Businesses adopt offshore tax prep to cut costs and fill talent gaps

MYCPE ONE says businesses are increasingly using offshore tax preparation to manage rising compliance demands, offset a long-running accounting talent shortage and scale finance operations more efficiently. The shift is being driven by labor constraints, seasonal workloads and cost savings that can reach 25% to 45% versus in-house staffing.

Why it matters: - Businesses are under pressure to keep tax work accurate and compliant while controlling costs. - A tighter accounting labor market is making it harder to hire and retain tax staff. - Offshore tax preparation is emerging as a long-term operating model, not just a temporary stopgap. - The approach can help finance teams focus more on planning, forecasting and strategic work.

What happened: - MYCPE ONE said businesses are turning to offshore tax preparation to reduce costs, improve efficiency, access skilled professionals and scale tax operations securely. - The company framed the shift as a response to tax compliance demands, staffing shortages and higher operating costs. - MYCPE ONE also said businesses can build dedicated offshore accounting teams through a Build Offshore Teams solution. - The company said organizations can Hire Tax Preparer professionals with offshore experience to support tax preparation, compliance and related accounting needs.

The details: - The U.S. Bureau of Labor Statistics projects more than 120,000 accounting and auditing openings every year. - CPA exam candidates are down 27% over the past decade, according to the AICPA. - Roughly 75% of licensed CPAs are within 15 years of retirement, according to the AICPA. - An estimated 300,000 U.S. accountants and auditors have left the profession in recent years. - During filing season, accounting teams commonly work 50 to 80 hours a week. - Industry surveys show more than 40% of firms have turned away client work because of staffing shortages. - Roughly one in four firms already use offshore outsourcing, and another 12% plan to start, per the AICPA. - Businesses that shift tax preparation offshore commonly report cost savings of 25% to 45% after recruiting, benefits, infrastructure and training are included. - Finance and accounting outsourcing is projected to grow from roughly $45 billion in 2024 to more than $70 billion within the next decade. - MYCPE ONE said it supports recruiting, onboarding and managing offshore accounting talent so teams can align with existing workflows, technology and compliance requirements.

Between the lines: - The tax preparation market is being reshaped by a structural labor shortage, not just seasonal workload spikes. - Offshore staffing is being positioned as a way to preserve service levels without carrying excess payroll year-round. - The move also reflects a broader split between routine tax execution and higher-value advisory work inside finance teams. - The trend suggests more firms may treat offshore capacity as core infrastructure if hiring remains slow and expensive.

What's next: - Businesses are likely to keep expanding offshore tax teams if they need faster turnaround and more flexible capacity. - Finance leaders may continue shifting internal staff toward analysis, forecasting and client-facing work. - The broader outsourcing market is expected to keep growing as firms look for ways to manage compliance and staffing pressure at the same time.

The bottom line: - Offshore tax preparation is becoming a practical response to labor shortages, seasonal demand and cost pressure in accounting.