The ongoing accounting talent shortage has been affecting companies across several continents and industries. The same is true for bookkeeping personnel. With no definitive end in sight for this challenge, businesses must look to a more innovative solution – outsourcing.
This article serves as a comprehensive guide for companies that are ready to hire their first bookkeeper in the Philippines.
Outsourced bookkeeping services are crucial for any business that faces challenges in managing its financial records due to a lack of expertise, time, or resources. This includes small and medium-sized enterprises, and larger organizations looking to optimize their operations.
Startups especially benefit from outsourced bookkeeping, as well as non-profits and seasonal businesses. Hiring full-time accountants can be a tedious and costly process that can affect the growth of the prioritized areas of a company. This is why having someone handle all these functions is a must, particularly for growing businesses.
One of the benefits of outsourcing bookkeeping is it can significantly mitigate the risk of internal fraud. The neutrality and fresh oversight often help in identifying discrepancies that might be overlooked internally. Professional outsourced bookkeepers are typically trained in fraud detection and prevention techniques, helping minimize the risk of financial misconduct within your organization.
Outsourcing maintains the accuracy and reliability of a company’s financial records, which is vital in every business operation. Through outsourcing, companies can work with professionals who have the necessary skills and tools for recording accurate financial transactions, without the need for additional investment in materials, systems, and infrastructure.
Having outsourced bookkeepers on staff significantly reduces burdens related to cost, people management, training, and supervision. This frees up valuable time and resources that can be redirected towards strategic initiatives, improving productivity, and enhancing overall business performance.
The need for outsourcing often becomes apparent when bookkeeping tasks start consuming a significant amount of time or when frequent errors occur due to the complexity of financial operations. Some businesses opt to outsource bookkeeping at the start of their operations to make sure this critical function is taken care of at the onset.
Evaluate the efficiency, accuracy, and reliability of existing financial processes before outsourcing. Identify any areas for improvement to ensure that the chosen outsourcing solution addresses these specific challenges within the current system when they take over the functions.
Set specific and measurable goals that will help guide the outsourcing process and enable the evaluation of outsourcing provider performance against predefined criteria. Setting specific and measurable goals will help guide the process and make it more efficient and effective.
Develop a budget plan for outsourcing bookkeeping services. Consider factors such as service fees, implementation costs, and any additional expenses associated with outsourcing. Consult with your outsourcing provider on the best course of action based on your defined budget.
Identify potential outsourcing providers that offer bookkeeping services tailored to the company’s needs. Evaluate each potential provider based on their reputation, experience, expertise, and track record of delivering high-quality bookkeeping services. Staff Domain, for example, has helped several companies in the past by providing the most qualified specialists.
Assess the suitability and reliability of potential outsourcing partners. Review client testimonials, conduct reference checks, and verify credentials and certifications. Ensure that they have the necessary infrastructure and capacity to meet your needs. Many reputable providers have a library of case studies where you can learn about the experiences of their customers.
Regularly review and assess metrics such as accuracy, timeliness, cost savings, and customer satisfaction. Conduct periodic meetings or check-ins to address any issues or concerns promptly.
The Philippine government has implemented policies and incentives to promote the outsourcing industry, including tax incentives, infrastructure development, and support for skills training programs. This supportive regulatory environment encourages both local and foreign businesses to invest in outsourcing operations.
The Republic Act 10844, for example, grants “universal access to quality, reliable, and secure ICT services.” This has helped outsourcing operations to grow and enhance the quality of their services.
The Philippines has made significant investments in infrastructure, technology, and business process outsourcing (BPO) facilities. Major cities like Manila and Cebu have established themselves as leading BPO hubs, providing a conducive environment for offshore bookkeeping and a whole host of specialist operations in the Philippines.
Outsourcing in the Philippines offers scalability and flexibility, allowing businesses to quickly ramp up or downsize their operations according to changing needs and market conditions. This agility is particularly beneficial for startups and small businesses looking to expand their operations without significant upfront investments.
By following these guidelines, businesses can effectively outsource their bookkeeping functions, leading to significant benefits in efficiency, cost reduction, and overall financial management.
The Philippines is home to talented professionals who are known for their high level of expertise and professionalism, while still offering a cost-effective proposition.
When choosing an outsourcing firm, evaluate their expertise, technology capabilities, and adherence to international accounting standards. Consider factors such as reputation, client testimonials, and industry certifications.
At Staff Domain, we only hire board-certified bookkeepers and accountants with at least three years of industry experience. Speak to our outsourcing experts to find out how we can help you.
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