What is Bookkeeping & Why is it Outsourced?
Bookkeeping is the management and organization of financial transactions, keeping them in systematic record for a company or individual. The reason why someone would outsource bookkeeping is to help keep track of a company’s financial success, which is essential to the future growth of a business.
Having experienced bookkeepers on your team is important to the success of your organization. Experienced professionals can generate accurate financial reports and manage transactions seamlessly.
Although some businesses are able to staff their own bookkeepers in-house, many companies are looking for an alternative option. The answer several businesses have found is to outsource their bookkeeping team abroad, specifically to the Philippines.
Outsourcing or offshoring is a great option for your company because it has many benefits overall. Being able to operate offshore your bookkeeping team helps relieve any extra burdens that might be in-house, giving your company more flexibility. Outsourcing also provides you with a wide range of skilled professionals in accounting, who are ready to support your business with any bookkeeping needs.
Why do companies outsource Bookkeeping to the Philippines?
Although there are many countries famous for their outsourcing services, we found that the Philippines is becoming a top outsourcing destination for many reasons.
Cost Efficient
One of the most attractive benefits of outsourcing bookkeeping to the Philippines is how cost-efficient it is for your business. Because of the lower labor cost in the Philippines, it is much more cost-effective for your business to outsource your bookkeeping team.
For example, the average bookkeeper in the United States makes about $45,500 USD, annually while the average bookkeeper in the Philippines makes about $6,000 USD.
With such a significant difference, despite extra costs that come with benefits, resources, and other factors, outsourcing to the Philippines is still up to 60% lower than hiring an onshore staff in the US. This benefit attracts many companies throughout the globe to outsource their bookkeeping needs to the Philippines.
Skilled Workforce
Outsourcing companies provide a wide range of experienced professionals in the field of bookkeeping. With the Business Process Outsourcing (BPO) industry growing, about 1.3 million Filipinos are being employed, with many individuals going into the field of finance and accounting. Many professional outsourced bookkeepers in the Philippines are experienced in accurately recording your company's financial transactions. These individuals can manage them in an organized manner, reducing the risk of penalties and errors that may arise.
Many Filipino bookkeepers are also updated on the most recent tools and resources for bookkeeping such as Quickbooks and Microsoft dynamics 365 Finance & operations. Using the most efficient technology allows for the most accurate records and management of company finances.
Flexibility & Scalability
Another advantage of outsourcing bookkeeping services is the ability to adjust your team easily. Depending on your needs, you can scale the size of your bookkeeping team. With this flexibility, you can quickly adjust to changing needs and effectively manage your company’s finances.
Timesaving
Managing an in-house bookkeeping team can be time-consuming, leaving less time for other important tasks that your company has. One of the many benefits of outsource bookkeeping allows you to focus on core business activities such as sales and marketing, that drive revenue growth.
Businesses that outsource their bookkeeping team also save time and costs when it comes to training new employees. By outsourcing bookkeeping services, it eliminates the need for extensive training and allows for a smoother transition. Many Filipino bookkeepers are experienced and well-versed in this field, giving you the most accurate records and transactions.
How do you Outsource Bookkeeping to the Philippines?
If you have never outsourced or offshored a team abroad, you may be unsure of how to start building your bookkeeping team. Below, we have broken down this challenging process into 5 steps to help you outsource your bookkeeping team!
Define Your Needs
Based on your company's needs, you can determine the specific bookkeeping services needed by your corporation. Knowing which specific services, such as payroll processing or general ledger management, can help you build a strong bookkeeping team.
Find A Reliable Outsourcing Partner
A vital aspect when outsourcing bookkeeping is to find a reliable outsourcing partner such as KDCI Outsourcing, to help build your team. When finding an outsourcing partner, it is important to find a firm that you can trust, rely on, and seamlessly collaborate with.
Communication is key when it comes to an outsourcing partnership and making sure you communicate your needs is important for smooth collaboration.
Your outsourcing partner should be able to support your company and should be like an extension of your team. This support should not stop at just helping manage your operations; a good outsourcing partner should grow with your business, giving valuable feedback to help you improve your operations to achieve your business goals.
Set Up Tools & Resources
For the best outcome, ensure your outsourcing partner has experience using bookkeeping tools and resources. It is important to use reliable and credible accounting software, for accurate records and quality solutions.
Also implement clear communication channels, for team meetings, progress reports, or any concerns you may have during the partnership.
Develop A Business & Transactions Plan
Outsourcing your bookkeeping eliminates the need to conduct training, allowing you to reallocate resources to better address your financial needs.
Create a thorough plan to transfer bookkeeping responsibilities to your partner. The plan should include a list of expectations, deadlines, and progress evaluations. Share any essential information about business processing as well as inform them about your company’s communication style and work systems.
Evaluate & Review Progress
The last step is to evaluate and review progress as often as necessary for growth and improvement. One way to measure growth is to set up key performance indicators (KPI) which are tracked regularly. Over some time, you will be able to evaluate performance, and depending on your current needs, you can optimize operations to improve your business.
Also continue to communicate any concerns or further adjustments to your partner; set up meetings whenever necessary.
Outsource Bookkeeping Services to the Philippines
We understand that it can be difficult to find a partner for outsourcing bookkeeping, that you can rely on and easily collaborate with, and goes beyond providing services, but is set on helping your company grow.
Here at KDCI Outsourcing, we are committed to helping you build an offshore bookkeeping team that is dedicated to addressing your accounting and finance needs. With a team of experienced and highly skilled individuals who specialize in finance management, credit control, general ledger, and more we'll help you achieve your business goals.
Learn more about outsourced bookkeeping, finance, and accounting. Contact Us today!
