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.
Accounting outsourcing has existed for a long time, with many firms from different parts of the world already outsourcing their accounting or auditing functions to a specialized outsourcing provider. Technological advancements, particularly in IT, has made offshore accounting outsourcing easier and more accessible even to small businesses.
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 in-house staff, such as new hardware and equipment, employee benefits, and other operating costs. According to PayScale, as of writing, the average annual salary of an accountant in the Philippines is Php292,416 (or around $5,464). In the United States, the average annual salary of an accountant is $49,749 or around Php2.6 million. You can save around 89% annually.
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 on 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 Professional Expertise
Outsourcing gives you access to highly skilled accounting professionals. The Philippines has a 96.3% literacy rate and a strong education system, making it a great location for foreign companies to outsource their accounting requirements. Accounting outsourcing in the Philippines is a fast-growing industry, with many big international accounting firms already operating in the country for many decades now. Furthermore, it is not difficult to find accounting specialists in the Philippines who are well-versed in the accounting standards of many different countries.
Access to Advanced Technology
Outsourcing 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. Many accounting providers also 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. Moreover, most accounting outsourcing firms have internationally recognized security standards in place.
Let MicroSourcing take care of your finance and accounting needs. Whether you need to outsource your accounting department or looking for a place to set up a managed operations accounting firm, we can help.