In the ever-changing landscape of accounting, accountants are increasingly turning to offshoring as a strategic tool to enhance efficiency, reduce costs, and stay competitive. Outsourcing bookkeeping, tax returns, VAT, and accounting functions to offshore locations, such as the Philippines, has emerged as a game-changer for UK, European, UK and Canadian accounting firms. Offshoring offers many benefits which go beyond simple, yet attractive, cost savings.
- Cost Savings
The most apparent advantage of offshoring bookkeeping, tax returns and other accounting tasks is the substantial cost savings. The UK has a high cost of living and an associated high cost of labour. Offshoring to countries with a lower cost of living, such as the Philippines, allows accounting firms to access skilled professionals for about half their UK cost.
- Access to a Skilled Workforce
The Philippines is home to a large pool of highly educated and skilled accounting professionals. With a strong focus on education and a workforce fluent in English, UK accountants can seamlessly collaborate with their offshore counterparts. This ensures that the quality of work remains high, while the cost advantage is maintained, creating a win-win situation for both the accounting firm and its clients.
- Focus on Growth
Offshoring enables UK accounting firms to refocus their in-house resources on growth, such as strengthening client relationships, selling strategic advisory services, and business development. By delegating routine and time-consuming tasks like tax returns and VAT processing to offshore teams, accountants can redirect their efforts towards value-added services and business development.
- Quicker Turnaround Times
Tasks are easier and quicker when individuals in your team are solely focused on delivery. Many UK accountants are expected to do business development and manage client relationships as well as perform basic accounting duties. It is simpler and far quicker to have people solely dedicated to delivery. This gives your clients a faster service and free up your UK team to focus on other things.
- Technology and Security
Offshoring partners supply the office space, desk, IT and infrastructure required for your team members reducing your costs further. They also often invest in cutting-edge technologies and security measures to ensure the confidentiality and integrity of financial data. UK accounting firms can leverage these advancements without having to make significant upfront investments. This collaborative use of technology enhances the overall efficiency and security of accounting processes.
6. Manage the HR Headache
Your team members are employed by your offshore partner who manage the HR function on your behalf. So, they manage lateness, performance, holidays, sickness etc for you. They also pay your team members and give you one invoice. For many accountants, this frees them some major headaches and distractions.
The decision for UK, US, European and Canadian accountants to offshore tax returns, bookkeeping and accounting functions is not only a cost-cutting strategy but a strategic move to stay ahead in a competitive industry. By tapping into the skilled workforce, enjoying cost savings, and leveraging the advantages of offshoring, accounting firms can not only meet the demands of their clients more efficiently but also position themselves as industry leaders embracing the global dynamics of the profession.
The future of accounting is undoubtedly global, and those who embrace offshoring will find themselves well-positioned to navigate the challenges and opportunities that lie ahead.
Take your first steps towards a more productive, lower-cost future by contacting us today to arrange your no-obligation meeting.