Finding the right candidate on the other side of the world can be tough. Especially if you don’t know exactly what you are looking for.
Hiring offshore bookkeepers has become increasingly popular for accounting firms seeking to reduce costs and tap into a larger pool of skilled professionals. The Philippines and India are among the most popular countries for offshore bookkeeping services, along with South American nations such as Argentina, Brazil, and Colombia.
According to the US Bureau of Labor Statistics, the median annual wage for accountants and auditors in the United States was $73,560 as of May 2020. In these offshore locations, salaries can range from approximately $5,400 to $20,100 USD per year.
Whether you are new to hiring offshore or have tried before and failed, here is our guide on what to expect when hiring offshore bookkeepers and why these countries are top destinations for finding qualified candidates.
The Philippines
When it comes to hiring offshore bookkeepers, the Philippines is a popular choice for small to medium-sized businesses due to its abundant supply of highly skilled professionals with strong English language proficiency. With a population of over 100 million, the country has a large pool of potential candidates.
Many international companies have recognized the potential of the Filipino workforce and have set up operations in the country. They are also known for their competitive labor costs, which allow businesses to save on operational expenses without sacrificing quality. In the Philippines, you can find bookkeepers for around PHP 360,000 to PHP 820,000 per year (approximately $7,200 to $15,000 USD).
If we had to name one downside, it would be the time difference. The Philippines is approximately 12 hours ahead of the United States which can be a challenge not only to offshore bookkeeping teams sync but also to manage some legal operations that need to be carried out during normal business hours.
India
India has been a hub for outsourcing services for many years, and bookkeeping is no exception. With a population of over 1.3 billion people, India has a massive workforce that is well-versed in offshoring services. The country is home to some of the world's most prestigious business schools, which means that the country's workforce has a strong foundation in accounting and finance principles.
Labor costs are a little bit more competitive than in the Philippines, as you can find bookkeepers for INR 500,000 to INR 800,000 per year (approximately $5,800 to $9,500 USD), but the time difference can be a complication as India is almost 9 hours ahead of the US.
Argentina
Argentina is becoming an increasingly popular destination for businesses due to its large pool of English-speaking, college-educated professionals with expertise in accounting and bookkeeping. Most of these professionals have received training from the top universities in South America and can provide high-quality services at a competitive price.
This country also boasts a highly developed technology sector, with a growing fintech and startup scene. This means that many bookkeepers are familiar with the latest accounting software and technologies and well-adjusted to remote work. This can help businesses streamline their bookkeeping processes and improve efficiency.
Although its candidates are somewhat better valued with a wage rate from $8,000 to $12,500 USD per year, the upper side is the favorable time zone. With only a 2-hour difference to New York, businesses can easily communicate with their offshore bookkeepers in Argentina during normal business hours. This can help to facilitate collaboration and ensure that tasks are completed on time.
Brazil
Brazil has a well-established regulatory framework for professions such as accounting, law, and finance. This framework ensures that bookkeepers in Brazil adhere to strict guidelines and professional standards, providing businesses with confidence in the quality and reliability of their services. Also, the country has a large and dynamic economy with a thriving startup scene, which has helped to cultivate a highly skilled and educated workforce.
Just like Argentina, Brazil only has from 2 to 5-hour difference from the US depending on the region the company is set up.
Colombia
Colombia is a rising star in the offshore bookkeeping industry. In addition to the quality of their work, bookkeepers are also more cost-effective compared to their counterparts in other countries. Colombia has a lower cost of living than many other South American countries, and this translates into some of the lowest wage rates for bookkeeping services in the region.
This cost savings can be a significant advantage for small and medium-sized businesses looking to improve their financial management processes without breaking the bank while still taking advantage of a similar time zone.
On the downside, as a country that recently entered the talent export market, its professionals often don’t have strong personal profiles on freelance platforms, which can make it difficult to find bookkeeper candidates on your own. That is why it is important to have a reliable partner to find, select and match the right candidate with an accounting firm, like an outsourced staffing company.
To Sum Up: Popular Countries to find Offshore Bookkeeping
Make it Easier With Overseas Help
Overseas help with bookkeeping has become a popular option for accounting firms of all sizes to reduce costs while still maintaining high-quality work. However, finding the right candidate in a foreign country can be a daunting task, especially if you lack experience in the field. This is where a reliable staffing company can help.
Outsourced staffing companies have the expertise and resources to identify the most suitable candidates, conduct preliminary interviews, and even handle all the administrative tasks related to the hiring process in only 2 weeks. This will allow you to focus on your core business operations while leaving the recruitment process to the professionals.
By partnering with a reputable staffing company, you can ensure that you are hiring the right candidates for your business needs, and you can rest assured that the recruitment process will be smooth and hassle-free.
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Kevin Mitchell, CPA
Senior Manager and CPA with over 20 years of experience in accounting and financial services, specializing in risk management and regulatory compliance. Skilled in managing audits and leading teams to deliver exceptional services. Proud father of two.
