So, you’ve outsourced part of your accounting operations—great move.
But how do you know it’s actually working?
It’s not enough to just “feel” like outsourcing is effective. You need clear, measurable indicators to track performance, ensure quality, and prove ROI. That’s where KPIs (Key Performance Indicators) come in.
In this blog, we’ll walk you through the top KPIs every U.S. firm should monitor when working with an offshore accounting partner like KMK & Associates LLP—so you can drive continuous improvement, accountability, and value from your partnership.
Why KPIs Matter in Offshore Accounting
Outsourcing isn’t a “set it and forget it” decision. To get the most out of your relationship with a trusted accounting outsourcing company in India, you need to track performance over time.
KPIs help you:
Quantify success
Identify inefficiencies
Benchmark against internal goals
Keep your offshore team aligned
Make smart decisions on when and how to scale
With the right metrics, your outsourced team becomes an integrated part of your growth engine.
? 1. Turnaround Time (TAT)
What it measures: How fast your offshore team completes assigned tasks.
Why it matters: Delays in bookkeeping, reconciliations, or tax prep create bottlenecks for everything else—especially client deliverables.
What to track:
Avg. time to complete recurring tasks (e.g., reconciliations, payroll runs)
Response time for emails or file requests
Time taken to resolve errors or rework
KMK Benchmark: We aim for a 24–48 hour turnaround for most recurring accounting functions.
✅ 2. Accuracy/Error Rate
What it measures: The percentage of tasks completed without needing correction.
Why it matters: Accuracy is everything in accounting. Mistakes affect client trust, compliance, and audit readiness.
What to track:
Number of errors per 100 transactions
Rework requests per period
Impact of errors (minor vs. major)
Tip: Look for consistent improvement over time. Your offshore team should get better as they understand your systems and preferences.
? 3. First-Time Right Rate
What it measures: The percentage of deliverables completed correctly on the first submission.
Why it matters: A high “first-time right” rate means your offshore team understands your processes and delivers high-quality work without hand-holding.
What to track:
Number of tasks completed with no revisions
Recurring errors by task type or team member
Impact on downstream deadlines (e.g., client reports, filings)
? 4. Productivity (Output per FTE)
What it measures: How much work each full-time equivalent (FTE) produces.
Why it matters: If you're paying for a dedicated offshore team, you want to ensure you're getting strong output and efficiency.
What to track:
Number of returns processed per tax season
Transactions reconciled per month
Clients/accounts handled per offshore team member
With KMK, we provide regular reports so you can see the value your outsourced FTEs are delivering in real time.
? 5. Knowledge Retention
What it measures: How well the offshore team retains your specific processes and preferences.
Why it matters: Retraining every few months wastes time and resources. A good partner retains your knowledge as if they were in-house.
What to track:
Onboarding time for new tasks or clients
Recurring clarifications on same topics
Documentation practices and process tracking
At KMK, we create and maintain SOPs for each client to ensure continuity even if team members change.
? 6. Data Security & Compliance Incidents
What it measures: Any lapses in handling sensitive financial data.
Why it matters: As a U.S. firm, your reputation and compliance depend on how your data is handled offshore.
What to track:
Number of data access violations
File-sharing policy breaches
Unapproved changes or downloads
Audit trail integrity
KMK Advantage: Our systems use enterprise-level encryption, secure VPNs, and role-based access control to protect your clients’ financial data.
? 7. Communication & Responsiveness
What it measures: How effectively your offshore team communicates with your in-house team.
Why it matters: Delays or miscommunications can derail even simple tasks. The best offshore teams feel like part of your internal staff.
What to track:
Avg. response time to emails/messages
Frequency of status updates or check-ins
Clarity and professionalism in written communication
At KMK, we align to your preferred time zone and communication cadence (daily/weekly) to ensure a smooth workflow.
Bonus KPI: ROI on Outsourcing
What it measures: Your return on investment from using offshore support.
Why it matters: Beyond productivity, outsourcing should help you grow—profitably.
What to track:
Total cost vs. equivalent in-house cost
Revenue generated by freed-up partner/manager time
Cost savings per function (e.g., fund accounting, tax prep)
When done right, firms save 40–60% annually by choosing a us accounting outsourcing company in India like KMK.
How KMK Helps You Track These KPIs (Without the Extra Work)
We don’t just do the work—we help you measure it, improve it, and scale it.
KMK provides:
Monthly performance reports
Task-wise tracking dashboards
SLA adherence summaries
Dedicated managers who review KPIs with you regularly
Flexibility to evolve KPIs as your needs change
Whether you're outsourcing tax prep or outsource fund accounting, we make performance visible and manageable.
FAQs About Offshore KPIs
? Do I need to set these KPIs myself?
No. We’ll help you define, track, and review KPIs based on your goals and service mix.
? What happens if a KPI drops?
We flag it in your monthly report, investigate the root cause, and resolve it immediately with your input.
? Can KPIs be customized?
Absolutely. Whether you care more about turnaround time, volume, or team availability, your KPIs can be tailored.
Final Takeaway: You Can’t Improve What You Don’t Measure
Partnering with an offshore team isn’t a “one-and-done” decision—it’s a strategic relationship. And like any relationship, it thrives on communication, transparency, and accountability.
Tracking the right KPIs ensures your offshore investment actually delivers on its promise—more efficiency, lower costs, and more room to grow.
? Ready to start tracking real results?
Contact KMK & Associates LLP today and see how we make offshore performance crystal clear—so your firm can scale with confidence.
Would you like the next blog to focus on:
Why Fund Accounting Outsourcing Is a Game-Changer for Investment Firms
Top Red Flags to Avoid When Choosing an Offshore Accounting Partner
A Day in the Life of an Offshore FTE: What U.S. Firms Can Expect from KMK
Let me know and I’ll write it next!
