You’ve started a company and are managing Accountant vs Offshore Accountant everything from finance to administration—and it’s going great! But have you considered what you’ll do when you scale and expand to the point where juggling both becomes too much? You have two main options: hire a virtual accountant to handle specific financial tasks or hire a full-time offshore accountant at a much lower cost. The choice is yours.
Before making that decision, it’s important to understand the differences between virtual and offshore accounting. In this blog, we’ll break down these differences to help you make the best choice for your business!
Who are Virtual Accountants?
Virtual accountants work via online communications. They do not need to be available in your office to handle your finances as they are available via online means. Virtual accountants are also known as online accountants, for the same reason. They could be available locally or in another state, but not in a different country.
A virtual accountant takes care of various financial and bookkeeping tasks. For instance, they assist with
- tax preparation
- payroll processing
- invoice processing
- accounts payable and receivable
- financial reporting and auditing
With an efficient virtual accountant by your side, there’s no need to worry about your finances. Rather, you can be worry free and strategize about your business’s administration.
What is Offshore Accounting?
Offshoring accounting requires hiring an accountant from a different country but as an “employee”. Even though these accountants work remotely, they are still like regular employees in the business. This means they must follow the company’s rules and regulations like other team members.
By hiring an offshore accountant, a business can scale and expand without having to worry over the capacity of the building. Further, they need not fret over whether their data will be safe with the accountant, since they will still retain complete control over the entire data process.
Having understood who a virtual accountant is and what’s offshore accounting, let’s move on to explore the differences between these two.
Difference Between Virtual Accountant vs Offshore Accountant
| Virtual Accountant | Offshore Accountant | |
| 1. Team Integration | Not regular staff, but rather external help | Part of the team |
| 2. Cost | Cost depends on the services required, usually more costly | Mostly affordable as they are in another country |
| 3. Time Duration | Suitable for short-term projects | Benefits in long-term commitments |
| 4. Staff Training | No need to be trained; they are professionals | Most likely require training to work for a business |
| 5. Administration & Monitoring | No overhead administration required | Requires administration and regular monitoring |
| 6. Time Zones | Time zone matches | Different time zones |
| 7. Promotion | Not required | Possibility of Growth |
- Team Integration
Virtual accountants are not exactly considered as “part” of a team since they work remotely and only seldom meet with other team members. Whereas an offshore accountant is a part of the overall team, even if they are working overseas.
- Cost
When you are pondering over who to hire — a virtual accountant or an offshore one — considering how much each cost can assist you in making an appropriate decision.
It is considered that hiring an offshore accountant helps you save on costs significantly as you would be hiring them from another country. On the other hand, since the virtual accountant is present in the same country, you’ll be saving considerably!
- Time Duration
Since offshore accountants are just like regular employees, they are better suited for long-term employment. However, virtual accountants are usually hired on a contractual basis or for a limited time.
- Staff Training
As virtual accountants are experts, and often quite experienced, they do not require any additional training to work. Unlike remote accountants, when you choose to get offshore accounting services, remember you are hiring a person to be part of your team and hence, they will require training to incorporate your work culture and understand how to offer you services properly.
- Administration & Monitoring
Since the offshore accountant will be part of your team, you must monitor and administer them just like other employees. On the other hand, there is no need to administer a virtual accountant as they may be part of an accounting firm who manages them. Even if the virtual accountant works individually, they still do not need to be monitored, and you can review their work once they submit it.
- Time Zones
Hiring an offshore accountant means you will have to adjust work according to the time zone of the accountant. Since both of your time zones are different, synchronizing work operations may be troublesome. On the contrary, a virtual accountant works in the same time zone, offering you real-time coordination.
- Promotion
A virtual accountant has no scope of promotion as they are simply not an employee to their clients. But for an offshore accountant, they may climb the corporate ladder as they are working for the company like any other regular employee.
Wrapping Up
To summarize, choosing whether you need a virtual accountant or get offshore accounting services depends on your requirements, resources, and project duration. If you want someone to join for a full-time basis as you have a plethora of tasks piled up, consider hiring an offshore accountant. However, if you only need an expert to take up a certain project, the best choice would be a virtual accountant.
No matter which accountant you require, we are here for you. At Whiz Consulting, we offer all kinds of accounting and bookkeeping services to streamline your business’s finances. Let’s connect and discuss your business’s future today!
