Things To Think About Before Outsourcing Accounting Services To The Philippines
The practice of outsourcing different processes and services in today's modern and forever changing business environment, is one of the most innovative ways to grow a business. Organisations outsource multiple services, or in some cases, whole departments, in order to save on in-house hiring costs and accounting and bookkeeping services, are among the most outsourced services by organisations.
Businesses have been able to cut the cost of hiring full-time in-house accountants by outsourcing accounting services, allowing them to scale their business more efficiently and incorporate versatility at work. Many business owners around the globe are already aware of the benefits of outsourcing but some are still hesitant to embrace this practice, especially those who have not previously tried outsourcing.
Outsourcing is never easy, especially when it comes to accounting outsourcing. Unlike other services, accounting outsourcing requires a certain level of skill and work environment. So what drive companies to outsource accounting services? Here are some key reasons as to why small business owners are finding new accounting solutions;
Working with outside investor capital
Earning more revenue
Increased workloads of management
Accelerated business growth
Increases in the complication of accounting needs
Need for more sophisticated financial reports and analysis
Looking for cheaper employment options
Business expansion is a great accomplishment for any business owner, but with it comes additional work and requirements. Now you have greater revenue, this means more to account for, more people to pay, more financial obligations to attend to, more investments to analyze, and more financial decisions to make. The fastest way to address these growing problems is to outsource accounting or to hire an accounting virtual assistant. Allowing you to get the work done in a short amount of time, without you spending a lot on training, employee benefits, and other costly expenses usually associated with hiring in-house staff.
But if you're looking to outsource bookkeeping in the Philippines or you want to find accounting services in the Philippines, there are a few things you need to know before signing up. Here are some of the aspects you should consider before finding an accounting outsourcing partner in the Philippines:
1. What Accounting Tasks Will you Outsource
The first thing you need to ask yourself is: What accounting tasks do I need help with? Do you want someone to process your payroll or create financial reports for you? Do you need someone to handle your taxes and other financial obligations? Do you need someone to deal with your invoices and receivables? Or maybe you need to outsource your accounting tasks altogether?
Accounting is a diverse and complicated concept involving multiple functions, so you need to be clear about which services you want to outsource. Make a list of those services, as well as your requirements, to make sure that you don’t miss anything. Then, check with your accounting outsourcing partner to see if they can deliver the services you require.
2. Skills That You Require
Many accounting tasks require specific knowledge, expertise, and skills. For example, you might need someone who is an expert with Xero or MYOB. If you need your accountant to handle your taxes, a thorough understanding of the tax laws and regulations in your country would be a vital necessity.
In addition to the list of tasks you want to outsource, also list the scope and task requirements. You have to be clear about this before you start, to make sure your accounting outsourcing partner in the Philippines has the ability to undertake the tasks at hand.
3. Check The Pricing
One of the main reasons why corporations outsource is to save on expensive overhead. Once you have a clear understanding of which services you want to outsource and what you require from your outsourcing partner, the next thing you need to consider is the cost. Outsourcing to the Philippines can save you a considerable amount of money, without compromising on the quality of work. However you should always remember the old adage "you get what you pay for".
Accounting work requires precision and a great deal of analysis and since an accountant is dealing mostly with numbers, you want these to be right. So if you want quality, you should be prepared to pay for it and remember that quality often directly correlates to the price. To avoid costly mistakes, choose an outsourcing provider that is capable of providing a high quality accounting service for a reasonable price. The aim is find the sweet spot between price and quality.
4. Data Security
When you outsource your accounting services, you’re sharing financial information with your outsourcing partner in the Philippines, which means they can access your database, your accounts, your banking records, and other confidential business information. If this information falls into the wrong hands or gets stolen, it could be detrimental for your business. For these reasons, you need to ensure that the accounting outsourcing agency you’re working with will protect your data as much as you do.
To ensure data security, restrict the other party’s access to your information on a as per needed basis only. Don't overshare. You should also consult with your outsourcing partner to determine what security measures they are taking to ensure the protection of your data. Things to ask are, if they use encryption technology or proxies? Who has access to your data and are they being password-protected? Don’t be afraid to ask these questions as it’s your data’s protection at stake.
5. Effective Communication
The last aspect you should take into consideration is the communication between you and your accounting outsourcing partner. Will you communicate via email or by phone? Who is your point of contact? How responsive are they to your questions or requests? The biggest advantage of accounting outsourcing services in the Philippines is that Filipinos are great in English. Filipinos speak English fluently and can understand and converse extremely well, so you don’t have to worry about not being able to get your message across. Still, being clear and concise with your instructions and requirements can assist a lot in avoiding miscommunication.
Accounting outsourcing does not only reduces business cost but it also optimises your business operations and gives you the freedom and flexibility to expand as much as you need. But before you jump on the outsourcing bandwagon, you need to do your homework and consider the aspects listed above when making your decision to avoid costly mistakes.
If your looking for a trustworthy accounting outsourcing partner, feel free to contact Integrated Globaltech, to find out more.