Outsourcing Accounting and Finance Services in the Philippines
Streamlined operations and saving money are essential in today's fast-paced business world. One area that has seen a significant rise in outsourcing is accounting and finance. This trend has become especially popular in the Philippines.
This article explores why businesses should consider outsourcing their accounting and finance services. The article also discusses why hiring Filipino talent for these functions is ideal. We'll also look at the different types of services you can outsource. Also, we'll cover the top companies in the industry.
Why Do Businesses Outsource Accounting and Finance Services?
Outsourcing accounting and finance services provides businesses with greater flexibility. Companies can scale their operations up or down depending on their current needs. This is possible without worrying about employee management.
Outsourcing also provides businesses with access to the latest technology and software. Accounting and finance outsourcing firms invest in technology. This ensures they use the latest software and tools. With this, businesses can enjoy the newest technology. Additionally, they won't have to make significant investments.
Another advantage of outsourcing is better compliance. Accounting and finance outsourcing firms are experts in local regulations and compliance requirements. Outsourcing ensures that businesses follow all relevant laws and benefit rules. This fosters a positive working relationship with their remote Filipino workforce.
For example, the Philippines has a comprehensive system of government-mandated benefits. These benefits aim to provide social security, healthcare, and housing aid. They also aim to provide financial help to its workers. Some benefits include the following:
- Social Security System (SSS)
- Philippine Health Insurance Corporation (PhilHealth)
- Home Development Mutual Fund (Pag-IBIG)
Other benefits include leaves and the 13th Month Pay.
When businesses hire remote Filipino workers, managing these government-mandated benefits can be complex. It can also be time-consuming, especially for companies based overseas. This is where offshore staffing companies like MultiplyMii can play a crucial role.
MultiplyMii specializes in providing administrative support to businesses that hire Filipino remote workers. They can assist with benefits management. This ensures employees receive their entitled benefits and handle the necessary paperwork. Contributions to the relevant government agencies are also included.
Outsourcing provides businesses with a level of security they may not achieve in-house. Outsourcing firms have robust security measures to protect their client's data and information. This assures companies knowing their sensitive financial information is safe.
Finally, outsourcing accounting and finance services can help businesses to stay competitive. By outsourcing, companies can enjoy different advantages. These include cost savings, increased productivity, and improved compliance. It also allows companies to stay ahead of their competitors. Regardless, outsourcing allows companies to succeed in today's digital environment.
Types of Accounting and Finance Services You Can Outsource
Bookkeeping Services
Bookkeeping is a fundamental accounting function that involves recording and maintaining financial transactions. Hiring outsourced bookkeepers in the Philippines has several benefits. These can help businesses reduce their workload and cut errors. Bookkeeping services may include data entry and maintaining financial records. It can also include reconciling accounts and generating financial reports.
General Accounting Services
General accounting services involve a series of tasks. These are preparing financial statements, bank reconciliations, and accounts payable and receivable management. These services are important for businesses to keep track of their financial performance. This then helps them make informed decisions. Outsourcing these services to the Philippines helps enterprises to save time and resources. It also ensures accuracy and compliance with accounting standards and regulations.
Tax Preparation Services
Tax preparation requires expertise in tax laws and regulations. Outsourcing them to the Philippines can help businesses follow tax laws and regulations. Businesses can also cut their tax liabilities. The preparation of tax returns is an example of tax preparation services. It can also include communication with tax authorities and advice on tax-related matters.
Payroll Processing Services
Payroll processing is a critical function. This involves calculating salaries and wages and tax withholding and payment. It also requires compliance with labor laws. By outsourcing these services to the Philippines, businesses reduce their administrative workload. It can also improve their payroll accuracy and compliance. Payroll processing services also include generating payroll reports and providing employee self-service portals.
Financial Analysis and Reporting Services
Financial analysis and reporting services include preparing financial reports and analyzing financial data. It can also include advice on financial management. Let's say businesses outsource this service to the Philippines. They can make informed decisions based on relevant, accurate, and timely information. These services include budgeting, forecasting, financial modeling, variance analysis, and performance reporting.
Outsourcing accounting services to the Philippines provides businesses with various benefits. These include cost-effective solutions, access to professional accountants, and improved efficiency and accuracy. Remote staffing companies handle most of these services for your team. They also provide benefits management. MultiplyMii's success-based pricing has realistic quotes for the service you want to outsource. You may also consult for the size of the remote team you want to build.
Top 5 Accounting Outsourcing Companies in the Philippines
Several outsourcing companies in the Philippines offer finance and accounting services. Here are the top 5 service providers you can tap:
- Accenture Philippines: Accenture is a global company with a strong presence in the Philippines. They offer a wide range of accounting and financial services. This includes financial planning and analysis, tax compliance, payroll processing, and financial reporting.
- Genpact Philippines: Genpact is a leading global professional services firm. They provide finance and accounting outsourcing solutions. Their services encompass general accounting, accounts payable and receivable, and financial analysis. They also work on budgeting and forecasting.
- Sutherland Global: Sutherland offers a comprehensive suite of finance and accounting solutions to clients worldwide. Their offerings include financial reporting, bookkeeping, accounts reconciliation, financial analysis, and management reporting.
- WNS Philippines: WNS is a global business process management company. They deliver a range of accounting and financial services. Their expertise includes financial statement preparation and accounts payable and receivable management. They also work on financial analysis and audit support.
- IBM Philippines: IBM is a multinational technology company offering outsourcing services, including finance and accounting. They provide services such as order-to-cash, procure-to-pay, and record-to-report. They also do financial planning and analysis and regulatory compliance.
These top 5 accounting firms in the Philippines offer the best services. These companies have a proven track record of delivering quality results. They also have a qualified and experienced team of professionals. Small businesses or multinational corporations can enjoy outsourcing accounting and finance functions. These can help improve financial performance and focus on core business operations.
It is important to note that the cost of living in the Philippines is lower than that of the United States. Let's say the average annual salary is $7,200. This amount provides an ideal lifestyle for a Filipino accounting professional. Many Filipino professionals can save a significant part of their salary each month. Outsourcing to the Philippines can also help companies save as much as 70%. This is due to the difference in cost of living between other countries and the Philippines.
Let's say you want to hire remote Filipino employees. Check out this salary guide discussing PH vs. US professionals to learn more about specific roles' rate differences.
Access to a 24/7 workforce is another benefit. Most Filipino professionals are adaptable to Western and Eastern time zones. This allows them to work by your company's assigned schedules. Filipino professionals can also work as well as their counterparts in Western countries. As such, companies can save a significant amount.
Conclusion
Outsourcing accounting and finance services to the Philippines offers different benefits. It includes reduced costs and streamlined operations. The country is ideal thanks to its highly-skilled, educated, and hardworking workforce. Established offshore staffing companies like MultiplyMii also play an essential part. They can allow global businesses to focus on other things. This includes core competencies, productivity, and profitability. This is achievable by building a solid Filipino remote team. Offering HR solutions that fit their needs is vital to building a successful team.
