With the increasing demands in the finance and accounting (F&A) industry, Chief Financial Officers (CFOs) in Singapore are facing a lot of challenges.
On top of their core responsibilities, Singaporean CFOs also need to deal with changing regulations, talent shortages, and the push for digital transformation. It’s a lot to manage all at once.
You may find yourself juggling compliance with complex financial regulations, managing risk in an uncertain economic climate, and struggling with workforce constraints—all while ensuring your company remains competitive.
Balancing these tasks alongside accounting duties and strategic decision-making can be daunting.
However, with commercialization and innovation on the rise, there have been creative solutions to cater F&A concerns, and one of which is finance and accounting outsourcing.
In this article, we'll cover:
2. Why Should Singaporean CFOs Outsource Accounting Functions?
3. Advantages of Outsourcing Accounting Services
4. Disadvantages of Outsourcing Accounting Services
5. Why Philippines is a Good Place to Outsource Accounting Services?
6. Cost of Outsourcing Accounting Services in the Philippines
7. How to Choose an Outsourcing Firm
Outsourcing stretches your business’ breadth deeper, as it allows you to leverage your accountants’ financial skills, produces more streamlined transactions and guarantees compliance measures through extending your team outside the office corners.
Finance and accounting outsourcing is now dubbed as a ‘growing business hack’ due to its convenience and its ability to improve your accounting process without consuming much of your current company resources.
As a CFO, this offers tremendous flexibility in handling your long list of business errands and gives you a lift from the mundane tasks.
Basic bookkeeping skyrockets the list of repetitive tasks accountants do almost every day.
Outsourcing accounting functions allows CFOs to streamline processes, improve cash flow, and get right-hand accounting support without a major upfront cost.
From financial reporting and tax compliance to cash flow analysis and controllership services, outsourcing provides the flexibility and expertise needed to drive business growth while maintaining financial control.
For a more comprehensive approach to finance and accounting support, you may read this article.
Aside from what was mentioned above, outsourcing also has other advantages that can help you improve your organization.
Here are some of the most common ones:
One thing that sets outsourcing apart from other options is its ability to provide you with a highly skilled workforce at a fraction of the cost.
For example, outsourcing your accounting services to a company based in the Philippines can be a smart move. This country has lower labor costs compared to other developed nations, which means they can offer services at a much lower price point.
This allows you to save on overhead costs for your organization's accounting needs without spending a fortune.
Another advantage of outsourcing is the ability to access a highly skilled workforce. This can be especially useful if you need help with a specific task or project that requires specialized knowledge.
For example, if you’re looking for someone who can handle your company’s tax preparation, then it might be worth considering outsourcing this task to an expert in this field.
One of the biggest benefits of outsourcing is the ability to scale your accounting needs easily. If your company is just starting out, hiring an entire accounting department may not be practical.
However, as your organization grows and becomes more complex, you may find that you need additional support with things like payroll processing or bookkeeping.
By outsourcing these functions to the right third-party provider, you can easily adjust the level of support based on your organization’s needs.
As one of the top executives of the company, you probably have a lot on your plate. From managing employees to making important business decisions, it can be easy to get overwhelmed and especially difficult if you have a family or other personal commitments outside of work.
However, by outsourcing back-office accounting tasks, you can free up some of your time to focus on other aspects of your business. This can help you achieve a better work-life balance and reduce stress levels, which is important for maintaining good health and productivity, making it easier for you to manage all the responsibilities that come with being a top executive.
When you outsource your accounting needs, you can get access to advanced technology and tools that may not be readily available in-house. These tools can help streamline your processes, reduce errors, and improve the accuracy of your financial reports.
It can also help your organization save money in the long run by eliminating the need for expensive software licenses or hardware upgrades.
While there are many advantages to outsourcing your accounting needs, there are also some disadvantages.
Here are some of the most common ones:
When you outsource your accounting needs, you’re putting a lot of trust in the hands of another company. This can be risky if they don’t have proper security measures in place to protect your data.
If you’re concerned about this issue, make sure to ask potential providers about their security protocols before signing any contracts.
When you outsource your accounting needs, you’re giving up some control over how things are done. This can be frustrating if you have specific requirements that aren’t being met by the provider.
If this is a concern for you, consider working with a company that offers customizable solutions so that you can get exactly what you need.
If you’re working with an offshore provider, there may be cultural and language barriers that make communication difficult. This can lead to misunderstandings and delays in getting things done.
If this is a concern for you, consider working with an English-speaking country like the Philippines or a company that has offices in multiple countries so that you can get around these issues.
If you’re working with an offshore provider, there may be compliance issues that make it difficult for you to get the information you need.
This can lead to delays in getting things done and can also put your business at risk if there are any legal or regulatory issues that come up.
If this is a concern for you, consider working with a company that has experience in your industry and can help ensure that all their processes are compliant.
If you're planning to outsource to an offshore location, the Philippines could be one of the good places to outsource accounting services. The country has a large pool of skilled professionals who are fluent in English and can communicate effectively with clients from around the world.
The cost of living in the Philippines is also relatively low, which means that you can hire highly qualified accountants at competitive rates.
In addition, the Philippines government has implemented several tax incentives for foreign investors who choose to set up their business operations in this country, you can check the full article here.
The price of accounting outsourcing depends on several key factors, including:
Choosing to outsource to countries like the Philippines can lead to significant cost reductions due to more affordable labor than in Western nations. This price benefit allows firms to save considerably while maintaining quality standards.
A comparison can be seen in the earning potential of accountants from Western countries and those from the Philippines. The most recent figures from the US Bureau of Labor Statistics indicate that accountants and auditors in the US typically earn an annual salary of $79,880, translating to about $6,656.67 each month.
Conversely, full time Filipino accountants earn an average of $5,897.453 annually, which is approximately $491.45 monthly.
Aside from looking at the current data, conducting a cost-benefit analysis is advisable for your firm to assess whether outsourcing would be financially effective, considering projected costs, benefits, or opportunities.
*Note: These figures are based on conversion rates. Original data sets the average salary for accountants in the Philippines at Php 345,001 per year. As of February 4, 2025 the exchange rate is $1 to Php58.50.
The total cost is influenced by the number of FTEs required, which depends on the workload and complexity of tasks being outsourced. Evaluating your workload can help you determine how many FTEs are necessary to meet your needs effectively.
The length of the outsourcing contract also plays a role in determining the cost. Longer-term contracts might offer better rates compared to short-term ones. Therefore, it's important to assess your accounting outsourcing requirements and identify a contract duration that aligns cost-efficiency with the need for flexibility.
Note: This information serves as a guide; however, consulting directly with the business development officers of prospective outsourcing firms will provide you with precise details about their pricing structures and costs.
A recent Deloitte study reveals that CFOs in Southeast Asia are preparing for heightened challenges amidst ongoing volatility. In fact, 72% of CFOs in the region cite their ability to secure and retain key talent as one of their top concerns—the highest among all Asia-Pacific markets.
With the challenges commercialization brings to the table, CFOs struggle to find professionals who are not only numbers oriented, but technologically adept as well.
Make sure you set your eyes on an F&A outsourcing firm that fully realizes your vision and grows with your business. With finance experts on board, you can ensure the reliability of your critical operations and guarantee your numbers are on top of their priority.
Being backed by a tech-savvy and smart remote team can drive your business towards its ultimate goal.
Here are some questions to ask when choosing an accounting outsourcing provider:
This helps you to know if they've got the right skills and knowledge for your organization’s needs.
This will help you assess and understand if they have experience in handling challenges within your industry.
It’s important to know if the provider is using the latest technology that fits with your current systems.
Data security is a must especially when working with an outsourcing provider, so make sure to check thoroughly if they have strong security measures in place.
You want to be sure they stay updated to avoid any compliance issues.
Knowing this is also important to see if they can adjust as your organization grows.
Clear and regular communication is key when working with remote teams. So, make sure they have the right process in place.
It helps to know who you’ll be working with directly so you can build a good relationship.
It’s good to know how they fix problems if something goes wrong.
Be clear on their fees before stating the engagement so you don't get any surprises later on.
Finance and accounting outsourcing is the bread-and-butter strategy of businesses today. With a well-rounded roster of F&A professionals, you can be sure to stay on top of the competition while focusing on making better business decisions.
Consider D&V Philippines. D&V Philippines is a business process outsourcing firm specializing in finance and accounting that has been in the industry for more than a decade.
Serving clients all around the globe, we pride ourselves on delivering quality accounting solutions. Schedule a free consultation with us today to find out more about how we can help you.
You can also read testimonials from our clients and access our whitepaper Outsourcing: How to Make it Work and learn the wonders outsourcing can bring to your business.
This article was first published on 03 September 2019 and updated on 05 February 2025 for relevancy and comprehensiveness.
Edited and updated by: Angelica Garcia