Outsourcing Accounting to the Philippines: When is the best time to outsource Accounting?
The article discusses when to outsource Accounting services.
Accounting functions are high in volume, highly transactional and repetitive. Generating financial reports and financial statements also requires a huge amount of work. If you are a business owner or are looking to start your company, you have the option to assign business processes such as accounting functions to a dedicated team or staff through an outsourcing partner located outside a company’s geographical location.
Accounting requires a specific skill set which makes accounting related tasks the top outsourced function, next to IT tasks.
Small business outsourcing stats show that 37% of all accounting and IT tasks get outsourced. (Fortunly)
The Philippines, for instance, is one global destination for outsourcing business processes such as Accounting. Aside from low costs, there are several reasons that make the Philippines a global outsourcing destination.
Accounting is an established and recognized industry in the country. You can remotely hire qualified Certified Public Accountants in the Philippines who, aside from being able to work comfortably with numbers, also have excellent accuracy, attention to detail, planning and organizational and communication skills.
Business Process Outsourcing lets you work with Accounting professionals that have the right technical expertise and experience in Accounting and Bookkeeping. Offshore Accounting professionals that have the right experience in aspects that can improve your cash flow and manage all financial transactions, from fixed payments and variable expenses to bank deposits and budgets at a reduced cost.
Aside from taking care of aspects that can improve cash flow management, outsourcing accounting also ensures compliance with tax regulations.
Outsourcing to the Philippines: When is the best time to outsource Accounting?
If you are a business owner looking to outsource accounting or have recently decided to outsource accounting services, consider outsourcing Accounting during the following:
1. The start of the fiscal year
At the start of the fiscal year, businesses are most likely enabling updates to their systems.
Outsourcing accounting is important in providing efficient performance of accounting operations.
Working with outsourced finance and accounting teams provide effective remote day-to-day accounting support as effectively as in-house accounting departments.
Outsourced accounting staff can be tasked to handle new ledger accounts, accounts posting and managing account transactions such as financial data entry, billing and invoice reports, and maintaining accounting records.
2. The end of the fiscal year
Hiring outsourced accountants in the Philippines during the end of the fiscal year may mean little room to spot discrepancies from that year, however, these outsourced staff have the capability to understand financial reporting and analysis throughout the fiscal year, giving them insights on budget forecasts and analyses. They can prepare accurate financial statements and reports, or prepare computation of taxes and tax returns in time for the tax season.
3. After Filing Taxes
Tax season is the period when individual taxpayers annually prepare financial statements and reports from the previous year and submit tax returns. The tax season in the U.S. is usually between Jan. 1 and April 15 of each year. For the year 2023, the tax season officially started January 23, as announced by the IRS.
After filing taxes, it is also important to assign accounting services to outsourced teams. The tax information from the fiscal year gives the outsourced team a good grasp on the financial position and operations of the company.
Connext Global Solutions provides offshore excellent offshore accounting and financial solutions.
At Connext Global Solutions we allow clients to start with as little as 1 full-time employee and scale as they see fit. Businesses looking to offshore Accounting functions can tap from our talent pool of: Businesses looking to offshore Accounting functions can tap from a huge talent pool of:
Bookkeepers: Offshore Accountants can also provide data entry services such as efficient recording of financial transactions, payroll management, invoice and billing management, processing of incoming payments along with the issuing of necessary paperwork, payment posting, and managing and reconciling balance sheets and financial statements.
Accounting Associates: Accounting Associates ensure completion of Service and Compliance Tasks such as Accounts Payable Invoice and Accounts Receivable Billings, Bank Reconciliations, monthly and annual GET filing, payroll tax filing, weekly payroll and cash forecast and more.
Junior Accountants: Junior Accountants provide back-office support such as updating lists of requested information and supporting documents, update the Accountant Scorecard and deliverables status, prepare financial statements, reconcile Accounts Receivable & Retainage Receivable and other Balance Sheet Accounts Reconciliation, and more.
Senior Accountants: Senior Accountants oversee the finance department and provide assistance with external and internal audit examinations. They manage and supervise Junior Accountants in creating detailed financial reports and analyzing forecasts.
Controllers: Controllers verify bank reconciliation ties with the General Ledger. Their tasks also include reconciling Accounts Receivable & Retainage Receivable, and other Receivables. They also reconcile Prepaid Accounts, Deposits, Inventory, Fixed Assets, and Investment. Aside from this they also reconcile Accounts Payable & Retainage Payable, and Credit Card Payable, and other assigned related roles.
Outsource your end-to-end Accounting with Connext Global Solutions today.
Discover the optimal timing for financial outsourcing. Visit our blog to understand why the Philippines is a practical choice for outsourcing accounting services, providing crucial context to determine the best time for your business to outsource accounting.
