Offshoring is helping U.S. CPA firms address talent shortages, rising costs, and seasonal workloads—especially in tax. Whether you’re preparing 1040s, managing payroll, or handling compliance work, offshore tax teams can improve efficiency while reducing overhead.

Here’s a quick guide to how tax offshoring works, what services are typically outsourced, what’s working well, and how to avoid common pitfalls.

Firms typically start with routine, standardized tasks that don’t require direct client contact:

• Tax return prep (individual, corporate, sales tax)
• Bookkeeping and data entry
• Payroll and accounts payable/receivable
• Gathering PBC documents and inputting data into tax software
• Drafting schedules, reconciliations, or basic research

These tasks are performed offshore, reviewed by the onshore team, and finalized for client delivery.

Firms typically work with a dedicated offshore partner or build a small remote team. Offshore staff access your tax systems securely—usually through cloud-based tools (e.g., QuickBooks, UltraTax) or secure VPNs.

Communication happens through scheduled check-ins (video or chat) and shared dashboards. Workflows are documented in SOPs, and teams collaborate through shared tools like Slack or Microsoft Teams. The offshore team handles prep work and flags open questions for U.S. staff to finalize.

✅ What’s Working Well

• 15–30% labor cost savings
• Overnight productivity and faster turnaround times
• Relief during peak season with flexible scale-up
• Onshore teams can focus on client-facing or advisory work

⚠️ Common Challenges

• Communication gaps if expectations aren’t aligned
• Mistakes from unclear processes or training
• Data security concerns (ensure VPN, encryption, MFA)
• Need for oversight, especially early in the partnership

💡 5 Tips for Success

1. Start small: Pilot with one service line (e.g., 1040 prep) before scaling up.
2. Use secure systems: Encrypted platforms and verified offshore providers are a must.
3. Document everything: SOPs, templates, and workflows help standardize output.
4. Communicate frequently: Daily or weekly check-ins keep teams aligned.
5. Assign a U.S. anchor: One person should oversee offshore tasks and QA.

Adriatic Accounting Partners helps CPA firms build reliable offshore tax teams that work as a true extension of your staff. From data entry to draft returns, our professionals integrate into your workflow, saving you time, reducing cost, and helping you focus on what matters most.

Schedule a free consultation to explore if tax offshoring is right for your firm.