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Bookkeeping is a crucial part of business operations. This task involves tracking and recording your company’s financial transactions. You can effectively manage your business’ fiscal affairs with accurate and timely financial reporting.
However, bookkeeping can be tedious and costly, especially if you run it in-house. That is why many companies outsource this function to offshoring providers in the Philippines.
Why should you choose the Philippines among many outsourcing destinations? Read on to discover 12 practical reasons the country is a top choice for bookkeeping outsourcing.
Why You Should Outsource Bookkeeping Services to the Philippines
Business process outsourcing (BPO) entails delegating tasks to third-party service providers instead of handling them in-house. In addition to customer-facing and back-end functions, companies outsource administrative work, including bookkeeping.
Bookkeeping is a part of the accounting process that records financial transactions. This task is time-consuming and expensive; outsourcing it to the Philippines offers efficiency and other benefits.
The Philippines has long been a top outsourcing destination. Outsource Accelerator considers the country the world’s BPO capital. Its information technology and business process management (IT-BPM) industry had a 10% increase in revenue last year, generating $32.5 billion.
The Philippine outsourcing industry will experience continued growth and expansion. Colliers stated that the country could capture a bigger share of the global BPO market. So if you plan to outsource your bookkeeping tasks, the Philippines is a destination worth considering.
Still unconvinced? Here are a few reasons to consider the Philippines for your bookkeeping outsourcing needs:
1. Reduce Operating Costs
Generally, the Philippines has a lower cost of living than Western countries. As such, labor costs in the country are also significantly lower. This advantage leads to lower outsourcing rates for client companies, allowing you to reduce operating costs.
Outsourcing bookkeeping also eliminates the need to invest in costly office space, equipment, tools, and software. You can rely on your Philippine BPO partner to shoulder these expenses. Then, you can use the savings generated to invest in other business areas.
2. Tap Into Skilled Talent
The Philippines is known for its highly skilled workforce. The country’s educational institutions produce a pool of graduates ready to serve various sectors, including the BPO industry. Some graduates become bookkeepers, accountants, and other professionals with financial backgrounds.
You can access professional bookkeepers through a BPO service provider. They streamline your bookkeeping processes, ensure data accuracy, and improve efficiency. Aside from their specialized skills, you can also take advantage of their English proficiency and soft skills for an effective partnership.
3. Employ Detail-oriented Professionals
Bookkeeping requires attention to detail to ensure financial records are complete and accurate. One hundred percent data accuracy can have a positive impact on your finances. So you should consider hiring professionals who are as keen and detailed as possible. That is where the Philippine bookkeeping outsourcing business comes in.
Most professional bookkeepers in the Philippines undergo proper training to acquire accounting skills and become highly detail-oriented. They commit to ensuring every financial transaction is accounted for and recorded correctly. Philippine BPO companies also set quality control standards to provide accurate and reliable financial reports.
4. Ensure Strong Work Ethics
Did you know that Filipinos are notable for their strong work ethics? This attribute makes them ideal partners for outsourcing services. They are reliable, hardworking, and committed to their jobs. Whether you outsource tech solutions, customer service, or bookkeeping tasks to the Philippines, you can count on having a dedicated workforce.
Additionally, Filipinos are known to possess desirable traits such as respect, patience, and hospitality. When outsourcing, you not only leverage their good work ethics for a successful bookkeeping operation but also find it easy to work with them, making your outsourcing engagement smooth and seamless.
5. Guarantee Cultural Compatibility
Offshore outsourcing means working with remote team members of different nationalities and backgrounds. Such differences might lead to misunderstandings and potential work delays. Thus, cultural compatibility is a crucial factor when outsourcing your bookkeeping services.
The Philippines tops the list of outsourcing destinations since it has shared cultural attributes with Western countries due to its colonial past and ongoing partnerships. Many Filipinos are familiar with Western customs and business practices, making communication and collaboration much easier. Entrust your bookkeeping processes to a Philippine offshore provider for maximum efficiency.
6. Access Digital Tools and Technology
Companies outsource to access the latest digital tools and technology, which can be costly to invest in and own in-house. They hire third-party vendors to leverage contact center as a service (CCaaS) technology for customer service, customer relationship management (CRM) systems for the help desk, and accounting software for bookkeeping.
Hiring Philippine bookkeeping outsourcing services lets you capitalize on the automated software your contracted provider uses. Automation reduces manual work, accelerates processes, and increases efficiency. Partnering with an offshore provider in the Philippines allows you to harness the power of today’s technology.
7. Streamline Bookkeeping Processes
Bookkeeping deals with a vast amount of financial data and information. As mentioned above, this part of accounting can be tedious and cumbersome. Without employing a skilled workforce and using automated software, the whole process can be subject to errors and delays that can hurt your business finances.
Outsourcing bookkeeping services to the Philippines can help you stay on top of your bookkeeping process. With access to skilled professionals and advanced technologies, your company can ensure timely and accurate financial data recording.
8. Increase Overall Efficiency
Businesses seek ways to improve the overall efficiency of their bookkeeping processes. Accountants can promptly conduct financial analyses and business forecasts when bookkeepers meet their deadlines. Likewise, business leaders can make sound financial decisions for business growth and success. Having effective bookkeepers means you can maintain a consistent cash flow for your business.
Outsourcing bookkeeping to the Philippines can increase your efficiency. Most BPO companies in the country operate around the clock, with bookkeepers working on shifts. They strive to meet their clients’ deadlines to keep up with the service-level agreement (SLA) and avoid getting penalized. So expect top-notch bookkeeping services from them!
9. Ensure Data Accuracy
Bookkeeping requires high service quality and data accuracy since professionals deal with financial transactions. Any inaccuracy can harm a company’s cash flow and bottom line. Meanwhile, accurate financial information helps accountants manage their finances properly. You can guarantee data accuracy by employing Philippine bookkeeping outsourcing providers.
Most BPO firms in the country hire professional bookkeepers because they do not want to risk their clients’ financial information. Aside from delivering quality services, they set robust data privacy and security measures. Whether you are outsourcing bookkeeping or data entry services, consider hiring an offshore provider in the Philippines.
10. Achieve Flexibility and Scalability
Outsourcing allows companies to scale their business up and down. This idea practically applies to bookkeeping services. For example, if you need more bookkeepers during peak season, you can add more professionals to your existing workforce. In contrast, you can reduce the head count during regular seasons.
Some BPO companies in the Philippines offer outsourcing services on a contractual or per-project basis. Partnering with an offshore provider in the country gives you some flexibility. You can scale your bookkeeping operation according to your needs and based on the contract agreement.
11. Capitalize on Government Support
The Philippines is ideal for outsourcing services because of its government’s support. Its government paved the way for enacting the Special Economic Zone Act and establishing the Philippine Economic Zone Authority (PEZA). Since its inception, this law has attracted foreign and local investments for the country’s economic growth.
As the top sector supported by the government, the Philippine outsourcing industry has boomed. It has become the largest contributor to the economy, comprising 7.5% of the country’s gross domestic product (GDP). You can indirectly benefit from the government’s support and favorable policies and regulations.
12. Capitalize on the BPO Market Growth
When choosing an outsourcing destination, a rule of thumb is simple: invest where the industry thrives. As mentioned, the Philippine outsourcing market had a 10% increase in revenue last year, while Colliers predicted it could capture a bigger slice of the global BPO market.
So when planning to outsource financial services, consider the Philippines as your bookkeeping outsourcing destination. You will be able to capitalize on the country’s BPO market growth. This means taking advantage of its workforce, technology, resources, and proven track record. As such, your outsourcing engagement in the country will have a greater chance of success!
How To Get Started with Philippine Bookkeeping Outsourcing
The Philippines is the world’s BPO capital for front- or back-office outsourcing. Hiring Philippine bookkeeping outsourcing services can be a wise business decision. As explained above, working with an offshore provider in the country can help you reduce costs, ensure data accuracy, increase efficiency, and improve your overall bookkeeping operations.
For those new to outsourcing, however, getting started can be daunting. You must take crucial steps, from examining your current operations to hiring the right service provider. Likewise, you must consider several critical factors before partnering with a BPO vendor in the country.
Fret not—we will provide a step-by-step guide on outsourcing bookkeeping tasks to the Philippines. What are you waiting for? Follow our key steps below:
- Define Your Bookkeeping Needs. The first step requires you to examine your business operations. This allows you to identify the specific bookkeeping tasks you want to outsource. It also lets you determine the level of expertise, type of technology, and overall budget you need. Then, you can set your outsourcing requirements.
- Research Outsourcing Providers. Once you set your outsourcing requirements, you can look for outsourcing providers in the Philippines. Search online to find a list of companies specializing in bookkeeping outsourcing. Check their websites, service offerings, and other relevant details. Create a list of prospects from the companies you find.
- Screen Your List of Prospects. It is time to evaluate your list of potential outsourcing providers in the Philippines. Ask for their credentials, certifications, and references. Consider crucial factors such as BPO track record, workforce, technology, cost, and reputation. Narrow down your list to the most qualified candidates after you have screened all prospects.
- Select the Right BPO Partner. You can finally choose a BPO partner for your Philippine bookkeeping outsourcing project. Be highly critical during your selection process and judge prospects based on the abovementioned criteria. Remember that your hired contractor is crucial to your bookkeeping success. They can make or break your business finances!
- Create a service-level agreement (SLA). After picking a BPO partner, negotiate the terms with them to create an SLA. This legally binding contract details the outsourcing partnership between your business and your chosen offshore provider. Include the business goals, work scope, payment terms, quality standards, and contract breach.
- Set up Your BPO Operation. After the contract signing, it is time to set up your BPO operation. The process includes providing access to your bookkeeping software, training your BPO team, establishing communication channels, and defining your reporting requirements. You should set these in place before the actual operation.
- Conduct a Pilot Run. Before kicking off your BPO operation, allow your offshore provider to conduct a pilot run. Make sure that your bookkeeping processes run as smoothly as possible. Otherwise, make necessary adjustments to optimize your operation.
- Measure Your Performance. When every aspect of your bookkeeping operation works well, you can formally launch your BPO operation. But the work does not end there. Whether bookkeeping, customer service, or technical support outsourcing, you should monitor and measure your BPO performance regularly.
- Optimize your BPO Operation. You see whether you need to improve your operation through constant monitoring. Refine your bookkeeping processes, implement best practices, and make necessary changes based on data analysis and actual feedback. You can make the most of your Philippine bookkeeping outsourcing engagement through these.
The Bottom Line
Philippine bookkeeping outsourcing is best for any business to scale operations and save on costs. The country offers several advantages, from highly skilled professionals to full government support.
Consider the top reasons before outsourcing your bookkeeping services to a BPO provider in the Philippines. Take advantage of all the potential benefits the nation has to offer. Whenever you are ready, follow our crucial steps for outsourcing to this country.
With all the tips and steps here, you can stay on top of your bookkeeping processes and manage your business finances well.
