Increase business efficiency with our qualified finance teams.

Financial accounting is the process of recording, summarizing, and reporting financial transactions of a business to external stakeholders, such as investors, creditors, and regulatory authorities. The primary objective of financial accounting is to provide accurate and reliable information about the financial position, performance, and cash flow of the business.

1. Recording Transactions: This entails documenting all financial activities, such as sales, purchases, expenses, and payments, following double-entry bookkeeping principles.
2. Classifying Transactions: Transactions are categorized into specific accounts, such as assets, liabilities, equity, revenue, and expenses, based on their nature.
3. Posting to General Ledger: Recorded transactions are transferred from journals to the general ledger, which serves as a central repository for all accounts used by the business.
4. Preparing Financial Statements: Financial statements, including the income statement, balance sheet, and cash flow statement, are compiled to provide a comprehensive overview of the business's financial performance and position.
5. Reconciling Accounts: Accounts are reconciled to ensure that the balances in the accounting records align with those in corresponding accounts, such as bank accounts and accounts receivable/payable, resolving any discrepancies that may arise.
6. Closing the Books: End-of-period procedures are performed to close temporary accounts (e.g., revenue and expense accounts) and prepare the books for the next accounting period.
7. Compliance and Reporting: Compliance with accounting standards and regulations, such as GAAP or IFRS, is ensured, and financial reports are prepared for external stakeholders, such as annual reports, tax returns, and regulatory filings.

Payrollinvolves managing various aspects of employee compensation and ensuring compliance with legal and regulatory requirements. Key tasks include:

1. Employee Data Management:Collecting and maintaining accurate employee information such as personal details, tax forms, bank accounts, and salary details.
2. Timekeeping:Tracking employee work hours, including regular, overtime, and leave, to calculate accurate payroll amounts.
3. Salary Calculation:Computing employee salaries or wages based on rates, commissions, bonuses, and deductions.
4. Tax Withholding:Deducting federal, state, and local taxes, as well as Social Security and Medicare taxes, from employee paychecks in line with regulations.
5. Benefits Administration:Managing employee benefits like health insurance and retirement plans, and ensuring correct deductions.
6. Payroll Processing:Executing payroll payments via various methods and issuing pay stubs or electronic statements.
7. Compliance and Reporting:Adhering to labor laws and tax regulations, and fulfilling reporting obligations to government agencies.
8. Record keeping:Maintaining detailed payroll records for auditing, reporting, and reference purposes.

Financial planninginvolves creating a comprehensive strategy to manage the company's finances effectively and achieve its financial objectives.

1. Revenue Forecasting: Estimating future income streams based on sales forecasts, market trends, and historical data to establish achievable revenue goals.
2. Expense Management: Identifying and organizing expenditures, including operational costs, payroll, marketing, and overhead, to create a budget for monitoring and optimizing expenses.
3. Cash Flow Management: Monitoring cash inflows and outflows to ensure sufficient funds for daily operations, investments, and debt obligations.
4. Capital Budgeting: Assessing investment opportunities, such as new projects or expansions, to allocate financial resources efficiently for maximum returns.
5. Financial Risk Assessment: Identifying potential financial risks, like market fluctuations or regulatory changes, and devising strategies to mitigate these risks.
6. Financial Performance Analysis: Analyzing financial statements to evaluate the company's fiscal health and pinpoint areas for improvement.
7. Tax Planning and Compliance: Strategizing to minimize tax burdens while adhering to tax laws and regulations, leveraging incentives and deductions when applicable.
8. Capital Structure Management: Determining the ideal mix of debt and equity financing to fund operations and investments while managing financial leverage.
9. Contingency Planning: Developing backup plans for unforeseen circumstances, such as natural disasters or economic downturns, to maintain financial stability.

Tax compliancefor businesses involves adhering to the laws and regulations set forth by the government regarding tax obligations.

1. Record keeping: Businesses must maintain accurate financial records detailing income, expenses, assets, liabilities, and transactions.
2. Tax Calculation: Calculating the taxes owed based on applicable tax rates, deductions, credits, and exemptions.
3. Tax Filing: Completing and submitting tax returns and associated forms to the relevant tax authorities by specified deadlines.
4. Payment of Taxes: Ensuring timely payment of taxes owed, including income, payroll, sales, and property taxes.
5. Compliance Reporting: Providing necessary information and documentation to demonstrate compliance with tax laws, such as financial statements and audit trails.
6. Tax Planning: Developing strategies to minimize tax liabilities through legal means, maximizing deductions, credits, and exemptions.
7. Communication with Tax Authorities: Responding to inquiries, requests, and audits from tax authorities, providing information and explanations as required.
8. Monitoring Changes in Tax Laws: Staying updated on tax law changes that may impact the business and adjusting compliance practices accordingly.
9. Documentation: Maintaining comprehensive records of all tax-related activities, including filings, payments, correspondence, and supporting documentation.

A business audit is a systematic examination of a company's financial records, processes, and operations to ensure accuracy, compliance, and efficiency.

1. Financial Audit: Reviewing financial statements, such as income statements, balance sheets, and cash flow statements, to verify accuracy and adherence to accounting standards.
2. Internal Controls Audit: Assessing the effectiveness of internal controls and procedures in place to safeguard assets, prevent fraud, and ensure compliance with regulations.
3. Compliance Audit: Ensuring compliance with relevant laws, regulations, and industry standards governing financial reporting, taxation, and business operations.
4. Operational Audit: Evaluating the efficiency and effectiveness of business processes and operations to identify areas for improvement and cost-saving opportunities.
5. Risk Assessment: Identifying and evaluating risks and vulnerabilities that could impact the company's financial health, reputation, or regulatory compliance.
6. Documentation Review: Examining supporting documentation, records, and evidence to substantiate financial transactions and ensure completeness and accuracy.
7. Reporting: Summarizing audit findings, observations, and recommendations in audit reports for management, stakeholders, and regulatory authorities.
8. Follow-Up: Monitoring the implementation of audit recommendations and corrective actions to address identified issues and improve business practices.

A finance manager or Chief Financial Officer (CFO) is a key executive responsible for overseeing the financial operations and strategy of a company.

1. Financial Planning and Analysis: Creating financial plans, budgets, and forecasts to guide business decisions and ensure growth.
2. Financial Reporting: Preparing and analyzing financial statements to evaluate the company's performance and position.
3. Risk Management: Identifying and managing financial risks to protect the company from market volatility and other uncertainties.
4. Capital Management: Optimizing the company's capital structure by managing debt and equity financing.
5. Treasury Management: Managing cash flow, liquidity, and investments to support operations and maximize returns.
6. Financial Compliance: Ensuring adherence to financial regulations and reporting requirements.
7. Strategic Planning: Collaborating with executives to develop and implement strategic initiatives aligned with company goals.
8. Stakeholder Communication: Communicating financial performance and risks to stakeholders to foster trust and transparency.
9. Financial Leadership: Providing guidance to the finance team and promoting a culture of excellence and accountability.

Offshoring finance needs to the Philippines offers numerous benefits, making it an attractive option for businesses looking to optimize their financial operations. Here are some key advantages:

• Cost Savings

  • Lower Labor Costs: Hiring skilled financial professionals in the Philippines is significantly cheaper compared to the US, UK, or other Western countries, leading to substantial savings on salaries and benefits.

  • Reduced Overheads: Lower operational costs, including office space and utilities, contribute to overall cost efficiency.

• Skilled Workforce

  • Qualified Professionals: The Philippines has a large pool of certified accountants and finance professionals with expertise in international accounting standards, such as GAAP and IFRS.

  • High Education Standards: Many Filipino finance professionals have degrees in accounting, finance, and business administration from reputable institutions.

• English Proficiency

  • Clear Communication: High English proficiency ensures effective communication with international clients, reducing misunderstandings and enhancing collaboration.

  • Documentation and Reporting: English fluency aids in preparing accurate financial reports and documentation that meet global standards.

• Cultural Compatibility

  • Western Business Practices: Familiarity with Western business practices and work culture helps in seamless integration with global teams.

  • Customer Service Orientation: Strong customer service skills ensure a high level of client satisfaction and support.

• Government Support

  • Incentives and Policies: The Philippine government offers various incentives, such as tax breaks and simplified business processes, to attract foreign investment in the BPO sector.

  • PEZA Benefits: Companies operating in special economic zones may receive additional benefits, including tax holidays and exemptions.

• Scalability and Flexibility

  • Easily Scalable Teams: Businesses can quickly scale their finance teams up or down based on project needs or business growth, providing flexibility in resource management.

  • Access to a Broad Talent Pool: The availability of a wide range of financial professionals enables companies to find specialized skills as required.

• Focus on Core Business

  • Outsource Administrative Tasks: Offshoring finance tasks allows businesses to focus on core activities and strategic growth while outsourcing routine financial processes.

  • Enhanced Efficiency: Dedicated offshore teams can handle bookkeeping, payroll, tax compliance, and other financial functions more efficiently.

• Technology and Infrastructure

  • Advanced Tools and Systems: Filipino finance professionals are adept at using modern accounting software and financial management systems.

  • Improving Connectivity: The Philippines is continuously improving its IT infrastructure, ensuring reliable and secure remote work capabilities.

• Compliance and Security

  • Adherence to Standards: Offshore teams in the Philippines are well-versed in international regulatory standards and compliance requirements.

  • Data Security: Strong emphasis on data protection and security measures to safeguard sensitive financial information.

Overall, offshoring finance needs to the Philippines provides businesses with a cost-effective, skilled, and flexible solution that enhances operational efficiency while maintaining high standards of quality and compliance.

• Certified Public Accountants (CPAs): Skilled in accounting, auditing, and tax services.

• Bookkeepers: Experienced in managing daily financial transactions and maintaining accurate financial records.

• Payroll Specialists: Experts in handling payroll processing, compliance, and reporting.

• Financial Analysts: Proficient in analyzing financial data, preparing reports, and providing insights for decision-making.

• Tax Specialists: Knowledgeable in local and international tax regulations, compliance, and planning.

• Accounts Payable/Receivable Specialists: Focused on managing invoicing, payments, and collections.

• Auditors: Conducting internal and external audits to ensure financial accuracy and regulatory compliance.

• Management Accountants: Providing financial analysis and insights to support business strategy and operations.

• Treasury Analysts: Managing cash flow, investments, and financial risk.

• Compliance Officers: Ensuring adherence to financial regulations and standards.

• Financial Controllers: Overseeing financial reporting, budgeting, and internal controls.

• Budget Analysts: Preparing and monitoring budgets, analyzing variances, and forecasting.

• Cost Accountants: Analyzing production costs and efficiency, providing insights for cost management.

These professionals are typically well-educated, certified, and experienced in their respective fields, making the Philippines a strong choice for offshoring finance-related tasks.

The latest figures from CHED, stated there were over 200,000 CPA’s in 2023.

We use and have skilled knowledge of many of the core platforms businesses use today, including;

• Xero
• Quickbooks
• MYOB
• Net Suite
• SAP
• Sage
• Freshbooks
• Rekon
• Zoho
• Wave