5 Common Offshore Accounting Services Challenges & Easy Solutions to beat them

by Lima Dutta Accounting services

Offshore accounting services boost cost savings and work efficiency, but it isn’t perfect—there are many challenges that finance and accounting outsourcing brings your way. If you don’t handle offshore accounting challenges on time, they will cause a much bigger problem than your imagination.

Presently, accounting outsourcing within the USA is tougher thanks to the Tax Cuts and Job Act (TJCAJ, global pandemics, and lots of other state and federal changes. Therefore, it won’t be wrong to mention that some new challenges are clouding offshore accounting services for all businesses in 2021.

Now, no got to worry. By educating yourself and performing some homework, you'll effortlessly handle of these challenges.

5 Biggest Offshore Accounting Services Challenges

Finance and accounting outsourcing services have numerous lucrative benefits, but you'll only achieve them—if you initially overcome the subsequent challenges:

Challenge #1. Obtaining High-end Cyber security

According to Gartner’s report, around $125 billion worldwide was spend on information security in 2021.

Since accounting information is usually a hot target for hackers, which makes it highly challenging for offshore accounting firm in detroit to supply high-level security to their clients. Especially, small accounting firms are mainly targeted as they don’t have a strong cyber security defence mechanism.

In offshore setup, from transferring data to recording data, all work is completed digitally—therefore, the cyber security challenge’s intensity becomes more vigorous. Thus, the info breach fear is one among the first causes for several people not using offshore accounting services even in 2021.

What’s a Solution?

The solution is pretty simple; you've got to rent an accounting outsourcing partner with a fanatical cyber security channel. Your outsourcing partner should have an entire in-house IT security system in order that they will fully safeguard your sensitive financial information.

For example, Kayabooks is very trusted accounting outsourcing company within the USA because we've developed a strong cyber security mechanism. Supported the rules highlighted in IRS Publication 5293, we've prepared our security system, including:

We provide full IT security training to our employees and only hire new employees after signing a non-disclosure agreement.

Personal electronic devices are prohibited on our office premises.

Printing and clients’ files access is merely given to trusted employees.

Regular viruses and security audits are performed.

SSL Secure network and digital locks are used at every stage.

Real-time data backup is practiced.

Our on-premises security includes 24*7 CCTV monitoring, security guards, fire fighting equipment, then far more.

Challenge #2. Intervention of Automation, AI & Many New Technologies

Robots aren’t coming anytime soon to require over your jobs. But, AI is gaining more power day by day—automating repetitive accounting duties like collecting regular transactions and compiling them into multiple tax and financial reports.

It is estimated that by introducing robotic process automation (RPA), 40 people’s accounting team can save to 25,000 hours of rework per annum. This may release tons longer for accounting teams to specialise in other important issues.

However, within the offshore scenario, it becomes challenging for accounting businesses or, in fact, the other businesses to update themselves consistent with all the newest accounting technologies.

What’s a Solution?

Straightforwardly speaking, accounting may be a competitive and fast-evolving field. Therefore, for offshore or in-house accounting teams, staying updated with the newest technology trends are extremely important. Thus, offshore accounting companies got to found out a separate IT department to enhance their work quality and efficiency.

Challenge #3. Language and Cultural Barriers

Offshore accounting has no boundaries—it is both pro and con for accounting companies. Whereas offshore companies can work with global clients, on the contrary, they need to know global languages and cultures to interact with their clients.

Imagine when an USA based bookkeeping services in detroit has got to work with US-based clients, it's mandatory to talk English and respect their cultural values. But, the challenge here is that USA isn’t an English speaking country and practices a special culture than the US.

Read Also - What are the ways to choose perfect Bookkeeping Software?

And these language and cultural barriers cause miscommunication between the teams and may derail the project.

What’s a Solution?

Offshore accounting companies should appoint multilingual and open-minded staff who can easily communicate with global clients. As an example, we offer accounting outsourcing within the US, UK, and other major English-speaking nations; therefore, each staffer can fluently speak English and remember of worldwide cultures.

Challenge #4. Unclear Goals and Expectations

Another lesser-known offshore accounting services challenge is unclear goals and expectations by clients. If the offshore accounting team isn’t fully conscious of their clients’ objectives, they can’t help achieve them.

Suppose a CPA firm has outsourced assets services from USA but didn’t defined what they need to realize with it—whether they need to enhance income or save bad debts. Now, an accounting outsourcing company will provide the simplest solution, but there’s no guarantee if it’s getting to meet your expectations or not.

What’s a Solution?

Clients got to define their offshore services objectives intimately. And if they don’t do, offshore service providing companies should ask them. Before getting a replacement client on board, we host a virtual consultation session where we ask clients’ objectives and expectations and permit them to ask anything from our experts to avoid miscommunication.

Challenge #5. Zone Troubles

Time lag differences are a double-edged sword for offshore businesses. With off shoring, clients can get around-the-clock services, but it's a touch struggle to bring the whole team together at the time of emergency.

Especially, when there's an entire 12 hours’ time difference like USA and therefore the US, it's a challenge for each side to figure at an equivalent time.

What’s a Solution?

Flexibility, yes, offshore accounting companies should have flexible timings in order that they will easily work as per their client’s comfort. Offshore accounting company and clients can mutually decide the time that suitable to both of them and yet not within already dark zone to any of them.

Bottom Line

There could be few challenges in outsourcing accounting services, but they're nothing major that can’t be easily fixed. Especially if you hire an experienced offshore accounting company, you won’t need to worry about anything. 

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Created on Feb 23rd 2021 04:55. Viewed 386 times.

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