The Philippines has become a hub for accounting talent, attracting multinational companies and accounting firms from around the world. One of the reasons for this is the highly skilled and cost-effective workforce available in the country. In this blog post, we will discuss why the Philippines is a top destination for accounting talent, the differences between the Philippine CPA and US CPA exams, and the large well-known companies that outsource accounting to the Philippines.
Highly Skilled and Cost-Effective Workforce
The Philippines has a well-educated and skilled workforce in the accounting field, with many universities and colleges offering accounting courses and producing thousands of accounting graduates every year. This has led to a strong pool of talent that is both knowledgeable and competent in their field. Additionally, the cost of labor in the Philippines is relatively low compared to other developed countries, making it an attractive option for companies looking to outsource their accounting services.
Rigorous Examination
The Philippine CPA exam is known for its rigor and high level of difficulty, with a passing rate of only around 19% in 2020. The exam consists of six subjects that cover auditing theory and practice, management advisory services, regulatory framework for business transactions, taxation, financial accounting and reporting, and advanced financial accounting and reporting. The exam is designed to test the comprehensive knowledge, critical thinking, and problem-solving skills of aspiring CPAs, and candidates typically enroll in review courses and study for several months to prepare. In contrast, the US CPA exam is divided into four sections and the pass rate for the US CPA exam is higher compared to the Philippine CPA exam, with an overall pass rate of around 55% in 2020.
Large Well-Known Companies That Outsource Accounting to the Philippines
Many large and well-known companies outsource their accounting and other business processes to the Philippines, taking advantage of the highly skilled and cost-effective workforce in the country. Some of these companies include IBM, JPMorgan Chase, Chevron, Procter & Gamble, Coca-Cola, Citigroup, Wells Fargo, Accenture, Amazon, and Deloitte. These companies and many others have established a presence in the Philippines and rely on the country's skilled workforce to handle various business processes, including accounting, finance, customer service, and IT support.
Conclusion
The Philippines has become a top destination for accounting talent, attracting multinational companies and accounting firms from around the world. The highly skilled and cost-effective workforce in the country, coupled with a business-friendly environment and a growing economy, have made it an attractive option for companies looking to outsource their accounting services. The Philippine CPA exam is known for its rigor and high level of difficulty, which underscores the competency and knowledge of Philippine accountants. With the continued growth of the outsourcing industry in the Philippines, the future looks bright for accounting professionals in the country.