What Is Accounting & Why Is It Outsourced?
Accounting is the process of organizing, recording, and managing financial transactions, making it a vital part in many companies. Several companies outsource accounting to grow their companies, and keep records of financial transactions, in order to ensure accurate reports and success.
Having a reliable accounting team is an important part of managing your financial needs. Accounting professionals can offer support when handling transactions, and effortlessly adjust to any needs you may have.
Although some companies are able to hire an accounting team in-house, not all companies have the resources to do so. The solution many businesses have found, is to outsource their accounting team to the Philippines.
With the business process outsourcing (BPO) industry in the Philippines growing 8-10% annually, the country has become an ideal place to outsource accounting. Outsourcing or offshoring is a great option if you are looking to maximize in-house resources and reduce the burden of running an in-house accounting team. Accounting outsourcing your team to the Philippines, allows you have the flexibility to focus on other areas of your company. While ensuring that your offshore financial activities are being taken care of efficiently.
Furthermore, hiring an accounting team in the Philippines provides you access to a wide range of experienced professionals that are skilled in managing your accounting needs.
Why Do Companies Outsource Accounting To The Philippines?
Although several countries throughout the globe are well-known for outsourcing, many companies find the Philippines ideal for accounting outsourcing because of these reasons.
Experienced Professionals
With over 233,000 seasoned professionals, in field of business administration and accounting, the Philippine workforce has many experienced accountants who are well-educated in the field of accounting and finance. These accountants are well-reversed in keeping a record of business transactions and managing any company finances and are more than capable of supporting your finance and accounting operations.
English Communication
With the Philippines being the 3rd largest English-speaking country in the world, many Filipinos are fluent in English. This means that Filipino accountants are proficient in speaking English, which allows them to communicate clearly and better understand and address any needs you may have. This makes collaboration easier because, when you can openly communicate with your outsourcing partner you can easily convey instructions and information to boost efficiency and ensure accuracy.
Advanced Financial Technology
Many Filipinos are experienced in using the latest accounting technology in order to give the most accurate financial records possible. By using tools such as Quickbooks, Xero, and Sage 50cloud, outsourcing agencies can efficiently get accurate data on financial records, in order to maintain quality in financial management.
Moreover, Philippine outsourcing companies use AI tools to effectively analyze data and record information accurately and efficiently, which is vital when handling important financial information. Using the most advanced technology, your outsourcing partner can track your finances and ensure precise data analysis.
Time Zone Advantage
The Philippines is generally 12-13 hours ahead of Eastern Standard Time (EST) and 15-16 hours ahead of Pacific Standard Time (PST). This time difference allows for a more productive working day, flexible working hours, and can benefit your outsourced accounting team.
The time zone advantage gives you the flexibility to arrange your team's schedule in a way that can be more effective in the long run. This gives you a competitive edge among other companies, allowing you to adjust your schedule and maintain a continuous workflow. This edge is especially beneficial when there are critical financial transactions.
Lower Labor Cost
The labor costs in the Philippines are much lower in comparison to countries like the United States and Canada. By outsourcing your accounting team to a Philippine BPO company, you can save on overhead expenses, such as employee benefits, utilities, and office equipment. This gives you the flexibility to focus more on core company activities such as sales and marketing, which help drive revenue.
How Do You Outsource Accounting to the Philippines?
We understand that the outsourcing process can be confusing, and starting can seem like a daunting task. Below, we’ve outlined 5 steps on how to build your outsourced accounting team in the Philippines!
Determine Requirements
Understand what your business needs are, and how you should clearly communicate those needs with an outsourcing agency. Create an outline or list your accounting needs; and be open when sharing those needs. Assess the work you need completed and be ready to elaborate on the specific roles you want for your accounting team.
Find a Reliable Outsourcing Partner
Finding an outsourcing partner such as KDCI Outsourcing, a company committed to helping you grow your offshore accounting and finance team, is a vital component when outsourcing your accounting team to the Philippines.
Based on your accounting needs, you can further determine what company would work best for you. Find a company that is reliable, has experience, and can be a valuable asset to your offshore team. The best way to find a company is to do thorough research on their accounting services or contact the company for any further questions you may have.
Your outsourcing partner should be able to support your company’s accounting and finance needs and be able to adapt to business and regulatory changes.
Develop An Accounting Plan
To ensure your business’s success in accounting, it is important to formulate a thorough plan. Outline steps for different accounting tasks and inform your outsourcing partner of any expectations. Ensure data security when discussing financial transactions to make sure information is not leaked on unsecure. Communicate with your outsourcing partner any questions or concerns you may have about security and confidentiality.
Communicating Needs
Inform your team of any requirements you have and state your needs in an organized and clear manner to help ensure quality work. Be able to communicate with your offshore team any vital information about the accounting process or any preferences you may have when managing financial transactions.
Since your team is well-versed in accounting and finance, you will not need to give them any basic training, but just inform them about procedures you want done in a specific manner.
Further Monitoring & Collaboration
The final step is to continually monitor or evaluate accounting and financial processes.
Hold regular meetings and give constructive criticism about any financial management concerns. Continue to collaborate and discuss what is beneficial for your company in the future, and how your offshore accounting team can further support your business. Raise concerns promptly and prepare for any future obstacles such as changes in accounting regulations or client demands.
Your outsourcing partner should be like an extension of your own team, helping grow your business and helping you reach your company’s full potential.
Outsource Accounting Services to the Philippines
We understand that it can be difficult to build a reliable outsourced accounting team that can seamlessly collaborate with your business and contribute to the future growth of your company.
Here at KDCI Outsourcing, we find you skilled professionals who are highly experienced and can help you with your accounting and finance needs. We are committed to helping you build your offshore team to the Philippines and have several professionals in general ledger management, financial specialist, credit control, and more! These individuals are experienced in offshore finance & accounting services and can assist you with any of your needs.
Learn more about outsourced accounting and finance. Contact us today!
