Outsourcing CPAs vs. In-House CPAs: Do overseas CPAs perform better than In-House CPAs?

There are inherent differences between outsourcing CPAs and hiring in-house CPAs. In the midst of these differences are also inherent advantages and disadvantages. Does outsourcing CPAs have more advantage over in-house accounting or the other way around? Before answering these questions and delving into the details, it is first important to understand the role of accounting in business operations.

Three primary reasons businesses should take into consideration before they start operations are profit generation, global level of growth, and how they must carry out social functions through employment, revenue by way of taxes and other specific duties. All these three reasons are assisted by accounting so businesses know where they stand and if their primary business goals are ever accomplished. Accounting also serves as a check and balance to businesses so they better achieve these goals.

Knowing the impact of accounting on businesses, the world of commerce knows the critical role of accountants. It is for this reason that a chief finance officer always accompanies the chief executive officer of the company. Having now understood the necessity for accounting and accountants, it is best to proceed with the differences between outsourcing CPAs and hiring in-house accountants.

While an in-house accountant implies that local accountants are hired as full time employees for book and finance management, outsourcing CPAs on the one hand is a contract-based hiring of accountants from within or outside the country. One of the main differences between the two is that when outsourcing CPAs, the CPAs are not directly under company employment and the bulk of their relationship revolves around the contracted accounting services. A growing trend nowadays is outsourcing CPAs overseas, particularly Asia. Although at first glance overseas outsourcing of CPAs may intimidate companies due to the little direct control afforded to them, there are several fringe benefits attached to outsourcing CPAs.

One is that most outsourcing CPA firms are professional providers of accounting services. They would have a roster of accountants who are as skilled as those in your locality. These outsourcing CPA firms can increase the value of a business’ existing accounting. Secondly, compared to in-house CPAs whose specific functions handicap the company when they file for leave or absence, outsourcing CPA firms always have a back-up from their pool of all-around accountants whenever the assigned accountant takes a leave or is absent. A third advantage of outsourcing CPAs abroad is their 24/7 availability. This is very crucial to many businesses that are in a hurry to beat deadlines and require their accountants to be available all the time.

Outsourcing CPAs in a top BPO country like the Philippines would be a great investment to US and European companies because the time zone difference ensures an overnight work rotation. Also, the foreign exchange differences between the two countries is an assurance to Western CPA outsourcers that the costs incurred for outsourcing CPAs are much lesser compared to the costs of hiring in-house CPAs.

Having enumerated the following information above, it can thus be concluded that the benefits of outsourcing CPAs far outweigh the benefits of in-house accounting.