing partners in India and the Philippines offer talent pools that are trained, English-proficient, and familiar with U.S. GAAP. U.S. firms are expanding their offshore teams to absorb seasonal surges and long-term client growth. This keeps delivery on track without overloading internal staff. 

 3. Routine Workload is Easily Offloaded

Commonly outsourced tasks in 2025 include: 

• Bookkeeping and bank reconciliations 
• Accounts payable and receivable 
• Multi-state payroll processing 
• Sales tax filings 
• Year-end tax preparation 
• Management reporting and FP&A 

These tasks are process-driven and time-sensitive. Firms can save time and reduce bottlenecks by consistently executing these workflows by having a dedicated offshore team. 

4. Compliance Risk is Lower with Trained Outsourced Teams

Top outsourcing partners maintain U.S.-specific accounting and tax divisions. Their staff trains continuously on IRS updates, FASB rules, and state-level compliance issues. Teams follow documented SOPs and communicate in U.S. time zones for seamless coordination. 

Outsourcing providers follow SOC 2, ISO 27001, and multi-layer encryption to meet CPA firms’ data security standards. This helps reduce audit risk and strengthen internal controls. 

5. Advisory Services Get More Attention

By outsourcing transactional and compliance-heavy work, internal teams free up capacity. CPAs and partners focus on advisory services such as: 

• Budget forecasting 
• Business planning 
• Client advisory (CAS) 
• M&A readiness 
• Tax strategy and modeling 

More than 60% of firms that adopted outsourcing have also launched new CAS offerings by 2025. 

6. Outsourcing Still Delivers Strong ROI in 2025

Even with global wage adjustments, outsourcing continues to offer net cost savings. Firms reduce the need to recruit, onboard, and retain in-house staff. 

Shifting surge work to outsourced teams also avoids overtime payouts and seasonal burnout. The ROI compounds over time because outsourced partners provide continuity and process maturity. 

7. Integration with U.S. Tools and Systems is Friction-Free

Outsourced teams work directly in platforms like QuickBooks, Xero, NetSuite, and Thomson Reuters CS. File sharing, task assignments, and real-time updates happen over secure cloud systems. 

U.S. firms maintain full visibility into progress without micromanagement. This makes outsourced work part of daily operations, not a disconnected back office. 

What are the top reasons U.S. accounting firms are outsourcing in 2025? 

U.S. accounting firms in 2025 are outsourcing to solve three core challenges: rising overhead costs, limited domestic talent, and growing client demands for faster delivery. Outsourcing enables firms to: 

• Reduce operating costs by up to 50% 
• Fill capacity gaps without increasing full-time headcount 
• Improve turnaround times for tax prep, bookkeeping, and monthly close 
• Free up internal teams for higher-value advisory services like CAS and CFO-level insights 

Firms using outsourcing report more consistent client service, reduced burnout, and stronger margins during peak seasons like tax and year-end close. 

Is accounting outsourcing still cost-effective despite rising global wages? 

Yes, accounting outsourcing remains highly cost-effective in 2025, even as global wages rise. The reason: U.S. firms continue to save on infrastructure, recruitment, training, payroll taxes, and benefits. 

Most outsourcing providers offer flexible models, FTEs, hourly billing, or task-based pricing, allowing firms to align costs directly with workload. When compared to U.S. hiring, the savings per role can range from 30% to 60%. Additionally, outsourced teams already operate in secure, well-equipped environments, eliminating the need for technology or onboarding expenses. 

How does outsourcing help accounting firms manage staffing shortages and turnover? 

Outsourcing gives firms immediate access to skilled professionals without the delays of local hiring. With the U.S. accounting workforce shrinking by over 10% since 2019, many firms face talent shortages, delayed delivery, and increased turnover. 

By working with offshore teams, firms can: 

• Ramp up during tax season or peak periods 
• Reduce pressure on internal staff 
• Maintain delivery SLAs during turnover or attrition 
• Onboard talent trained in U.S. tax, GAAP, and audit procedures within days 

This staffing flexibility helps accounting firms maintain performance and client satisfaction year-round. 

What types of accounting tasks are most commonly outsourced in 2025? 

The most commonly outsourced accounting services in 2025 include: 

• Bookkeeping and general ledger maintenance
• Accounts payable and receivable processing (AP/AR)
• Payroll processing and compliance (multi-state, multi-client)
• Sales tax return filings and payments
• Month-end and year-end close support
• Tax preparation and review (Forms 1040, 1065, 1120, etc.)
• Financial reporting, GAAP reconciliation, and cash flow analysis
• CAS support and fractional controller work

Many firms also outsource admin-heavy functions like document management, timesheet processing, and bank reconciliations. 

Can outsourced accounting teams handle U.S. tax law changes and GAAP updates? 

Yes, outsourced accounting teams from leading providers are fully trained to support U.S. tax and compliance work. Reputable firms provide ongoing training on: 

• IRS and state-level tax law changes 
• FASB updates and GAAP reporting requirements 
• Regulatory shifts such as 1099/NEC, Form 941, and state sales tax nuances 
• Workflow tools like QuickBooks, NetSuite, UltraTax, and Xero 

These teams operate under defined SOPs, internal quality checks, and secure protocols to ensure audit readiness and compliance accuracy. Providers like QXAS also use SOC 2 and GDPR frameworks to protect sensitive data and enforce role-based access controls. 

Final Thoughts

In 2025, outsourcing plays a central role in how successful accounting firms manage scale, staffing, and service delivery. With rising domestic talent shortages and increasing client expectations, firms are adopting outsourced models to reduce fixed costs, expand capacity, and maintain control over turnaround and quality. 

This model provides structured support across bookkeeping, tax, payroll, and advisory workflows. It enables firms to shift operational work to trained offshore teams while internal resources focus on client strategy, retention, and business development. The result is higher efficiency, better staff utilization, and improved margins without expanding local headcount. 

Outsourcing is a proven, high-ROI strategy for firms seeking predictable delivery, regulatory compliance, and room to grow. With the right partner in place, accounting leaders gain the flexibility to meet client demand, the stability to manage turnover, and the visibility to scale with confidence. 

Book a Consultation 

QXAS is helping U.S. accounting firms cut costs, eliminate hiring roadblocks, and deliver client work on time—even during tax season. Book your free strategy call today to see how QXAS can: 

• Reduce your overhead by up to 30% 
• Handle compliance with zero disruption 
• Support your firm’s growth without full-time hires 

Let us handle the back-end work so your team can focus on high-value clients. To learn more, email us at  [email protected] or call us at  +1 551 307 5522.

Divya Ramaswamy

Combining creative flair with a solid foundation in research-oriented content marketing, Divya assists accountants in understanding and navigating pressing industry issues. With a knack for distilling complex data into actionable advice, she helps professionals make informed decisions to enhance their practices.

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