Go Offshore By Offshoring Accountants & Admin Staff (Philippines vs. Australia)

1. Go Offshore: Slash Your Costs By Offshoring Accountants & Admin Staff (Philippines vs. Australia) After the pandemic, offshoring has become a strategic tool for many Australian companies to lessen the economic impact of higher business overheads. To highlight this, a 2023 study by Gartner revealed that 70% of Australian businesses are considering or actively implementing offshoring strategies. These companies go offshore to leverage the high-quality talent pool of host countries by hiring skilled professionals in different fields. PwC's 2023 Global CEO Outlook reported that cost reduction remains a top priority for Australian CEOs, with 72% citing it as a key business objective. For this reason, the process of strategic business flexibility through offshoring often yields a significant cost advantage compared to domestic hiring when done right. This strategy extends to fields like accounting and administrative support, where a highly qualified workforce can be found in select international locations, like the Philippines.

2. The Philippines, with its strong English proficiency and established business infrastructure, has emerged as a leading destination for Australian businesses seeking offshore accounting and administrative positions. Compared to Australia, the cost savings associated with offshoring these roles to the Philippines can be substantial. Through our cost-benefit analysis, we can help you decide if offshoring accountants and administrative staff to the Philippines aligns with your business goals. Explore the financial advantages of both options and equip yourself to make an informed decision. Breakdown of Salary Costs: Philippines vs. Australia Now, let's dissect the core elements of cost savings: salaries and benefits. Through comparing the average annual costs associated with employing accountants and administrative staff in the Philippines with relevant experience levels in contrast with their local counterparts in Australia. To also consider the additional expenses of employee benefits packages in each location. Accountants: ● The Philippines: ○ Average annual salary (experienced): ₱800,000 - ₱1,000,000 (approximately A$18,000 - A$23,000), data from JobStreet Philippines. ○ Benefits: Typically include health insurance, a 13th month pay bonus, and limited paid time off. ● Australia: ○ Average annual salary (experienced): A$70,000 - A$90,000, from SEEK Australia. ○ Benefits: Typically include comprehensive health insurance, generous paid leave allowances (annual leave, sick leave, etc.), and superannuation (retirement savings contribution).

3. Administrative Staff: ● The Philippines: ○ Average annual salary (experienced): ₱400,000 - ₱600,000 (approximately A$9,000 - A$14,000), data from JobStreet Philippines. ○ Benefits: Similar to accountants, benefits often include health insurance, a 13th month pay bonus, and limited paid time off. ● Australia: ○ Average annual salary (experienced): A$65,000 - A$75,000 data, from SEEK Australia. ○ Benefits: Similar to accountants, Australian admin staff typically receive comprehensive health insurance, generous paid leave packages, and superannuation contributions. Cost Comparison: The potential cost savings on salaries alone are undeniable. Hiring an experienced accountant in the Philippines can translate to savings of A$52,000 - A$67,000 annually compared to hiring in Australia. Similarly, employing experienced administrative staff in the Philippines offers potential savings of A$51,000 - A$61,000 per year. Benefits Considerations: While the initial salary figures are attractive, a comprehensive cost analysis requires factoring in benefits. Australian benefits packages tend to be more extensive, encompassing health insurance, generous paid leave allowances, and superannuation contributions. These additional costs should be considered when making your final decision. Beyond Salary Savings: The Philippines Advantage The cost savings associated with practical strategies in offshoring to the Philippines extend beyond the attractive salary and benefit packages we

4. discussed previously. Here are some additional ways your Australian business can optimise expenses: ● Reduced overhead costs: Office space and utilities in the Philippines are generally more affordable compared to Australia. This translates to potential cost reductions in rent, electricity, internet, and other operational expenses. ● Government Incentive Programmes: The Philippine government actively seeks to attract foreign investment and job creation. They offer various programmes that provide tax breaks, special economic zone benefits, and other incentives for qualifying businesses. Exploring these programmes can unlock further cost savings when offshoring to the Philippines. Case in Point: The Philippine Economic Zone Authority (PEZA) offers exemptions on income tax, customs duties, and even immigrant fees for businesses operating within designated economic zones (https://www.peza.gov.ph/). This can be a significant financial advantage for eligible companies. Important Note: Eligibility for government incentives can vary depending on your industry, chosen location within the Philippines, and the level of investment you make. To determine if your company qualifies for any specific programmes, we recommend consulting with a professional who specialises in Philippine business regulations. Strategically leverage these additional cost benefits alongside salary savings to maximise how offshore outsourcing to the Philippines can deliver a compelling financial advantage for your Australian business. Beyond Cost: Building a Skilled Offshore Team While cost savings are undeniably attractive, offshoring to the Philippines should not compromise your access to qualified and experienced talent.

5. Skilled accountants and administrative staff are essential for any successful business operation. The Philippines offers a robust solution as it boasts a well-educated workforce with many professionals holding internationally recognized qualifications. Excellent English language proficiency is also prevalent, ensuring seamless integration into your Australian business. However, successful offshoring requires acknowledging and addressing potential challenges: ● Time Zones and Communication Strategies: The 14-hour time difference between Australia and the Philippines can impact communication and collaboration. This hurdle can be overcome by establishing clear communication protocols, scheduling overlapping work hours, and leveraging effective communication tools. ● Cultural Considerations and Avoiding Misunderstandings: Cultural sensitivity is key to fostering successful collaboration. Building a culture of open communication and providing clear expectations can bridge cultural gaps and ensure a smooth working relationship with your Philippine-based team. You should carefully consider these factors and implement appropriate strategies. Unlock the full potential of a skilled Philippine workforce and ensure a successful offshoring experience for your Australian business. The Philippines Advantage for Australian Businesses Offshoring accounting and administrative functions to the Philippines presents a strategic opportunity for Australian businesses to achieve substantial cost savings while securing access to a highly skilled talent pool. This approach offers a compelling advantage. The Philippines boasts a well-educated workforce with competitive salary structures compared to Australia. You gain access to a pool of qualified accountants and admin staff with strong English language abilities, ensuring smooth integration into your existing operations. Reduced overhead costs and potential government

6. incentives in the Philippines further enhance the financial benefits of offshoring. While time zone differences and cultural considerations require careful planning, these can be effectively addressed through clear communication protocols and fostering a culture of open collaboration with your Philippine-based team. Are you ready to capitalise on these benefits? We recommend exploring resources on outsourcing accounting and admin services. Consider seeking consultations with specialists who can assess your specific business needs and guide you towards successful offshoring.