Reasons of Outsourcing Accounting in the Philippines

Reasons of Outsourcing Accounting in the Philippines At present, the Philippines have become a key strategic outsourcing destination for both small and large businesses. In recent years, this archipelagic country has made tremendous improvements in its outsourcing sector. The global foothold of the IT-BPM (Business Process Management) industry is mainly because of the strong skills of the Philippine labor force. Their hard work and openness to learning provide businesses with an edge once they outsource services.

Why Outsource Accounting Services in the Philippines?

Outsourcing non-core processes has always been an economical solution to fulfill business requirements without making big investments. The country has positioned itself as one of the top destinations when it comes to hiring outsourced accountants in the Philippines.

Since operations, like bookkeeping and accounting, are standardized, they can be done at a fraction of the cost compared to managing an in-house team. As a result, it reduces working capital required and labor and other administrative costs as well. Plus, one can also avoid capital expenditures.

Differentials in salaries and cost of living make a big impact on reducing the operation expenses substantially. Since, in the Philippines, wages can be as much 70% lower for the same position, small businesses can easily afford quality accounting services without compromising quality.

Reduction in costs allows businesses to allocate more of the limited budget to their core competencies and revenue-generating activities. Therefore, companies can follow growth-oriented strategies that would otherwise be held back by budgetary restrictions.

How to Outsource Accounting in the Philippines?

Outsourced Accountants in the Philippines provides businesses of all sizes with an exceptional opportunity to generate higher ROI and save up to 70% with little impact on quality output.

1. Assess whether you should outsource or not First, you should perform a cost-benefit analysis. Lower cost and efficiency are visible advantages but there are also others. If all these benefits outweigh your costs, you should outsource your accounting process.

Ask questions like - Is the overall cost to hire an outsourced accountant in the Philippines lower than the cost of managing my in-house team? Will they provide us with the expertise that my inhouse team doesn’t have? Can they provide services promptly and with better quality?

Clearly define your requirements to manage your expectations and avoid miscommunication.

2. Understand Cultural Differences

The success of outsourced services depends on whether you have partnered with the right service provider. There is no lack of outsourcing service providers in the Philippines. Neither there is a lack of good accounting consultants to make informed financial decisions. Filipinos are polite and can adapt to the new work environment quickly. They can work on flexible hours and are generally efficient and bankable.

However, you should know that they thrive in a more rigid environment where their roles and responsibilities are clearly defined and instructions must be given in detail. Execution of outsourced accounting services is easier if you choose a local outsourced accountant in the Philippines who has vast experience and network. It will help you find your way around the cultural and regulatory landscape of the Philippines.

In the end, we would recommend you to rigorously monitor, evaluate the service you receive, and maintain on-time communication for smooth coordination.

Contact Details: DeepOffice Inc. 7th Floor 8 Rockwell, Hidalgo Drive, Rockwell Center, Makati, Philippines Tel: +632 683 7565 Mobile: +63 917 676 7233 https://deepofficegroup.com/