Introduction
In business, as is in life, change is the only constant. The relentless pace of innovation, shifting market dynamics, and unforeseen global events have become integral parts of our corporate reality. As CEOs and business leaders, we are entrusted with the formidable task of steering our organizations through these turbulent waters. With a business failure rate in the U.S. of 20.8% within the first year, 48.4% after five years, and 65.1% after a decade – a business leader would do anything to survive.
Survival, however, is not enough. To flourish amidst an evolving business landscape, we must adopt a dynamic mindset that embraces the challenges as opportunities and the disruptions as catalysts for growth. We would have to.
From agile methodologies to harnessing the power of data-driven insights, from nurturing a culture of innovation to fostering resilience in times of adversity, we will need to unravel the proven strategies that forward-thinking companies are deploying to weather the storm and set sail toward new horizons of success.
When companies face the dual challenge of maintaining financial excellence while optimizing costs – this delicate balance requires innovative solutions. One such solution that has gained prominence is offshoring your business’ non-core functions – such as IT, Customer Support, Human Resources, and, in this particular example – Accounting.
This strategy empowers businesses to tap into the expertise of highly skilled accountants while simultaneously creating capacity, adding capability, and freeing up valuable time.
Let’s explore the vast potential of offshore accounting, with a particular focus on the Philippines, a nation renowned for its pool of dedicated and talented accounting professionals.
The Rise of Offshore Accounting
Why Offshore Accounting?
Creates Capacity
Adds Capability
Access to a diverse talent pool means you can secure technical expertise in areas you need access to, but short of, enhancing your accounting team’s capabilities. When you tap into a broader spectrum of skills, you can seamlessly bridge gaps in your in-house team’s proficiency. This multifaceted approach brings about a fresh influx of ideas, strategies, and insights that might not have been within immediate reach.
In addition, your remote team members’ diverse backgrounds and experiences can lead to innovative solutions and alternative viewpoints, enriching your accounting operations. This collaboration not only heightens the expertise at your disposal but also promotes a vibrant mix of ideas, fostering a more dynamic and adaptive accounting team. With this diverse talent pool, your accounting team becomes a busy hub for excellence and innovation, uniquely positioned to thrive in your field.
Creates Time
Why the Philippines?
The Philippines has firmly established itself as a top destination for offshore accounting. Revenue in the Philippine BPO market, where offshoring belongs, is projected to reach $.62 billion this year and is expected to reach $.96 billion by 2028. This consistent growth projection shows a continued reliance on Filipino BPOs that will largely be driven by efficiency and a growing IT industry.
Highly Skilled Accountants
Filipino accountants are known for their strong work ethic and dedication to excellence. Many have received world-class education and training, making them proficient in various accounting disciplines. These aspiring Filipino accountants spend 4-5 years in university to earn a degree with the usual standard classes taken by their contemporaries, not just in the US but also in the UK and even Australia.
While they are prepared to take entry-level positions upon graduating – Filipino accountants are known to take it further by reviewing for one more year in preparation for the notoriously taxing CPA examinations locally known as the Certified Public Accountant Licensure Exam or the CPALE. This year, the passing rate was 31.37%.
This fresh, annual pool of talent ensures that you can find the right professionals to meet your specific needs in the country. Due to the increasing demand for qualified accounting roles in the world with a growing skills gap – Filipino accountants have become a reliable source of talent in the US and across the world.
English Proficiency
Cultural Compatibility
Cultural compatibility is often overlooked but critical for the success of offshore accounting partnerships. Filipinos are known for their strong service-oriented culture, making them a natural fit for businesses seeking quality-focused professionals.
Due to a combination of historical factors, including trade, colonization, and labor migration, Filipinos possess a profound familiarity with Western cultural references, all the while preserving their distinctive work culture. This unique blend of influences enables them to engage with clients and customers hailing from Western nations effortlessly. This cultural synergy transcends mere linguistic competence, encompassing a deep comprehension of Western business protocols, social etiquette, and consumer preferences.
Cost-Effective Solutions
The Offshore Accounting Process
Assess Your Needs
Choose the Right Partner
Don’t just look for the cheapest possible provider to partner with. Select a reputable offshore accounting provider that aligns with your business needs. Look for a partner that can tailor a dedicated accounting team to match your requirements.
Companies like IQ BackOffice, for instance, help you do everything needed to build a team – we first meet and understand your business goals and the requirements for each position and then find the perfect candidates to join your team. We are hands-on – from helping you design a strategy to recruiting, setting up interviews, onboarding your team, providing infrastructure, and ongoing administration – we guide you every step of the way to help make your dream team a reality.
Onboard and Collaborate
Once you’ve chosen your offshore accounting team, the onboarding process begins.
Offer training sessions and materials to help new team members acquire the necessary skills and knowledge to help them smoothly transition. This can include software tools, internal systems, and job-specific training. Assigning a mentor and buddy who can guide them and answer some ad-hoc questions can also be helpful at this stage.
You’ll find that providing them access to relevant documentation, manuals, and resources helps new team members while they are starting. It is essential that they feel they have all the information they need to perform their job effectively.
Clear Communication, Feedback, and Evaluation assess the progress of new team members in their onboarding experience. Use this information to make necessary improvements.
Remember that effective onboarding and collaboration require ongoing effort and commitment. By investing in these processes, you can build a strong and cohesive team that works efficiently and achieves its goals.
Regular Communication
Maintain open and regular communication with your offshore team. Regular check-ins, status updates, and project discussions foster a sense of unity and collaboration even beyond geographical locations.
Regular communication is essential when working with an offshore accounting team to affirm that both your onshore and offshore teams have a clear understanding of your accounting processes, expectations, and specific requirements. It minimizes the risk of misunderstandings and errors. It also allows you to receive real-time updates on the progress of tasks and projects. This transparency helps you stay informed about the status of your financial operations. Problems or questions that arise during the accounting process can be addressed promptly through regular communication. This prevents issues from escalating or causing delays in financial reporting or decision-making.
Monitor Performance
Conclusion
Are you looking for a dedicated, remote Accounting Team? IQ BackOffice can help.
Here at IQ BackOffice, we build remote, offshore accounting teams that work as an integral part of our clients’ operations. We offer the best global talent at cost-effective rates so you can enhance your financial operations and achieve your goals faster. We help you do everything needed to build a team, from helping you design a strategy to recruiting, setting up interviews, onboarding your team, providing infrastructure and ongoing administration.
IQ BackOffice will meet with you to understand your business goals and the requirements for each position and then find the perfect candidates to join your team. We build dedicated teams exclusive to your account that we provide with the infrastructure and tools to work effectively with you. Lastly, we handle the administrative aspects of your team – payroll, HR, etc., so you never have to. All for 1 simple monthly fee.
Contact IQ BackOffice today to learn more about building an effective Global Accounting Team.
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