Chief Financial Officers (CFOs) have always had their plates full. Their focus is not only cost management, but they’re also aiming for operational excellence and ensuring the company can grow without hitting financial roadblocks.
To stay competitive in the accounting industry, many companies consider outsourcing their accounting or financial tasks to the Philippines as one of their strategic decisions. This strategy is gaining traction as it can completely change how companies run.
But like any big decision, there are multiple factors to consider and understand when considering outsourcing staff. This means you also need to get a handle on cultural differences, securing data, and keeping communication clear.
Why Outsource?
Outsourced accounting is a strategic approach where you hand over your accounting functions to external experts. This way, you can streamline your financial management and business operations.
By outsourcing accounting, you can tap into specialized expertise, cut down on costs, and improve your financial reporting and decision-making.
Remote staffing is catching on with organizations of all sizes because it lets them focus on their core competencies while taking advantage of the benefits of outsourced accounting services. Whether it’s managing day-to-day bookkeeping or handling complex financial statements and tax compliance, outsourcing your accounting functions can provide the support and precision needed to drive productivity and efficiency.
Why is Outsourcing Accounting Functions Best in the Philippines?
It helps you spend less
For business owners, opting for outsourced accountants in the Philippines can be more budget-friendly than hiring accountants or accounting firms in the US. Despite the difference in wages, there are many Filipino accounting professionals that are skilled and knowledgeable in accounting standards like US GAAP and IFRS.
An outsourced accountant doesn’t just handle the basic bookkeeping; they also offer valuable insights and support during key growth stages of a business.
Connect with high-performing talent
The Philippines has a strong focus on finance functions in its education system, with thousands of CPAs graduating each year. Many also earn extra credentials like the US CPA, CMA, and CFA. Teaming up with an accounting outsourcing company made up of these skilled talents provides crucial financial information and analysis that help steer investment and growth strategies.
Enhance teamwork through cultural compatibility
Thanks to its close ties with the US, the Philippines has a workforce that’s fluent in English and “gets” Western business practices, making communication and teamwork in your financial operations much smoother.
Maximize productivity with time zone differences
With the Philippines’ time zone, your productivity keeps moving overnight, ensuring you start your day with up-to-date and insightful financial reports. This way, you can significantly improve your day-to-day operations and streamline processes.
Upscale effortlessly
Outsourcing lets you easily upscale your operations, offering flexibility during busy times like tax season or when scaling so you can focus on your core business functions.
Get a first-hand experience
Visiting the Philippines to see operations up close offers unique insights into how outsourcing can boost your organization. Meeting the team, seeing their work, and getting a feel for the culture helps build trust and stronger relationship with your remote team.
What Accounting Functions Can You Outsource?
You can outsource different accounting functions, such as bookkeeping, payroll processing, accounts payable and receivable, tax preparation and compliance, financial reporting, financial planning and analysis, external audit support, and management accounting.
By outsourcing these, you can access a team of skilled professionals who can handle complex financial tasks with precision and accuracy. This approach not only keeps financial operations running smoothly but also lets businesses take advantage of the latest accounting technologies and practices.
By outsourcing these important tasks, you can get more accurate financial reports, stay compliant with regulations, and boost your overall financial health.
How to Overcome Outsourcing Challenges with Strategic Solutions?
While outsourcing accounting tasks comes with definite benefits, we do need to address a few challenges to ensure the transition is smooth and successful.
Data security and compliance
Challenge: Managing sensitive financial data globally can raise concerns about data security and meeting US regulations like SOX and GDPR.
Solution: If you’re all for ensuring compliance, work with providers who meet global security standards like ISO/IEC 27001, PCI DSS, and NIST. Regularly audit and set up strong data-sharing protocols to stay compliant.
Communication barriers
Challenge: Even though everyone speaks English well, differences in accents or work styles can sometimes lead to misunderstandings.
Solution: Set up strong onboarding and offer cross-cultural training for both U.S. and Filipino teams. Use tools like Microsoft Teams or Slack to keep communication clear and consistent.
Process integration
Challenge: Aligning outsourced processes with in-house operations may disrupt workflows.
Solution: Set up clear SOPs and workflows. Have dedicated account managers on both sides to manage integration and quickly handle any issues.
Employee turnover
Challenge: High employee turnover in the outsourcing industry can sometimes disrupt service continuity.
Solution: Work with providers that offer competitive salaries and employee benefits, employee engagement programs, and career development opportunities to retain top talent. Implement knowledge management systems to ensure smooth transitions in case of staff changes.
Quality control
Challenge: It can be tricky to make sure the outsourced team matches the quality of your in-house staff.
Solution: Set clear KPIs and have regular check-ins to track performance. Keep feedback flowing between teams to boost quality.
Step-by-Step Guide to Effective Outsourcing Accounting Services
Define your key goals
Before outsourcing your accounting functions, it’s essential to define your key goals and objectives. What do you want to achieve through outsourcing? Are you looking to reduce costs, improve financial reporting, or enhance your financial management capabilities? By clearly defining your goals, you can identify the right outsourced accounting firm that can meet your specific needs and requirements.
Define your key goals
Clearly identify your business needs and outline which accounting functions you plan to outsource, like payroll, accounts receivable, accounts payable, or tax preparation.
Choose the right partner
Evaluate outsourcing providers. See if they can help you improve your accounting department by looking at their expertise, client reviews, certifications, and the infrastructure they offer. Ask the all-important question: do they have the compliance practice and certifications in place to ensure protection of yours and your customers’ data?
Pilot the process
You can begin with a small, manageable project to get a feel for things before diving into full-scale outsourcing.
Visit the operations
Visit the Philippines to see your outsourcing partner’s capabilities and team firsthand, helping confirm your decision and ensure alignment.
Invest in technology
Use cloud-based accounting software like QuickBooks, Xero, or NetSuite for seamless collaboration and data sharing.
Monitor and optimize
Keep an eye on how the outsourced team is doing, see their progress in their accounting tasks, and give them feedback to help enhance processes and results.
Redefine your business with an outsourced accounting team
To meet the accounting needs, choosing to outsource to the Philippines can be a game-changer for CFOs and business owners. It offers a great way to cut costs, tap into top-notch talent, and boost operational efficiency which will help you achieve business growth by augmenting your in-house team with offshore professionals.
By thinking ahead and tackling any potential hurdles, along with taking the time to visit the Philippines to get a real feel for the outsourcing landscape, you can truly make the most of what outsourcing accounting functions has to offer and set your organization on a path to success.
Ready to boost your finance and accounting operations? Visit us to learn more.