In a shifting and increasingly complex business landscape, accounting firms in the U.S. are constantly seeking innovative ways to thrive.
As the demand for expert financial services and advice grows, so does the pressure on accounting firms to deliver high-quality results while keeping their operations lean.
Business Process Outsourcing (BPO) continues to find favor as a strategic and non-traditional solution for accounting firms that want to gain additional capacity, become more profitable, and access specialized expertise.
However, the decision to embrace offshoring can raise some questions. Here we’ll address five of the most important ones, offering answers to help accounting firms navigate this growing alternative staffing solution.
Question 1: Will there be language and cultural barriers?
Effective communication anchors any successful working relationship. Language barriers can lead to misunderstandings or errors and cause clients to feel dissatisfied.
To address this, firms looking to work with BPOs or offshore need to prioritize hiring accounting talent with strong English language skills while establishing clear communication practices and expectations.
As an offshoring location, the Philippines has long been recognized among the top English-speaking countries globally, with a large population fluent in English. This linguistic advantage eliminates language barriers and allows for clear and concise global team communication.
Outsourcing locations like India also have a significant English-speaking population, but this region takes 52nd spot in the global English Proficiency Index, compared to the Philippines, which is at the 22nd spot.
Cultural understanding is a second key element that creates a collaborative work environment. Encouraging open communication channels and providing cross-cultural training to onshore and offshore teams can help bridge any potential gaps and promote better teamwork.
These priorities, coupled with the use of collaboration tools and regular virtual meetings, can help assimilate staff even further.
When you find a global talent provider who trains your offshore team in North American accounting standards and cultural nuances, while offering cultural overviews for your onshore team as well, you’ve found a winning formula.
Question 2: How will we manage the additional legal and regulatory considerations?
Ensuring compliance with local laws and regulations is essential when outsourcing accounting processes. Firms will experience greater ease when they meticulously select BPOs operating in countries with a well-established legal system and strong regulatory framework.
The Philippines has a supportive business environment that has established the country as a global hub for outsourcing, including accounting services. The government recognizes the sector’s economic benefits—the IT and BPO industry was the second-largest source of foreign exchange earnings in 2022.
Public support is evident in incentives and infrastructure development programs aimed at making it easier to offshore to the Philippines.
It’s also wise to choose a provider that has spent at least a decade in the country where you intend to offshore because they’ll be familiar with labor relations, trade, and local government requirements. You’ll want to partner with a company that is known for taking great care of employees, so your business can enjoy the stability that comes from retaining top talent.
Data Privacy and Security Concerns
As growing data breaches worldwide have highlighted, protecting sensitive financial data is critical. Before partnering with a BPO, accounting firms need to conduct thorough due diligence to ensure their data is handled with the utmost confidentiality. Strict data security protocols and encryption measures must be in place to further safeguard critical information.
In the Philippines, the government has implemented policies to ensure data security, intellectual property protection, and compliance with international regulations as written in the Data Privacy Act of 2012, giving businesses peace of mind when outsourcing accounting work.
Question 3: How can accounting firms maintain consistent quality standards when working with a BPO?
Ensuring consistent quality standards
The Philippines boasts a vast pool of highly skilled accounting professionals. Accounting as a profession reached its centenary in March 2023. The country’s education system emphasizes accounting and financial education, producing many highly skilled graduates. By outsourcing accounting work to the Philippines, businesses gain access to a talent pool that possesses a deep understanding of accounting principles.
After securing quality through top-tier talent, maintaining this consistently is the next step to securing client satisfaction.
When working with a BPO, clear performance metrics plus regular evaluation and feedback will help ensure steady high-quality work. An offshoring partner that is dedicated to the accounting industry and provides staff trained in U.S. standards and embedded staff performance reviews will take your team and client service to the next level.
For a closer look at how firms can find elite offshore accounting talent, you can download our Accounting Talent Insights Report here.
