Posted by Jose Calsas Jr.
Nov 15, 2024
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“I want to work in a Big 4 audit firm.”
Twenty years ago, this was the usual remark you would have heard from accountancy students and new CPAs.
Likewise, it was the same for our parents and grandparents who must have aimed at becoming a manager of a big bank. The impression of working in an audit firm means you are competent and skilled while that of working in a bank meant you were earning so much money.
This was the same for me when I studied in college. Like many of my peers, I also envisioned joining a Big 4 audit firm after passing the CPA board exams. But my journey took a different turn.
A Different Path
During our CPA oath taking, our speaker then, a former Chairman of the Energy Regulatory Commission (ERC), shared advice that resonated with me.
He spoke of the holistic experience gained by working in smaller firms or directly with business owners. It was an experience that fostered independence and broader skill development.
With this perspective in mind, when I had my interview with one of the Big 4 audit firms, I was more excited to go to my next interview for an outsource Junior Stock Analyst vacancy position with a Hong Kong-based firm.
I got accepted with the latter and did not pursue working for audit firms anymore. My first outsourcing job was followed by two others foreign firms where I worked directly with business owners. Then came the opportunity to work with D&V Philippines. There were only five of us, all CPAs who rendered accounting service for a start-up Dutch-owned company which as of today, has become one of our country’s leading outsourced finance and accounting company with more than one thousand employees.
As such, this article will explore the growth and trends of outsourcing finance and accounting roles from my first venture almost twenty years ago until today.
Understanding BPO Model and Favorable Business Environment
The legal and business infrastructure for the Business Process Outsourcing (BPO) industry was already being established when I started to work in the mid-2000s.
With the enactment of Republic Act 8748 or an Act Amending Republic Act 7916, otherwise known as the “Special Economic Zone Act of 1995”, followed the creation of the Philippine Economic Zone Authority (PEZA).
Both the Board of Investments (BOI) and PEZA lowered the requirements for developments and provided attractive tax incentives for businesses, which consequently attracted foreign investments. Thus, started the expansion of the Information Technology – Business Process Outsourcing (IT-BPO) which proved to be one of the most dynamic and fastest growing business sectors in the Philippines.
The industry presently includes knowledge process outsourcing (KPO), back office services, animation, call centers, software development, game development, engineering design, and medical transcription.
Overall, these businesses form part of the digital economy, composed of digital transactions covering Digital-enabling infrastructure, E-commerce, Digital media/content, and Government digital services which are directly related to supporting the digital economy.
Digital-enabling infrastructure made up the bulk which can be further divided into Telecommunication services, Professional and business services, and Computer, electronic and optical products.
Read: An Online Career in the Age of Business and Tax Digitalization in the Philippines
The Rise of Outsourced Finance & Accounting and Audit Support Services
With robust infrastructure and cost-effective operations, the Philippines has become a hub for outsourced finance and accounting services. This shift opened doors for Filipino CPAs and finance professionals to work with multinational corporations, small and medium-sized enterprises, and start-up companies worldwide — either in the office or at home.
The finance and accounting business model would cover bookkeeping, audit assistance and preparation, business analysis and management reporting, compliance and tax preparation, and all other finance and accounting related tasks.
Per client, outsourced services may vary, as some companies may need only a team of resources that are dedicated to a client’s business and its financial operations. Others may need a bookkeeper who only does daily transaction processing; an accountant who provides support for month-end close; even experienced finance personnel who acts as supervisor or manager to the accounting team, and ensures all processes are accurate and the deliverables are submitted on time.
When it comes to audit firm clients, outsourced services would be limited to support services. The outsourced staff or team creates client’s working papers and perform tests of details.
In D&V Philippines, our audit support services involve support for the whole audit process, including the audit planning, execution, and conclusion phases.
Why is the Shift Happening?
Here are some reasons why more companies and accountants are moving to the BPO industry:
Foreign Access to Filipino Talent
The prevailing business climate of doing business globally allowed foreign companies to look for talents all over the world. It is also very fortunate that Filipino CPAs and business graduates are proficient in English and the international standards of finance and accounting. We can add further our good work ethics, resilience and patience in dealing with every work pressure.
Advent of Automation and Artificial Intelligence
The advent of new technologies also paved the way for remote jobs. An accountant from Manila can do the bookkeeping and reporting for a company based in London or New York. Online accounting systems like Xero, QuickBooks and their related add- on systems allow access to accounting records and bookkeeping of real-time transactions. Office or work from home set up would only need a reliable internet connection and a secure IT environment to ensure client data is protected.
With the next big thing in human technology, the automation brought by artificial intelligence (AI) is further streamlining the bookkeeping processes of businesses and firms. Here in D&V Philippines, we treat it as an opportunity to further improve our services and business solutions. Although some parts of bookkeeping can already be automated, the decision-making process of an accountant is still important for a business to survive.
Read Next: AI in Accounting and Finance: Advantages and Negative Impacts
Lastly, while local accountants and bookkeepers deal with paper-based records and filings with the Bureau of Internal Revenues (BIR) or other local government agencies, an outsourced accountant to a foreign-based client would basically follow the concept of eliminating, standardizing, simplifying, and automating processes which are efficient and advantageous.
Better Compensation & Benefits Packages
It is common knowledge already that working in the BPO industry gives better salary packages, especially in the finance and accounting sector. You get to earn twice or more if you are an experienced accountant with specialized skills for the Australian or American tax and compliance, financial analysis and modelling. This is the same also for senior auditors assigned to audit-based clients in the US or UK providing support services to client-based audit managers and partners.
Flexible Working Arrangements
Outsource finance and accounting services often operate on a flexible model where the service provider allows a client to choose from a menu of services that would best serve their needs. For example, in D&V Philippines, our business solutions provide for end-to-end service but can also start with simple bookkeeping of accounts payable and bank reconciliations services while the client still maintains their own personnel doing billing and collections.
An outsourced finance and accounting professional may follow client working hours or just do a simple overlap of two to three working hours a day wherein they could speak with the clients to discuss important issues or reports of the day.
Most importantly, remote work allows for certain BPO companies to offer their staff full work from home set up or hybrid work model in which the staff could work in the office on a few days and at home on other days. Ultimately, the focus is on delivering a positive client experience and meeting their specific requirements, ensuring timely deliverables, and quality standards are maintained. This in turn provides better work-life balance with flexible hours, which can be very appealing to young professionals.
Path to Global Professional and Foreign Work Opportunities
A great opportunity usually opens for a staff assigned to a foreign client when they are invited to train or attend workshops or meetings abroad. It could last for weeks or for months. Those working with their clients for a long time also have the chance to get absorbed as in-house accountants and permanently migrate abroad. Companies like D&V Philippines serve as ladder for that foreign career path due to exposures with international finance and accounting standards and work ethics.
Overall, the decision to outsource finance and accounting services enables businesses to find excellent talent, especially in the Philippines. A Filipino CPA or accounting professional only need to take the opportunity brought by foreign clients deciding to outsource their accounting needs in the Philippines.
Challenges in Outsourcing
Of course, not all roads are paved, and like any career path, working in the outsourced finance and accounting sector has its challenges and difficulties.
1. Local Talent Shortages: As more local bookkeepers and accountants aiming to work for an industry with higher pay, a dynamic environment, and foreign work opportunities, the local accounting sector is left with few talents, which creates more work for those left behind.
2. Skills Gaps: while a finance and accounting graduate, or a new CPA, can have the initial talent and enthusiasm to work in the industry, their traditional knowledge of accounting can become a skills gap which needs to be further enhanced by internal or client-based training. Training periods can be daunting for a mind that cannot adapt to foreign practices and expectations.
However, adapting to new foreign working conditions in the BPO set up can be easy for someone fully determined to succeed in their chosen path.
Advice for Aspiring Professionals
To students or young professionals who consider to start a career in the outsourcing sector, here are some tips:
- Familiarize yourself with online accounting tools like Xero and QuickBooks.
- Pursue certifications and training to strengthen your skills.
- Stay updated on industry trends and emerging technologies.
This way, you will have a basic idea of how an outsourced solution delivers its bookkeeping and accounting service. Internal and client-based training will just refine and better develop your experience and expertise. Learning should never stop, and adaptability remains the key to thrive in this constantly evolving field of service.
The Bottom Line
Let me share a quote from Lee Kuan Yew, the former First Prime Minister of Singapore. “If you deprive yourself of offshore development and your competitors do not, you’re putting yourselves out of business.” This applies to CPAs and finance professionals today.
Outsourcing is a phenomenon which is here to stay, and it brings more opportunities than ever for accountants to grow and thrive in global roles. Local employers need to adapt to this trend, or there’s a risk of being left behind and becoming obsolete.
Thus, the next time someone from your family and friends asks during reunions or gatherings, “Where do you want to work?” you can proudly say “I want to work in a finance and accounting (F&A) global professional firm.”
Work with a Well-Rounded Team
If you’re interested in learning and working with well-rounded team of accountants who can help you, consider working with D&V Philippines.
We help finance professionals like you take their careers to the next level. Whether you’re a fresh graduate or an experienced accountant, we can connect you with international clients and provide various training opportunities to grow your skills.
You may visit our recruitment page to discover the various positions currently available within our organization. You can also download our whitepaper Employees to Partners: How D&V Philippines Invests in its People to learn about our employee-centric approach and how we can assist you in achieving your career goals.
This article has been written in collaboration with Angelica Garcia, a content specialist at D&V Philippines.
