What is finance and accounting outsourcing?
Finance and accounting outsourcing involves engaging a third-party organization to perform certain accounting or finance tasks that would otherwise be done onshore. These roles could be anything from data analysts, bookkeepers, accountants, accounts receivable or payable specialists or payroll processors to debt collection specialists and insurance claims processors.
To understand how you can take advantage of outsourcing, it’s important to know what is happening in the finance and accounting market to ensure you invest in the right services.
The financial services market is further expected to reach $28.5 trillion by 2025 at a CAGR of 6%1. Outsourcing finance and accounting roles can free up time for your onshore team to perform higher value activities and focus on nurturing client relationships to capitalize on this anticipated market growth.
Why is the finance and accounting industry well-suited to outsourcing?
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Interested in recruiting finance and accounting staff in the Philippines?
The finance and accounting industry heavily relies on technology to accurately provide the information required to create effective financial business strategies. Recent advancements in technology have seen a shift to cloud-based platforms, like Xero which is increasing demand2 for qualified finance and accounting professionals who also possess specialized IT, business and analytical skills.
Companies need to know which financial data is critical to track in each business unit, and how to generate meaningful reports from it that can inform business strategy.
However as the capabilities in finance and accounting grow, the industry is experiencing an ongoing shortage of good quality candidates with enough suitable experience. It’s becoming more expensive and difficult to recruit locally, especially at mid-management level3, as talent with highly specialized skills are presented with lucrative opportunities elsewhere.
By choosing to outsource accounting and finance to the Philippines, your business could reap the following benefits:
- Cost savings: As the Philippines' cost of living is lower than most Western countries, your business can outsource repetitive and time-consuming accounting and finance tasks for a fraction of the price it would cost to hire specialists locally; up to 70% in some cases.
- Increase in output efficiency and quality levels: Sending routine finance and accounting tasks to an offshore team in the Philippines means your onshore team will have more time, budget and project scope to take on higher-value work.
- Business growth and scaling opportunities: When you send your time-consuming tasks to an offshore accounting and finance team in the Philippines, your local team will have more time to focus on increasing profits and business growth opportunities. Your onshore team's additional capacity gets from your offshore team's support means you can grow your business sustainably.
With a qualified finance and accounting team, skilled in dynamic financial tracking and reporting tools, you can grow your company quickly and sustainably. The labor pool in the Philippines is known for its tech competency and attention to detail, operating in a fiscal and financial system almost identical to conditions in the West. In fact, the Philippines is currently one of the most dynamic economies in the East Asia region4, with sound economic fundamentals and a globally recognized competitive workforce.
What roles and tasks can be outsourced in the finance and accounting industry?
Some popular roles outsourced in finance and accounting include:
- Accounts receivable specialists
- Accounts payable specialists
- Administrative assistants
- Broker support officers
- Debt collection specialists
- Financial advisors
- Financial analysts
- Insurance claims processors
- Loan processors
- Payroll processors
- Procurement officers
- Tax advisors.
Sample finance and accounting team structures
The size of your business and the volume of work required will determine the size and structure of your finance and accounting teams.
A finance team in medium to large enterprises is typically formed in the following way, from a base level:
A finance team in a small business is typically formed in the following way:
1 Financial Services Global Market Report 2021: COVID-19 Impact And Recovery To 2030
2 CPA Australia. 5 hiring trends in the accounting and finance profession. 2 Jan. 2018
3 Totaljobs. Hiring people
4 The World Bank Group. The World Bank in the Philippines. 7 Apr. 2021
Interested in recruiting team(s) in the Philippines?
Since our inception in 2006, MicroSourcing has become one of the biggest providers of offshoring solutions in the Philippines. We can help you build a dedicated team in the Philippines, regardless of the roles and level of specialization you require. MicroSourcing is backed by our parent company, Probe CX, one of Australia’s fastest-growing offshoring solution and customer engagement firms. So, it’s safe to say we’re experts in outsourcing to the Philippines.
Call +1 888-731-0023 today or send us an email to discuss your company’s offshoring needs.