The accounting industry is facing a serious talent shortage, as more and more accountants are retiring, quitting, or switching careers. According to the Bureau of Labor Statistics, more than 300,000 accountants and auditors left their jobs in the last two years. This has created a huge gap in the supply and demand of accounting professionals, especially in the U.S. and Canada.
To cope with this challenge, many companies are looking for alternative ways to source accounting talent. One of the most popular and effective strategies is nearshoring, which involves hiring accountants from nearby countries, such as those in Latin America (LATAM).
Nearshoring is different from offshoring, which involves outsourcing work to distant countries, such as India or China. Nearshoring offers several advantages over offshoring, such as geographical proximity, cultural alignment, time zone overlap, and lower costs.
Why We Talk About Nearshoring
Offshoring and nearshoring are two distinct strategies that companies use to outsource their business processes, including tasks such as customer support, software development, manufacturing, and more. These strategies differ primarily in terms of geographic proximity and location.
Offshoring
Offshoring involves contracting out business processes or tasks to service providers or workers located in a different country, typically one that is geographically distant from the company's home base.
Key characteristics of offshoring:
- Geographic distance
- Cost savings
- Time zone differences
- Cultural differences
- Complexity in management
Nearshoring
Nearshoring, on the other hand, involves outsourcing business processes or tasks to service providers or workers located in nearby or neighboring countries.
Key characteristics of nearshoring:
- Same time zones
- Geographic proximity
- Cost savings
- Cultural and language similarities
Why Companies Hire Professionals From LATAM
1. LATAM Accountants Have High-Quality Skills and Education
One of the main reasons why companies are hiring LATAM accountants is because they have high-quality skills and education. According to a report by the World Bank, Latin America has made significant progress in improving its education system in the past decade. The region has increased its enrollment rates, reduced its dropout rates, and improved its learning outcomes.
Moreover, LATAM accountants have access to various professional development opportunities, such as online courses, certifications, and memberships. For example, many LATAM accountants are certified by the Association of Chartered Certified Accountants (ACCA), which is a global body that sets high standards for accounting practice and ethics.
2. LATAM Accountants Have Excellent English Proficiency
Another reason why companies are hiring LATAM accountants is because they have excellent English proficiency. English is widely spoken and taught in Latin America, especially in countries like Mexico, Colombia, Argentina, and Chile. According to the EF English Proficiency Index, which ranks countries by their English skills, Latin America has improved its overall score by 5% since 2015.
Moreover, many LATAM accountants have experience working with international clients and companies, which gives them an edge in communication and collaboration. They can easily understand and follow instructions, provide feedback and suggestions, and resolve issues and queries.
3. LATAM Accountants Have Similar Time Zones and Work Schedules
A third reason why companies are hiring LATAM accountants is because they have similar time zones and work schedules. Unlike offshoring, where you have to deal with significant time differences that can cause delays and inefficiencies, nearshoring allows you to work with accountants who are in sync with your business hours.
For example, if you are based in the U.S., you can easily find LATAM accountants who are in the same or adjacent time zones. This means that you can communicate and collaborate with them in real time, without having to wait for hours or days for a response. You can also schedule meetings and calls at convenient times, without having to compromise your work-life balance.
4. LATAM Accountants Have Lower Costs and Higher Value
A fourth reason why companies are hiring LATAM accountants is because they have lower costs and higher value. Compared to hiring local or onshore accountants, nearshoring can help you save up to 50% on labor costs. This is because the cost of living and wages in Latin America are much lower than in North America.
However, lower costs do not mean lower quality. As we mentioned earlier, LATAM accountants have high-quality skills and education that match or exceed those of their onshore counterparts. They also have access to advanced technology and infrastructure that enable them to perform their tasks efficiently and effectively.
5. LATAM Accountants Have Similar Culture and Values
A fifth reason why companies are hiring LATAM accountants is because they have similar cultures and values. Latin America shares many cultural traits with North America, such as openness, diversity, innovation, and entrepreneurship. These traits foster a positive work environment that promotes creativity, collaboration, and problem-solving.
Moreover, LATAM accountants have similar values as North American accountants when it comes to professionalism and ethics. They adhere to the highest standards of accuracy, integrity, and confidentiality. They also respect and follow the rules and regulations of the accounting industry, such as the Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS).
By hiring LATAM accountants, you can build trust and rapport with professionals who share your vision and values.
6. LATAM Accountants Have Diverse and Global Perspectives
A sixth reason why companies are hiring LATAM accountants is because they have diverse and global perspectives. Latin America is a region that is rich in history, culture, and diversity. It has a population of more than 600 million people, who speak more than 20 languages and belong to various ethnic and racial groups.
LATAM accountants have exposure to different cultures and experiences that broaden their horizons and enhance their creativity. They can also offer insights and solutions that are relevant and applicable to the global market. They can help you expand your reach and grow your business in new and emerging markets.
By hiring LATAM accountants, you can leverage their diversity and global perspectives to gain a competitive edge in the accounting industry.
7. LATAM Accountants Have High Satisfaction and Retention Rates
A seventh reason why companies are hiring LATAM accountants is because they have high satisfaction and retention rates. According to a survey by Nearshore Americas, 90% of nearshore workers reported being satisfied or very satisfied with their jobs. They also reported having a strong sense of loyalty and commitment to their employers.
One of the main factors that contribute to their satisfaction and retention is the opportunity to work remotely. Remote work allows them to enjoy more flexibility, autonomy, and work-life balance. It also reduces their stress levels, commute time, and expenses.
Another factor that contributes to their satisfaction and retention is the opportunity to work with prestigious and reputable clients and companies. Working with international clients and companies gives them a sense of pride, recognition, and achievement. It also helps them develop their skills, knowledge, and network.
By hiring LATAM accountants, you can reduce your turnover rate and increase your employee engagement by working with professionals who are happy and loyal.
Conclusion
The shortage of qualified accountants in the United States poses a significant challenge for accounting firms. To address this issue, firms are adopting remote hiring models that offer flexibility, cost-effectiveness, and access to a global talent pool.
While each model has its advantages, Nearshore Outsource Staffing, particularly from South American countries, emerges as a highly attractive option due to its proximity, cost-effectiveness, cultural affinity, language proficiency, and scalability. By embracing Nearshore Outsource Staffing, accounting firms can ensure they have the skilled workforce they need to meet client demands and thrive in a competitive market.
