6 Trends in Offshore Accounting Every Accountant Should Know

The modern accounting industry is a unique realm of possibilities. In the past decade, the industry has come a long way, embracing massive changes such as evolving technology and outsourced services. 

As the business landscape constantly changes, it is essential for accountants to stay up to date with the latest trends, developments, and best industry practices. One such practice is offshore accounting, which has gained tremendous prominence since the pandemic. 

In this blog, we will look at the key trends in offshore accounting that every practicing accountant in the UK should know. We’ll address the changing technological landscape, digitalisation, sustainability, outsourcing offshore accounting services to India, and more. 

It is no secret that technology has revolutionised the accounting industry, and offshore accounting is no exception. The increased availability of cloud-based accounting and bookkeeping software, and groundbreaking technologies such as AI and machine learning, have made accountants’ jobs simple. It has facilitated access to real-time financial data and predictive analysis, which is crucial in offshore accounting services. 

The digital transformation of accounting has helped streamline processes, improved accuracy, and enhanced the collaboration between offshore and onshore teams. 

Did You Know? 

Per a study by Sage UK, 67% of accountants advocate cloud accounting and believe that the technology makes their business more successful. 

Gone are the days when accountants were averse to outsourcing. Outsourcing has become a popular choice for many accounting firms as it allows them to leverage the expertise and cost advantages of offshore professionals. Moreover, outsourcing helps maintain high service quality and creates capacity by delegating routine and time-consuming tasks to offshore teams. 

With offshore accounting and taxation services, accountants can focus on providing value-added services and strategic advice to clients, opening new revenue streams for their business. 

Trivia: The top three countries for offshore outsourcing in the accounting industry are India, the Philippines, and China. 

According to the latest statistics released by the UK Government, 32% of businesses and 24% of charities recall having suffered cybersecurity breaches or attacks in the past 12 months. These numbers went down from 39% and 30%, respectively, in 2022. This indicates the criticality of data security and how companies all over the UK are acting upon it. 

As businesses increasingly rely on offshore accounting services, data security has become a paramount concern. Accountants must be well-versed in the latest data protection regulations and ensure appropriate measures are in place to safeguard client information. Encryption, secure networks, and regular audits are just a few strategies accountants can employ to maintain data security in an offshore environment. 

The pandemic led to a substantial shift in working patterns, pushing accounting firms to adopt flexible remote and hybrid settings. Predictions show that this trend is likely to continue for years to come considering the benefits it offers. 

Remote accounting allows firms to delegate offshore accounting services to India and other popular outsourcing destinations, saving costs. The time zone difference further amps up the benefits as accountants get their work done by remote staff even before they begin their day. 

As accountants engage with offshore teams and clients from diverse cultural backgrounds, cultural awareness and sensitivity are vital. Understanding cultural nuances fosters effective communication, builds trust, and enhances working relationships. Embracing cultural diversity can also bring fresh perspectives and innovative solutions to complex accounting challenges. 

A study by the International Federation of Accountants (IFAC) found that more than 70% of the world’s largest companies report on their sustainability performance. It is one of the most talked about subjects in the industry and a crucial trend for offshore accounting and taxation services. 

Offshore accountants work remotely from their homes or a delivery centre. This helps save costs, increase efficiency, and facilitate time management. It also enables accountants to ensure a better work-life balance, creating room for innovation and better relationships. In the coming years, accountants’ contribution to sustainability will be crucial to watch out for. 

In today's interconnected world, offshore accounting presents exciting opportunities and challenges for accountants in the UK. By following the above trends and embracing innovative strategies, accountants can position themselves as trusted advisors and excel in this dynamic field. 

Remember, technology and outsourcing are your best friends. Embrace digitalisation but make sure you comply with all the necessary data security standards. Adopt remote accounting and give importance to cultural awareness. Lastly, don’t forget that sustainability is our global responsibility and businesses should work collectively to achieve it. 

QXAS, a market leader in accounting outsourcing, is a specialist provider of offshore accounting and taxation services in the UK. We have served accountants for over 15 years, tailoring our solutions to their diverse needs. We have a dedicated team of 500+ accountants, bookkeepers, and tax experts with excellent communication skills, specialising in UK accounting legislation. With us, you can hire offshore resources at lightning speed and beat the increasing capacity crisis in the industry. 

Curious to know more? Call us at +44 208 146 0808 or email us at qxas@qxglobalgroup.com to book a free consultation with our experts. You can also evaluate our services with a no-risk free trial. 

So, accountants, what are you waiting for? Go forth and conquer the world of offshore accounting with confidence and expertise! 

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