by: Sidney Liquigan
Wednesday, May 2, 2018 |
Regardless of the size of your company, whether you own a startup, an SME, or a large enterprise, financial management plays a big role in the success of your business. When a business fails, it's often, if not always, because of poor money management.
Accounting comprises time-sensitive tasks that should be always kept up-to-date. However, when you have limited time and resources, there will be a tendency to fall behind. A great way to ensure that you are always on top of your accounts is to outsource accounting.
One of the top outsourcing destinations is the Philippines. With BPO as one of its most dynamic and fastest-growing industry, more and more foreign companies are looking to outsource their business functions, including accounting and finance, to the country. In 2017, Manila placed fourth on Tholons' list of top global outsourcing destinations.
The strength of the BPO industry in the Philippines is driven by the benefits it offers. When it comes to outsourcing accounting to the Philippines, here are some of the advantages that businesses worldwide can get.
Save on Costs
Outsourcing, in general, helps you reduce overhead as you don't have to worry about the expenses that come with having an in-house staff, such as new hardware and equipment, employee benefits, and others. Outsourcing accounting work to the Philippines means lower labor costs. According to PayScale, as of writing, the average annual salary of an accountant in the Philippines is Php292,416. In the United States, the average annual salary of an accountant is $49,749 or around P2.6 million.
Save on Time
With accounting as one of your time-consuming back-office functions and not the main focus of your business, then it would be more efficient to outsource accounting tasks. This way, you can have more time to focus and be more productive with your core business functions. Outsource accounting work such as payroll and bookkeeping to accounting outsourcing firms so you can focus on day-to-day operations and growing your business.
Access to Expert Skills
Making accounting mistakes can seriously damage your business and even your reputation. Outsourcing gives you access to highly skilled accounting professionals, ensuring that your accounts are always accurate and up-to-date. The Philippines has a 96.3% literacy rate and a strong education system. Accountants hired by outsourcing firms in the Philippines have a wide knowledge of tax codes and laws and the ins and outs of the industry.
Access to Advanced Technology
Third-party providers that specialize in accounting use the latest accounting tools and applications and have training courses to update their skills in using these tools. When you outsource, you instantly get to take advantage of these technologies without having to purchase them. By taking advantage of technology, not only would you save on operational costs, you would also be contributing to saving the environment. Many accounting providers use cloud data storage, hence, reduced paper use.
Data Privacy Act
Many businesses are hesitant to outsource their accounting work because it involves sharing confidential data. But outsourcing to the Philippines gives you the peace of mind that your data is protected under the Data Privacy Act of 2012 that prohibits unauthorized access and use of personal and confidential information.
Let MicroSourcing take care of your finance and accounting needs. From hiring highly-skilled accountants to setting up an offshore team for a financial services account, we can help.