India, the Philippines, Pakistan or Malaysia: Where Should Your Offshore Accountants Be?

Time zones, in hours ahead of US Eastern

None of these four countries uses daylight saving time, so the gap changes when the US changes its clocks. A standard 9 a.m. to 5 p.m. Eastern day falls in the evening or overnight in all four.

• India (UTC+5:30): 9.5 hours ahead in US summer, 10.5 hours in winter. 9 a.m. Eastern in summer is 6:30 p.m. in India.
• Pakistan (UTC+5): 9 hours ahead in summer, 10 in winter. 9 a.m. Eastern in summer is 6 p.m.
• The Philippines (UTC+8): 12 hours ahead in summer, 13 in winter. 9 a.m. Eastern in summer is 9 p.m.
• Malaysia (UTC+8): the same as the Philippines, 12 or 13 hours ahead.

What the time difference really means

For bookkeeping and return preparation, a time difference can help: work sent at the end of your day is often done by the next morning. It hurts when your team needs quick answers during the day, or when clients call with questions the offshore accountant must answer live.

Decide which of those you need before you choose. If you need real-time help, ask the provider for a shift that overlaps your morning, and get the agreed hours in writing. If overnight turnaround suits you, the time difference is an advantage.

Qualifications you will see

Each country has its own professional body, and a local qualification tells you the person has passed demanding exams. It does not by itself mean they know US tax forms or US GAAP, so ask about US-specific training and experience too.

• India: chartered accountants are members of the Institute of Chartered Accountants of India (ICAI).
• Pakistan: chartered accountants are members of the Institute of Chartered Accountants of Pakistan (ICAP).
• The Philippines: CPAs are licensed through the Professional Regulation Commission (PRC).
• Malaysia: accountants register with the Malaysian Institute of Accountants (MIA).

Rules that follow the work, not the country

Wherever the accountant sits, two US rules apply to tax work. Under Section 7216, you need the taxpayer's signed consent before sending tax return information to a preparer outside the United States, and Social Security numbers generally cannot go offshore unless the taxpayer consents and both sides keep adequate safeguards. And anyone who prepares or assists in preparing federal returns for pay needs a valid PTIN.

Your own obligations stay the same too: the AICPA's guidance is that the firm remains responsible for work its providers do, and must supervise and review it as if a firm member had done it.

Where SF Business Solutions fits

SF Business Solutions is SF Business Solutions LLC, a US bookkeeping firm serving businesses across the United States. The team is distributed across the US and internationally and includes one licensed CPA. For CPA firms, work is billed at $12–$15 an hour, and a full-time accountant starts at $1,500 a month. Ask which hours your accountant would cover before you start.