5 Questions Before Doing Accounting Outsourcing in the PhilippinesHow do you choose wisely? Here are 5 questions—and a bonus one— to help you find the right accounting outsourcing company in the Philippines.
Why The Philippines?
The reason is simple: (1) Strong cultural affinity to the west; (2) lower operational costs; (3) and dependable work ethic. The Philippines currently has at least 15% of the global market share. The United States accounts for 60% of the Philippines’ outsourcing business, immediately followed by Australia and the United Kingdom. Needless to say, the Philippines is battle-tested around the globe — even industry leaders outsource their work from the Philippines.
Outsourcing companies from other countries might be cheaper. But if collaboration and communication are important to you, the Philippines stands out among the rest.
And accounting outsourcing is exactly that — it requires close communication and collaboration. There’s absolutely no room for miscommunication or confusion. And wouldn’t you rather build strong connections with people you work with?
Now, on the question of which accounting outsourcing company in the Philippines: How will you know if you’re choosing wisely?
Are You Getting The Biggest Bang For The Buck? (Accounting Outsourcing Tip #1)
You are outsourcing because you want efficiency. So, you need to partner with the company that offers the most cost-effective solution.
This does not mean cheap. This means you get the best value out of every penny.
Here’s an exercise: Would you rather choose a large BPO company with a lot of services or a smaller BPO company with a focus on the services that you need?
Even if you’re paying the same for both, the obvious choice is the specialists. But it’s even obvious when the smaller BPO company gives you a smaller bill. And it makes sense — a compact business model lends itself to having little to no frills.
Our advice? Get as many quotes as you can. Experiment from the biggest companies to the more specialized companies.
Can They Get The Job Done? (Accounting Outsourcing Tip #2)
It’s a basic question, but it isn’t as simple as you think. It’s less “if”, and more “how”.
Large outsourcing companies take whatever projects they can get. That’s why they offer everything. More often, they serve as an extended HR department than a specialized contractor. To satisfy your project’s requirements, they will usually launch hiring tactics to get the cheapest talent from the market. This is the usual modus operandi, especially for low-skilled jobs.
In short, there’s no guarantee that your project will be done right — unless you obsessively supervise.
So, what’s the point to outsourcing then? Exactly. You’re here for results, not extra hassle.
That’s why it’s better to choose outsourcing companies that have a specific focus. If they only do finance and accounting — chances are — they already have a pool of experts and specialists that has the training and on-the-job experience.
Are They The Perfect Fit For Your Needs? (Accounting Outsourcing Tip #3)
You have to find an outsourcing company that understands and adjusts to your needs. From the five W’s to the How, you need to make sure you’re on the same page about everything.
Plus, you are still working with people. Corporate culture is still important, and you don’t want something as silly as language barrier to impair your productivity.
You know your vision. You don’t have to compromise to an outsourcing company who don’t want to play by your rules. There are outsourcing companies out there that pride themselves for being a compliant team players. And they’re not hard to find.
Can You Trust Them? (Accounting Outsourcing Tip #4)
They’re cost-effective. They can get the job done. They fit your needs.
But can you trust them?
We’re not talking about being malicious or two-faced. We’re talking about reliability.
Often, outsourcing companies promise big results just to get you as a client. When it’s time to deliver, they give an underwhelming performance. Why? Because they assume you’re busy looking elsewhere. You don’t have time to keep track of their promises.
A good outsourcing company will propose an engagement system, so you can easily understand what they’re doing. They will provide a project manager that will closely communicate their progress with you.
If they volunteer an accountability system—more often than not—you can trust them.
Can They Maintain Your Privacy? (Accounting Outsourcing Tip #5)
Your finance and accounting information are sensitive data. Is this outsourcing company equipped to protect itself from attackers, phishers, and competition?
This should be an issue that you bring up to your outsourcing company. Are they willing to sign an NDA? Are they willing to be accountable should a leak happen? Are they confident that they can trust their people not to sell your information online?
You should also consider the attrition rate. If there are rapid turnovers, your data is exposed to many people. That’s a lot of ex-employees that they’re willing to trust.
Settle for a core team, and get to know the people who work on your data.
BONUS TIP: Will You Be A Priority?
Here’s something from an insider.
Late deliveries? Confusion? Excuses? You would think that they are just incompetent, but there’s another factor. You are not their priority. Simply put, your project is not what’s keeping the lights on. If they’re a big company, they have a lot of projects that they’re working on at the same time.
Who has time for a small business from California whose only project is bookkeeping?
That’s why you want an accounting outsourcing company in the Philippines that is devoted to your business.
Our advice? Choose a smaller, specialized outsourcing company with a promising track record. Then, you will get the customer service, engagement, and dedication you deserve.
Outsourcing is the right decision. You just have to find the right partner.