Outsourcing Consultant for CPAs & Accountants

In the accounting profession, outsourcing and offshoring are among the most discussed strategies for solving today’s staffing crisis. Yet, many CPA firms use these terms interchangeably, leading to confusion when exploring global talent options. While they share similarities, outsourcing and offshoring are distinct models with very different impacts on firm operations.

Understanding these differences is essential for firms looking to scale capacity, improve profitability, and avoid common pitfalls.

What Is Outsourcing in Accounting?

Outsourcing means contracting specific functions or tasks to an external provider. These providers may be domestic or offshore, depending on the service.

Examples in CPA firms:

• Tax return preparation (per return or per hour).
• Bookkeeping and Client Accounting Services (CAS).
• Audit testing or seasonal projects.

Why firms outsource:

• Add flexible capacity during tax season or audit peaks.
• Reduce partner/staff burnout without hiring full-time staff.
• Access specialized expertise without increasing headcount.

Key takeaway: Outsourcing is task-based. You’re paying a vendor for specific deliverables, not hiring long-term staff.

What Is Offshoring in Accounting?

Offshoring refers to hiring staff in another country, either through a staffing vendor, a Build-Operate-Transfer model, or by setting up your own offshore team. Unlike outsourcing, offshore staff are dedicated resources working as an extension of your firm.

Why firms offshore:

• Fill the gap created by declining U.S. accounting graduates.
• Reduce costs by 40–50% compared to domestic hiring.
• Build long-term capacity for tax, CAS, and audit.
• Create scalability and consistency year-round.

Key takeaway: Offshoring is people-based. You’re building a team that integrates with your firm, not just purchasing tasks.

Outsourcing vs Offshoring: Which Works Best for CPA Firms?

• Outsourcing is best for firms needing short-term relief during busy seasons or specialized projects.

• Offshoring works best for firms seeking long-term scalability and dedicated team integration.

• Many successful firms use a hybrid approach—outsourcing seasonal tasks while building a core offshore team.

The AICPA Outsourcing Toolkit, developed in collaboration with Impact Global Solutions, provides a framework for evaluating these models and selecting the right approach. It highlights that successful firms:

• Standardize processes before outsourcing/offshoring.
• Establish communication controls and KPIs.
• Conduct rigorous vendor due diligence to ensure security and compliance.

Why This Matters Now

The talent shortage isn’t easing. The number of U.S. accounting graduates fell nearly 8% between 2021–2022, while retirements continue to accelerate. Firms that rely only on traditional hiring will struggle to meet client expectations.

Outsourcing and offshoring provide practical, scalable solutions—but only when firms choose the right model and implement the right structure.

For CPA and accounting firms, outsourcing and offshoring are not the same thing. Treating them as interchangeable can lead to inefficiencies, quality issues, or wasted investment. By understanding the differences, leveraging proven best practices, and using resources like the AICPA Outsourcing Toolkit, firms can confidently choose the model that best fits their strategy.

If your firm is evaluating outsourcing or offshoring, start with an Outsourcing Readiness Assessment to determine where you stand and how to build a successful roadmap.