In an increasingly competitive market, U.S. businesses face pressure to streamline operations and cut costs, especially within their finance and accounting departments. 

Many companies are turning to offshoring as a strategic way to achieve these goals. South Africa, with its highly qualified professionals at competitive salary levels, has emerged as a prime destination for finance roles. 

This article compares South African account management salaries to those in the U.S. and explores how offshoring can drive substantial cost savings and operational efficiency.

(Disclaimer: Salaries vary from city to city, so we’ve used large metro cities as our baseline.)

Accounts Processing and Accounting Support Roles

Account management roles support foundational finance processes that are crucial for financial planning, cash flow management, and accurate reporting. We’ll be looking at these key roles:

• General Accounts Assistant
• Accounts Payable Clerk
• Accounts Payable Manager
• Accounts Receivable Clerk
• Accounts Receivable Manager
• Assistant Accountant

What’s The Problem?

Managing account processing roles in-house comes with significant operational costs in the U.S., primarily driven by high salaries, healthcare benefits, and additional overhead expenses like federal and state contributions.

In contrast, South Africa offers far lower statutory contributions, including a modest Unemployment Insurance Fund (UIF) payment and a 1% Skills Development Levy. This translates to significantly reduced total employment costs, making South Africa an attractive destination for offshoring these roles.

South African Accounts Processing and Accounting Support Roles

Let’s compare some roles, their responsibilities, and how offshoring addresses operational challenges.

General Accounts Assistant

The General Accounts Assistant is responsible for capturing and processing accurate financial data, assisting with some of the basic bookkeeping tasks, and supporting senior accounting staff with any general administrative work within the Finance function.

Candidates in this role don’t usually have a formal qualification.

However, they are QBE, with around 5 years of experience in entry-level accounting tasks (QBE).

• The average annual General Accounts Assistants salary in the U.S. is around $57,120.
• The total cost after employer contributions is $61,065.
• In South Africa, the salary would be around $22,566 a year.
• After employer contributions, that total becomes $23,178.

By hiring a General Accounts Assistant from South Africa, a U.S. business can save around 65% translating to roughly $43,886 per year.

Accounts Payable Clerk

The Accounts Payable Clerk is responsible for reviewing, reconciling, and paying suppliers. Candidates are not qualified in accounting or business administration. They usually QBE, with around 5 years of experience, specifically in the accounts payable function. 

• An Accounts Payable Clerk salary in the U.S. is around $51,155 annually.
• Employer contributions increase the total cost to $55,488.
• In South Africa, an Accounts Payable Clerk’s salary is around $18,718.
• With contributions, the total employment cost reaches approximately $19,017.

Offshoring this role results in approximately 66% savings, with U.S. businesses potentially saving $36,470 annually.

Accounts Payable Manager

The Accounts Payable Manager oversees the accounts payable team, ensures the accurate processing of invoices and payments, maintains vendor relationships, and ensures compliance with financial policies. 

Professionals in these roles are typically Qualified By Experience (QBE) and do not hold a bachelor’s degree in accounting or finance. 

They have around 10 years of experience in accounts payable management, overseeing the processing of invoices, payments, and vendor relations.

• The typical Accounts Payable Manager salary in the US is roughly $77,000 annually.
• Employer contributions increase the total cost to $83,310.
• In South Africa, an Accounts Payable Manager’s salary sits at around $32,885.
• With contributions, the total employment cost reaches approximately $33,779

Offshoring this role results in approximately 58% savings, with U.S. businesses potentially saving $48,468 annually.

Accounts Receivable Clerk

The Accounts Receivable Clerk manages incoming payments, tracks customer invoices, follows up on outstanding balances, and maintains accurate records to support cash flow. They’re usually QBE, with around 5 years of experience in an accounts payable role.

• An Accounts Receivable Clerk salary in the U.S. is around $51,155 annually.
• Employer contributions increase the total cost to $55,488.
• In South Africa, an Accounts Receivable Clerk’s salary is around $18,718.
• With contributions, the total employment cost reaches approximately $19,021.

Offshoring this role results in approximately 66% savings, with U.S. businesses potentially saving $36,467 annually.

Accounts Receivable Manager

The Accounts Receivable Manager handles the accounts receivable team, oversees credit control, coordinates collections, maintains customer accounts, and ensures cash flow management. They usually have around 10+ years of experience in accounts receivable management. QBE

• The typical Accounts Payable Manager salary in the US is roughly $77,000 annually.
• Employer contributions increase the total cost to $83,310.
• In South Africa, an Accounts Payable Manager salary sits at around $32,885.
• With contributions, the total employment cost reaches approximately $33,779

Offshoring this role results in approximately 58% savings, with U.S. businesses potentially saving $48,468 annually.

Assistant Accountant

The Assistant Accountant or Bookkeepers typically help senior accounting staff such as the Finance Manager by running the daily financial operations and allocating transactions correctly and accurately. This role contributes to accurate reporting and general compliance.

They are usually busy working towards some qualification in accounting or finance and are QBE, with around 5+ years of experience in accounting support functions. 

The average salary for an Assistant Accountant is:

• Around $59,008 a year in the U.S. – $63,942 after contributions.
• Around $26,308 per year in South Africa – $26,351 after contributions.

The total savings is around 60% (roughly $38,603).

Why Offshoring to South Africa is a Good Idea for U.S. Businesses

The cost savings associated with South African account management salaries are just the beginning. There are extra strategic advantages for U.S. businesses considering offshoring to South Africa:

Great Exchange Rates

The strong U.S. dollar against the South African rand creates significant cost advantages, allowing businesses to stretch their budgets further while still securing top-tier talent.

Reduced Burnout For In-House Teams

By offshoring routine and time-intensive roles, U.S. businesses can lighten the workload for in-house employees, reducing stress and improving productivity. This allows domestic teams to focus on strategic initiatives rather than administrative tasks.

Cultural Diversity And Inclusion

Offshoring to South Africa promotes a more diverse workforce, which has been shown to enhance creativity, decision-making, and business outcomes. A culturally diverse team can also bring fresh perspectives to problem-solving and innovation.

Conclusion

Outsourcing account management roles to South Africa provides U.S. businesses with a cost-effective and efficient solution to meet operational needs. 

With huge potential savings, skilled professionals, and added compliance benefits, U.S. companies can enhance their operational flexibility and cost-efficiency by offshoring these critical roles to South Africa.

Ready to get started? Hire Far Out is made up of certified finance and offshoring professionals. With unique access to a growing talent pool, there’s no better place to get your offshoring started. Get in touch with us!