Why Outsourced Accounting to the Philippines is a Viable Choice
Updated: Oct 27, 2022
If you're looking for a cost-effective way to outsource your business operations, the Philippines is a great option. The country has a well-educated workforce, and the cost of living is relatively low compared to other developed countries. In this blog post, we will discuss some of the benefits of outsourcing in the Philippines, as well as how to find reliable workers in the country.
Highly Skilled Professionals
One of the benefits of outsourcing accounting work to the Philippines is that you can tap into a large pool of highly-skilled workers. The country has a large population of college-educated individuals, and many of them are fluent in English. The CPA exam in the Philippines is much more rigorous than the US CPA exam, with a pass rate of about 20%, you can rest assured that you have a qualified accountant working in your business. This makes it easy to find workers who can handle your company's specific needs.
Low Cost, But Quality is NOT Compromised
Another benefit of outsourcing to the Philippines is the cost savings. Wages in the Philippines are significantly lower than in developed countries, which means you can save a lot of money by hiring workers from there. The reduction in cost does not impair the quality of the work, as Philippines workers are highly skilled and motivated to do their best. When you outsource to the Philippines, you can expect to get high-quality work at a fraction of the cost of hiring in developed countries. The vast majority of Filipinos are hardworking, polite, and professional when doing their job.
Improved Internet Infrastructure
One of the best things to come out of the pandemic was the normalization of working from home. With the advent of work from home, the infrastructure in the Philippines has improved drastically in the area of internet speeds. The average download speed of a fixed internet connection in the Philippines was 46.44 Mbps in November 2021. This is a significant increase from the average of just 17.02 Mbps in March 2020. This makes the Philippines an attractive option for businesses looking to outsource work that can be done remotely.
Few things to keep in mind:
The time difference: The Philippines is 15 hours ahead of Los Angles and 12 hours ahead of New York. This can be a challenge when coordinating work schedules.
The cost: The Philippines is a relatively inexpensive country to outsource to. Wages are lower than in developed countries, but this should be weighed against the cost of living which is also relatively low.
The language: English is a secondary language and is not always spoken fluently. This can be a barrier to effective communication.
The culture: There are some cultural differences to be aware of when working with Filipinos. For example, they tend to be very indirect in their communication style and may not give criticism or feedback directly.
How to find the right outsourcing partner in the Philippines:
Look for a company that has experience working with Western businesses.
Ask for references and check them.
Make sure you have a clear understanding of the company's processes and how they will work with you.
Be prepared to invest time in training your Filipino team and building relationships
Overall, outsourcing to the Philippines can be a saving grace to your business. With its large English-speaking population, relatively lower costs, and decent infrastructure, it’s no wonder that the Philippines is one of the most popular outsourcing destinations.
Just be sure to manage your expectations, build in some buffer time for communication issues, and be aware of cultural differences. If you can do that, you are ready to set up shop in the Philippines.
Good luck! Let me know how it goes. :)