Posted by Cedric Joshua Martinez
Jun 10, 2025
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The Philippines remain to be a sought-after outsourcing destination for finance- and accounting-related functions. Service-oriented firms with capacity issues, in particular, can benefit from the country’s wide pool of competent and experienced accounting professionals. Its ability to provide quality yet cost-effective outsourcing solutions also remains the country’s main selling point in attracting clients across the globe.
And it’s not just lip service.
To give you a better understanding of why companies choose this Southeast Asian country, check out the benefits of accounting outsourcing in the Philippines — and what makes these benefits possible.
Related: A Look Through Southeast Asia’s Accounting Outsourcing Industry
In this article:
The Philippine accounting outsourcing industry
With over three decades of experience in providing outsourcing services, the Philippines has established its authority as a world-class outsourcing destination.
From 1992, when the country first started offering basic contact center services, to the present, Philippine-based service providers are now offering a wide variety of outsourcing solutions. This includes accounting services, legal solutions, recruitment support, and IT support, to name a few.
At present, the revenue of the Philippines’ business process outsourcing (BPO) industry is valued to be around $38 billion with about 1.82 million Filipinos working in the said industry, data from IBPAP shows via Malaya Business Insights. The same source also revealed that the country outpaced “the global outsourcing average of 3.5% by achieving 7% growth in 2024”.
Even during the pandemic, the country’s outsourcing industry continued to flourish in terms of headcount and revenue.
Read this case study: How a US Firm Resolved Talent Gaps Through Accounting Outsourcing
But why exactly do businesses, especially those from Western countries, decide to bring a portion of their accounting operations into the country? And what made them stay?
To answer these questions, let’s discuss how you can benefit from finance and accounting outsourcing in the Philippines.
Benefits of outsourcing accounting services in the Philippines
Outsourcing to the Philippines is a cost-effective way of working with qualified professionals, increasing your operational efficiency, scaling your team whenever needed, and getting access to modern technology.
Here's a detailed discussion of the major benefits of working with accounting outsourcing companies in the Philippines:
1. Achieve higher cost-savings
Outsourcing to countries outside your geographical location — or a practice known as offshore outsourcing — can bring you significant cost savings.
What makes it possible? Here are some of the common reasons:
a. Lower labor and operational costs – Compared to Western countries, offshore locations like the Philippines have lower cost of living, which is directly attributable to labor and operational costs.
For example, there’s a huge discrepancy between the median salary of an accountant working in the Philippines ($9,236.40/year) and the United States ($81,680/year). Another contributory factor is the cheaper cost of leasing an office space
b. Fiscal and non-fiscal incentives from the government - The Philippine government — through its Philippine Economic Zone Authority (PEZA), Bureau of Investments (BOI), and other Investment Promotion Agencies (IPAs) — has been generous with its fiscal and non-fiscal incentives for registered BPO companies.
For instance, BPO companies can avail themselves of either a lower special corporate income tax (SCIT) rate, enhanced deductions, or an income tax holiday (ITH). They can also get exemptions on VAT and relevant taxes. Through these deductions, Philippine outsourcing companies can continue offering their services at reasonable prices.
Outsourcing to reputable service providers in the Philippines lets you cut down on expenses while still ensuring that your offshore team is receiving fair wages for their services.
2. Work with competent finance and accounting professionals
The Philippines is the home to competitive, skilled, and qualified accounting professionals, making it an ideal outsourcing destination if your firm has talent shortages and skills gap concerns.
Based on the latest data from the Professional Regulatory Board of Accountancy, the country has around 200,000 registered certified public accountants (CPAs). This does not include Filipino accounting practitioners who have not yet taken the CPA licensure exam (CPALE) but are already part of the BPO workforce.
The strength of the Philippine accounting outsourcing industry isn’t reliant on the number of its accounting professionals alone. In a micro-level, most Filipino accountants possess these competencies:
- Familiarity with international accounting standards (e.g., IFRS and GAAP)
- Knowledge in complex finance and accounting concepts
- High English proficiency
- Strong work ethics
- Adaptable and flexible
Filipino accountants also have wider opportunities to gain experience in different international accounting standards and business practices, thanks to the expansive client base of BPO companies and local accounting firms.
3. Reduce your legal liabilities as an employer
Philippine-based outsourcing companies are governed by the country’s Labor Code (Presidential Decree No. 442) and relevant laws, rules, and regulations. These labor laws ensure employees working in the country are safe from unlawful and unjust practices.
To remain compliant, Philippine BPO companies must follow minimum labor standards, which include employees’ right to:
- Security of tenure
- Just and humane conditions of work (e.g., minimum wage, rest day, working hours and overtime pay, night shift differential)
- Various leaves and benefits
- Safe working environment
- Social benefits
- Equal work opportunities
- And other relevant employee rights
These labor laws can give you the assurance that your outsourced Filipino accountants are receiving what they deserve, which is essential in ensuring that no modern slavery is taking place in this area of your company’s supply chain.
Working with a service provider that employs full-time employees also reduces the risk of worker misclassification. Your service provider, being the legal employer of your outsourced staff, bears the responsibility of managing their employees.
You might be interested: Key Differences Between Employee vs Independent Contractor vs Outsourcing
4. Leverage the country’s modern infrastructure
Established outsourcing companies in the Philippines are equipped with the latest technology. Depending on your needs, you can find specialized providers that use commercially available software, add-ons, and equipment.
Their office spaces are also located in Philippine Economic Zone Authority (PEZA)-accredited buildings. These buildings comply with the National Building Code of the Philippines to ensure they’re safe and conducive.
To boot, the national government continues its efforts to improve the infrastructure across the country through its multi-departmental Infrastructure Program. It also established the Department of Information and Communications Technology (DICT) to support the information and communications technologies requirements of the outsourcing sector
5. Get access to different accounting services
The Philippines has a lot to offer when it comes to outsourced accounting services.
While there are providers that serve as all-in-one hubs in the country, there are also firms that provide specialized services to bring clients in-depth expertise and wide-ranging solutions to suit their needs.
D&V Philippines, for example, focuses on delivering finance and accounting solutions as part of its mission of providing high-quality, cost-effective finance and accounting, and admin-related outsourcing services to CFOs and professional services firms.
These specialized finance and accounting solutions have services including:
- Bookkeeping and accountancy
- Financial reporting
- Management accounting
- Tax preparation
- Audit support
- And several other back-office accounting functions
The quality of our service delivery is also guaranteed through the strict measures implemented by our internal auditors. Through this, you can be confident of receiving high-quality support throughout your engagement.
6. Increase your firm’s efficiency
An offshore accounting team serves as an extension of your organization. With their added support, your in-house employees can focus on more mission-critical tasks while ensuring that the administrative and non-core areas of business are still properly taken care of.
7. Scale your team more quickly
Many Philippine-based outsourcing companies offer scalable solutions. Thus, you can find the most feasible way to adjust your outsourcing requirements based on your current needs.
For example, you can start with one or two full-time or part-time staff. As your business grows, outsourcing gives you the option to increase the headcount of your outsourced team. On the other hand, when the business is slow, you can adjust your service requirements to fit your existing budget.
8. Keep your confidential data protected
If you still feel hesitant in outsourcing your accounting functions to third-party providers, more so from those located in other countries, it’s completely understandable. After all, your accounting data contains confidential business figures.
While we cannot talk on everyone’s behalf, we can confidently say that most Philippine outsourcing companies have strict data security measures.
Take our IT Department for example. To secure client data, they:
- implement next-generation firewalls,
- use advanced endpoint security tools and cloud-based security solutions,
- secure each device with antivirus protection and intrusion prevention system, and
- conduct quarterly cybersecurity assessment tests to measure employees’ knowledge in keeping their work data safe from online threats.
On a national level, BPO companies are being governed by the Data Privacy Act of 2012 (Republic Act 10173) — an act that aims to “protect individual personal information in information and communications systems in the government and the private sector”
9. Experience the trademark Filipino service
Filipinos are known to always care. They care for their families, they care for their jobs, and as partners, they care for your success. You can also find them as people who provide attentive support and compassion. They are service-oriented workers who aim to go beyond what is expected from them. These well-celebrated intrinsic Filipino values are one of the reasons why local and foreign employers prefer their service.
Working with them is also comparably easier than with their Asian counterparts due to their strong familiarity with Western culture. In fact, the country’s diplomatic relations with the United States can be traced back to the late 1940s.
Above all, Filipinos strive to learn more about your company and how you plan to reach your goals.
10. Time zone flexibility
Outsourcing companies in the Philippines usually have round-the-clock operations.
This means that despite time zone differences, you can still work with your outsourced team in real time. You also have the option to work on overlapping schedules, so you can have wider work coverage in terms of the number of hours. Just make sure to let your provider know about your preferred schedule so they can also make the necessary adjustments.
Quick tips for finding the right Philippine-based service provider
How should you outsource in the Philippines to increase your chances of success? Consider these tips on finding and selecting the right service provider:
- Assess your needs to know which tasks to outsource and which ones to keep in-house.
- Plan the direction of your outsourcing engagement so you can set realistic expectations and measurable KPIs (key performance indicators).
- Evaluate your shortlisted providers based on their track record, client feedback, experience in your industry, and familiarity with your country’s laws and regulations to see if they’re compatible with your company.
- Choose a provider with enterprise-level data security to guarantee the protection of your company’s sensitive and confidential data.
- Ask about their business continuity plan (BCP) to ensure that they can deliver their services with little or no interruptions.
- See if they have standard quality assurance (QA) practices in place to maintain and improve the quality of their service delivery.
- Look into their employee development programs to see if their employees are equipped with the necessary knowledge and skills.
- Review their company culture to determine if their employees have good working conditions or if they’re happy at work. Social media and employee review sites are among the best places to start.
- Examine their attrition rates — especially if you’re outsourcing professional services or you plan to outsource in the long term — to foresee how long an outsourced employee can work with you.
- Check the office location of your shortlisted providers, especially if you plan to do in-person visits.
Want access to this guide’s more comprehensive version? Check this out: Outsourcing Offshore Accounting to the Philippines: A Guide.
Always keep in mind that in outsourcing, proper research and enough planning are necessary before starting any engagement. Doing these steps can mitigate any potential risks and increase your ability to utilize outsourcing to its full potential.
In other words, the result of your outsourcing initiative will depend on the decisions you make — right from the start until the actual engagement — regardless of where you outsource.
Build your offshore team in the Philippines
Outsourcing companies in the Philippines offer a competitive suite of services to help you get the most out of your offshoring engagement.
With D&V Philippines, you have access to top-notch accounting professionals who will help you achieve your goals. Read our guide, Outsourcing: How to Make it Work, or contact our team to find out how you can succeed with your outsourcing engagement.
This article was first published on 13 July 2017 and has been updated ever since for relevancy and comprehensiveness.
Last updated on: 10 May 2025
Edited by: Mary Milorrie Campos
