Accounting Outsourcing in the Philippines
Source: SK’s Netymon View: 774 Date: 2011-07-08

The accelerated rise of information technology has given the global business community access to an extraordinary amount of information and the means to process it. Meanwhile similar developments in telecommunications technology have contributed to cost drops and fostered global development. Outsourcing companies have been able to take advantage of the untapped potential that was created by this evolution of communication and information technologies to begin offering enterprise-category financial management and accounting outsourcing services at highly competitive prices to clients around the world.

Accounting and bookkeeping can be a burden for companies because those functions do not fall within their core competencies and thus cannot be handled with optimum efficiency. Accounting outsourcing is a process by which a company contracts out the firm’s bookkeeping and accounting jobs to a third party. By outsourcing their accounting and bookkeeping processes, companies can lower costs, decrease infrastructural overhead, improve efficiency and better focus on core businesses.

Many service providers in the Philippines offer a wide range of outsourcing services in order to meet the companies’ accounting, tax, financial management and consulting needs. Some of the services frequently offered are: general ledger maintenance, financial statement preparation, controller and bookkeeper staffing, payroll and accounts payable processing, accounting software support, account reconciliations, and others.

The most commonly outsourced process is the maintenance of financial records and books of accounts. By utilizing accounting outsourcing, businesses can have their recordkeeping handled by professionals and can concentrate more on products and customers.

The Philippines is one of the top destinations for this type of outsourcing because the country’s accounting procedures are similar to the U.S. and Australia. In addition, there are a very large number of competent accountants. Professional accountants and bookkeepers who speak English fluently and are fully familiar with international accounting standards can be had for very reasonable compensation. Many outsourcing providers are also capable of setting up secure data exchange, which is also necessary for this type of outsourcing. Companies with experience in this area will normally have robust security procedures in place to safeguard sensitive data.


Accounting outsourcing allows companies to increase profits and grow their businesses without having to increase staff and support infrastructure. And since there is a vast pool of competent finance and accounting (F&A) professionals in the Philippines, the finance and accounting services industry in the Philippines is growing swiftly. Multinational companies have begun setting up large accounting divisions and multinational BPO providers are also increasing their capabilities.

There are indeed a lot of benefits a company can gain by outsourcing its accounting work. But care must be exercised in choosing the right company. A lot of companies are offering attractive services; but extensive due diligence is necessary before outsourcing such an important core process.

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