The Benefits of Back Office Accounting Outsourcing 

Are you looking for new ways to optimize your operational processes and retain a competitive edge in the modern business environment? An increasing number of companies are looking to foreign markets to push innovation in a cost-effective manner. This article will examine the benefits of back-office accounting outsourcing in emerging markets.

Why you should outsource your back-office accounting

Back-office operations refer to tasks that are vital to the functioning of your business but are not part of your main services. The overall success of a company in the eyes of the customer mainly comes down to the value that it brings. That’s why you must identify areas where you can cut costs and focus more on your core services. 

Outsourcing your back-office accounting team offers dual benefits: it enhances your return on investment operationally and in terms of overall service quality.

Outsource to highly skilled accounting talent in emerging markets 

Most commonly outsourced back office accounting roles

One of the main appeals of back-office accounting outsourcing in emerging markets is the fact that you gain access to a much wider talent pool of young professionals at a significantly lower cost than in Western markets. Markets like Indonesia and the Philippines are also gaining a strong reputation for the integration of advanced technology in their training programs.

Accessing RecruitGo’s recruitment network allows you to find highly skilled experts in some of the most popular accounting roles to fit all your accounting needs:

• Accounts Payable and Receivable
• Bookkeepers
• Tax compliance advisors
• Expense managers
• Internal Auditors

Our local advisors can also help you determine which market offers the most specialized accounting talent depending on the specific services you wish to outsource. We’ll also provide labor cost comparisons to help guide your decision-making process.

How to hire remote employees in emerging markets

Once you have sourced talent in overseas markets, the next step is to bring them onto your payroll. You must exercise caution when hiring remote employees in a foreign market, as you will need to set up a legal entity in the market in question, as well as abide by local payroll and labor laws. 

An efficient alternative to consider is partnering with an Employer of Record (EOR), who can act as the legal employer for your remote accounting team. RecruitGo’s EOR service already has the necessary resources that can be operated on a local level, meaning that you can focus on your core operations, while we take care of payroll and benefits administration for your teams.

Our EOR service also includes an App that lets you easily track your outsourced talent contracts, input hours, and manage leave requests. Our advisors can also help you with more complex matters such as employee termination and provide you with local insights for improving remote employee retention.

How to optimize your back office accounting outsourcing process

Set up remote hubs in emerging markets to combine flexibility and structure

A key aspect to consider for back-office accounting outsourcing is how to properly monitor your teams and ensure data protection for potentially sensitive financial information. Remote working hubs are an increasingly popular method of combining the flexibility of outsourced remote work with the structure and logistics of a physical office, leading to several potential benefits:

1. Improved communication between managers and on-site employees
2. More thorough training and development opportunities
3. Easier access to data protection and performance monitoring software
4. Increased employee productivity and idea-sharing

RecruitGo can help you set up a physical office space for your remote accounting team, allowing you to improve overall efficiency through company-provided equipment. We can also set up the necessary software and data encryption to allow you to better manage and protect your company assets and proprietary data.

Outsource local payroll to ensure compliance with local regulations

A leading best practice for optimizing your outsourced back-office accounting is partnering with a managed payroll service to help with cutting costs and company resources on payroll management in foreign markets. This is especially practical if you wish to maintain remote employees on your payroll, rather than through the EOR service.

RecruitGo’s managed payroll service will handle all the necessary administrative tasks required for paying your remote teams according to the market-specific regulations, avoiding you having to navigate the more complex compliance matters:

• We register your remote employees with local authorities
• We will compute all the mandatory statutory deductions on employee salaries
• We calculate overtime and other differentials, as well as tax withholdings
• We will register employee bank data and deposit paychecks according to your schedule

If you are interested in outsourcing your back-office accounting into emerging markets, contact RecruitGo via the form below and one of our local experts will be in touch with you to help you get started!