When managing a company, business owners and founders want to ensure that all functions are running seamlessly with little to no errors or issues. The accounting and financial compliance function is a crucial business area that must be done right. Lack of attention, underperformance or mismanagement in this department can have serious implications across multiple business functions, which can be critical to a successful business operation.
In short, the accounting and financial compliance function of a business must be running like clockwork if a business really wants to grow successfully and scale exponentially.
Why Does Outsourcing Accounting Services Make Sense?
Many startups, small-medium enterprises (SMEs), and larger corporates will look to outsource their accounting and finance service requirements so management can focus on growing the operational and commercial side of their business. Partnering with an outsourced accounting firm can also result in lower operating costs while offering access to experts and professionals when it comes to financial management.
Outsourcing your accounting services is also a great way to achieve flexibility within your growing business. Companies that outsource their accounting function can benefit from expert reinforcement and financial advice from qualified professionals to support the company’s growth initiatives and strategies.
The Philippines is just one country that excels in the provision of professional outsourced accounting and finance services.
If you’re looking for an outsource partner to cover all your accounting needs, this article will explain why outsourced accounting services in the Philippines offer a professional and effective solution for both international and domestic businesses.
Outsourcing for Domestic and International Companies
One of the many pros of outsourcing is the fluidity and flexibility of the service scope. Depending on the specific financial demands and requirements, domestic and international companies alike can benefit from working with an outsourced accountant in the Philippines.
Domestic outsourcing for a PH business involves delegating accounting and finance tasks and responsibilities outside of the company to an accounting services provider based in the Philippines. In these circumstances, the outsourced accountants will be able to perform the end-to-end accounting services for the business — from bookkeeping, tax compliance and filing, to payroll processing and government contribution computations.
International outsourcing refers to a business registered and operating outside of the Philippines assigning certain accounting and finance functions outside of their country to an accounting firm here in the Philippines. This enables tapping into global talents and resources for expert accounting and financial assistance and advice. In these instances, a company may retain the tax compliance and payroll functions in-house while outsourcing the day-to-day bookkeeping and accounts payable or accounts receivable work to the outsourced accounting provider in the Philippines.
Either way, the Philippines has quickly proven itself to be one of the top choices for both local and foreign companies across many industries for accounting and finance services.
Interested? Read on to find out why outsourced accounting services in the Philippines might just be the perfect outsourcing option for your accounting and finance needs.
6 Reasons to Outsource Your Company’s Accounting and Finance Function in the Philippines
When you outsource your accounting and finance requirements to an accounting services provider in the Philippines, you can expect your finances to be handled with the utmost care, thought, professionalism and precision.
Here are just a few reasons why it can add real value for both domestic and international companies to outsource their accounting and finance requirements to an accounting firm in the Philippines:
- Highly skilled talent pool
Many Filipinos work to attain a professional career in the finance field. Records show that more than 100,000 students across the country enroll in the Bachelor of Science in Accountancy program each year. Moreover, the Philippines has over 175,000 certified public accountants (CPAs), and this number of licensed professionals is still growing!
The country presents a wide pool of talent with the right skill set and knowledge for the job. Both local and international companies can benefit from this growing group of professionals within the accounting and finance space.
- Lower operational costs
The Philippines has one of the most affordable prices for business process outsourcing (BPO) services worldwide. For premium support, an average hourly rate could range from $12 to $14, which can be up to half the cost compared to other countries, such as the United States.
Additionally, outsourcing accounting services in the Philippines helps lower other operating costs, including equipment, training and government statutory overhead costs for a business. The outsourced accounting services provider will be responsible for these expenses.
- Great detail in the process
Apart from providing quality work at a very competitive price, Filipinos have a keen eye for detail and process when getting the job done. This is essentially important when it comes to accomplishing daily accounting tasks and deliverables, especially during the busy season, such as the audit period.
Accounting firms based in the Philippines can offer a service run by process-oriented and process-focused professionals. Such an attribute can not only support businesses with their accounting and finance compliance needs but also elevate their operations altogether and help companies to streamline their financial processes and controls.
- Unparalleled work ethic
A strong work ethic is imperative in accounting, especially in the outsourced services sector. This is one of the many attributes for which Filipinos working in the corporate sector are well known. Multiple successful business executives have promoted Filipinos as highly adaptable and fast learners, particularly when working with international clients — and accountants and bookkeepers are no exception!
Besides being organized and process-driven, accountants in the Philippines also possess key soft skills essential for a harmonious working environment. Having no issues communicating and listening to colleagues, both international and domestic companies can expect consistent and transparent updates from Filipino accountants regarding their deliverables.
- Cultural compatibility
Whether towards local or international businesses, the Philippines offers not only cost-efficient services but also excellent work culture compatibility and top-level communication skills.
If you have an outsourced accounting provider, you need to ensure that they understand and align with your business’s values, culture, requirements and expectations. Take communication as an example. As an integral part of any business transaction, your business partner should be able to communicate efficiently, clearly and on a timely basis.
The Philippines is a top-quality location for outsourced accounting and finance services, among other outsourced services, due to its talents and strengths in communication and engagement. This is highly evidenced by the country’s recorded 96% literacy rate and high proficiency standing in the EF English Proficiency Index (EF EPI).
The Philippines’ workforce promotes and supports flexibility for business support.
As a local company, outsourcing your accounting needs domestically means getting an extension of your team members that can align with your operations at the same time as everyone is reporting to work. The Philippine labor system also provides a framework for paid overtime work, which you can leverage when working with an outsourced accounting partner.
In the same way, international companies who acquire outsourcing services in the Philippines can benefit greatly from extra hands, eyes and ears to help accommodate their accounting workload even after the international company and its employees have clocked out for the day—thanks to the timezone difference!
Outsource Your Accounting Services in the Philippines
Having professionals take over your accounting tasks is vital to ensuring quality and timely output at all times. Assembling an in-house accounting team can take a lot of time and resources—not to mention that it can be costly! As such, outsourcing your accounting services makes for a great alternative and value-added business solution.
Partnering with the right accounting provider can make all the difference for the growth of your business. If you’re looking for an outsource provider for accounting services in the Philippines, get in touch with CloudCfo.
CloudCfo is a cloud accounting firm for startups and SMEs that can help take over your finance function with its dedicated team of professional accountants, bookkeepers and tax experts. Contact us to learn more!