Should You Hire Offshore Accounting Support from the Philippines?

As the advancement of technology and globalization continues, more and more companies have turned to offshore and outsourced support when it comes to their operational needs. From back-office administrative tasks, customer service delegations and even accounting needs, companies are choosing to outsource several of their functions to be able to reduce the costs of their operations, enhance its efficiency and overall tap into a wider talent pool.  
 
Countries like India, Malaysia and the Philippines have readily been able to address the rising demand for offshore services. Two specific services wherein employing offshore partners has become the chosen alternative for companies are accounting and audit support. With countries such as Australia, the US and the UK facing talent shortages in this particular field, outsourcing to countries with skilled professionals who are well-versed in global accounting standards and various regulatory compliance requirements has increased since the COVID-19 pandemic.  

Now, with several countries offering professional accounting support to help resolve the talent shortage, the question now is: Why should you choose the Philippines for your accounting support? 

While many countries offer similar services that addresses both the basic and extensive needs of most companies such as bookkeeping and payroll processing among other accounting functions, not all are equal when it comes to background, education, training and overall cultural alignment. With Philippines being a globally competitive outsourced services provider, it has since positioned itself apart from other outsourcing countries – making it a wise choice for your company to employ offshore accounting support from the Philippines.  

 
Offshore Accounting Support 

Before we dive into how the Philippines has positioned itself as an impressive source for offshore finance and accounting support, let's first look into what employing accounting support usually entails for both the client and the provider. 

Offshore accounting support often involves a company or entity delegating its core financial functions and/or the financial functions that concerns their service delivery such as bookkeeping, payroll, accounts payable, receivable, tax preparation and financial reporting to professional support service providers overseas. This means that clients would usually come from various countries that require accounting service providers to be well-versed in global accounting standards such as requiring offshore employees for accounting firms. 

This type of outsourced accounting support is often utilized by companies for various reasons that may include: 

• Cost-saving initiative 

• Wanting access to skilled global finance and accounting talent  

• A growth strategy for scalability and expansion efforts 

• The desire to focus on a company's core business activities only  

Any of these reasons paved the demand for offshore accounting support. Now, as the demand for financial accuracy and compliance grows as international and economic laws become more complex, offshore accounting has also become a strategic decision for most companies – tapping into professionals who know how to navigate these rules and regulations and keep your company in compliance. 
 

But Why Should You Outsource to the Philippines?  

While the need for offshore accounting support has been highlighted, the next question is: why should my company get it from the Philippines?  

When it comes to providing offshore support, the Philippines produces skilled finance and accounting professionals through: 
 

Educational Foundation 

According to the Commission on Higher Education (CHED), despite the high enrollment and low graduation rates of various programs in the past 2 years, the country is still able to produce 20,000 graduates with degrees in accountancy annually. Alongside this, several accounting-adjacent programs boast a significant number of graduates yearly including those with degrees in accounting technology and accounting information systems (AIS).  
 
The standard curriculum for these accounting and accounting-adjacent courses follow international standards in commerce, regulatory compliance and accounting with both the IFRS (International Financial Reporting Standards)—the global benchmark for accounting—and the GAAP (Generally Accepted Accounting Principles) integrated into their coursework.  

For programs such as BS Accounting Technology and BS Accounting Information Systems (AIS), there is a specific focus on being up-to-date on both previously used and latest in accounting technology and accounting trends with most graduating with an above-average grasp of QuickBooks, Xero, MYOB, and other mainstream accounting software. 

Professional Qualifications

Alongside a rigorous undergraduate curriculum which prepares accounting students for a career in the world of finance and accounting, those who want to become a Certified Public Accountant (CPA) must undergo a board exam administered by the Professional Regulation Commission (PRC) with the exam covering topics that accountants handle on their day-to-day tasks.  
 
Topics covered in the PRC board exam for aspiring CPAs: 

• Auditing 

• Financial Accounting and Reporting 

• Management Advisory Services 

• Taxation 

• Regulatory Framework 

As a result, Filipino CPAs are held to high professional standards, on par with their counterparts in most countries such as Australia, the UK, and the US – countries that require standardized testing for their CPAs as well.  
 
Alongside the PRC CPA board exam, most accounting graduates and those graduating from courses such as accounting technology and accounting information systems also upskill continuously, obtaining certifications that showcase their proficiency in global accounting standards and processes. 

Common international certifications which Philippine accounting professionals take include:  

• CPA (Australia) 

• ACCA (UK) 

• CMA (US) 

• CIA (Certified Internal Auditor) 

Obtaining these certifications showcases the average Filipino accountant's commitment to global accounting practices, ethical standards and commitment to detail and accurate outputs – adding significant value to your company's goals.  

What Makes the Philippines Different from Other Outsourcing Hubs?

While India, Vietnam, and Malaysia also produce talented professionals, the Philippines offer distinct characteristics common to all its talents that ensures cultural compatibility and aligned professional standards with clients from offshore locations – English language proficiency and cultural connection. 

English Proficiency 

Over the past 10 years, the Philippines have consistently ranked high in global English proficiency indexes. In fact, the EF English proficiency survey shows that the Philippines is in the 20th rank globally and 2nd in Asia in 2024, given that is one of the official languages of the country.  
 
The country adapts the English language in the following aspects:  

• Business communication 

• Higher education 

• Government 

• Media 

This proficiency assures clients from all over the world that with a Philippine-based team, there will be seamless transition in workload given that the same language is used for all business proceedings – resulting to better collaboration and integration with your onshore team. 

Contrast this with countries where English is a second or third language with lower fluency levels, which may cause delays in high-risk projects and tasks. 

Cultural Compatibility

Filipino professionals tend to be culturally aligned with Western values due mainly to:  

• A shared colonial history with the US 

• A Western-influenced education system 

• Media consumption of English-language content 

As a result, Filipino accountants and accounting professionals approach tasks with a client-centric mindset, employing adaptability to their clients’ needs and respectful of the working arrangement agreed upon beforehand. They often work well with international teams and are sensitive to the business expectations and etiquette of global clients.  

What Would Hiring Offshore Accounting Support in the Philippines Mean For You?  

1. Cost-Effectiveness Without Compromising Quality 

Hiring offshore accountants from the Philippines can result in significant cost savings compared to what they would pay locally. But contrary to most cost-saving strategies which often lead to lower quality products and services, the Philippines offers: 

• High educational standards 

• Globally competitive certifications and 

• Professional English fluency 

This means you don’t have to choose between affordability and talent, given that an offshore team in the Philippines can readily give you both with quality outsourced accounting services. 

2. Access to a Diverse Talent Pool  

With graduates from various accounting programs such as BS Accountancy, BS Accounting Technology and BS Accounting Information Systems that are proficient in various accounting processes, the Philippines is able to produce a significant number of professionals with various levels of experience and expertise in the accounting industry.  

Most finance and accounting solutions providers in the Philippines are able to provide:  

• Junior and senior accountants 

• CPAs and auditors 

• Financial analysts 

• Payroll specialists 

• Tax consultants 

Read: The 7 Main Types of Accounting + List of Accounting Services 

3. Integrated Accounting Technology Knowledge  

Thanks to both the undergraduate accounting curriculum's focus on accounting technology and the strong government support for the BPO industry, the Philippine accounting workforce primarily has access to:  

• Modern IT infrastructure 

• Cybersecurity Protocols 

• Cloud-based collaboration tools 

Many accounting professionals such as those in D&V Philippines work in state-of-the-art offices or remote-ready environments, allowing them to integrate seamlessly with your operations. 

4. Government Support on the Outsourcing Industry  

Lastly, one of the main reasons that the Philippines is able to provide seamless outsourced services around the world is through the Philippine government's support on the Business Process Outsourcing (BPO) industry.  

The government recognize the BPO sector's significant contribution to the Philippine economy and has implemented policies and initiatives. Through these programs, outsourcing companies in the Philippines can further develop and improve their operations while international clients can work with Philippine outsourced services providers with ease.  

Some policies that have helped boost the BPO industry in the Philippines include:  
 

Investment Priorities Plan (IPP) 

This plan prioritizes BPOs, giving them access to the following:  

• Income tax holidays for qualifying businesses 

• Simplified and streamlined business registration 

• Exemption from selected local taxes 

• Incentives for the importation of capital equipment 

Alongside this, the PEZA (Philippine Economic Zone Authority) and BOI (Board of Investments) also offer additional incentives directed towards the growth of outsourced providers. 

BPOs within PEZA-accredited zones benefit from:  

• Reliable infrastructure and utilities 

• Preferential treatment in government transactions 

• Foreign Investment-friendly policies 
  

Data Privacy Act of 2012 

The Data Privacy Act of 2012 addresses key concerns by international clients when it comes to their data security and how it is handled by their Philippine offshore provider as it aligns local data protection policies with international frameworks like the GDPR, allowing BPO companies to implement strong security measures and extensive data handling practices and client confidentiality in all its dealings. 

So, should you hire offshore accounting support in the Philippines? 

If you're considering accounting offshoring as a growth strategy for your company's financial transactions and financial management efforts, then hiring offshore accountants in the Philippines serves as a strategic move that gives your company access to scalable quality support that is adept in producing outputs aligned with global standards.  

It's time for outsourcing to be more than just a cost-effective solution that helps you cut on labor costs, instead, it should serve as a strategy that provides long-term value-adding impact on your company's operational efficiency, financial compliance and scalability and expansion. In each of these aspects, finance and accounting professionals are able to meet and often exceed global expectations.  

As companies continue to navigate economic pressures, talent shortages, and digital transformation, having a reliable, competent, and scalable offshore accounting team serves not just convenience but a business continuity plan. While finding that balance between cost-effective and high-quality is hard, countries such as the Philippines deliver professionals who are up to the task.  

Read Next: Outsourcing Offshore Accounting to the Philippines: A Guide 

Ready to Begin your Offshore Accounting Journey in the Philippines?  

We have a wide expertise in handling the numbers of companies across various industries. We also make it our mandate to stay up to date on the latest trends in the accounting industry to make sure we can provide quality support at all times. Contact us today and we’ll help you find the right solution for your needs. 

You can also read testimonials from our clients and download our Outsourcing: How to Make it Work guide today and discover how can help in managing your company’s finances.