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Accounting Offshoring

How to Outsource Accounting to the Philippines: A Complete Guide for Employers

Written by Bene De Ramos July 19, 2025

How to Outsource Accounting to the Philippines: A Complete Guide for Employers

There’s an ongoing accountant shortage in many countries like the United States, the United Kingdom, and Australia. In the US alone, there are fewer enrollees for accountant courses but a higher demand for accountants.

Many critical financial and administrative work in a business requires an accountant’s expertise. For example, the monthly fiscal close process takes most accounting teams at least six business days to complete. To address this growing accountant shortage in the West, many businesses seek the help of Filipino accountants.

If you want to start outsourcing finance work, here is a guide on outsourcing accounting tasks to the Philippines. It covers three reasons to outsource accounting to the Philippines and five tips on how to do so efficiently.

Is Outsourcing Accounting a Good Idea?

Yes, if you approach it strategically.

I’ve seen companies transform their operations through smart accounting outsourcing. I’ve also witnessed disasters when businesses rushed into it without preparation. The difference? Understanding when outsourcing makes sense for your specific situation.

Here’s when outsourcing accounting works brilliantly:

You’re experiencing rapid growth. Your local team can’t scale fast enough. Month-end close is pushing past 10 days. Your controllers are drowning in transactional work instead of strategic analysis.

You need specialized expertise temporarily. Tax season. System migrations. Compliance audits. These peaks don’t justify permanent hires, but they demand expert attention.

Your accounting costs are eating into margins. If you’re spending more than 2-3% of revenue on accounting functions, outsourcing can restructure that cost base dramatically.

You want 24/7 coverage. Time zones become an advantage. Your Philippine team processes invoices while you sleep. You wake up to completed reconciliations.

But here’s when to proceed with caution:

Your processes are undefined. Outsourcing amplifies existing problems. If your workflows are chaotic locally, they’ll be chaos at scale.

You handle ultra-sensitive data. While security measures exist, some financial data requires physical proximity and direct oversight.

You’re outsourcing to avoid problems. Outsourcing isn’t a band-aid for deeper organizational issues. Fix the foundation first.

The data tells the real story: Companies that outsource strategically report 40-60% cost savings while improving accuracy rates. Those that rush in? They often spend more fixing problems than they saved initially.

My recommendation? Start small. Choose one clearly defined function: accounts payable, expense processing, or basic bookkeeping. Build trust and processes. Then expand systematically.

Why Outsourcing Accounting to the Philippines Works

Why should you outsource accounting tasks to the Philippines? We listed three main reasons why this change benefits your business, helping you decide if you need it in your company.

Competence in Technical Skills

Accounting is a technical field. Businesses that offshore accounting to the Philippines should be concerned with their technical capabilities.

The financial reporting standards in the Philippines are also internationally recognized. That’s because the Philippines Financial Reporting Standards (PFRS) was adopted from the International Financial Reporting Standards (IFRS).

The IFRS is used in 168 jurisdictions worldwide. While there are a few differences between each country’s financial reporting standards, many countries follow the IFRS. Therefore, if accountants know the IFRS, they can skillfully adjust to similar reporting standards.

Working with a Certified Public Accountant (CPA) from the Philippines ensures compliance with a similar financial reporting standard to other countries. With 200,000 Filipino CPAs, they could fill in gaps within the ongoing global accountant shortage. Their resilience and adaptability make them ideal remote workers for international companies.

High English Proficiency

Another reason why international companies look for an offshore Filipino accountant is because of their high English proficiency. The Philippines ranks 20th in English proficiency worldwide based on the EF English Proficiency Index.

Since English is the standard language of international commerce, English proficiency enables smoother working relationships. It’ll be easier to onboard, train, and collaborate with your offshore CPA. Given the technical terms in finance, English comprehension will make compliance much faster.

Cost Efficiency

One of the main reasons businesses outsource accounting to the Philippines’ skilled CPAs is because it’s a more cost-efficient strategy.

The cost of living in the Philippines is in the lower percentile compared to other countries. As a result, the salary cost of outsourcing accounting services to the Philippines is generally lower.

Its affordability is especially valuable to small or medium-sized enterprises with more limited resources to spend on personnel.

Table 1: Average Monthly Cost of Hiring a Mid-Level Accountant (in U.S. Dollars)

AVERAGE MONTHLY COST OF HIRING A MID-LEVEL ACCOUNTANT (IN USD)
From the Philippines	$2,733
From the USA	$6,667
From the UK	$5,167
From Australia	$6,250
From Singapore	$6,250

Based on the table above, businesses can save an average of 56% monthly if they hire a Filipino accountant. These cost savings can go to other business expenses, like reinvestments, emergency savings, etc.

5 Tips on How to Outsource Accounting to the Philippines

It’s a good idea to know the best course of action before you initiate outsourcing. That’s why we’re covering five actionable tips when outsourcing accounting to the Philippines. Applying these tips will streamline the outsourcing process for your company.

Choose Between Offshoring and Outsourcing

When hiring an accountant in the Philippines, decide between offshoring and outsourcing first.

Outsourcing your accounting tasks gives you little control over the quality of the work. It will also be harder to enforce data security standards. Inconsistencies in scheduling and work deliverables can decrease productivity.

Outsourced teams also require you to constantly familiarize them with your operation standards. That’s because you don’t have long-term work relationships with them. That might work well for ad-hoc tasks, but not for lengthy projects.

However, they’re an affordable short-term solution for overstretched finance teams during crunch time. For example, during tax season, a boost from an outsourced CPA can speed up tax filings.

On the other hand, offshoring is the better option for long-term partnerships, as it gives you more control over the quality of the services you receive.

Onboarding allows you to create secure work systems with offshore accountants. This solution remains remarkably affordable. Offshoring still gives long-term savings through reduced labor costs.

These extended collaborations lead to improved financial stability in the long run. Long-term partnerships also enhance synergy leading to consistently higher quality deliverables.

Partner With A Reliable Offshoring Company

Should you choose offshore accounting services in the Philippines, partnering with a reputable offshoring company is important.

A reliable offshore company should have a track record of long-term partnerships and multiple success stories. Look at verified reviews to know if an offshore company can give you the right people for the job you’re hiring for.

Assess and Verify Qualifications

Ensure you are working with a CPA. Doing your due diligence ensures high professional and ethical standards from your CPAs.

If you work with an offshore company, they should verify that the candidate meets these qualifications:

Passed the Professional Regulation Commission’s (PRC) CPA Licensure Examination
Is a member of the Philippine Institute of Certified Public Accountants (PICPA). PICPA is a reputable organization that’s been a member of the International Federation of Accountants (IFAC) since 1977.

These qualifications corroborate the validity and expertise of the CPA you are working with. Thus, reputable offshore companies only hire verified CPAs with these accreditations.

Determine the Accounting Tasks to Outsource

Before you work with an offshore CPA, finalize which accounting tasks to delegate. The most common offshored tasks are bookkeeping tasks, but there are other financial accounting tasks you can pass on, such as:

Auditing
Accounts payable
Accounts receivable
Cash flow management
Financial controller tasks
Financial data collection and analysis
Financial forensics
Payroll processing
Tax filing and reporting

It all comes down to which tasks you prefer keeping in-house and those you want to assign to your offshore remote team.

What Should You Not Outsource?

Some financial functions should stay close to home. Never outsource these functions:

Strategic Financial Planning and Analysis

Your FP&A team shapes company strategy. They need intimate knowledge of your business model, competitive landscape, and leadership dynamics.

I’ve watched companies try to offshore strategic planning. The disconnect between data and context becomes painfully obvious during board presentations.

Treasury and Cash Management

Direct access to company funds requires maximum oversight. While you can outsource cash flow reporting and analysis, the actual movement of money should remain under direct control.

One client learned this lesson expensively when communication delays in their outsourced treasury function caused them to miss a critical vendor payment, triggering contract penalties.

Executive-Level Financial Decision Support

Your CFO’s right hand should be in the same time zone, if not the same building. When the CEO needs immediate financial modeling for an acquisition, you can’t wait for tomorrow’s overlap window.

Regulatory Compliance in Highly Regulated Industries

Healthcare, financial services, and government contractors face unique compliance requirements. While Filipino accountants understand IFRS, they may not grasp the nuances of SOX compliance or industry-specific regulations.

Investor Relations and Board Reporting

These communications shape your company’s valuation and strategic direction. They require deep understanding of your business narrative, competitive positioning, and growth strategy.

Proceed with extreme caution when outsourcing:

Financial systems implementation (keep project management local)
Internal audit functions (maintain independence)
Complex tax planning (regulations change too quickly)
M&A due diligence (confidentiality is paramount)

The principle is simple: Outsource execution, not strategy. Outsource processing, not decision-making. Outsource routine tasks, not relationship management.

Think of it this way: if the function requires deep business context, keep it close. If it requires consistent execution of defined processes, it’s a candidate for outsourcing.

Secure Your Financial Data at All Times

The financial sector continues to make significant strides in cybersecurity to protect against cyberattacks. This demonstrates businesses’ need to safeguard sensitive financial data, especially when offshoring.

Thoroughly aligning your offshore accounting staff emphasizes the importance of data security. You should also include a non-disclosure agreement (NDA) in your contract with your Filipino accountant as legal protection for your sensitive data.

Ask your offshore service provider about their data encryption and protection measures. It’s for your benefit to be proactive and responsible when it comes to handling financial data.

Timely audits help you monitor the accuracy and compliance of your offshore CPAs. Monthly or quarterly financial reports also inform you if there are inconsistencies to flag.

As you scale your business with your offshore team, it’s important to conduct thorough quality checks. This helps ensure that data security risks are minimized and that nothing goes unnoticed.

Offshore Accountants: Your Accounting’s Time-Saver and Efficiency Booster

Working with Filipino accountants is the cost-efficient solution to a growing shortage of accountants everywhere. With their internationally recognized skills, you can confidently assign them to your financial statements reporting.

Establishing an offshore accountant team can especially stabilize your accounting process. A team of offshore CPAs is the better choice for companies that value long-term collaborations.
Remember to work with a trustworthy offshore company when hiring an offshore CPA. They’ll connect you with qualified accountants of all levels. These CPAs will keep your business legally compliant and your accounting data secure. Their presence will not only protect your company but also position it for long-term growth.