Top 5 mistakes to avoid when looking for an offshore accounting service provider.

For firms looking to scale, by means of cutting costs or for the need of a wider pool of talent, it makes sense to explore offshoring as a business strategy.

While the multiple benefits of offshoring make it a lucrative decision, it can get quite tricky if not done carefully.

When choosing an offshore partner, certain mistakes if overlooked, can be detrimental to your business’s growth.

Here are top 5 mistakes to avoid when looking for a provider of offshore accounting services for a better offshoring strategy!

Insufficient Research

Not every offshore service provider can deliver a quality service.

You will need to dedicate time to evaluate their portfolio and business expertise.

It’s crucial to assess the provider’s previous track record by checking client feedback and testimonials to ensure you are selecting a trustworthy offshore partner. This information can be useful to make a more informed choice.

Too much emphasis on cost

Invariably, every business decision ultimately comes down to cost.

An offshore team of accountants can get you similar results as an inhouse team albeit at a much lower cost.

But the key is to focus on cost-effectiveness, rather than the cost of your offshore team. When you’re looking to scale up, the emphasis should be on value, not numbers.

Unclear communication of requirements

When requirements are not documented or clearly communicated verbally, chances of loss of important details are higher. Hence, it is vital to give the vendor complete clarity regarding your vision, goal and what you would like to achieve out of this partnership to establish if they have the capacity to provide the same.

Offshoring to vendors that aren’t technologically well versed

With giant leaps being made every day in the world of technology and automation now being a major aspect of accountancy, it’s crucial that your offshore partners are up to date with the latest technological trends.

Neglecting the importance to cyber security and data protection

When offshoring for the first time, many firms often focus on lower costs or a cheaper provider, thereby, neglect to inquire about the data security or safety protocols.

It’s imperative that you ask pertinent questions about the offshore company’s data security regulations and outline all the important security protocols you’ll be needing from the provider or your firm’s data may end up in the wrong hands.

Offshoring gives your firm an extra edge and avoiding these mistakes will ensure your offshore strategy does not fail.

After all, the success of your offshore model heavily relies on your choice of partner.

The dot HQ helps accounting firms grow their business by setting up their own offshore team of skilled accountants.

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By The dot HQ

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