Bookkeeping is one of the most important functions that a US property management company needs to handle. However, it can also be one of the most tedious since it covers everything from rent collection to financial reporting. This can be hard considering that property management firms like yours already have a lot on their plate.This is where outsourcing bookkeeping services to the Philippines comes in. The strategy has gained significant traction in the property management industry because of the several benefits that come with it. Let me walk you through the top ten reasons why US property management companies outsource bookkeeping to the Philippines.
1. Specialized Bookkeeping Training Programs
Bookkeeping is one of the many property management functions that you can outsource to the Philippines. Because the country has invested significantly in educational institutions and training programs specifically designed to serve the growing BPO sector, you can rest assured that you’ll get access to a teamThis focused approach ensures that professionals entering the workforce are proficient in general bookkeeping basics. Not only that, but it also guarantees that the staff are knowledgeable in handling the company's financial transactions.Moreover, this educational framework places a strong emphasis on understanding the unique requirements of international clients, particularly those from the United States. As a result, Filipino professionals are not just technically skilled but also culturally attuned, making them exceptionally capable of addressing the specific needs and expectations of US property management companies that choose to outsource their bookkeeping functions.
2. Enhanced Customer Service
In the Philippines, some outsourcing firms offer a unique blend of bookkeeping and customer support services, providing a comprehensive solution for US property management companies.The expert proficiency of Filipino professionals, combined with their skills in relevant tasks like creating financial statements, handling the accounting process, and using bookkeeping software, guarantees client satisfaction.This dual-service approach allows US property management companies to streamline their operations by consolidating two critical functions under one roof. By doing so, they can leverage the linguistic and customer service expertise of Filipino professionals to enhance both their financial management and tenant relations, effectively getting a two-in-one service package.
3. Access to the Latest Financial Software
Many outsourcing firms in the Philippines maintain strategic partnerships with global accounting software vendors. This ensures that they are always up-to-date with the latest technological advancements in the bookkeeping field.This commitment to staying current means that these firms can offer a cutting-edge bookkeeping system, optimized for efficiency and accuracy. You can also expect to have tools that will let you better monitor financial transactions.For US property management companies, this translates into direct access to state-of-the-art accounting software and platforms without the associated overhead costs. By outsourcing their bookkeeping needs to these well-equipped Philippine firms, they can benefit from modern technology without having to invest in software licenses, updates, or staff training, thereby achieving cost-efficiency alongside operational excellence.
4. Flexible Contract Terms
Outsourcing firms in the Philippines are known for their flexibility in contract terms. They offer arrangements that can be customized to suit the seasonal or cyclic fluctuations in the property management industry.For US property management companies, this level of flexibility is invaluable. It enables them to adjust their service contracts based on current operational needs, whether that means scaling their bookkeeping operations up during peak rental seasons or scaling down during slower periods.The benefit at hand allows these firms to provide services that are in sync with the varying demands of the real estate market. This not only optimizes costs but also ensures that the level of service is always aligned with business requirements.Pricing can be tricky to navigate in property management outsourcing. Remember to equip yourself with sufficient knowledge on how to successfully outsource your property management functions to the Philippines before engaging in any contract signing.
5. Familiarity with US Taxation and Accounting Norms
A significant number of professionals in the Philippines have received specialized training in US GAAP (Generally Accepted Accounting Principles), equipping them with the knowledge and skills to seamlessly integrate with American financial systems. This training extends to familiarity with US tax codes, ensuring that all financial activities are compliant with relevant regulations.For US property management companies, this specialized training simplifies the transition and collaboration process. The expertise in US GAAP and tax codes means that there's less of a learning curve, allowing for smoother, more efficient bookkeeping operations.This not only expedites the onboarding process but also instills a higher level of trust and confidence in the quality of the outsourced bookkeeping services.Overall, it's a given that bookkeeping professionals in the Philippines are knowledgeable in complex operations like double-entry bookkeeping, single-entry bookkeeping, handling of financial statements, recording transactions, and ensuring accurate financial records when it comes to accounts receivable and accounts payable.If you want to know more about the legal implications of property maintenance outsourcing, give this article a read!
6. Reduced Infrastructure and Accounting Software Costs
Outsourcing bookkeeping services to the Philippines will help you save money in property management outsourcing.Beyond the obvious savings on labor costs, outsourcing to the Philippines offers US property management companies substantial reductions in infrastructure and IT-related expenses like having their own bookkeeping software.By leveraging the existing facilities of outsourcing firms, companies can avoid the capital outlay required for setting up physical workspaces, computer systems, and other essential infrastructure.This elimination of overhead costs allows US firms to focus their business's finances on core business activities, such as property acquisition and tenant relations. By outsourcing bookkeeping and related tasks, they can achieve operational efficiency without the burden of managing additional in-house resources, thereby streamlining their business model for greater profitability and growth.
7. Cultural Affinity to the West for Better Financial Transactions
The Philippines shares a unique cultural affinity with the West, largely due to historical ties and the pervasive influence of Western media. This cultural understanding extends beyond mere familiarity, fostering a deeper level of rapport and ease in interactions between Filipino professionals and their US counterparts.For US property management companies, this cultural compatibility translates into smoother, more effective communication and fewer misunderstandings in the bookkeeping process.The shared cultural context simplifies collaboration, making it easier to convey expectations and achieve aligned goals in bookkeeping and other tasks related to preparing financial reports. This intangible yet crucial advantage further enhances the efficacy of outsourcing bookkeeping and related services to the Philippines.
8. Access to Advanced Analytics for Financial Statements
In addition to basic bookkeeping tasks, some property management outsourcing companies in the Philippines offer advanced financial information analytics as part of their service portfolio. These analytics capabilities go beyond mere number-crunching to provide in-depth insights into financial trends, operational efficiencies, and potential areas for improvement.For US property management companies, this value-added service can be a game-changer. Advanced analytics can offer a nuanced understanding of financial performance, helping companies make data-driven decisions that can optimize profitability and operational effectiveness. By outsourcing to Philippine firms that offer this comprehensive approach, US companies can benefit from a more holistic financial management strategy.
9. Disaster Recovery and Business Continuity
A notable feature of many outsourcing firms in the Philippines is their comprehensive disaster recovery plans, designed to ensure uninterrupted business operations in the face of unforeseen disruptions. These plans often include data backup solutions, emergency response protocols, and contingency staffing arrangements, providing a robust safety net for critical business functions.For US property management companies, this level of preparedness offers an added layer of security and peace of mind. Knowing that their outsourced bookkeeping services are safeguarded against potential disruptions allows these companies to focus on their core business activities, secure in the knowledge that their financial data and operations are in resilient hands.
10. Eco-Friendly Options
There are many reasons why US property management companies outsource their property management functions in the Philippines, and one of them is the country’s eco-friendly options.In line with the growing emphasis on sustainable business practices, some Business Process Outsourcing (BPO) firms in the Philippines have made strides in environmental responsibility by operating from eco-friendly buildings and adopting green practices. These measures can include energy-efficient operations, waste reduction programs, and the use of sustainable materials, among others.For US property management companies committed to sustainability, outsourcing to these eco-conscious Philippine firms offers an opportunity to extend their green initiatives indirectly. By choosing partners that align with their environmental values, US companies can not only achieve operational efficiency but also contribute to broader sustainability goals, thereby enhancing their corporate social responsibility profile.
Outsource Your Bookkeeping Needs to the Property Management Experts in KDCI
There are specific pros and cons when outsourcing property management functions to the Philippines. This is the same with bookkeeping, which requires specialized knowledge and experience to be executed efficiently. If you’re planning to outsource your bookkeeping needs to the Philippines, make sure to work with an outsourcing provider that is well-versed in the field of property management like us at KDCI!At KDCI, we offer bookkeeping outsourcing services to property management companies who want to perform their functions effectively and at a lower cost. With several experts on our team, you can trust us to handle rent collection, financial reporting, and processing of accounts payable and receivable.Are you interested in outsourcing your bookkeeping tasks to the property management experts at KDCI? Click the button below to learn more!Contact Us
