When US businesses evaluate non-US accounting talent, the primary choice is offshore (India, Philippines) vs nearshore (Mexico, Colombia, Costa Rica). The trade-offs are real and differ from each other in specific ways. This guide breaks down when each geography wins.
"Offshore" typically refers to remote-work geographies significantly distant from the US – most commonly India and the Philippines, sometimes including South Africa and Eastern Europe. Time zone differences of 9–13 hours. Cost savings of 50–65% vs US-equivalent staffing.
"Nearshore" refers to remote-work geographies geographically close to the US – typically Latin America: Mexico, Colombia, Costa Rica, Argentina, Uruguay. Time zone differences of 0–3 hours (depending on season and specific country). Cost savings of 30–50% vs US-equivalent staffing.
The offshore accounting market concentrates in specific countries for consistent reasons:
This is the biggest practical difference and often the deciding factor:
Mexico City, Bogotá, and San Jose run on Central Time or Eastern Time depending on the specific location. Colombia stays on UTC-5 year-round (no daylight saving time), which means ±1 hour from US Eastern year-round. For real-time collaboration – unplanned questions, ad-hoc video calls, responsive support during US business hours – nearshore is genuinely same-day responsive.
This matters for:
India is 9.5–10.5 hours ahead of US Eastern; Philippines is 12–13 hours ahead. Two common working models:
The handoff model has a real benefit: work gets done overnight, so Tuesday's submissions are ready Wednesday morning. For high-volume structured work, this accelerates output compared to real-time collaboration. But it creates latency for ambiguous questions that need back-and-forth.
| Role | India/Philippines monthly | LatAm monthly | Cost delta |
|---|---|---|---|
| Senior bookkeeper | $2,200–$3,200 | $2,800–$4,200 | +25–35% |
| Accountant | $2,400–$3,600 | $3,200–$4,800 | +30–35% |
| Senior accountant | $3,000–$4,200 | $3,800–$5,500 | +25–30% |
| Controller | $4,400–$6,800 | $5,500–$8,500 | +25% |
| Fractional CFO | $5,400–$8,400 | $6,500–$11,500 | +20–30% |
India and Philippines have vastly deeper accounting talent pools than Latin America. India produces >200,000 Chartered Accountants cumulatively with thousands of new qualifications annually; the Philippines produces 5,000–10,000 CPAs annually. Latin America's CPA-equivalent credentialing is less standardized and the talent pool specifically oriented toward US business is smaller.
Practical implications:
India's Chartered Accountant (CA) credential is more rigorous than a typical US CPA in accounting subjects (comparable in scope to CPA + CMA + CA-specific audit depth). Philippines CPA is directly modeled on US CPA. LatAm credentials (Contador Público in Mexico, Colombia) are locally equivalent but overlap less with US GAAP specifically.
Larger businesses increasingly run hybrid: offshore for structured production work (bookkeeping, tax prep, audit PBC) + nearshore for advisory, CFO, and client-facing work. This captures the cost savings of offshore for volume work while preserving time zone responsiveness where it matters.
For our specific offshore offering see homepage. For provider comparisons across geographies see alternatives.
Related