Every offshore team comes with different benefits and challenges for your business. In a modern business environment, having an offshore team has become an added advantage. At Pransform, we offer our expertise to our valued partners through the use of the best available accounting resources. Our experts have some useful strategies to manage offshore teams effectively.
What are the Key Challenges of Working with Offshore Teams?
Understanding the key challenges of working with offshore teams can help you manage the relationship more effectively. Here are a few common challenges with outsourcing.
- Finding the right talent out of the crowd
- Finding the right services at the right time and value for money
- Communication challenges due to cultural barriers, time zone differences, or a lack of technology
- A lack of leadership that does not provide strategic support to your business
Offshore teams offer several benefits. However, you need to overcome these challenges to fully utilize their services.
4 Best Strategies to Manage Offshore Teams Effectively
Outsourcing accounting function doesn’t come as a new idea. More businesses are adapting to the new normal of remote and virtual working styles. Modern technologies such as cloud accounting have accelerated the trends. However, managing an offshore team remains a key challenge to fully harness the benefits through outsourcing.
Here are our top-picked strategies for you to manage offshore teams effectively.
Choose Your Offshore Team Carefully
First of all, take time to analyze your requirements from an offshore accounting team. Every business at different stages requires different accounting services through outsourcing. Then, you can evaluate your options before choosing the right offshore partner. Consider a team that aligns with your business values.
Here are a few key points to remember:
- Make sure the offshore team is well-equipped with the right tools.
- Evaluate their skillsets and ask specifically whether they can handle all your accounting needs.
- It is always preferred to work with an experienced offshore team. Ask for their previous work samples and references if necessary.
- An added advantage for your potential partner can be if they offer industry-specialist accounting services.
- Finally, compare their costs and packages for a long-term working relationship.
Define Your Requirements and Expectations
An effective strategy to construct a smooth working relationship with an offshore team is to define your expectations clearly. You may know what you want, what are the outcomes you expect, and what are your deadlines. However, it is important to convey these requirements clearly to your offshore team.
For instance, most businesses need to pay estimated taxes regularly. You can create effective scheduling to pay estimated taxes timely to avoid late fees and penalties.
Think of it in another way, be transparent in expectations and requirements. Perhaps, your account books require significant reconciliation. Maybe, you need to transition from worksheets to cloud accounting software that requires enormous time and effort.
Offshore teams can often face communication challenges. From language barriers to different time zones, there are several challenges that you should prepare for. Use modern communication tools to overcome any challenges. For instance, switch to video conferencing tools instead of text messages to communicate easily.
Similarly, the use of cloud accounting tools such as QuickBooks or Xero will allow you to monitor the progress of your account books in real-time. These tools will make collaboration effective. In turn, your communication will get smoother as well.
Unlike the common notion, accounting tasks require regular communication. Your offshore team may need critical information about your finances or explanations on certain points. Staying organized with your communication needs will lead to effective offshore team management.
Focus on Strategic Goals
Do not try to narrow down your focus on micro-tasks of accounting. Modern accounting function has become more strategic in nature. When you keep a focus on your business’s strategic goals, you can explain your vision to your offshore team. In turn, the long-term performance of your offshore partner will improve.
Put another, you shouldn’t try to micromanage your offshore teams. It will also help you build trust with your outsourcing partners.