Accounting

Offshoring and AI seen as partners, not competitors

Published

5 hours ago

June 16, 2025

AI promises to free accountants from repetitive mundane tasks so they can focus on higher value advisory and analytics work that requires professional judgment. Offshoring, too, promises to free accountants from repetitive mundane tasks so they can focus on higher value advisory and analytics work that requires professional judgment. While it might intuitively seem these two things are in direct competition, offshore talent providers report that they have instead created powerful synergies with each other.

Nick Sinclair, founder of offshorer accounting talent provider TOA Global, said AI is disrupting every part of the professional services landscape and offshoring is no exception. However, he does not view AI as directly competing with offshoring but, rather, adding a new layer to it that complements his company’s services, versus replacing them. Firms that embrace both, he said, gain a significant edge.

“It’s absolutely AI and offshoring. That’s the winning formula. While AI assists offshore accountants with low-value tasks like data entry, basic reconciliations, and even first-draft reporting, human judgment remains crucial for validation and interpretation. That’s where our global team members shine. AI has strengthened our service delivery by reducing time spent on mundane tasks and increasing the speed-to-output for higher-value activities. We’ve actually built AI into our offshore model to amplify what our team can do, not replace,” he said.

Human or AI — Humans vs AI or humans and AI?

Jigar Shah, the chief operating officer of accounting offshore talent provider Unison Globus, had a similar viewpoint, saying AI is more of a complement than a competitor to their offerings. To him, it is not an either/or proposition but a strategic and intentional integration of both.

“AI may be reshaping the landscape in terms of how work gets done, but it doesn’t solve for the true talent crisis in the accounting profession. Firms that want to grow and stay competitive rely on educated, experienced professionals as well as the strategic application of AI in their business for efficiency,” he said.

Shah said his own firm has already gotten a lot of use out of AI in the realms of automated data extraction, invoice processing, anomaly detection, tax categorization, and intelligent scheduling. He added that, like many companies, they are also exploring AI-assisted client communication tools and predictive analytics. Overall, he said that AI has empowered them to deliver faster, more accurate and cost-effective services. He added that AI has reduced the company’s invoice processing time by 40%, allowing teams to allocate more time to client advisory services.

Sinclair, from TOA Global, similarly said that AI has become a critical part of their offshore provider strategy, allowing them to become a full-scope talent solutions provider. They use AI not only in their internal operations but also to speed up the delivery of client services as well as to deliver data-driven insights that support ROI of offshore teams. He added that, in a business model based on geographic distance, AI has also been valuable in improving the customer experience by using AI-based solutions to stay connected and be able to swiftly respond to queries or requests.

In both cases, the success of these firms came from a willingness to adapt. Both have observed other offshore service providers that did not successfully do so, mainly because they were trying to hold on to old business models. Shah, from Unison Globus said that they have shifted their thinking in terms of not being a staffing firm per se but a talent and capability platform, which means they train, upskill and integrate people. Sinclair from TOA Global made a very similar point, noting that successfully transitioning into higher value activities in addition to their routine tasks has led them to avoid the fate of those who did not.

“The firms that falter are usually those that resist change or fail to invest in capability-building. Offshoring is no longer about low-cost labor but it is about smart, tech-empowered partnerships. What has allowed Unison Globus to thrive is our commitment to continuous innovation, upskilling, and client-centricity. We do not see AI as a threat; we embrace it as a growth partner. Our proactive approach of integrating AI and continuous staff training has positioned us ahead of competitors who were slow to adapt, leading to increased market share,” said Sinclair.

Mike Kempe, chief information officer at top 10 firm Grant Thornton, noted that his firm is not thinking in terms of offshoring or AI, and is not funneling clients towards one or the other. Instead, professionals think in terms of the specific problems a client is facing, and the specific solutions to address them, which may be AI, offshoring, or some combination of the two plus other resources. This in mind, he too felt it wasn’t productive to think in terms of AI versus offshoring, as the two are better seen as complements than competitors.

“Our clients are asking for a quality service and a personalized service. They don’t want to feel like they’re number 14 in the queue. So we use a combination of AI, offshoring and near-shoring resources to meet that demand. Our clients are not necessarily asking for an AI solution, they’re asking for the best quality service at an affordable price. We can deliver that, and the way we do it is with offshore plus AI plus nearshore and onshore resources,” he said.

The differentiating factors

This in mind, there will likely be some cases where AI is preferable and others where offshoring is preferable. Mark McAndrew, director of project management for firm management with Wolters Kluwer, also noted that people are often more interested in solving a specific problem than whether that problem is solved via AI or outsourcing. But what exactly they use depends on the specific situation.

“In some regards, you might tailor the type of outsourcing to specific customers in your segment or your customer base, and you choose to have those customers flow through a people centric part of your business, whereas other tax returns or other areas of your business might be more ripe for full automation,” he said.

At the same time, this doesn’t mean there are never people who prefer one or the other. For example, he raised the possibility that a customer might not yet be comfortable with AI, and so might pursue outsourcing to maintain the human element. And conversely, he said, there are also businesses that aren’t comfortable outsourcing but don’t feel as hesitant about AI, meaning that they will be more apt to pursue opportunities with the latter versus the former. And then there’s customers who don’t necessarily have a strong preference for one or the other and may even switch between them as their organization grows. In this case, he said it’s common for smaller organizations to start with outsourcing and then, as they scale, slowly transition to AI-driven automation solutions.

“For customers that are looking to grow their business and invest in technology that will sustain them in the long term, outsourcing is a big play, and is an area where they can create opportunity and [give themselves] time to be outside of the day to day while they figure out where their AI chips will reside, so to speak. And as you get mid-sized to large, you see customers that now have the wherewithal, or the internal talent, to focus on what they’ll do with AI,” he said.

But even that is not certain. McAndrew noted that a firm might decide to keep its headcount low while growing its service capacity through automation, while another firm might have a more people-centric approach and so prefer offshore talent.

“They complement one another, but do different, different things well,” he said.

Shah, from Unison Globus, said that one thing offshoring does particularly well is provide that human touch, which includes professional judgment, context-awareness and relationship building. He said his company’s clients do not just need tax execution but adaptable teams of experienced professionals that understand them.

“To be clear, offshoring has evolved greatly in the past years to provide highly skilled professionals who become an integral part of the firm’s team, solving problems, understanding the nuances of complex clients, and relieving bandwidth issues at the leadership level. This is not something AI can do,” he said.

This means that while AI technology is improving fast, it still won’t be able to completely replicate the advantages that offshoring provides, said TOA Global’s Sinclair.

“Accuracy alone doesn’t replace context, communication, or client relationships. Even if AI hits near-perfect accuracy—which I welcome, by the way—the need for skilled accountants won’t disappear. The nature of their work will shift, just like it has for decades. We’re preparing our team to be interpreters, not just processors. That means upskilling them in advisory thinking, business acumen, and communication. Offshoring will evolve into global insight teams, not just back offices. The reality is if AI replaces offshoring, that means it replaces accountants (no matter where they live), so there will be no industry (which won’t be the case),” said Sinclair.

The future

With this in mind, it would appear that offshore accounting talent isn’t going away anytime soon. In fact, all four sources interviewed for this story said that they are seeing demand for such services is growing, not shrinking. In the case specifically with Union Globus and TOA Global, they have reported some clients have even tried AI solutions and returned to offshoring once they found it didn’t meet their needs.

Shah said that clients had experimented with AI solutions mostly in data entry and document processing, but found it lacked the oversight and accuracy required for complex financial scenarios.

“What we offer is a blend of people + tech: our human-led, AI-enabled delivery model ensures accuracy, accountability, and scalability. That is something many firms found missing in AI-only solutions. A client who initially adopted an AI-driven bookkeeping solution returned to Unison Globus after facing challenges with categorizing complex transactions. Our team not only rectified the discrepancies but also provided strategic insights into financial reporting,” he said.

Sinclair, though, once more emphasized that the line between the two is not always so clear. Just as offshorers use AI, there are even AI solutions that supplement themselves with offshore labor.

“Some of our clients who once relied on AI to reinvent themselves and their business models eventually turned to outsourcing for greater sustainability. Oftentimes, AI-based solutions in the accounting world are significantly supported by outsourced operations and offshore teams,” he said.

To Kepme, from Grant Thornton, the persistence of offshoring makes sense. He noted that when robotic process automation was getting very popular, people predicted huge headcount reductions that didn’t really materialize. As AI works its way through the profession, both on and offshore, there were similar concerns that, so far, have not been borne out.

“We all thought that with RPA coming in, being able to automate all these processes, it would be kind of the lower value of work that people were doing manually and that would potentially lead to some dramatic reductions in head count. Reality was it didn’t. Our offshore talent now is bigger than it’s ever been. We have more people offshore than we’ve ever had,” he said.

Accounting

From seasonal spikes to steady growth: a new revenue strategy for accounting firms

Published

13 minutes ago

June 16, 2025

Business Finance News

For decades, accounting firms have operated on a rhythm as reliable as a metronome: a rush of activity from January through April, followed by a lull that stretches through the summer and beyond. This seasonality has shaped everything from staffing patterns to service delivery models. Tax professionals gear up for a mad dash, auditors dive into quarter-end chaos, while leadership scrambles to balance capacity with unpredictable workloads.

But the once-effective model of heavy lifting during tax season followed by a revenue drought isn’t just outdated — it’s increasingly unsustainable. Firms report post-April revenue drops of up to 50%, causing financial strain and operational uncertainty. At the same time, clients become more demanding as their expectations grow. Today’s business leaders don’t just want tax prep. They expect strategic insights, thoughtful planning and a reliable partnership year-round. This current business environment — exacerbated by economic uncertainty, fee pressures and the ongoing CPA talent shortage — is exposing the growing cracks in the traditional accounting model.

What was once a manageable cycle is now a source of instability. Firms that continue operating this way risk more than missed revenue; they risk falling behind in a profession that’s evolving faster than ever. A model built on periodic surges can’t support the kind of consistent, forward-thinking service today’s clients demand. And it certainly won’t help attract or retain top talent who increasingly value work-life balance and meaningful engagement over burnout-driven heroics.

This is a pivotal moment for accounting firms. It’s time to shift from reactive to proactive, from transactional to relational. Fortunately, a new path is already emerging. Subscription-based service models, scalable AI tools and modern outsourcing strategies are changing how firms operate. These approaches are not theoretical, though; they’re practical, proven and already delivering results for forward-thinking firms.

So, how do accounting firms pivot toward stability and year-round growth? It starts with three key elements:

1. Adopt subscription models: Hourly billing and one-off engagements limit growth and deepen seasonality. Instead, accounting firms should move toward packaging their services into monthly retainers — turning what used to be a once-a-year interaction into a continuous relationship. Whether it’s monthly bookkeeping, quarterly tax planning or ongoing advisory services, subscription models drive consistent revenue and strengthen client loyalty. According to industry surveys, firms embracing this model have seen an 80% increase in the number of clients on recurring billings.

2. Leverage AI for advisory at scale: Artificial intelligence isn’t about replacing accountants — it’s about freeing them up to do more of what matters. By automating repetitive tasks like data entry, categorization, and report generation, AI tools help firms reallocate talent toward higher-value, insight-driven advisory work. Even small firms can now deliver real-time dashboards and forecasting tools that used to be the domain of big players. And with AI’s ability to quickly surface trends and risks, firms can offer strategic guidance without hiring additional staff — a major win in today’s tight labor market.

3. Modernize outsourcing: Outsourcing has traditionally been seen as a cost-cutting tactic, but its real value lies in scalability and expertise. Today’s strategic outsourcing goes beyond basic functions — it enables firms to expand capacity, tap into specialized knowledge, and improve client satisfaction with faster turnarounds and broader capabilities. When done right, outsourcing becomes a force multiplier that allows firms to offer more services with greater flexibility, without overburdening internal teams.

The benefits of this new approach are compelling:

Predictable revenue: Instead of the feast-or-famine cycles of old, firms can count on steadier income streams. This predictability reduces financial risk and makes growth planning far more effective.
Stronger client relationships: Regular touchpoints foster trust and engagement, which leads to better retention and new business opportunities. In fact, 82% of accountants say that technology is helping create more meaningful client interactions.
Scalable growth: With smart technology and strategic outsourcing, firms can grow services without growing overhead. This not only expands margins but also enhances employee experience, reducing burnout and improving retention.
Happier teams: A smoother, more manageable workload throughout the year means less stress and more job satisfaction. That’s a meaningful consideration in a field where turnover is rising and experienced professionals are harder to find.

Key strategies lead to firm sustainability

The accounting landscape is evolving, and with it, the business model must evolve too. Firms that embrace subscription-based billing, leverage AI to scale advisory services and modernize outsourcing aren’t just streamlining operations — they are unlocking new, more profitable revenue streams. This shift transforms the traditional feast-or-famine cycle into a foundation for sustainable, year-round growth.

By strengthening client relationships, improving talent retention and reducing operational risk, these strategies help firms build lasting financial resilience. Predictability no longer just reduces risk. It drives results.

Accounting

RSM launches myRSM Tax ecosystem

Published

1 hour ago

June 16, 2025

Business Finance News

Top 10 firm RSM announced the launch of myRSM Tax, an artificial intelligence-powered tax technology ecosystem, a suite of proprietary platforms that work together to reduce manual processes, accelerate insight generation and ensure transparency from fund administrators to founders.

“Our new AI-powered tax platform represents the next phase in our digital strategy,” said Matt Bradvica, tax digital strategy leader and partner at RSM. “It’s not just a tool—it’s a transformation. By integrating generative AI into our core tax workflows, we’re building on our strengths to deliver even faster and more strategic results for our clients.”

The suite offers compliance and reporting tools, data-driven insights, real-time state apportionment and international tax modeling, automated client data collection tools, a centralized project management and deadline tracking, automated task reminders and email confirmations accessible via dashboard, an access-controlled portal for confidential data exchange, and real-time access to tax data and workflows.

myRSM Tax works with multiple RSM services and solutions, including business tax services, tax technology consulting services, tax compliance services and tax outsourcing services.

The launch comes shortly after RSM announced a $1 billion investment in agentic AI over the next three years to expand its AI strategy and offerings, particularly concerning semi-autonomous agents. The investment will be devoted toward integrating agentic AI platforms across RSM’s operations and services. It will involve developing and investing in industry-specific AI tools and talent, and pursuing strategic ventures to build scalable AI frameworks and infrastructure. The firm will be fully integrating agentic AI into RSM’s assurance, tax and consulting services; providing RSM talent with agentic AI tools to heighten productivity and professional growth; and expanding agentic AI-driven solutions to elevate the overall client experience.

This is part of RSM’s overall agentic AI strategy, which centers on developing “AI flows,” described as purpose-built workflows that enable RSM professionals to leverage and optimize AI agents and generative AI capabilities. These AI flows will integrate into existing workflows.

Accounting

Best practices for streamlining document security and workflow in accounting

Published

2 hours ago

June 16, 2025

Business Finance News

Accountants are facing increasing demands for precision, speed and data protection. This is because the handling of confidential financial records requires not only technical expertise but also robust systems that ensure information is secure, organized and readily accessible. As firms navigate a growing and complicated array of compliance requirements and digital tools, the need for efficient and secure document workflows has never been more urgent.

Accountants manage a high volume of sensitive information daily, covering everything from client tax details and payroll reports to audit documentation and financial disclosures. The confidentiality of this information is paramount, not just for legal compliance, but also to maintain client trust and operational integrity.

Document security in accounting encompasses protocols for safeguarding records against unauthorized access, data breaches and loss. And with the average cost of data breaches reaching an all time high of $4.88 million in 2024, this has never been a more pressing issue. At the same time, streamlined workflows are essential for ensuring documents are processed quickly and accurately. Together, these two elements serve as the backbone of reliable financial reporting, timely filings, and successful audits.

The shift to remote and hybrid work models has only intensified the importance of digital document security and well-structured workflows. Without the right systems in place, even routine tasks like expense approvals or tax submissions can become time-consuming and error-prone.

Key obstacles accountants encounter in document handling

Despite the technological advancements of recent years, many accounting firms continue to grapple with document-related inefficiencies and security risks. Several recurring challenges stand in the way of operational excellence:

Overreliance on physical files: A significant number of accounting departments still use paper records for storing critical data. These physical files are vulnerable to theft, fire, water damage or simple misplacement. It’s estimated that around 7.5% of all paper documents are lost and a further 3% misfiled. In addition to these risks, paper-based documentation lacks digital features like keyword searchability, automated backups or access control, which leads to reduced efficiency and increased error rates. The fact that employees spend an average of 1.5 hours a day looking for information really drives the point home.

Fragmented filing systems: Inconsistent file naming and scattered storage locations are common in firms without a unified digital document strategy. This disorganization hinders retrieval and introduces the risk of working with outdated or duplicate records, especially during audits or client reviews. According to Forbes, businesses spend up to 30% of their time hunting down and verifying data.

Inadequate access controls: Many firms fail to implement user-specific access protocols. As a result, sensitive financial information may be accessible to staff who don’t require it, increasing the chances of unauthorized disclosure or tampering. The lack of audit trails also makes it difficult to trace changes or access history in the event of an incident.

Manual approval workflows: Workflow bottlenecks often stem from manually driven processes. Replacing steps like routing paper documents for signature with systems that can accept digital signatures can cut down delays and improve accuracy. These delays are not only frustrating but can also lead to missed deadlines and unnecessary follow-ups, particularly during busy periods.

Navigating compliance complexities: Accountants must comply with a host of regulations—from the General Data Protection Regulation and the Sarbanes-Oxley Act to industry-specific mandates. Meeting these requirements can be burdensome without automation tools or systems that support audit readiness, retention schedules, and secure access controls by design.

Effective strategies for improving document workflows and security

According to studies, the average annual cost of one employee looking for information equates to 21.5% of their salary. Addressing these challenges requires a proactive approach, underpinned by a blend of technology, training and policy development. Below are proven strategies that enable firms to modernize their approach:

Transition to a comprehensive digital document system: Deploying a secure document management system allows accountants to store all client and internal records in a centralized, cloud-based environment. Features like metadata tagging, advanced search, version history and automated archiving dramatically reduce the time spent managing files while enhancing overall security.

Adopt consistent naming standards and storage protocols: Standardized naming conventions make files easier to locate and manage across the firm. Examples such as “2024_Q1_ClientName_Invoice” or “Payroll_Audit_2023_TeamA” enable logical grouping and rapid access. Organizing folders by department, fiscal year, or client category further supports operational clarity.

Implement permission-based document access: Strong access management systems ensure that only authorized personnel can view or modify sensitive records. Assigning document permissions based on job roles, alongside encryption and two-factor authentication offers an essential safeguard against internal and external threats.

Automate document routing and approval chains: Replacing manual steps with automated workflows improves accuracy and speeds up approvals. Workflow automation tools can be configured to trigger tasks, notifications, and escalations. This ensures that documents such as invoices or budget approvals progress seamlessly.

Prepare for contingencies with backup and recovery plans: Every accounting firm should have a reliable data backup strategy that includes automatic, off-site backups and a tested disaster recovery plan. This ensures continuity in case of data loss, cyberattacks or system failure. Backup solutions should be encrypted and monitored regularly.

Prioritize continuous staff education: Human error remains a leading cause of data breaches, with studies showing as many as 80% of all breaches are caused this way. Continuous training programs can help staff recognize phishing attempts, understand document-handling best practices, and stay updated on compliance obligations.

Actionable advice for better file organization and protection

Beyond strategic overhauls, accountants can boost security and efficiency through minor day-to-day practices:

Discourage local storage of critical files: Use only authorized systems like a document management system or secure cloud drive.
Integrate two-factor authentication for system logins: Adds an extra layer of protection for remote or cloud access.
Set up recurring digital workflows: Automate monthly tasks like reconciliation or reporting through tools such as Microsoft Power Automate or accounting software integrations.
Use secure PDF editors: These tools allow users to redact, comment on and digitally sign documents—ensuring accuracy without printing.
Regularly review retention policies. Maintain only necessary records and securely dispose of outdated files to reduce risk and storage needs.

Moving toward a digitally secure accounting future

The path to smarter document management in accounting begins with recognizing the hidden costs of inefficient systems. Lost time, increased risk and missed opportunities all hold your business back. By adopting secure digital tools, standardizing workflows, and investing in staff training, firms can build agile, resilient operations that are future-ready.

Secure and efficient document workflows not only reduce compliance risks but also empower accounting teams to deliver a faster and more reliable service to clients. In a competitive market, the ability to access the right data at the right time can make all the difference.