Best Countries to Set-up Offshore Finance Team in 2025

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Accounting talent shortages are placing a serious strain on U.S. businesses. Many companies are finding it difficult to fill critical roles, leading to costly delays, compliance risks, and operational inefficiencies. In response, offshore accounting has emerged as a practical and effective solution. By outsourcing key functions like bookkeeping, payroll, tax preparation, and financial analysis, businesses can tap into global talent pools and streamline operations. These teams bring specialized expertise, enhance scalability, and drive significant cost savings. In this blog, we’ll explore why offshoring accounting services is gaining momentum and how your business can successfully build and manage an offshore finance team.

Reasons to Use Offshore Accounting Services

Along with substantial cost-saving, there are a plethora of factors that are driving companies to look for offshore experts. Some of these facets include access to a specialized skillset, round-the-clock operation cycle, ease of scalability, and improved efficiency. Below, we are digging deeper into the core reasons why offshore accounting has become such a significant phenomenon.

Significant Cost Savings

One of the biggest reasons businesses choose to offshore their accounting functions is to save money. Hiring in-house accountants can be expensive due to salaries, benefits, office space, and software licenses. Offshore accounting providers, especially in countries such as the Philippines, India, and Vietnam, offer better-quality work at much lower rates. This translates into potential savings of up to 60% on total operational expenditure.

Access to Skilled Talent

Credible offshore accountants are highly trained and hold global qualifications like CPA (Certified Public Accountant) or CA (Chartered Accountant). Moreover, these professionals are often well-versed in international accounting standards and cloud-based accounting software. This gives you access to a team of experienced experts without having to go through the long and costly process of hiring and training them yourself.

Enhanced Efficiency and Productivity

Offshore accounting services boost efficiency and productivity by streamlining financial processes and reducing internal administrative burdens. Specialized offshore teams use advanced technology and automation, ensuring rapid, error-free task completion. This allows your in-house staff to focus on core business priorities, while offshore partners provide detailed financial reporting and analysis and faster issue resolution, driving overall organizational performance.

Scalability and Flexibility

Offshore accounting services offer scalability and flexibility, letting you quickly adjust resources as your business evolves or faces seasonal changes. You can easily scale up during periods of growth or scale down when demand drops. You can do this all without the hassle of hiring or layoffs. This agility ensures you always have the right talent, precisely when you need it.

24/7 Operations

Offshore accounting for businesses in the U.S facilitates true 24/7 operations by leveraging global time zone differences. While your local team rests, offshore partners handle critical accounting tasks. This continuous workflow ensures faster turnaround, immediate response to urgent needs, and uninterrupted business operations, keeping your financial processes active and efficient around the clock.

Improved Compliance and Quality

When you partner with reputed offshore accounting providers, you get F&A solutions that are accurate and compliant. They stay updated with international laws and standards like GAAP and IFRS. Moreover, their teams often include compliance specialists who check for errors and make sure all reports and filings are correct and timely, helping your business avoid penalties or legal issues.

Data Security and Transparency

Reputable offshore accounting firms take data protection seriously. They use secure servers, data encryption, firewalls, and access controls. Additionally, they provide regular updates, detailed reports, maintain clear communication and adhere to data protection regulations such as SOC 2 (System and Organization Control) and ISO 27001 (International Organization of Standardization).

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Best Countries to Set Up Offshore Finance Teams

Choosing the right destination to set up an offshore team of accountants can shape the future of your operations. From talent availability to cost efficiency and time zone advantages, let’s delve into the best countries that offer the perfect blend of financial expertise and reliable global business support.

Philippines

The Philippines stands as an ideal destination for offshore accounting, offering a skilled, English-speaking workforce and cost-effective solutions. With an impressive 92.5% English proficiency and strong cultural alignment with Western businesses, it fosters seamless collaboration. The horizon gleams with promise as the Philippine outsourcing industry is projected to employ 2.5 million individuals by 2028, accounting for 8% of the nation’s GDP, making it a strategic choice for setting up a finance team.

Pros:

• Significant cost savings due to low labor costs.
• Highly skilled, English-proficient accountants familiar with US standards.
• Quick response times and high adaptability to client needs.

Cons:

• Time zone differences can affect real-time collaboration.
• Managing compliance with US tax and reporting laws requires careful oversight.
• Occasional communication gaps may arise, demanding robust management processes.

India

India has steadily emerged as one of the top destinations for offshore accounting services, supported by a large pool of over 430,000 Chartered Accountants and a notable rise in global certifications. In fact, CPA candidates alone have increased from 2,000 in 2020 to around 11,000 in 2024. Coupled with advancements in technology and infrastructure, this foundation enables India to deliver scalable, precise, and efficient accounting support to global markets.

Pros:

• Substantially lower labor and operational costs compared to Western countries.
• Access to a large pool of English-speaking, professionally qualified accountants proficient in US GAAP and regulatory compliance.
• Easy to scale operations up or down based on business needs without long-term commitments.

Cons:

• Due to the time-zone difference, real-time collaboration becomes challenging.
• Sensitive financial data requires stringent protection and compliance measures.
• Variations in work culture or accounting standards may need alignment and training.

Mexico

The Mexico Business Process Outsourcing (BPO) Services Market is projected to reach a valuation of $6.28 billion in 2024, with finance and accounting outsourcing being a key contributor. This growth is driven by Mexico’s cost-effective labor, bilingual workforce, and proximity to the United States, making it an attractive destination for outsourcing accounting functions. The country has a strong trade relationship with the U.S. through the USMCA agreement, which makes cross-border business easier.

Pros:

• The labor costs in Mexico are much cheaper than in the USA.
• The country boasts a versatile accounting talent pool.
• Being in similar time zones facilitates real-time communication.

Cons:

• While still cost-effective, rates in Mexico may be higher compared to India or Vietnam.
• In certain areas, concerns about political instability and cybersecurity may affect business confidence.
• While many professionals are bilingual, they lack consistent fluency, especially in technical financial terminology.

Vietnam

Vietnam is an excellent destination for U.S. businesses to set up their offshore accounting teams due to its cost-effectiveness, highly skilled workforce, and growing expertise in finance and accounting. With a rapidly expanding BPO sector, Vietnam offers access to a large pool of educated professionals proficient in international accounting standards. Moreover, the country’s competitive labor costs, coupled with its strong cultural alignment with Western business practices and time zone advantages, make it a great choice for outsourcing accounting functions.

Pros:

• Lower labor costs compared to many Asian countries.
• Increasing number of skilled accountants with technical expertise.
• Government incentives encourage foreign business investments.

Cons:

• English proficiency varies, potentially impacting communication.
• Working hours can limit real-time collaboration with U.S. teams, affecting turnaround on urgent tasks.
• Differences in legal frameworks and evolving data protection laws can create compliance and contract management challenges.

Brazil

Brazil is a top offshore accounting destination for U.S. businesses, with its finance and accounting BPO market is, projected to grow to USD 2.67 billion by 2030, at a CAGR of 8.5%. This growth, along with Brazil’s skilled workforce and cost advantages, makes it a strategic choice for outsourcing. Moreover, the country is investing heavily in fintech and digital finance, which means the workforce is modern, tech-savvy, and forward-thinking.

Pros:

• Brazil boasts a substantial number of qualified accountants familiar with both local and international standards.
• Sharing similar time zones with North America and Europe facilitates smoother communication during business hours.
• Brazil’s stable financial regulations provide a structured environment for compliant accounting services.

Cons:

• Brazil’s intricate and frequently changing tax laws require specialized knowledge, increasing the challenge of offshore management.
• Labor and operational costs in Brazil tend to be higher than in Asian outsourcing hubs.
• Business practices and communication styles may sometimes lead to misunderstandings or slower decision-making.

Different Models in Offshoring

Offshoring comes in many shapes and models; each tailored to different operational needs and strategic goals. From fully managed services to dedicated teams, these models vary in levels of control, cost-efficiency, and flexibility. Here’s a closer look at the different offshoring models businesses can choose from.

Recruiting

In this model, you directly hire offshore accountants as part of your team, typically from hiring platforms such as Glassdoor, UpWork, and Fiverr. You control the recruitment, training, and daily tasks, making it easier to align the offshore staff with your company’s goals. Moreover, these team members use your systems and follow your processes, offering a smooth collaboration. However, this also means they are a part of your payroll management, Human resource management, and local labor laws, which can add to your administrative work.

Pros:

• Full control over hiring and workflow
• The offshore team adapts to your systems
• Better alignment with your company culture
• Builds long-term loyalty and consistency

Cons:

• You manage local labor laws and payroll
• HR and compliance can be time-consuming
• Slower setup compared to outsourcing
• Higher management workload

Partnering with an Outsourced Service Provider

Partnering with an offshore accounting service provider means hiring a vendor to get finance and accounting services. The provider handles hiring, onboarding, training, payroll, and compliance, so you avoid administrative hassle. Additionally, you get a team, dedicated or shared, that works within your tools and systems. Scalability becomes easier with this model, as you can reduce or expand the size of the offshore team as per the demand.

Pros:

• Quick setup with minimal effort
• No need to manage HR or payroll
• Easy to scale up or down
• Access to trained and skilled accountants
• Uses your tools and workflows

Cons:

• Less control over the team selection
• May face communication gaps
• Shared teams can impact focus
• Customization may be limited

Opening Up Your Own Back Office

This model, also known as Global Development Centers, includes setting up your own office in an offshore country. For instance, companies like Deloitte, PwC, and EY have set up their bases in many countries, including China, India, and the Philippines. You hire and manage the team directly, giving you full control over operations, systems, and data. It demands a large upfront investment and ongoing effort to stay compliant with local laws. But it also allows you to fully align offshore work with your company’s long-term goals.

Pros:

• Full control over staff and operations
• High data security and process oversight
• Complete alignment with company goals
• Long-term cost efficiency

Cons:

• High setup and running costs
• Requires legal and HR compliance locally
• Increased launch time
• Demands constant management attention

Best Practices to Set Up Your Offshoring Process

How do you ensure success when building a team of offshore accountants? It begins with asking the right questions and setting the right expectations from day one. By following structured best practices that cover hiring, communication, compliance, and performance tracking, a well-set foundation helps streamline workflows, reduce risks, and align your offshore team with your core business objectives.

Define Clear Objectives and KPIs

Begin by outlining your goals for offshoring, such as reducing operational costs, improving efficiency, or accessing specialized skills. The clarity will help in establishing measurable financial KPIs, turnaround time, accuracy rates, etc., to track progress and success.

Choose the Right Offshoring Model

Companies need to carefully evaluate their requirements before choosing between the various models. Freelancers are ideal when a business needs short-term, specialized expertise or has a specific, one-off project to complete. Moreover, setting up your own company in an offshore country is most appropriate when your business is planning for long-term expansion. Lastly, offshoring through a third-party provider is best suited for complex or large-scale projects that require ongoing support, access to a broad talent pool, or scalable solutions.

Prioritize Communication and Integration

Irrespective of the model you select, maintaining effective communication is an imperative aspect of successful offshoring. Regular meetings, feedback sessions, and clear reporting lines ensure proper accountability across various teams. Additionally, communication and collaboration tools such as MS Teams, Zoom, Google Meet, Trello, Asana, and ClickUp make it easier for both onshore and offshore teams to collaborate on projects.

Invest in Technology

Efficient offshoring functions and accounting automation go hand-in-hand. Therefore, make sure your offshore accounting team is using the right software for optimum efficiency. Before hiring, check their proficiency in the latest accounting software such as Zoho Books, NetSuite, Xero, QuickBooks, and MS Dynamics. Moreover, as and when you upgrade the technology, invest in training to ensure the skills match the required expertise.

Monitor Performance

As your operations grow, your outsourcing partnership should scale effortlessly too. Make sure to regularly check in to see how the offshore partnership can be enhanced. With growth, ensure your partner can still align with your requirements; if not, talk about necessary adjustments.

Final Thoughts

With a versatile accounting talent pool and a strongly growing infrastructure, these countries have become a reliable financial partner for many firms. But to make the most of offshore accounting services, you need a partner who brings both expertise and reliability to the table.

With Whiz Consulting as your partner, you benefit from a seasoned team of 100+ professionals, over a decade of industry experience, and a commitment to excellence in bookkeeping, payroll, financial reporting, and compliance. We ensure smooth collaboration across time zones, strict data protection protocols, and responsive communication, empowering your business with reliable, tailored solutions that drive long-term success and financial clarity.