Pros and cons of virtual accounting practice
- Mark Anthony Pojol
- Nov 12
- 3 min read
DURING the Covid-19 pandemic, working conditions changed dramatically due to government-implemented lockdowns, quarantines and social distancing. On the bright side, the crisis accelerated the adoption of remote work arrangements across nearly all professional sectors.
While the pandemic disrupted the traditional corporate setting and closed many businesses, particularly those reliant on physical labor, it also provided accountants continuous work opportunities despite the challenges.
Thus, the need for clear, accurate financial reporting became more critical than ever. At the end of the day, life went on, books still needed to be balanced, taxes paid, and businesses guided that skilled accountants delivered.
Strong preference
There had always been a strong preference for Filipino accountants even before the pandemic, but the shift to remote work arrangements fueled the demand.
A primary factor is the Filipinos‘ English fluency, which facilitates ease of communication with international clients in markets such as North America, Australia, and the United Kingdom.
Apart from that, Filipinos are known globally as exceptionally hardworking, adept in different work environments, and possessing a strong work ethic, characterized by dedication and loyalty.
Furthermore, many Filipino accountants are trained in a globally recognized educational system, giving them the foundation that makes transitioning to international accounting standards, such as IFRS and US GAAP, easy.
The move to virtual practice offers a combination of personal and professional rewards. A big factor is bigger pay. Accountants earn by the hour, based on competitive rates that surpass standard wages from local firms.
The increased earnings give financial security and better provisions for their families. There are no costs for transportation, office attire, eating out, and other related expenses in a traditional office work setting. The cumulative effect of eliminating these costs results in substantial savings, an additional income that can be used in investments, debt payments, or other financial goals.
Accountants also get the opportunity of learning across various industries, from e-commerce and tech startups to non-profits, enabling familiarization with global accounting standards and diverse international business cultures, which in turn broaden their appeal to future clients. They get exposure to various accounting software, such as MYOB, QuickBooks Online, and Xero.
However, these advantages may also come with serious trade-offs that demand careful management. Income from freelancing could be unstable, since there is no security of tenure to speak of. Offshore clients can terminate contracts anytime based on their shifting business needs.
This is a stark contrast to traditional employment, which provides consistent, regular flow of income and benefits.
Unbalanced work hours and time zone differences pose health risks, especially for those who must follow North American or UK time zones, where night shifts become the norm. In the long run, this can lead to chronic fatigue or burnout.
Likewise, in the absence of face-to-face interaction, building trust and strong working relationships with foreign clients and virtual colleagues can be a challenge. The monitoring of work performance through tools, such as screen recording, keystroke logging, and mouse activity tracking, can be intrusive and may be considered an invasion of privacy.
Miscommunication may result from emails or chat messages. The lack of in-person colleague interaction can also breed loneliness or disconnection.
While individual virtual accountants may gain significant income increases, the mass movement of highly skilled talent creates an imbalance in the industry. Small local firms struggle to retain and recruit staff, driving significant wage disparities. Furthermore, in the global context, the success of this offshore model directly contributes to the displacement of foreign accountants in their own respective markets.
The shift to virtual accounting is an undeniable trend. However, success in this venture is not guaranteed and requires a period of self-reflection, since this path is not for everyone.
I hope fellow accountants will find success not only with higher income but also with the long-term ability to sustain their professional life without compromising their personal well-being.
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Mark Anthony V. Pojol is the managing partner of Pojol and Gabay, Certified Public Accountants, and a member of the Acpapp media affairs committee.
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