Almost one in five Australian small businesses (18%) operate without cash reserves. Around 50% of SME leaders have taken a hit on their own income. A third have used personal funds to pay business costs. The result? 43% report burnout or high stress (s: Prospa, a leading lender to SME Australian businesses).
Now, global trade is disrupted. Currency volatility has seen the Australian dollar fall from to 63 US cents from a high of 69 US cents September 2024.
Making a profit in this environment requires Australian businesses to find new and flexible ways to reduce costs and protect core operations.
Six wins for Australian business from outsourced accounting services and offshore IT
1. Cost savings to counter inflation and ripple down from tariffs
Labour costs in the Philippines are significantly lower than in Australia, allowing companies to reduce payroll expenses while maintaining high service quality.
Outsourcing eliminates overhead costs like office space, utilities, and employee benefits.
Savings from outsourcing can be reinvested into core business operations and expansion.
2. Access to highly skilled talent
The Philippines produces thousands of Certified Public Accountants (CPAs) annually, trained in IFRS and Australian tax laws.
IT outsourcing companies in the Philippines provide highly trained talent that’s noted for being more flexible than Indian talent.
High English proficiency and Australia-friendly business culture ensure smooth collaboration with Australian teams.
‘’Yempo’s Australian, Philippines-based CEO understands the Australian way of doing business.’’
Russell K., Yempo client
3. Business resilience and scalability
Economic uncertainty requires flexible operations. Outsourcing allows companies to scale offshore accounting and offshore IT teams up or down as needed.
No long-term hiring commitments—businesses can adjust workforce sizes based on demand fluctuations.
4. Supply chain diversification and risk mitigation
Many Australian businesses depend on China for imports, making them vulnerable to the impacts of tariffs and trade restrictions.
The Philippines provides an alternative outsourcing hub, reducing reliance on unpredictable markets.
Offshore IT and outsourced accounting services help manage financial risks, compliance, and operational continuity.
5. Strengthening export competitiveness
Australian exporters facing tariffs can cut operational costs by outsourcing accounting and IT services.
Businesses can reallocate resources to marketing, logistics, and product development instead of costly in-house services.
Cloud-based accounting solutions (Xero, MYOB, QuickBooks) and AI-driven financial analytics improve financial efficiency.
6. Currency stability and financial flexibility
A more volatile Australian dollar poses financial risks, but outsourcing helps hedge against exchange rate fluctuations.
Many outsourcing firms offer fixed monthly contracts in USD or PHP, providing cost predictability.
Lower operational expenses protect businesses from inflationary pressures.
Outsourcing to the Philippines offers economic protection to SMEs.
By outsourcing IT and accounting to the Philippines, Australian businesses can cut costs, access top talent, ensure compliance, and scale operations flexibly—all while navigating inflation, trade disruptions, and economic uncertainty. This strategy not only protects businesses from financial risks but also enhances efficiency, competitiveness, and long-term growth.
‘’They give us access to a cost-effective pool of high-quality candidates, plus great advice. Yempo is a good employer from the perspective of local, Philippines, staff.’’
Kirsten F., Yempo client
Thank you for visiting our blog! We hope you found our content informative and engaging. Stay connected with us for more insightful blogs, updates, and tips on outsourcing IT and outsourcing finance in the Philippines, or shoot us an email at [email protected]. We are happy to answer your questions!
