Looking for a smarter, more cost-effective way to manage your company’s tedious accounting needs? Try leveraging outsourced accounting services in the Philippines.
Businesses worldwide are catching on to this trend. Global spending on accountancy outsourcing has jumped by 40% in just five years, indicating just how much companies are turning to external providers to streamline their financial operations without breaking the bank.
Still, this practice isn’t without its risks. So, when outsourcing to the Philippines or anywhere else, being smart about every decision you make will help you choose a provider that not only makes your job easier but also lifts your company to greater heights.
8 Considerations When Looking for Outsourced Accounting Services in the Philippines
Not all outsourcing providers are created equal. To maximize your investment, here are eight key factors to keep in mind when evaluating outsourced accounting services in the Philippines.
1. Talent Competence
Finance is a notoriously high-risk field. As such, your outsourced team must consist of qualified professionals who know what they’re doing—that’s why talent competence should be the first thing you evaluate.
Start by looking into the company’s ability to attract and retain top talent. A firm with robust hiring practices, training programs, and career progression plans is more likely to have motivated and capable accountants. Don’t hesitate to inquire about these during discovery calls.
You could also collect employee insights from platforms like Glassdoor or JobStreet. It will give you an idea of your prospective provider’s staffing problems, such as burnout and poor management, to determine whether their accountants are satisfied and, by extension, productive.
2. Data Security Competence
Leveraging outsourced accounting in the Philippines means handing over sensitive financial data, like payroll details, tax information, and banking records, to a third party. This information could damage your business in the wrong hands. So, solid security practices are non-negotiable.
Start by asking potential providers what systems they have in place to protect your data. Some must-haves include:
- Ensure your service provider has professional Indemnity Insurance
- Employee training in handling confidential information
- Information access compartmentalization
- Data backups and redundancies
Most cybersecurity regulators provide compliance badges, so check the firm’s website to see if they feature them.
It’s also worth asking about how they handled previous data concerns. What was their response? How did they strengthen their safeguards afterward? In finance and accounting, even a tiny security lapse could lead to compliance issues, financial loss, or a damaged reputation, so don’t leave it to chance.
3. Regulatory Compliance
Regulatory compliance is critical when utilizing the Philippines’ accounting outsourcing services—for your protection and to facilitate smooth cross-border operations.
Let’s start with the Philippines. Providers must comply with local regulations set by the Bureau of Internal Revenue (BIR) and the Data Privacy Act of 2012. These laws govern tax practices and data protection standards, impacting how your Filipino outsourcing partner handles your work.
On the international end, look for providers who understand and follow the International Financial Reporting Standards (IFRS), especially if your business must produce statements in that format.
It’s also crucial that your outsource team complies with privacy laws covering their operations, such as Australia’s Privacy Act 1988. Ultimately, a provider with sound compliance practices reduces your risk of legal troubles throughout your partnership.
4. Access to the latest tools
As a rule of thumb, outsourced providers should be equipped with modern accounting tools to deliver accurate and timely results.
If a firm still relies on manual processes or outdated software, it might not be able to meet the pace and standards your business requires. Renowned advisory firm Gartner agrees—18% of accountants commit financial errors daily. But, thanks to digitization, this figure has dropped drastically.
Hence, look for companies that use tried-and-tested platforms like Xero, QuickBooks, and Sage. These tools are widely used globally and support real-time collaboration and cloud-based access but don’t break the bank.
Also, ask if they automate tasks like bank reconciliation, invoicing, and financial reporting. These processes may seem repetitive, but they’re critical to your overall accounting operations and, as such, should have little to no errors and delays.
5. Offered Accounting Services
Some outsourced accounting firms offer specific services that others don’t. So, check whether your prospective partner meets your unique business needs. They should be able to support both day-to-day tasks and more complex, ad-hoc functions, so you won’t have to juggle multiple vendors as your business grows or needs change.
More specifically, the core services any reliable provider should offer include:
- Payroll Management: Accurate and timely payroll processing, including employee payslips, superannuation, and tax deductions.
- Accounts Payable and Receivable: Processing invoices and payments to ensure your business maintains a healthy cash flow and avoids late fees or missed income.
- Bookkeeping: Daily or weekly tracking of all your financial transactions and bank reconciliations to keep your accounts clean and audit-ready.
- Financial Reporting: Preparing monthly, quarterly, or annual financial statements that provide clear insights into your company’s financial health.
- Tax Preparation: Handling tax computations, BAS preparation, and lodgment support in compliance with ATO standards to prevent penalties.
- Compliance: Ensuring all processes adhere to both Philippine and Australian regulatory standards, giving you peace of mind that you’re operating legally and ethically.
Check your provider's service offerings. A firm that covers these essentials—and can scale up when you need additional support—is likely to deliver lasting value to your team.
6. Pricing Structure
Cost is a primary reason companies outsource to the Philippines, but don’t choose a provider based on price alone. Instead, focus on getting value for your money. A transparent pricing model will reveal you precisely what you’re paying for and avoid hidden fees down the line.
Ask providers to break down their prices. Do they charge hourly, monthly, or per service? What happens if you need to scale up or down? The more details you get upfront, the easier you can compare providers and plan your budget.
Of course, ensure their pricing reflects their service scope and quality. A more expensive provider might offer more comprehensive support, utilize better technology, or provide dedicated account managers—all of which will save you time and money in the long run.
7. Customer service quality
Outsourcing your accounting operations goes beyond numbers. It’s also about your experience working with the provider. In other words, you need a team that delivers accurate work, communicates clearly, and takes accountability when issues arise.
Pay attention to how a provider engages with you from your initial interactions. Do they answer questions clearly and to your satisfaction? Are they transparent about processes and timelines? These concerns may seem trivial, but they say a lot about how they’ll treat your company once you sign on.
Examining their previous partnerships is a simple way to know each provider. Look for client reviews, testimonials, or case studies that speak to their responsiveness and professionalism.
Remember, a client-centric provider will make your outsourcing experience smooth, collaborative, and stress-free.
8. Location
While outsourcing to the Philippines operates remotely, your accounting provider’s physical location within the country still matters.
For one, choose a firm based in a business hub like Subic, Makati, or Cebu. These areas typically have more stable internet connections, fewer power interruptions, and easier access to skilled professionals than most areas.
Time zone compatibility is another important factor. The Philippines is only two to three hours behind Australia’s time zones, making real-time communication and collaboration much more manageable than providers in regions with wider time differences.
Don’t hesitate to ask your prospective provider where they’re based and what infrastructures they have to support uninterrupted operations. A good location will directly improve your service quality, reliability, and speed.
Why Outsource to the philippines
The Philippines has solidified its position as a global outsourcing hub, with the industry projected to reach a market value of $791.29 million in 2025. It reflects how companies worldwide increasingly rely on outsourced accountants in the Philippines to support their operations.
In fact, the country ranks #12 on the Global Services Location Index (GSLI). This ranking measures a nation's outsourcing appeal based on financial competitiveness and skills availability, among other metrics.
The country is also rapidly investing in workforce development to accommodate outsourcing demands.
- More Filipinos are getting trained in accounting skills, such as bookkeeping, by private and government organizations.
- Most Filipino accountants are fluent in English. Moreover, a recent survey revealed that 69% of locals can write in English, while 55% speak it.
- Filipino accounting practices are based on global standards, including the International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS).
Such a growing talent pool and infrastructure make the Philippines a top choice for companies looking to outsource some of their operations.
Access Top-Notch Outsourced Accounting Services in the Philippines from JAV Resource Corporation
We admit, finding the right outsourced accounting services in the Philippines can be challenging. There’s an endless number of providers online, so where do you begin? Fortunately, you can skip the guesswork. We’re here to help you out.
JAV Resource Corporation has helped countless companies streamline their operations and finances. You can trust our certified accountants to guide your organization as it grows. We’ll take charge of your accounting operations on the back end so you can focus on what matters most and you do best: building a company that can change the world.
Transform Your Accounting Services
Whether you're scaling your business or seeking a reliable outsourcing partner, JAV Resource Corp. delivers tailored outsourced accounting services to meet your goals. Schedule a consultation today and experience the Filipino advantage!
Book your appointmentOr, join our team here!References:
- https://www.statista.com/outlook/tmo/it-services/business-process-outsourcing/philippines
- https://www.kearney.com/service/digital-analytics/gsli/2023-full-report
- https://www.pna.gov.ph/articles/1207936
- https://connextglobal.com/the-philippines-a-practical-choice-for-outsourcing-accounting-services/
- https://www.iasplus.com/en/jurisdictions/asia/philippines
- https://www.ifrs.org/use-around-the-world/use-of-ifrs-standards-by-jurisdiction/view-jurisdiction/philippines/
- https://www.dvphilippines.com/blog/finance-accounting-outsourcing-companies-ph
- https://www.iso.org/standard/27001
- https://csrc.nist.gov/pubs/sp/800/53/r5/upd1/final
- https://privacy.gov.ph/data-privacy-act/
- https://www.gartner.com/en/newsroom/press-releases/2024-02-21-gartner-survey-shows-that-a-third-of-accountants-make-several-error-per-weeo-due-to-capacity-constraints
