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Advantages of Outsourcing Accounting Services to the Philippines

by: Mary Christine Galang

Thursday, August 3, 2017 |

The Philippines ranks as one of the best-performing economies in Southeast Asia, according to Oxford Business Group in its latest publication, The Report: Philippines 2017. One of its largest economic drivers is the business process outsourcing (BPO) sector, which boasts established pro-investment policies, a young and well-educated workforce, and an increase in foreign investment in third-party contact centers and global in-house call centers.

At the same time, the finance and accounting outsourcing industry in the country is rapidly growing, with trained F&A professionals having vast expertise in international accounting standards.

Small- and medium-sized enterprises and large companies can turn over their accounting processes, from bookkeeping to complex financial services account to experienced and specialized outsourcing partners in the Philippines such as MicroSourcing.

Reasons to outsource finance and accounting processes

The following are the advantages of outsourcing your accounting services to the Philippines:

Costs

The Philippines has low operations costs, which is up to 75% lower compared to North American rates. The turnover rate is also lower compared to India, which is the Philippines' main competitor in outsourcing. In addition, the overall average attrition rate is down from 60% to 48%. This means greater stability, increased productivity, and less disruption in work processes.

Outsourcing means you are able to flex your control in spending. Instead of being charged by the hour by regular accounting firms, you have more payment options.

Automation

Accounting is a time-consuming task which involves full-time attention to avoid errors. This can weigh heavily on managing your business. Outsourcing will expedite the process with less room for error.

Access to global talent

According to the Contact Centre Association of the Philippines (CCAP), the Philippines has a 1.15 million-strong workforce, with segment revenues of $22.9bn in segment revenues in 2016.

Latest reports indicate that about 550,000 people earned a college degree each year in the Philippines. The Board of Investments reported that 94% of Filipinos are literate, while 70% is fluent in English.

Government support

The Philippine government has been generously investing in the BPO sector from as early as 2009 and has since attracted investors. Generous tax incentives are offered to foreign investors. Working closely with BPO stakeholders, academic institutions are providing training and development opportunities to graduates to prepare them for high-level BPO services.

But a significant step towards elevating the Philippines’ global position in BPO is the passage of the Data Privacy Act in 2012, which ensures that Philippine companies comply with the international standards set to protect personal data privacy.

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