Over the past six months I have had dozens of conversations with accounting firm owners, financial planners, mortgage brokers and professional services leaders across Australia. Interestingly, very few are talking about growth. Most are talking about capacity. 

They have clients ready to engage, work ready to be completed, and opportunities sitting in front of them. What they do not have is enough people. 

The Australian talent shortage is no longer a temporary challenge. For many firms, it has become a permanent feature of the market. Businesses that continue to rely solely on local recruitment are finding themselves trapped between rising wage costs, increasing workloads and growing pressure on service delivery. 

That is one of the reasons offshoring has moved firmly into the mainstream. 

Ten years ago, offshore staffing was often viewed as an experiment. Today, many of Australia’s most successful professional services firms have built significant parts of their operating model around global teams. 

However, I believe the industry is now entering its next phase. 

The conversation is no longer simply about accessing lower-cost talent. It is about how effectively firms can integrate offshore professionals into their business. The firms achieving the strongest results are not treating their offshore personnel as a separate workforce. They are embedding them into their systems, processes, client service model and culture. 

When offshore team members participate in team meetings, understand the firm’s values, build relationships with colleagues, and share accountability for client outcomes, something important happens. They stop being an outsourced resource and become part of the business. 

Over the coming months, this concept of embedded global teams will become a major focus for Profitmaster. We will be sharing practical ideas, case studies and proven approaches that help firms move beyond traditional offshoring and build genuinely integrated teams capable of supporting long-term growth. 

The question is no longer whether offshoring works. The question is how effectively businesses can create one team, operating across multiple locations, with a shared culture, shared objectives and shared commitment to client success. 

Richard Croaker
CEO
Profitmaster Global Outsourcing 

The post From Offshore Staff to Embedded Teams appeared first on Profitmaster Global Outsourcing.

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

The post How to Implement AML Without Blowing Up Your Cost Base appeared first on Profitmaster Global Outsourcing.

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

The post What an Effective AML Framework Actually Looks Like (In Practice) appeared first on Profitmaster Global Outsourcing.

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

The post Where Most Firms Will Get Caught Out on AML Compliance appeared first on Profitmaster Global Outsourcing.

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

The post The AML Changes Are Real — And They Are Closer Than You Think appeared first on Profitmaster Global Outsourcing.

• The customer is always right… even when they are wrong.
• The customer is always right… until they are wrong.
• The customer is not always right.

The answer is near the end of this article but, for now, suffice it to say that nobody is always right. Customers and clients are never always right, BUT…

Businesses want clients to feel they are right

Client expectations can range from the simplest to the simply impossible. There are times when expectations are valid, but sometimes they are unrealistic. When faced with the latter, the immediate options are: (a) plainly tell them it is not within the company’s power to fulfill the expectation, or (b) try to fulfill the expectation as best as one can.

The problem with the first is you risk losing that client. To some businesses, that is all well and good riddance, but that still means one less client. With the second option, the company could try everything in its power and yet still come up short in the eyes of the client – begging the question, was it worth it?

In whatever case, sometimes the goal is not in responding to a client’s issue to a T, but in keeping the client satisfied with the response or action taken. Often, a client wants assurance that somebody is taking care of their needs.

What are the proven ways of managing client expectations?

Remember that client expectations are not within the company’s control – but the response is. Even when the client is not right, never make them feel they are wrong. That is where effective client expectations management comes in.

Here are several effective practices used by various businesses to manage client expectations.

Be client-centric

Managing client expectations starts with creating a fantastic experience for them. Put your client front and centre. Let them know this and make sure to let them feel it as well, not just in word but also in deed.

Whether they are wrong or right, clients bring companies their revenues. This is why companies try their best to make clients feel satisfied even when they are not right.

Know every client

It is really not just knowing your clients but understanding them in every way. This is different from understanding your market and more about knowing each client. Find out where they are coming from in every instance. Answer questions such as:

• What does this client need?
• What does the client want?
• How has a particular client interacted with the company in the past?

A company that understands its clients will be able to anticipate their questions and concerns.

Communicate clearly

Be crystal clear and perfectly honest about what the company can and cannot do, will and will never do, right from the start, even before they sign up with the company.

Effective communication will avoid frustration for both the company and the client. It can also prevent unpleasant experiences.

Always relate positively

Exert efforts to build and maintain positive relationships with all clients. When a client feels only positive emotions when dealing with a company, they will trust the company with their business. This will also make it easier for the company to achieve client satisfaction.

Also, avoid directly contradicting clients even when they are not right. Instead of saying, “That’s wrong,” one can say, “What I’m hearing is so-and-so is not working for you. Can you tell us more about it?” Let the client explain, then shift to explaining how other aspects of the issue are also at play.

Understand the entire issue

Avoid getting boxed in with stereotypes. Every client is unique and every issue is unique. When speaking with clients, actively listen and never assume they have exactly the same issue as another client with a similar concern.

Listening is also a way to let a client know that the company sincerely wants to understand them. Take in every detail. Ask questions to clarify when needed.

Discuss solutions

Be upfront. Clients do not like feeling left in the dark and not knowing what is happening behind the scenes. Openly discuss solutions with them.

Let clients understand how complex a problem can be. This will help eliminate unrealistic expectations.

Train client-facing team members to become highly knowledgeable about client concerns and the company’s available solutions.

Have a realistic timeline

Nobody likes waiting, but worse than waiting is being given a turnaround time that is later not met. Provide clients with a timeline that is realistic both to the company and to the client. Businesses may control customer service expectations by explicitly expressing how long each given activity will take, to the best of their knowledge, from the time the client reaches out until the resolution is complete.

Give regular updates

Providing updates at each stage of the resolution process is much appreciated by clients. This is also a simple but effective way of managing expectations. Again, people would like to know what is going on rather than just waiting and not knowing what to expect.

What are the post-pandemic trends in managing client expectations?

Clients today are looking for more efficient service. Doing business has transformed as much as new technologies have accelerated the way everything is done.

People now have more access to information and influencer opinions. Social media has made mass communications instant. E-commerce and B2B are now more agile than ever.

Companies are now operating in fast-paced work environments. Those who are not able to keep up will surely get left behind in the dust. What can companies do to more effectively manage client expectations in today’s world?

Know your clients “personally” and accurately

It is no longer enough to know and understand clients. With the use of data management and analytics, companies are better able to have access to every client’s records. There is no excuse, for example, for not being aware of how a client had interacted with a staff member who may happen to be unavailable the next time the client makes a follow-up. Having a client repeat an issue every time they speak with someone else in the company creates a negative and frustrating impact on them.

Respond faster

Speed has never been a better equaliser than today. Clients expect faster response times and turnarounds. This is where the terms nimble and agile come into play. Fortunately, new technologies are allowing businesses to let AI and chatbots take over under certain conditions.

Set up 24/7 self-service options

Take advantage of available automation tools so clients can opt to find answers on their own. FAQ pages, chatbots, ticketing systems, or even interactive voice response (IVR) systems can spell the difference between keeping or losing a client.

Provide more channels

One reason clients expect quicker responses is the availability of different communication channels. It used to be just email, which now seems to have taken a backseat to ticketing systems and faster channels like chats, social media, and messaging apps.

Be careful, however, to be consistent across all those channels when handling a client concern. Clients should receive the same quality of service whatever the platform. Remember also that clients see all of those channels under one brand, not as separate entities.

Be mobile-friendly

Among the different channels, perhaps the most important thing to realise is that people nowadays tend to use those that are on mobile. Make sure you have at least one mobile-friendly channel and expect clients to be always on business mode even when they are on the road, while travelling abroad, or even when on vacation.

Be one step ahead

Be proactive. Stay at least one step ahead of the client and the competition. We cannot overemhasise the need to understand your client and anticipate their needs. A business that is one step ahead of the client is two steps ahead of the competition.

Build a caring culture

Beyond being client-centred, steer the whole organisation toward a culture of caring about what clients care about. When such a culture is established and well-ingrained across the entire company, putting the customer first becomes second nature. It will also result in sincerity in desiring to provide satisfaction even when dealing with a difficult client.

Get better and better

There is no one-size fits all approach to client expectation management. Just as every client is unique, every business is also one of a kind. Methods that worked in the past may no longer work today, and strategies that are effective now might not be as effective next year. It is therefore important to always keep updating and enhancing policies and processes for handling client expectations.

Which is true?

We promised to answer this at the start of the article: Which of the versions below is closest to the truth?

• The customer is always right… even when they are wrong.
• The customer is always right… until they are wrong.
• The customer is not always right.

Our answer: The client is not always right, but a company must still do everything within its means to provide client satisfaction, though never at the expense of having to bend over backward. Even when a client becomes dissatisfied with the company’s response to their expectation, never burn bridges and leave the door open for a past client to return.

How we can help

Profitmaster cares about the firms that come to us in the same way that they care about their clients. Do you want to know more about how we can help you handle your clients and their expectations? Send us a message today.

The post Post-Pandemic Trends in Managing Changing Client Expectations appeared first on Profitmaster Global Outsourcing.

The PSA explained that the primary driver for faster inflation was the higher annual growth rate in the index for food and non-alcoholic beverages, which was up from 7.4 percent in September to 9.4 percent in October 2022.

The report also highlighted higher price index increases in housing, water, electricity, gas and other fuels (7.4 percent), restaurants and accommodation services (5.7 percent), and other commodity groups.

High inflation rate in 2022 means higher staff pay in 2023

Speaking in a briefing held by the Office of the President in October, socioeconomic planning secretary Arsenio Balisacan noted, “Our analysis shows sustained increases in inflation in 2022 and 2023 will cause a slowdown in the economic growth.”

Inflation is expected to bring not just a slowdown in economic growth. Salaries are also projected to increase in the following year. According to advisory firm Willis Towers Watson (WTW), salaries in the Philippines will increase by 5.7 percent in 2023, citing findings from the WTW 2022 Salary Budget Planning Survey Report – Asia Pacific (July 2022 edition).

WTW’s Work & Rewards Leader (Philippines) Patrick Marquina noted that “compounding economic conditions and new ways of working are leading organizations to continually reassess their salary budgets to remain competitive.”

The Philippine situation is not unique. Workforce consulting company ECA International predicted that inflation will also cause salaries to increase in countries such as India, Vietnam, China, and Brazil.

How companies can prepare for salary increases

“With such a dynamic environment, it’s imperative for organizations not only to have a clear compensation strategy but also a keen understanding and appreciation of the factors that influence compensation growth,” Marquina advised.

WTW’s survey indicated that, for 2022, 52.5 percent of employers in the Philippines prepared salary increase budgets that were higher than projections. They cited the following reasons for doing this:

• Tighter labor market concerns,
• Cost management concerns (e.g., rising cost of supplies), and
• Employee expectations for higher pay increases due to inflation.

While salary increases can improve employee retention and attract higher-quality staff, some companies introduce incentives and non-monetary benefits to encourage workforce talent to stay or apply with them. Those benefits can be in the form of:

• Workplace flexibility
• Stronger emphasis on diversity, equity, and inclusion
• Sign-on bonuses and incentives
• Remote or hybrid work setups
• Improved employee experiences

For companies that need guidance

Readiness levels may differ for various companies with regard to the projected salary increases in 2023. If you need help in preparing for upcoming situations, Profitmaster can provide guidance, especially for companies that are considering outsourcing some business functions or hiring offshore employees. Message us today and we can discuss this with you, with no commitment required on your part.

The post Significant Pay Increase in Philippines Projected for 2023 Due to CPI appeared first on Profitmaster Global Outsourcing.

Cost-cutting Strategy

Outsourcing has been fully embraced by businesses like ours as a viable cost-cutting strategy. As businesses look for ways to cut costs in order to stay afloat, outsourcing has become a profound way to do so. In fact, companies stand the chance of saving up to 90% of labour costs while still paying decent wages to its outsourced workforce. According to additional research, businesses can save nearly half of their total operating costs by outsourcing specialised work operations such as accounting, customer service, content writing, shipping and logistics, and information technology. If there is one takeaway from all of this information, it is that outsourcing effectively offloads some of the costs, allowing a company to focus its resources on core competencies and growth initiatives.

Philippines—Outsourcing Destination

The Philippines is a popular global outsourcing location. Because of its large pool of highly skilled workers and English speakers, the country has become a popular choice for companies looking to offshore their business processes. Profitmaster will increasingly rely on outsourced services as it grows since the Philippines and Australians speak the same language and have similar sensibilities.

We believe that expanding our operations to this country is the best outsourcing choice we can make. Here are reasons why you will, too.

Impact of Outsourcing on the Workforce

Even though many businesses have reaped the benefits of outsourcing, others are still wary of hiring workers from other countries. However, contrary to the belief that local workers may lose job opportunities as a result of outsourcing, there are numerous opportunities available to them. Here are a few examples of how outsourcing benefits the workforce:

• Outsourcing reduces work

  When employees have too much work to do, it is nearly impossible for them to meet their objectives. Local employees can focus on what they do best by outsourcing and allowing others, in this case, their Filipino counterparts, to handle the rest of their business.

• Local hiring will continue

  While we outsource some tasks, we continue to hire new employees to supplement our existing in-house workforce. There are still core tasks that require local workers to complete, so there will always be job opportunities in the company’s primary location.

• Opportunity for advancement

  Investing in employees’ education and training is a wise business decision. Outsourcing some of the work frees up time for in-house employees to learn new skills and develop a greater level in their field. As a result, they’ll be well-prepared to take advantage of any opportunities for advancement within the company that may arise.

• Improvement in communication and collaboration

   It allows our employees in the Philippines to work in a multinational environment. Because they will be working with people of different nationalities, they will improve their communication and collaboration skills while also broadening their perspectives. Members of the team will not only become better employees, but also be more inclusive individuals from the diverse environment.

• More accessibility

   Outsourcing allows organisations to gain access to skilled workers and a larger talent pool, as well as a more diverse talent market. This is especially important for companies looking to hire highly specialised employees. Outsourcing companies such as Profitmaster specialises on pooling the best applicants for the role.

• Job opportunities will expand

   Outsourcing helps people who would not have found work otherwise. New jobs are also created, such as copy editors and medical transcriptionists, expanding the pool of possible jobs to which people can apply.

Outsourcing—Here to Stay

The Philippines is one of the most popular global outsourcing destinations, and its importance in the industry will only grow. Outsourcing enables businesses to tap into a diverse talent pool in order to achieve business objectives more efficiently. As a result, outsourcing will continue to influence how we work in the future by redefining what it means to be an employee and, conversely, an employer today.

Know More About Us

Profitmaster, like many other companies, is looking for ways to remain relevant and effective without exhausting your resources. This is the primary reason we’re finally taking the plunge and outsourcing to the Philippines. Have we piqued your curiosity? Then please learn more about us here.

The post Philippines Outsourcing: Redefining The Workforce appeared first on Profitmaster Global Outsourcing.

This is his view regarding salaries of professional staff working for Australian accounting firms for 2023 and beyond.

Salaries in the Philippines

Salaries in the Philippines are generally trending higher, and this has become particularly noticeable in the Business Process Outsourcing (BPO) sector,  one of the fastest-growing industries in the country. While the average salary for employees (all industries) is currently growing at a rate of 5.5% per annum, and is expected to continue throughout 2023, some sectors are experiencing higher growth. 

Over the past 6 months, salaries among some experienced professionals have  grown by 40%, sometimes more. For comparison, since the start of the pandemic, the salary of a 3+ years’ experienced intermediate accountant (business services) in Brisbane has grown by around 33%.

While some of this Philippines’ growth is due to seasonal factors, an emerging trend to engage staff directly as a work-from-home staff is also creating very high pay expectations.

However, this salary growth is having little impact on the demand from Australian accounting firms seeking to outsource their processes to the Philippines. If staff are not available in the home country, there is little choice but to look more broadly afield.

Mr Domingo said there are a number of other factors affecting salary trends for accountants in the Philippines.

Employees with a higher education are demanding more than those with a lower education. Demand for BPO workers with degrees in accounting, technology, engineering, and mathematics will continue to be high in 2023.

Employees with existing BPO industry experience are asking for higher salaries than those seeking to join the sector. Australian employers are willing to pay more, especially for staff with five or more years of experience.

Employees with special skills typically earn more. Firms are willing to pay more for workers with specialised skills in tax, audit, business services and insolvency

Notwithstanding the high rate of wage growth in the Philippines, Mr Domingo says that hiring staff is still hugely cost-effective as Australian firms continue to hold high levels of trust for quality providers and their workers in the Philippines.

Despite increasing salaries, Australian professional firms are still saving more than 60% on labour costs through outsourcing, while at the same time recognising the importance of offering competitive salaries and benefits in order to attract and retain the best people available.

Connect With Us Today

Labour costs account for a sizable portion of total operating expenses. By outsourcing some of their services, companies can further bolster their financial health. However, determining where to start, how much capital is required, finding the right location, and establishing fair salary rates based on salary trends in the Philippines make it seem like a very daunting challenge. That is where we at Profitmaster come in. We can assist you in making the outsourcing transition as smooth and hassle-free as possible. Learn more about us by clicking or tapping here.

The post Salary Trends In The Philippines In 2023 And Beyond appeared first on Profitmaster Global Outsourcing.

The term was coined by Dr. Anthony C. Klotz, Professor of Business Administration at Mays Business School in Texas. According to Dr Klotz, events like the pandemic are making people step back and rethink their lives and careers. 

How is this being played out? In October, the Washington Post reported that 20 million Americans resigned their jobs between April 2021 and August 2021. According to the US Bureau of Labor Statistics (BLS) a record 4.3 million people resigned in August alone. 

This astonishing trend is affecting the Philippines BPO sector in a different way, where employment is very different from that in the wealthy Western economies. For a start, the absence of social security and unemployment benefits means the luxury of walking out of jobs is not available to most people in the Philippines. 

Australia is experiencing its own significant labour shortages, and this is most evident in the professional accounting services sector. In October, the Australian Financial Review (AFR) reported that three-quarters of Australia’s largest accounting firms say they are having trouble recruiting and retaining staff. 

The AFR’s view is “the shortage is compounded by the country’s closed borders, hindering the ability of firms to import staff, even as client demand remains strong.” However, it is far too easy to say the shortage is because Australian firms have soaked up the entire market of accountants and bookkeepers. It is not just border closures, the problem is exacerbated by increasing staffing costs creating staff churn where people change firms for improved salary and career development opportunities. Other issues are in also in play, such as staff leaving the profession because employers are unable to commit to full time work from home arrangements.  

This has created an enormous opportunity for Australian businesses to engage with professional BPO providers such as Profitmaster. The Philippines is a developed Asian jurisdiction where access to a huge pool of young graduates and experienced professionals, competitively priced and unaffected by closed borders, is available to work seamlessly across the world.  

Liza Arcila, Human Resources Manager

The post No rush to Great Resignation in the Philippines appeared first on Profitmaster Global Outsourcing.