{"id":286024,"date":"2025-06-10T15:23:44","date_gmt":"2025-06-10T15:23:44","guid":{"rendered":"https:\/\/peraltafinancing.com\/accounting\/10-benefits-of-accounting-outsourcing-in-the-philippines\/"},"modified":"2025-06-10T15:23:44","modified_gmt":"2025-06-10T15:23:44","slug":"10-benefits-of-accounting-outsourcing-in-the-philippines","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=286024","title":{"rendered":"10 Benefits of Accounting Outsourcing in the Philippines"},"content":{"rendered":"


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The Philippines remain to be a sought-after outsourcing destination for finance- and accounting-related functions. Service-oriented firms with capacity issues, in particular, can benefit from the country\u2019s wide pool of competent and experienced accounting professionals. Its ability to provide quality yet cost-effective outsourcing solutions also remains the country\u2019s main selling point in attracting clients across the globe.<\/span><\/p>\n

And it\u2019s not just lip service.<\/span><\/p>\n

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To give you a better understanding of why companies choose this Southeast Asian country, check out the benefits of accounting outsourcing in the Philippines \u2014 and what makes these benefits possible.<\/span>
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Related: A Look Through Southeast Asia\u2019s Accounting Outsourcing Industry<\/a>\u00a0<\/h3>\n

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In this article:\u00a0<\/span>\u00a0<\/span><\/p>\n

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The Philippine accounting outsourcing industry<\/span><\/strong><\/h2>\n

With over three decades of experience in providing outsourcing services, the Philippines has established its authority as a world-class outsourcing destination.\u00a0<\/span>\u00a0<\/span><\/p>\n

From 1992, when the country first started offering basic contact center services, to the present, Philippine-based service providers are now offering a wide variety of outsourcing solutions. This includes accounting services, legal solutions, recruitment support, and IT support, to name a few.\u00a0<\/span>\u00a0<\/span><\/p>\n

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Even during the pandemic, the country\u2019s outsourcing industry <\/span>continued to flourish<\/span><\/a> in terms of headcount and revenue.<\/span>\u00a0<\/span><\/p>\n

Read this case study:\u00a0How a US Firm Resolved Talent Gaps Through Accounting Outsourcing<\/a>\u00a0<\/h3>\n

But why exactly do businesses, especially those from Western countries, decide to bring a portion of their accounting operations into the country? And what made them stay?\u00a0<\/span>\u00a0<\/span><\/p>\n

To answer these questions, let\u2019s discuss how you can benefit from finance and accounting outsourcing in the Philippines.<\/span>\u00a0<\/span><\/p>\n

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Benefits of outsourcing accounting services in the Philippines<\/strong><\/span><\/h3>\n

Outsourcing to the Philippines is a cost-effective way of working with qualified professionals, increasing your operational efficiency, scaling your team whenever needed, and getting access to modern technology.<\/span>\u00a0<\/span><\/p>\n

Here’s a detailed discussion of the major benefits of working with accounting outsourcing companies in the Philippines:<\/span>\u00a0<\/span><\/p>\n

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1. Achieve higher cost-savings<\/span><\/strong><\/p>\n

Outsourcing to countries outside your geographical location \u2014 or a practice known as offshore outsourcing \u2014 can bring you significant cost savings.<\/span>\u00a0<\/span><\/p>\n

What makes it possible? Here are some of the common reasons:<\/span>\u00a0<\/span><\/p>\n

a. Lower labor and operational costs \u2013 <\/span><\/strong>Compared to Western countries, offshore locations like the Philippines have lower cost of living, which is directly attributable to labor and operational costs.<\/span><\/p>\n

For example, there\u2019s a huge discrepancy between the median salary of an accountant working in the Philippines (<\/span>$9,236.40\/year<\/span><\/a>) and the United States (<\/span>$81,680\/year<\/span><\/a>). Another contributory factor is the cheaper cost of leasing an office space<\/span>\u00a0<\/span><\/p>\n

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b. Fiscal and non-fiscal incentives from the government <\/span><\/strong>– The Philippine government \u2014 through its Philippine Economic Zone Authority (PEZA), Bureau of Investments (BOI), and other Investment Promotion Agencies (IPAs) \u2014 has been generous with its <\/span>fiscal and non-fiscal incentives<\/span><\/a> for registered BPO companies.<\/span><\/p>\n

For instance, BPO companies can avail themselves of either a lower special corporate income tax (SCIT) rate, enhanced deductions, or an income tax holiday (ITH). They can also get exemptions on VAT and relevant taxes. Through these deductions, Philippine outsourcing companies can continue offering their services at reasonable prices.<\/span>\u00a0<\/span><\/p>\n

Outsourcing to reputable service providers in the Philippines lets you cut down on expenses while still ensuring that your offshore team is receiving fair wages for their services.\u00a0<\/span>\u00a0<\/span><\/p>\n

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2. Work with competent finance and accounting professionals<\/span><\/strong><\/h3>\n

The Philippines is the home to competitive, skilled, and qualified accounting professionals, making it an ideal outsourcing destination if your firm has talent shortages and skills gap concerns.<\/span>\u00a0<\/span><\/p>\n

Based on the <\/span>latest data from the Professional Regulatory Board of Accountancy<\/span><\/a>, the country has around 200,000 registered certified public accountants (CPAs). This does not include Filipino accounting practitioners who have not yet taken the CPA licensure exam (CPALE) but are already part of the BPO workforce.<\/span>\u00a0<\/span><\/p>\n

The strength of the Philippine accounting outsourcing industry isn\u2019t reliant on the number of its accounting professionals alone. In a micro-level, most Filipino accountants possess these competencies:<\/span>\u00a0<\/span><\/p>\n

At present, the revenue of the Philippines\u2019 business process outsourcing (BPO) industry is valued to be around $38 billion with about <\/span>1.82 million Filipinos working in the said industry<\/span>, <\/span>data from IBPAP shows<\/span><\/a> via Malaya Business Insights. The same source also revealed that the country outpaced \u201cthe global outsourcing average of 3.5% by achieving 7% growth in 2024\u201d.\u00a0<\/span>\u00a0<\/span><\/p>\n