I understand the concern. Poorly structured compliance efforts result in senior staff performing low-value administrative work, fragmented systems, and duplicated effort. This is where most implementations fail.

Effective AML implementation is not about adding significant cost. It is about structuring delivery properly.

First, responsibilities need to be clearly defined. Compliance should not sit informally across multiple roles. There should be ownership, supported by defined processes.

Second, work should be segmented appropriately. High-value judgement should sit with senior staff. Repeatable, process-driven tasks can be handled by trained support teams.

This is where a dedicated AML/CTF administrative function becomes critical. These roles are responsible for gathering, maintaining, and updating key client information, ensuring that documentation is complete, accurate, and consistently applied across the client base.

Third, systems and automation should be used where appropriate. Many AML activities are rules-based and can be standardised.

Finally, firms should consider how to leverage their offshore or support teams for documentation, monitoring, and administrative components. This allows compliance to scale without overloading core staff.

The objective is not just compliance — it is sustainable compliance.

Firms that approach AML in a structured way will not only meet regulatory requirements, they will also improve operational efficiency.

At our upcoming webinar on 22nd April, we will be joined by Dr Mathew Leighton Daly, Special Counsel at HWLE Lawyers and an academic at Sydney University specialising in AML and Financial Crime. We will show how firms are implementing AML frameworks in a commercially viable way, without disrupting their core business.

Register here: https://fjzdo.share-eu1.hsforms.com/2hjjl1x24ThmAIGR6dv2sng

An effective AML framework is not about ticking boxes. It is about building a system that is consistent, defensible, and scalable.

At a practical level, this involves several core components.

A clear risk assessment process. Firms must define how they assess client risk, including factors such as industry, geography, transaction profile, and ownership structures.

Structured client onboarding is critical. This includes standardised procedures for gathering the right information, identifying beneficial ownership, and ensuring accurate risk classification.

Ongoing monitoring is where many firms will fall short. Monitoring should be embedded into workflows, not treated as an afterthought.

Reporting mechanisms. There needs to be a method so suspicious matters are identified, escalated, and reported in line with regulatory expectations.

Staff training and accountability is essential. Notwithstanding the appointment of a Compliance Officer, compliance cannot sit with one individual. It must be understood and executed across the organisation.

Firms need to draw a clear distinction between theoretical compliance and operational compliance. Many firms have policies. Far fewer have processes that are actually followed. This is where structure matters — defined roles, repeatable workflows, and supporting systems.

At our upcoming webinar on 22nd April, we will be joined by Dr Mathew Leighton Daly, Special Counsel at HWLE Lawyers and an academic at Sydney University specialising in AML and Financial Crime. In the webinar, we will break down how to translate AML requirements into practical, day-to-day operations that work in real firms.

Register here: https://fjzdo.share-eu1.hsforms.com/2hjjl1x24ThmAIGR6dv2sng

From what I am seeing across our client firms, there are several consistent gaps.

First, many firms do not yet have a documented AML program. Processes may exist informally, but without formal documentation, they are difficult to demonstrate, enforce, or audit.

Second, client due diligence is inconsistent. Initial checks may be performed, but there is little standardisation in how risk is assessed, recorded, and reviewed.

Third, ongoing monitoring is often absent. AML is not a “point-in-time” exercise, yet many firms treat it as part of onboarding rather than a continuous obligation.

Fourth, there is an over-reliance on manual processes or junior staff. This creates both quality risk and scalability issues, particularly as client volumes increase.

Finally, there is a persistent assumption that smaller firms are unlikely to be targeted. This is a dangerous misconception. Regulatory focus is expanding, and like the ATO, enforcement is increasingly data-driven.

The reality is that most firms are partially compliant at best. They are not ready for this.

Understanding where your gaps are is the first step. Addressing them in a structured way is the next.

At our upcoming webinar on 22nd April, we will be joined by Dr Mathew Leighton Daly, Special Counsel at HWLE Lawyers and an academic at Sydney University specialising in AML and Financial Crime. We will walk through the most common failure points and how to assess your current position against emerging expectations.

Register here: https://fjzdo.share-eu1.hsforms.com/2hjjl1x24ThmAIGR6dv2sng

This is a risk. And not a theoretical risk. Globally, AML enforcement has moved from guidance to action. Australia is following that trajectory.

What is being introduced is not a minor compliance adjustment. It is not a Tax Agent compliance requirement, per se. What is happening is a structural shift in how firms are expected to understand their clients, monitor activity, and demonstrate accountability to regulators.

For accounting firms, bookkeepers, mortgage brokers, and advisors, the scope is expanding, and expectations are rising.

In practical terms, what the AML changes mean is:

– More formalised client due diligence requirements
– Documented AML/CTF programs
– Ongoing monitoring obligations (not just onboarding checks)
– Increased regulatory scrutiny and enforcement activity

If you are wondering what CTF means — it refers to Counter-Terrorism Financing. Importantly, just because you are not dealing with terrorists does not mean the rules do not apply.

The critical issue at the moment is timing. Many firms assume there is a long runway to prepare. In reality, by the time enforcement begins, regulators will expect systems, processes, and responsibilities to already be embedded.

Firms that act early will treat this as an opportunity to build structured, scalable compliance frameworks. Those that delay will be forced into reactive, costly fixes.

At our upcoming webinar on 22nd April, we will be joined by Dr Mathew Leighton Daly, Special Counsel at HWLE Lawyers and an academic at Sydney University specialising in AML and Financial Crime.

We will be unpacking what these changes mean in practical terms, including who is affected and how to prepare.

Register here: https://fjzdo.share-eu1.hsforms.com/2hjjl1x24ThmAIGR6dv2sng

His company, Profitmaster Global Outsourcing, is based in the Philippines and serves as a crucial partner to accounting firms in this environment, offer the ability to fill roles efficiently and cost-effectively. The firm provides access to a broad pool of skilled accounting professionals from the Philippines, known for their expertise and ability to integrate seamlessly with Australian operations. This collaboration is essential as firms face the dual challenge of managing costs and meeting increasing demands. 

A Future-Proof Strategy 

As Australian accounting firms continue to adapt to evolving business environments and economic challenges, offshoring offers a strategic advantage that goes beyond the bottom line. It provides firms with the agility to scale their teams as needed, the flexibility to accommodate remote work preferences, and the opportunity to access a global pool of talent for both permanent roles and temporary contractor needs. 

Professional Development & Flexibility 

While cost savings are a key driver of offshoring, it is the added value in professional development and flexible work arrangements that truly sets the solution apart. In a climate where flexible work is highly sought after, accounting firms can tap into a global workforce that not only meets their technical needs but also thrives in remote environments.  

Offshoring providers like Profitmaster have designed their recruitment processes and support systems to foster continuous professional growth, ensuring that offshore teams stay up to date with industry trends and best practices. 

Furthermore, the demand for flexible work arrangements and professional development support makes offshoring an attractive solution. Profitmaster’s recruitment team and high-end information security platform not only facilitates immediate staffing needs but also supports ongoing professional development, aligning with the priorities of Australian firms to foster a dynamic, skilled workforce. 

Harnessing the power of offshoring can transform your business. Our professional services provide you with highly skilled professionals who are ready to tackle the tasks and services you require. “Understanding each of the different terms, because they do all mean something slightly different, is quite important when you’re trying to work out what you need and what will suit you best”. – Delia MacKenzie – Director, Client and Growth Engagement (Profitmaster Global Outsourcing). Source: Top 5 Reasons to Consider Offshoring: Lunch and Learn Panel Series #4

By tapping into an abundant talent pool, you can typically save on salaries and reduce total employment costs by 60% to 70%. Derek Gallimore – Founder and CEO (Outsource Accelerator) highlights, ‘Any role that can be done in front of a computer, can be done offshore highly efficiently, and effectively.’ Source: Build Your Global Team by Offshoring with Derek Gallimore and Richard Croaker. This efficiency translates into significant cost savings and increased productivity for your business.

Why Choose Filipino Professionals?

‘The career development, the salary, the benefits… building great relationships, summarizes the holistic approach to professional growth in the Philippines. Derek Gallimore – Founder and CEO (Outsource Accelerator)

Filipino professionals stand out for their exceptional skills and dedication. Fluent in English, our team excels in communication, ensuring seamless collaboration. Filipino’s bond very strongly with their coworkers, fostering a strong community and supportive work environment.

The passion for excellence among Filipino workers is evident in their commitment to delivering high-quality work. This dedication is not just about the tasks but also about building great relationships.

Building Strong Team Dynamics

Building strong team dynamics is crucial for the success of any global team. ‘Culture relies often to get people to change the way that they go about things, and to build a safe place, a place of trust,‘ says Terry Paule – Co Founder & CEO (Botanical Water Technologies Ltd). Source: SPECIAL MasterClass: The Growth of Top 5 Firm, FINDEX!

At Profitmaster, we understand the importance of creating a supportive and cohesive team environment.

Filipinos build lasting bonds with their coworkers, contributing to a positive and collaborative work atmosphere. This strong sense of community ensures that your offshore team will work together effectively, driving your business forward.

Ensuring Career Development and Satisfaction

We prioritize the career development and satisfaction of our team members. This focus on growth results in loyal, motivated employees who are committed to your success. ‘It’s the pride in who they work for and also knowing that we’re going to support their opportunities for growth in open and honest conversations,’ says Rachael McKenzie – Operations Manager (Loan Gallery Finance). Source: Offshoring and Building your Global Workforce – Lunch and Learn Panel Series #3

By investing in the professional development of our staff, we ensure that they are not only skilled but also engaged and motivated to excel in their roles. This commitment to growth benefits both our team members and the clients they serve.

Creating a True Partnership for Success

Creating a true partnership for success is at the core of Profitmaster’s approach. We work closely with you to maximize your offshoring success, ensuring that your specific needs and goals are met. Richard Croaker, President and Founder (Profitmaster Global Outsourcing) and Derek Gallimore, Founder and CEO (Outsource Accelerator) emphasize the importance of forging strong partnerships to achieve the best outcomes.

Our dedication to building great relationships and understanding your business dynamics ensures that we can provide tailored solutions that drive your success. Together, we can unlock the potential of your business and build a dynamic, global team that excels.

Source: Offshoring: Lunch & Learn Panel Series #1

When I joined the Profitmaster family in 2019 as the Executive Assistant to our esteemed leader, Richard, I had no inkling of just how enriching this experience would be. Working in such close proximity to an exceptional visionary leader has been an honor and a privilege beyond measure. Richard’s guidance, unwavering support, and commitment to excellence have been instrumental in my development, and I am forever grateful for the trust he has placed in me.

As my role expanded to include the position of Client Experience Officer, I gained a deeper understanding and appreciation for the needs of our valued clients. This dual responsibility allowed me to work in seamless synergy with our truly remarkable team of dedicated professionals. Their expertise, collaborative spirit, and relentless pursuit of excellence have been a constant source of inspiration.

Together, we have navigated challenges, celebrated triumphs, and consistently delivered exceptional service to our clients. The camaraderie and support we share as a team have been the driving force behind our achievements, pushing us to new heights of success.

As I look towards the future, I am filled with excitement and optimism for what lies ahead. With our combined efforts, shared vision, and relentless pursuit of excellence, I am confident that we will continue to achieve remarkable things and deliver unparalleled service to our valued clients.

To our clients, thank you for your trust and for allowing us to be a part of your journey. We are truly honored and humbled by the opportunity to serve you.

And to the incredible Profitmaster team, thank you for your unwavering support, guidance, and friendship throughout these incredible five years. I am truly honored to be a part of this exceptional organization, and I look forward to many more years of growth, success, and lasting memories together.

Among the popular outsourcing destinations, the Philippines has emerged as a hub for accounting outsourced services. However, choosing a reputable outsourcing partner is a critical decision that demands careful consideration. 

Here are my Top Eight “best practice” strategies for accountants when selecting a reliable outsourcing partner in the Philippines.

1. Assess Existing Accounting Experience:

One of the foremost factors to consider is the outsourcing partner’s expertise and experience in accounting and accounting-related services, ideally in Australia. Look for partners with a proven track record in providing accounting solutions to accounting firms. Evaluate their experience, client testimonials, and case studies to gain insights into their capabilities and approach.

2. Check the Quality of Talent and Workforce:

The quality of talent is the cornerstone of any successful outsourcing engagement. Investigate the provider’s recruitment and training processes inside the Philippines. Consider their commitment to ongoing training, professional development, and certifications for their staff. Like Australian accountants, Filipinos are looking for career development and opportunity. A motivated, well-trained, and knowledgeable offshore workforce ensures quality in the team, less rework and longevity of employment.

3. Look into the Provider’s Technological Capabilities:

In the digital age, technology plays a pivotal role in accounting processes. Ensure your prospective outsourcing partner employs up-to-date accounting software, security protocols, and data protection measures. Inquire about their approach to data security, disaster recovery, and business continuity planning. The outsourcing provider should be committed to the information security standards established in ISO27001.

4. Consider Scalability and Flexibility:

The business needs of Australian accounting firms change quickly. We have seen this with the talent shortage that has emerged during and since the pandemic. Your accounting outsourcing partner should be well-equipped and adaptable. Choose a partner with a scalable model that can accommodate the fluctuating demands of growth and contraction. Flexibility in terms of the service offerings and engagement model is essential to align with your specific needs.

5. Observe Cultural Compatibility and Communication Standards:

Effective communication is paramount in any outsourcing relationship, and especially in professional services firms. Assess the outsourcing partner’s ability to provide staff with high levels of English proficiency. This should be expected in the Philippines. Also, consider cultural compatibility and time zone alignment to ensure smooth collaboration and accessibility.

6. Review Regulatory Compliance and Ethics:

Compliance with international accounting standards and regulations is non-negotiable. A provider’s commitment to compliance and ethics comes from their background and their experience Thoroughly evaluate the outsourcing partner’s commitment to the Accounting Professional and Ethical Standards Board and compliance with other industry standards. A good place to start will be the provider’s understanding and adherence to APES GN 30 “Outsourced Services”.

7. Check Client References and Reputation:

Request client references to gain insights into the outsourcing provider’s performance, reliability, and responsiveness. Online reviews, testimonials, and personal references from other clients are all indicative of the partner’s reputation and standing in the market.

8. Consider Cost-effectiveness vs. Value:

While cost is a significant consideration, focus on value rather than just the lowest price. A BPO partner that offers a balance between quality services and competitive pricing will be more beneficial to the accounting firm in the long run.

Richard Croaker is an Australian Chartered Accountant who has developed a professional team of accountants, bookkeepers, financial planning staff and finance broking staff in the Philippines. The company operates in Clark, Pampanga with around 100 staff, many of whom are graduates from top-level universities in the Philippines and are licensed members of the Philippines Institute of CPAs. His Philippines firm services Australian companies exclusively. With more than 30 years’ experience in professional practice working with Australia’s largest accounting firms, he has been the Founder and Chief Executive of the international business of Profitmaster Global Outsourcing for the past 9 years.

Australian accounting and professional services firms are constantly seeking innovative strategies to optimise operations and foster growth. Two of the major inhibitors for growth across accounting firms are the difficulty in finding talent, especially at the intermediate and senior levels, and the problem of ever-increasing costs.

Here is a Profitmaster success story of one of our clients, an Australian accounting firm of two partners with six onshore staff who worked with us to harness the benefits of outsourcing to the Philippines. It is just one example highlighting how we have been able to collaborate with an Australian firm to make a significant strategic move, making an immediate contribution to their growth and profitability.

The Challenge

The Melbourne-based accounting firm, let’s call them “Koala and Co”, faces the familiar challenges of increasing overhead costs and a growing demand for client services. As the firm expands its client base, the need for efficient task management and streamlined operations has become more and more apparent to the partners. They also had a need for two intermediate accountants to complement their onshore team. They had been advertising and head hunting for local talent for some time and found that hiring locally is not only costly, but finding skilled professionals is becoming increasingly challenging.

The Solution: Outsourcing to Profitmaster Global Outsourcing

Recognising the potential of outsourcing, Koala and Co contacted us to explore the skilled labour market in the Philippines. Initially, it was the country’s reputation for proficient English speakers, cost-effective labour, and time zone closely aligned with Australia that piqued their interest. The partners identified Profitmaster as a reputable outsourcing partner in the Philippines and engaged us to establish a dedicated offshore team.

From the outset, Profitmaster assisted the partners to develop their offshoring strategy, outsourcing action plan, amendments to workflow programs and formulation of induction and training programs. This work included a plan to evaluate candidates on their use of Australian accounting platforms, firm compliance with APESB², ATO portal and tax return preparation.

What happened …..

Cost Efficiency: By outsourcing tasks such as bookkeeping, data entry, tax return preparation and ASIC related tasks to the offshore team, onshore resources became available for core onshore functions and business expansion initiatives.

Access to Skilled Talent: The most notable aspect of our engagement with Koala was their ability to access candidates through our in-house HR team’s Recruitbank of bookkeepers, accountants, and administration staff. The staff selected by Koala were two intermediate accountants with 2 years Australian experience. They are university accounting graduates and members of the Philippine Institute of Certified Public Accountants (PICPA). This has boosted the firm’s service quality and efficiency across the team, both onshore and offshore. Staff were onboarded to the client less than 7 weeks after the commencement of the recruitment process.

Seamless Communication: Koala also found the English proficiency of their Filipino staff ensured smooth communication and collaboration between the onshore and offshore teams, eliminating language barriers, and enhancing teamwork. This has proved to be a core strength of Profitmaster’s talent bank located in Pampanga, including the Clark airbase which was formerly used by the US air force.

Time Zone Synergy: It was important for Koala that the staff would be working inside a secure office facility and would be working the same hours as their Australian staff. The favorable time zone overlaps between Australia and the Philippines means that Profitmaster staff are effectively working a 9 to 5 workday alongside their Australian colleagues. This has enabled real-time communication and swift project coordination. Client services are uninterrupted, bolstering Koala’s client satisfaction.

Scalability and Focus: The Koala team started with two offshore staff. We are currently recruiting another staff member, this time at the bookkeeper level. With many of the tasks typically performed by onshore accountants now being done in the Profitmaster office in the Philippines, the workflow of the Koala team’s onshore staff is being reorganised to accelerate firm growth through greater client engagement and providing more advisory and consulting work to their clients. This in turn has also improved employee contentment with their work and their career growth plans.

And the result …….

Working with Profitmaster has been a transformative experience for Koala and Co.

Koala has increase their accounting professional staff by two intermediate accountants who are registered CPA’s in the Philippines. They have reduced their wages cost by AUD$38,000¹.

Outsourcing has had a significant impact on the firm’s partners, staff, and clients. By leveraging the advantages of cost-efficiency, skilled talent, constructive collaboration and streamlined operations, Koala has positioned themselves for greater success in the increasingly competitive accounting services sector. Koala stands as a testament to how strategic outsourcing can unlock growth opportunities and empower other firms interesting in exploring the Philippines’ outsourcing opportunity.

[1. Based on Business Services Graduate in Melbourne, 3+ years’ experience – Hays Salary Guide FY 2/23]

[2. Australian Professional & Ethical Standards Board, specifically APES GN 30 Outsourced Services, 2021]