The Cost-Saving Benefits of Outsourcing Bookkeeping in the Philippines

June 11, 2025

In the Philippines, where most businesses are small and medium enterprises (SMEs), bookkeeping can be a costly burden. In-house processes drain resources, especially for firms with complex financials or limited staff.

Triple i Consulting saves money by slashing overhead, reducing errors, and freeing time for growth. Let’s break it down and show why outsourcing is a smart move for corporations and small-to-medium enterprises (SMEs).

Benefit 1: Cutting In-House Costs

Hiring bookkeepers in-house is expensive. Add 13th-month pay, benefits, and office space, and this expense can add up. This can be a big financial burden, especially for small to medium enterprises (SMEs). Relying primarily on an in-house accounting team of 2–5 people poses significant risks for your business. If even one member leaves, they may take critical expertise with them, severely impairing the team’s ability to function.

Outsourcing bookkeeping is typically more reliable and often costs less than hiring a full-time bookkeeper or junior accountant.

For these reasons, SMEs typically maintain a lean in-house accounting team of 2–5 people to handle core internal processes while outsourcing much of their workload for greater cost-effectiveness. Since they won’t need to pay for bonuses, benefits, government contributions, and office space, they can make significant savings annually.

Even large corporations with an established in-house team of bookkeeping staff can become overwhelmed during peak sales seasons (like the holiday season). Rather than permanently expanding their in-house team, they choose to enlist a bookkeeping service provider.

Benefit 2: Reducing Costly Errors

Manual bookkeeping, common in SMEs, invites errors. Global studies show many of these businesses face payroll errors due to human mistakes or outdated systems.

Per Revenue Memorandum Order (RMO) No. 7-2015, bookkeeping errors can lead to costly fines per mistake. Making multiple mistakes means incurring multiple of these fines, which can add up quickly. Businesses dealing with high-value items or large orders are more likely to face even higher fines.

Outsourcing bookkeeping significantly reduces risks. A company avoiding a single fine sees immediate savings.

Large firms often employ senior accountants and experienced bookkeepers to manage internal processes. However, they are not immune to risks. During peak sales seasons, overworked in-house accounting teams may not meet deadlines and become more prone to errors. To mitigate this, the majority of these firms turn to outsourcing, finishing tasks on time, and helping avoid compliance penalties.

Benefit 3: Freeing Time for Growth

In-house bookkeeping diverts valuable time from growth, particularly for SMEs. Typically, the business owner or a manager supervises the staff’s bookkeeping efforts, ensuring accuracy to avoid penalties. This often takes away their focus from client acquisition, marketing, and sales (operations that grow their business).

A low-level manager spending several hours per week overseeing bookkeeping can incur significant opportunity costs For high-level managers or business owners, whose strategic decisions drive company growth, this cost is even higher due to their more valuable time. For example, rather than overseeing bookkeeping tasks, a manager can make an additional net profit by securing more sales.

Outsourcing frees up time so managers can focus on business growth. Professional providers manage all bookkeeping tasks (except data collection, which a regular employee can do), freeing managers and owners to focus on core operations and business expansion.

Scalability and Expertise

Outsourcing offers flexibility. During peak seasons, both SMEs and larger firms need extra support as their in-house teams, including regular employees and accounting staff, are overwhelmed with sales and bookkeeping tasks.

Instead of hiring an additional full-time bookkeeper or junior accountant, outsourcing bookkeeping services is far more cost-effective. Outsourcing lets you pay only for the services you need. Aside from the savings from only paying extra during the peak season rather than year-round (in the case of hiring a full-time employee), you also won’t have to pay for bonuses, benefits, government contributions, and office space.

This cost-efficient approach explains why outsourcing is a widely adopted practice among Philippine businesses!

Summary

Outsourcing bookkeeping in the Philippines saves money for SMEs and large companies alike. When a business’s bookkeeping tasks exceed what employees can handle in their downtime, it’s time to seriously consider outsourcing.

Let’s review the benefits of outsourcing bookkeeping:

Cutting In-House Costs
Reducing Costly Errors
Freeing Time for Growth
Scalability and Expertise

This significant cost savings is perfect for medium-sized companies, allowing you to use the extra funds to expand your business. Large corporations with oversized accounting departments can achieve even greater savings by scaling down and embracing outsourcing. Which of these benefits is the most relevant to your business right now?

You can do the math and check how much you are spending on in-house payroll tasks to see how switching to outsourcing can benefit you. Schedule a consultation with us, and we’ll guide you through the numbers to optimize your payroll process.

Is Your Accounting as Efficient as It Can Be? Book a Consultation to Find Out.

Triple i Consulting is dedicated to delivering great value to our clients. Schedule a consultation so we can evaluate your accounting and identify areas where we can provide support. This process ensures we can provide customized solutions that enhance efficiency and align with your goals.

We’re among the best accounting outsourcing companies in the Philippines, offering bookkeeping, auditing, payroll, and tax consultation services. So let our experienced accountants and lawyers provide comprehensive support for your business, so you don’t have to stress over the paperwork.

You can find a list of our accounting and legal services here.