What is Offshore Accounting and How Does It Work?

Aside from Human Resources, another significant department that plays a pivotal role in an organization is the Accounting department.

Practically everything pertaining to money and financials that are coming in and out of the company is being handled by Accounting. 

As a business owner, you need some sound advice, especially on how to handle your finances.

And not just that, the financial information and data is critical.

You need to have reliable storage of financial information and a dependable accounting team to take care of all these.

What about payroll? Disbursements? Investments?

Now, this becomes more complicated than it seems to be.

That is why there are many businesses that would want to opt for offshore accounting services.

It is imperative to keep your business up and running. 

Making business decisions is critical and the accounting department plays an important role in this.

Yes, there are many cloud-based accounting services in the Philippines, no doubt about it, but there are companies who would rather hire offshore accounting professionals than give the responsibility to a novice accountant. 

There are many offshore services available today, and offshore accounting services is among the offshored roles that is most-sought after, next to Information Technology.

More and more companies are choosing to offshore their accounting roles as it is more practical, financially viable and cost-effective, and efficient. 

During the pandemic, offshore accounting became one of the most used as well as most popular services being scouted and employed by companies worldwide.

Many companies managed to outsource and continue their operations with less hassle with increased productivity.

Having Offshore Accounting is going beyond the norm and can definitely help your businesses grow better in the new normal.

What exactly is Offshore Accounting?

Offshore accounting refers to contracting out a portion or perhaps portions of a company’s finance and accounting processes to a third-party services provider.

This can be a firm or a business process outsourcing (BPO) company in another country with a lower labor cost.

Companies need to keep track of their financial records to manage their budget and make informed business decisions.

And Accounting does this for the company.

While most business owners rely on their own accounting departments to take care of these financial tasks,  there are others who prefer to hire an offshore team from other countries such as India and the Philippines.

Yes, the Philippines.  Accounting functions are among the most outsourced functions by small and medium enterprises (SMEs).

The Philippines is known to have cheaper labor rates.

And Filipinos speak English.

There are also top-notch accountants in the country who have the skills and the knowledge to outsource services. 

There are accountants in the Philippines from Business Process Outsourcing (BPO) providers that can handle all the financials.

Offshore accounting services, despite the proximity and geographical distance, can be most useful in delegating complex and non-core functions, such as the following:

• Tax compliance

• Accounts receivable and payable

• Bookkeeping

• Payroll management

• Inventory management

easyFS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE easyFS Accounting System now!

easyFS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE easyFS Accounting System now!

Now, why is offshore accounting in the Philippines such a hit these days?

Here are the reasons why:

1. COST 

Having an offshore accounting staff coming from the Philippines is a great decision as far as saving is concerned.

A company can save 60% to 80% compared to having an in-house staff or local provider. 

Having a lower cost and increase in savings is one of the major attractions of outsourcing offshore accounting services. 

It is important to note that the quality, reliability, and security of the service are not compromised in any way.

The Philippines is known to have hard-working and smart employees.

2. HIGHER NEEDS DURING PEAK SEASON

There are lean seasons in accounting and this is ideal for accounting staff doing routine accounting tasks.

However, there are workload spikes in other seasons and the demand might be hard to cope with as far as in-house accounting is concerned.

Giving them too much on their plate can leave them overworked and burnt out.

This is the reason many companies prefer to have offshore accounting in the Philippines in order to manage workload during peak season with high demands.

One good thing about hiring offshore services is that they get to hire a team for a short period, either within their peak season or on red dates.

Then, they can easily adjust their workforce flexibly when the demand diminishes.

3. GREAT TALENT with GLOBAL SKILLS

Finding a suitable accountant for your company is a challenge.

Having to look for and hire accountants with A1 capabilities is hard.

With offshore accounting Philippines, you can search and spot for good talents that are suitable for the job.

Local employment can limit your capabilities in finding the best talent for the job.

Due to the low unemployment rate, you might also have difficulty looking for suitable talent in your area.

4. WORKLOAD

As a business grows, it is natural to find your workload increasing as well, and this may get out of hand over time.

As a result, you and your accounting can get overloaded with work resulting in confusion, inefficiency, and lower productivity.

This can directly affect the performance of your business more than expected, especially with the kind and quality work that overworked people deliver.

Availing of offshore accounting services assists organizations and helps make their workload lighter.

With this, they are able to harness the quality of their work which can increase their profit in the long run.

Offshore accounting also helps and reinforces the rest of the existing employees to better improve themselves at their craft so that they can help strategize more for the business to grow. 

These are just a few of the many reasons why you should try to employ offshore accounting services for your accounting work.

The Philippines is a go-to country when it comes to offshore accounting ph.

If you’re looking for a cost-efficient way to track your finances, offshore accounting is the surefire way to go.

Human Incubator is offering offshore accounting and other business consultancy that can help your company.

For inquiry on offshore offerings of Human Incubator, visit : https://human-incubator.com/services/consulting/

easyFS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE easyFS Accounting System now!

easyFS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE easyFS Accounting System now!