You’ll never run out of options when you’re looking for finance and accounting outsourcing companies in the Philippines. But out of hundreds of service providers in the country, how do you choose the one that can deliver quality service at a reasonable cost?<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n The Philippines remains to be a popular outsourcing destination for finance and accounting services \u2014 and for good reasons.\u00a0<\/span>\u00a0<\/span><\/p>\n The latest data from the Professional Regulatory Board of Accountancy revealed that there are around 200,000 registered certified public accountants (CPA)* in the country. These figures, which are the highest in Southeast Asia, can be good news for companies affected by the talent shortage.<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n But more than the quantity, the Philippines prides itself with the quality of its accountants.<\/span><\/p>\n Beginning from tertiary education<\/span><\/a>, Filipino accountants have been trained to deal with complex finance and accounting concepts. The curriculum of most higher education institutions (HEIs), which are hinged on global accounting standards (e.g., IFRS and GAAP), is also designed to filter the best of the best.<\/span>\u00a0<\/span><\/p>\n Communicating with these finance and accounting professionals will rarely be an issue for English-speaking clients, thanks to the country\u2019s <\/span>high English proficiency<\/span><\/a>.<\/span>\u00a0<\/span><\/p>\n On top of this, young Filipino accountants are starting to see the outsourcing industry as a feasible employment option. As opposed to the cutthroat culture of the Big 4 accounting firms, modern outsourcing companies <\/span>offer more competitive salary packages<\/span><\/a> and promise better work-life balance.<\/span>\u00a0<\/span><\/p>\n The Philippine government has also been supportive of its outsourcing industry. Aside from improving its infrastructure, BPO companies can receive tax incentives, which is one of the key factors for keeping services at reasonable prices.<\/span>\u00a0<\/span><\/p>\n However, not all Philippine outsourcing companies are created equal. Some may have a proven track record but aren\u2019t culturally aligned with your company. Others may also excel at providing a specific service in your time zone (e.g., call center) but don\u2019t have the necessary expertise to work on a different function (e.g., accounting).<\/span>\u00a0<\/span><\/p>\n Preparing a checklist of what you expect from an outsourced accounting team can bring you closer to the right service provider. As a start, we listed some of the elements you must check to see if an outsourcing company has what it takes to deliver quality finance and accounting services.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Succeeding in outsourcing isn\u2019t about working with the best company in the industry nor is it about choosing the provider with the most expensive service or extravagant presentation. <\/span>Compatibility matters most<\/span><\/a>, be it in terms of your culture, quality standards, and budget, among others.\u00a0<\/span>\u00a0<\/span><\/p>\n If you choose to outsource to the Philippines, make sure to check the following:<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n Service-based industries are heavily reliant on the capabilities of their people. The finance and accounting sector, being a part of it, needs <\/span>qualified and competent accountants<\/span><\/a> to function well. And so does your business.<\/span>\u00a0<\/span><\/p>\n That\u2019s why if you\u2019re filtering potential service providers, one of the first few things you must look into is their ability to attract, nurture, and retain competent accounting professionals.\u00a0<\/span>\u00a0<\/span><\/p>\n Specifically, here\u2019s what you can check with your shortlisted Philippine outsourcing companies during discovery calls:<\/span>\u00a0<\/span><\/p>\n To cut it short, a service provider that invests in finding top accounting talents and supports the growth of its people deserves a place on your list.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n Observe and analyze each service provider\u2019s approach to doing business. The key is to get a \u2018feel\u2019 of how responsive and professional they are when dealing with you. In this case, first impression matters, given that you\u2019re working on a long list of BPO service providers.<\/span>\u00a0<\/span><\/p>\n You can look for both subtle and obvious clues when assessing if a provider has efficient processes. For instance:\u00a0<\/span>\u00a0<\/span><\/p>\n The sales process of an outsourcing company gives you a glimpse of how their overall internal processes look like. If it\u2019s streamlined and organized, chances are high that their daily operations also look the same way. If it\u2019s the contrary, then you may consider crossing them out of the list.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n You must also look into an outsourcing company\u2019s accounting tech stack, or a collection of tools used to complete different accounting tasks.<\/span>\u00a0<\/span><\/p>\n Check with them if they\u2019re using the same set of tools you\u2019re using. You can also ask them what other tools are available in-house, be it for accounting tasks, project management, documents management, or business intelligence.\u00a0<\/span>\u00a0<\/span><\/p>\n Aside from their tech stack, inquire about how they helped their clients in streamlining their processes as well. If you\u2019re lucky, you can stumble upon specialized outsourcing companies that can help you <\/span>improve your current workflows<\/span><\/a> and prepare standard operating procedure (SOP) documents. This can be especially helpful if your accounting processes are in disarray or if you have several subsidiaries or office\/store locations.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n There are two things you must keep in mind when listing down potential providers:<\/span><\/p>\n This goes to say that when listing down potential service providers, you must always check the specific services and solutions they offer. You can either visit their website or contact them directly to confirm if they\u2019re offering the service you need.<\/span>\u00a0<\/span><\/p>\n Another thing is to check the scalability of their services. Can they adjust the size of your offshore team when needed? Are they capable of handling bouts of recruitment needs?\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n Corporate culture affects employee performance<\/span><\/a>, and employee performance embodies the quality of service you receive.<\/span>\u00a0<\/span><\/p>\n With this in mind, you must choose an outsourcing company with an outstanding corporate culture.\u00a0<\/span>\u00a0<\/span><\/p>\n Doing on-site visits is the ideal way to learn more about their culture and observe their work atmosphere. But since the Philippines can be a bit far, researching online would be enough.\u00a0<\/span>\u00a0<\/span><\/p>\n You can start by reading actual employee reviews in popular job sites in the Philippines such as Glassdoor, Indeed, Jobstreet, and Kalibrr. Other than learning employees’ satisfaction level, it also gives you an idea about their compensation packages, management style, and work environment. On top of this, we also recommend visiting the company\u2019s social media accounts to learn about the activities they do for their employees.\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n There should be no compromise when it comes to the security of your business data. That\u2019s why when selecting a service provider, you must review the following through a thorough <\/span>due diligence process<\/span><\/a>:\u00a0<\/span>\u00a0<\/span><\/p>\n Ask them about their efforts in keeping their employees informed of best data security practices. Find out as well if they\u2019re using reliable cybersecurity tools such as firewalls, antivirus, encryptions, and end-point security tools, to name a few.<\/span>\u00a0<\/span><\/p>\n Try to understand their IT processes as well, especially the role of their IT Department in setting up accounts and resolving day-to-day technical problems. If possible, get your internal IT specialist involved in the process so you can be assured of the provider\u2019s capacity to keep your data secure.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n See if the outsourcing company adheres to all relevant local and international laws.\u00a0<\/span>\u00a0<\/span><\/p>\n In the Philippines, for instance, there\u2019s the Data Privacy Act that holds organizations accountable for the personal data they process and the Labor Code to govern employment practices and labor relations.<\/span>\u00a0<\/span><\/p>\n You can also check if they\u2019re knowledgeable of the accounting standards and business regulations that apply to your company.\u00a0<\/span>\u00a0<\/span><\/p>\n \u00a0<\/p>\n If you aim to reduce costs, then you must be familiar with <\/span>different types of outsourcing pricing structures<\/span><\/a>.<\/span>\u00a0<\/span><\/p>\n The fixed pricing (FP) model is the most common among outsourcing companies wherein they set a standard amount for their services. The standard fee varies depending on labor costs, the total number of hours, headcount, add-on services, and complexity of services outsourced, among others. There’s also the time and materials (T&M) model, shared risk reward model, and incentive-based pricing model.<\/span>![\"The](\"https:\/\/www.dvphilippines.com\/hs-fs\/hubfs\/How%20to%20Choose%20Finance%20%26%20Accounting%20Outsourcing%20Companies%20in%20PH.jpg?width=1434&height=600&name=How%20to%20Choose%20Finance%20%26%20Accounting%20Outsourcing%20Companies%20in%20PH.jpg\")
<\/span><\/p>\nWhy outsource to the Philippines?<\/span><\/strong>\u00a0<\/span><\/h2>\n
Read: A Look Through Southeast Asia\u2019s Accounting Outsourcing Industry<\/a>\u00a0<\/h3>\n
What to look for in a finance and accounting outsourcing company in the Philippines<\/span><\/strong><\/h2>\n
1. Professional competence of their accounting talents<\/span><\/strong><\/h3>\n
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2. Efficiency of service delivery process<\/span><\/strong><\/h3>\n
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Related: Mitigating Operational Risks through a Proactive Service Delivery Process<\/a>\u00a0<\/h3>\n
3. Access to various accounting tools<\/span><\/strong><\/h3>\n
4. Services and solutions offered<\/span><\/strong><\/h3>\n
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5. Corporate culture<\/span><\/strong><\/h3>\n
6. Data security measures and IT processes<\/span><\/strong><\/h3>\n
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7. Compliance with relevant laws and regulations<\/span><\/strong><\/h3>\n
8. Pricing structures<\/span><\/strong><\/h3>\n