For many private equity (PE) companies, outsourcing back-end and administrative functions has become a go-to strategy, and the Philippines is a preferred outsourcing location for good reason. With easy access to skilled professionals and a time zone difference that enables a 24-hour workday, the country provides a unique advantage. And when it comes to fulfilling PE firms’ accounting and finance needs, the Philippines is well-positioned to provide seamless and scalable support. Here are three reasons why outsourcing to the Philippines can help you deliver great service to your LPs without the overheads of an in-house team:
1. Access to highly skilled talent
For many private equity (PE) companies, outsourcing back-end and administrative functions has become a go-to strategy, and the Philippines is a preferred outsourcing location for good reason. With easy access to skilled professionals and a time zone difference that enables a 24-hour workday, the country provides a unique advantage. And when it comes to fulfilling PE firms’ accounting and finance needs, the Philippines is well-positioned to provide seamless and scalable support. Here are three reasons why outsourcing to the Philippines can help you deliver great service to your LPs without the overheads of an in-house team:
Expanding Financial Services Sector: The financial services sector in the Philippines has been growing rapidly in recent years. As part of this growth, international and domestic private equity firms and investment management companies have been establishing a presence in the country. This expansion creates opportunities for accountants to work in private equity fund accounting and support these organizations.
Global Integration: The accounting profession in the Philippines is becoming more globally integrated, aligning with international accounting standards and practices. Private equity fund accounting follows specific standards and reporting requirements, often based on international frameworks like the International Financial Reporting Standards (IFRS). Accountants in the country are familiar with these standards and able to provide accurate and reliable financial information for private equity funds.
Career Development Opportunities: Filipino accountants are increasingly choosing to specialize in private equity because of the attractive compensation, exposure to high-profile deals, cross-disciplinary skill development and challenging work. It’s a growing and competitive field which ensures PE companies that outsource their work have access to highly educated and motivated talent.
2. Data Security and Compliance
The legal and regulatory framework for accounting and finance in the Philippines is well-established and follows international standards. The Philippine government implemented the Data Privacy Act of 2012 (DPA), which governs the public and private sectors’ collection, use, and protection of personal information. Additionally, there are rigorous cybercrime prevention and anti-money laundering regulations in place. Outsourcing to the Philippines can provide private equity firms with access to specialized data security expertise and advanced technology infrastructure while ensuring compliance with local laws and regulations. The Data Privacy Act of 2012 is aligned with other privacy laws such as the California Consumer Privacy Act and the General Data Protection Regulation.
3. Cost Effectiveness
Outsourcing to the Philippines is the way to go for cost-effective outsourcing without sacrificing industry expertise. Thanks to a lower cost of living and a thriving business process outsourcing industry, the country boasts two main advantages that can help businesses cut costs:
Lower labor costs: The lower cost of living in the Philippines translates to lower wages for skilled professionals, including accountants. US businesses can access highly skilled accounting professionals at a lower cost than hiring and managing an in-house team. In turn, this translates to significant savings in operating costs, which can then be invested in other areas of the business.
State-of-the-art infrastructure and technology: The Philippines has invested heavily in its infrastructure and technology, providing businesses with state-of-the-art facilities, high-speed internet, and cutting-edge accounting software. By outsourcing to the Philippines, your private equity firm can enjoy access to these tools at a lower cost.
Outsource your accounting and finance needs to our Philippines-based teams
At Scrubbed, we understand that managing a private equity firm’s accounting, tax, and finance needs can be time-consuming and overwhelming. Our Philippines-based teams provide expertise in complex financial tasks, including distribution waterfall calculations and disbursements, rate of returns calculation, and subsequent capital calls. We also manage financial reporting, audit support, compliance support, and dashboard and data visualizations for fund performance, all more cost-effectively than recruiting and managing an in-house team. Let us take on the admin and back-end work, leaving you free to focus on what you do best – maximizing your funds.
