What Should You Look for in an Outsourced Accounting Partner?

For businesses considering outsourced accounting services, cost is often the primary concern. However, there are other factors you must look into when prospecting accounting companies in the Philippines. Keeping these in mind will help you find a partner that addresses your business needs and provides the most value.  

Here are the primary considerations:

Expertise and Specializations

Before you start researching prospective outsourced accounting companies, you need to identify your specific accounting needs. This will allow you to find a service provider with the expertise and specialization aligned with your business requirements. 

Some of the primary accounting services you might need include the following:

• Bookkeeping: This involves recording financial transactions, such as sales, purchases, receipts, and payments. This function is pivotal for maintaining accurate financial records and preparing financial statements. 

• Auditing: This involves reviewing a business’ financial records to ensure that they are accurate and compliant with the accounting standards in their respective field. 

• Tax Preparation and Planning: This could include preparing and filing tax returns and helping businesses minimize tax liabilities. 

• Consulting: The best accounting outsourcing companies in the Philippines can provide consulting services to help businesses improve their financial performance. This can include budgeting, forecasting, and financial analysis. 

Some accounting firms may be more adept at different services than others, allowing them to provide customized solutions tailored to your specific business needs. Keep this in mind as you’re conducting your search.

Industry Experience 

In line with the above, some sectors can have industry-specific regulations and compliance requirements. For example, a transportation business may have different accounting guidelines than a construction company. An accounting firm with extensive experience in your industry allows you to expertly navigate the accounting intricacies of your field. 

LinkedIn can be a particularly helpful tool for researching a firm’s collective experience. By looking up individual team members profile, you can get a detailed look at the following: 

• Their experiences 

• The projects they’ve handled

• The industries they’ve worked with 

If possible, look for a firm made up of seasoned professionals coming from major accounting firms. This helps ensure a commitment to the highest quality standards.  

Accreditations and Certifications

Depending on the documentation purposes, not all certified public accountants (CPAs) can sign audited financial statements. 

For instance, if your business needs to file statements with the Bureau of Internal Revenue (BIR) or the Securities and Exchange Commission (SEC), you need a CPA with the requisite accreditations. 

In such cases, the primary accreditations you need to look for are:

• BOA Accreditation: The Board of Accountancy (BOA) is the government agency regulating Philippine CPAs. An accountant needs a BOA accreditation to conduct audits and sign audited financial statements. 

• BIR Accreditation: This is required if you’re filing tax returns or submitting financial statements to the BIR. You risk being penalized if you submit documents signed by a non-BIR accredited accountant. 

In most cases, these two accreditations are all you need to look for (unless you’re in the financial or insurance sector). However, you may also want to look into an accounting outsourcing firm’s affiliations. 

For example, a local firm that’s a member of an international accounting network like BDO Global helps ensure services of the highest standards. Member firms in such organizations cooperate closely and comply with consistent operating principles. If your business operations are growing, consider these high-level outsourced accounting companies. 

Technology and Tools

As with most professional services, technology has become vital to efficient modern accounting practices. When communicating with accounting firms, ask about the tools they use (or plan to use) for your specific needs. These can be especially helpful for businesses using similar tools, allowing them to seamlessly transfer data and monitor services. 

International accounting network member firms often have access to a suite of advanced tools. For instance, the BDO Global portal provides a central, secure location for all materials and associated collaterals. Additionally, it gives clients 24/7 access to engagement services and tools. 

Scalability and Flexibility

Your accounting needs may change as business operations evolve. As such, it’s important to choose an outsourced accounting firm with the flexibility to scale its pricing and services depending on your needs. 

When meeting with outsourced accounting companies, discuss their approach to evolving requirements. For instance, do they have measures to enhance data security? What about forensic auditing capabilities? 

The last thing you want is to disrupt operations because an accounting firm can’t keep pace with your growth.

Value-Adding Services

The best firms can often create added value by providing services beyond traditional accounting functions. Some examples include the following:

• Financial Advisory: This can involve financial planning, investment advice, and wealth management services. 

• Tax Planning and Strategy: Developing tax efficient strategies to minimize liabilities while ensuring compliance with tax laws and regulations. 

• Risk Management: Identifying and mitigating financial risks. 

While you might not think you need these services now, it’s always better to have a capable accounting partner on your side. 

Communication and Transparency

As with any professional relationship, communication and transparency is crucial to success. Apart from responsive customer support, other signs of good communication practices include:

• Setting clear expectations

• Providing regular updates

• Dedicated communication channels and point of contact

• Transparent reporting

Usually, you can assess this during your preliminary meetings and calls with prospective accounting firms. Giving clear, straightforward answers to your queries shows experience and confidence in their trade. Conversely, if you’re getting vague solutions to your requirements, it might be best to move on to the next candidate.  

Case Studies and Client Testimonials

Whenever possible, ask for case studies or testimonials from past clients. Then, reach out to them and inquire about their experience in working with the outsourced accounting company. This process should give you the final confirmation that they’re the right partner for your business’ accounting needs.  

FAQs

Does my business need outsourced accounting?

The short answer is yes. Various facets of business operations are often tedious and peppered with bureaucracy, especially in the Philippines. Working with the right accounting firm allows you to focus on growing your business and let professionals handle that side of it.

What are the primary benefits of outsourcing accounting services?

Ultimately, it’s a more efficient use of resources. Not only are you saving on the overhead costs of hiring in-house accountants, but you also do away with micromanaging financial functions. Outsourcing also ensures business continuity while getting access to a wider pool of experts. 

What’s the most important consideration when choosing an accounting outsourcing company?

Your accounting needs should always be your primary consideration. Take stock of your existing financial processes and ask yourself what could be improved. This gives you a good baseline when meeting with potential outsourcing companies.