In business, as is in life, change is the only constant. The relentless pace of innovation, shifting market dynamics, and unforeseen global events have become integral parts of our corporate reality. As CEOs and business leaders, we are entrusted with the formidable task of steering our organizations through these turbulent waters. With a business failure rate in the U.S. of 20.8% within the first year, 48.4% after five years, and 65.1% after a decade – a business leader would do anything to survive.
Survival, however, is not enough. To flourish amidst an evolving business landscape, we must adopt a dynamic mindset that embraces the challenges as opportunities and the disruptions as catalysts for growth. We would have to.
From agile methodologies to harnessing the power of data-driven insights, from nurturing a culture of innovation to fostering resilience in times of adversity, we will need to unravel the proven strategies that forward-thinking companies are deploying to weather the storm and set sail toward new horizons of success.
When companies face the dual challenge of maintaining financial excellence while optimizing costs – this delicate balance requires innovative solutions. One such solution that has gained prominence is offshoring your business’ non-core functions – such as IT, Customer Support, Human Resources, and, in this particular example – Accounting.
This strategy empowers businesses to tap into the expertise of highly skilled accountants while simultaneously creating capacity, adding capability, and freeing up valuable time.
Let’s explore the vast potential of offshore accounting, with a particular focus on the Philippines, a nation renowned for its pool of dedicated and talented accounting professionals.
Offshore accounting is no longer a niche practice; it’s a strategic choice for businesses of all sizes. This approach involves hiring remote accounting professionals who become an integral part of your team, functioning as a dedicated “dream team” supporting your business goals. Think of coworkers from a different branch – only this time – the unit is located overseas in the Philippines.
Offshoring accounting tasks lets your in-house team offload routine functions, freeing them to focus on strategic financial planning and decision-making. This collaborative approach enhances your efficiency, allowing them to drive business forward with data-backed strategies. It’s a win-win scenario, optimizing resource allocation and positioning you better for success.
Access to a diverse talent pool means you can secure technical expertise in areas you need access to, but short of, enhancing your accounting team’s capabilities. When you tap into a broader spectrum of skills, you can seamlessly bridge gaps in your in-house team’s proficiency. This multifaceted approach brings about a fresh influx of ideas, strategies, and insights that might not have been within immediate reach.
In addition, your remote team members’ diverse backgrounds and experiences can lead to innovative solutions and alternative viewpoints, enriching your accounting operations. This collaboration not only heightens the expertise at your disposal but also promotes a vibrant mix of ideas, fostering a more dynamic and adaptive accounting team. With this diverse talent pool, your accounting team becomes a busy hub for excellence and innovation, uniquely positioned to thrive in your field.
With routine tasks managed efficiently offshore, your onshore team naturally gains precious time to work on high-impact projects, fostering innovation and growth. But it doesn’t stop there. The time zone difference between the US and the Philippines gives you multiple advantages to your service offerings. Your dedicated offshore team, for one, can work on project deliverables while your onshore team is offline. This effectively allows your business to operate 24 hours a day – extending your service hours to accelerate your project turnaround times significantly. This geographical difference also allows both teams the opportunity to work in parallel – with one team potentially working on specific aspects of the project while the other team manages other components simultaneously – reducing project durations. The faster turnaround times also allow both your onshore and offshore teams to be more productive by taking on more projects requiring their technical expertise – overall creating a domino effect resulting in quicker resolutions, effective communication, and heightened collaboration.
The Philippines has firmly established itself as a top destination for offshore accounting. Revenue in the Philippine BPO market, where offshoring belongs, is projected to reach $.62 billion this year and is expected to reach $.96 billion by 2028. This consistent growth projection shows a continued reliance on Filipino BPOs that will largely be driven by efficiency and a growing IT industry.
Filipino accountants are known for their strong work ethic and dedication to excellence. Many have received world-class education and training, making them proficient in various accounting disciplines. These aspiring Filipino accountants spend 4-5 years in university to earn a degree with the usual standard classes taken by their contemporaries, not just in the US but also in the UK and even Australia.
While they are prepared to take entry-level positions upon graduating – Filipino accountants are known to take it further by reviewing for one more year in preparation for the notoriously taxing CPA examinations locally known as the Certified Public Accountant Licensure Exam or the CPALE. This year, the passing rate was 31.37%.
This fresh, annual pool of talent ensures that you can find the right professionals to meet your specific needs in the country. Due to the increasing demand for qualified accounting roles in the world with a growing skills gap – Filipino accountants have become a reliable source of talent in the US and across the world.
English is one of the official languages of the Philippines, and Filipinos are highly proficient in the language. The primary medium of instruction in Filipino schools remains to be English. This has since been adapted to communicate to Westerners for business and tourism purposes. Today, this linguistic advantage eliminates communication barriers and ensures smooth collaboration with your offshore accounting team.
Cultural compatibility is often overlooked but critical for the success of offshore accounting partnerships. Filipinos are known for their strong service-oriented culture, making them a natural fit for businesses seeking quality-focused professionals.
Due to a combination of historical factors, including trade, colonization, and labor migration, Filipinos possess a profound familiarity with Western cultural references, all the while preserving their distinctive work culture. This unique blend of influences enables them to engage with clients and customers hailing from Western nations effortlessly. This cultural synergy transcends mere linguistic competence, encompassing a deep comprehension of Western business protocols, social etiquette, and consumer preferences.
The cost of living in the Philippines is generally lower than in many Western countries (owing to higher labor costs and other premiums related to wage culture; employee salaries, benefits, and overhead expenses like insurance, healthcare, dentistry, and memberships, contribute significantly to the operational costs of US companies), allowing businesses to access top-notch accounting talent at a fraction of the cost. This is, by no means, a nod to exploitation but mainly because the cost of living in the Philippines is notably lower compared to the United States, allowing many companies who wish to offshore in the country to offer competitive salaries but still have substantial savings. This cost-efficiency enhances your bottom line without compromising on quality.
Now that we understand why the Philippines is a prime choice for offshore accounting, let’s know more about how the process typically works:
Don’t just look for the cheapest possible provider to partner with. Select a reputable offshore accounting provider that aligns with your business needs. Look for a partner that can tailor a dedicated accounting team to match your requirements.
Companies like Offsite Office, for instance, help you do everything needed to build a team – we first meet and understand your business goals and the requirements for each position and then find the perfect candidates to join your team. We are hands-on – from helping you design a strategy to recruiting, setting up interviews, onboarding your team, providing infrastructure, and ongoing administration – we guide you every step of the way to help make your dream team a reality.
Once you’ve chosen your offshore accounting team, the onboarding process begins.
Offer training sessions and materials to help new team members acquire the necessary skills and knowledge to help them smoothly transition. This can include software tools, internal systems, and job-specific training. Assigning a mentor and buddy who can guide them and answer some ad-hoc questions can also be helpful at this stage.
You’ll find that providing them access to relevant documentation, manuals, and resources helps new team members while they are starting. It is essential that they feel they have all the information they need to perform their job effectively.
Clear Communication, Feedback, and Evaluation assess the progress of new team members in their onboarding experience. Use this information to make necessary improvements.
Remember that effective onboarding and collaboration require ongoing effort and commitment. By investing in these processes, you can build a strong and cohesive team that works efficiently and achieves its goals.
Maintain open and regular communication with your offshore team. Regular check-ins, status updates, and project discussions foster a sense of unity and collaboration even beyond geographical locations.
Regular communication is essential when working with an offshore accounting team to affirm that both your onshore and offshore teams have a clear understanding of your accounting processes, expectations, and specific requirements. It minimizes the risk of misunderstandings and errors. It also allows you to receive real-time updates on the progress of tasks and projects. This transparency helps you stay informed about the status of your financial operations. Problems or questions that arise during the accounting process can be addressed promptly through regular communication. This prevents issues from escalating or causing delays in financial reporting or decision-making.
Monitoring performance in offshoring is essential to maintain quality, efficiency, and accountability. It ensures that tasks are completed accurately and on time, upholding the integrity of operations and client satisfaction. Performance tracking helps identify bottlenecks, enabling process improvements for enhanced productivity. It ensures compliance with regulations, mitigates risks, and aligns offshore teams with business objectives. Regular assessment can address issues promptly, safeguarding against costly errors. Effective performance monitoring fosters trust, client confidence, and adaptability to evolving needs. It’s a critical practice for businesses to reap the full benefits of offshoring while upholding standards and delivering value to clients.
When you tap into the Philippines’ skilled accountants for offshoring, you’re not just getting a service; you’re embracing a future-ready partnership. These accountants guide your business through the ever-changing terrain of global commerce. They’re adaptable, tech-savvy, and culturally attuned, making them the perfect co-pilots for your financial journey. Think of them as your secret weapon in a world where adaptability and collaboration rule the day. By joining forces with these professionals, you’re not just ensuring smooth sailing today. Still, you’re also charting a course for a future filled with new horizons, unexplored opportunities, and willing and able explorers.
Here at OffsiteOffice, we build remote, offshore accounting teams that work as an integral part of our clients’ operations. We offer the best global talent at cost-effective rates so you can enhance your financial operations and achieve your goals faster. We help you do everything needed to build a team, from helping you design a strategy to recruiting, setting up interviews, onboarding your team, providing infrastructure and ongoing administration.
OffsiteOffice will meet with you to understand your business goals and the requirements for each position and then find the perfect candidates to join your team. We build dedicated teams exclusive to your account that we provide with the infrastructure and tools to work effectively with you. Lastly, we handle the administrative aspects of your team – payroll, HR, etc., so you never have to. All for 1 simple monthly fee.
Contact OffsiteOffice today to learn more about building an effective Global Accounting Team.
In a recent digital CPA Conference webinar, Dave Schnitt, President and CEO of IQ BackOffice and Offsite Office, shared valuable insights, drawing from his company’s extensive experience in providing outsourced accounting services and offshore staffing solutions.
While AI won’t replace human accountants entirely, it has the potential to revolutionize the way accounting firms operate, particularly those that leverage offshoring.
A talent shortage is driving more companies to explore offshore accounting and staff augmentation solutions, particularly in their accounting operations.
This article is a quick digest of key takeaways from David Schnitt’s insightful podcast interview regarding Offsite Office.
With traditional talent pools drying up and domestic recruitment becoming increasingly challenging, organizations are thinking strategically about their accounting operations.
Businesses are increasingly recognizing the value of delegating accounting tasks to qualified service providers in other countries. This approach offers a multitude of benefits beyond just cost savings.
Let’s schedule a call to discuss your needs. Choose a convenient time and one of our consultants will get back to you ASAP.
Offsite Office will provide a Consultant to perform a detailed review and benchmarking of your current process. We will:
