Cost Comparison

Cost Savings Comparison: Accounting Process

Outsourcing (Offshoring) provides significant cost savings compared to existing onshore operations

All figures in USD

Bookkeeper/Jr. Accountant US. Employee Offshore Cost
Annual Salary 34000 16800
Payroll Taxes (8%) 2720
Overhead Costs (10%) 3400
Total Cost 40120 16800
Senior Accountant US. Employee Offshore Cost
Annual Salary 48000 22800
Payroll Taxes (8%) 3840
Overhead Costs (10%) 4800
Total Cost 56640 22800
Financial Analyst US. Employee Offshore Cost
Annual Salary 55000 30000
Payroll Taxes (8%) 4400
Overhead Costs (10%) 5500
Total Cost 64900 30000

Note

  1. Employee benefit costs in US not included in the comparison
  2. Overhead cost includes cost of leasing computer hardware and maintenance related, software like accounting package licenses, training, floor space and electricity among others
  3. Offshore cost are only estimates; includes wages, infrastructure, training and technology cost
  4. US Salary figures are average figures