A guide to outsourced accounting: All you need to know

the outsourced accountant

Businesses gain access to this high-quality expertise without the need to outcompete other organizations for in-house hires. Outsourcing financial management to a team of professionals comes with some significant benefits. SecurityMany business owners are reluctant to use outsourced accounting services because they are concerned about the security of their accounting data. As with any in-house team, you must exercise extreme caution regarding data protection. In addition, you can consider outsourcing your accounts receivable services to make sure that companies are paying you on time.

the outsourced accountant

Related to this, if some of your company’s operations necessitate more focus than others, you can also opt to pay per commission for individual projects. This payment scheme assumes that you will hire a professional for about 160 hours a month, which is considered full-time. Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

How much does it cost to outsource finance and accounting services?

While businesses should always weigh the pros and cons of a service before deciding to move forward, the specific business they partner with makes all the difference. The cons we outlined above are not indicative of every outsourced firm — and they’re certainly not indicative of our approach at G-Squared Partners. Outsourced accounting services can be scaled up and down to match the pace of business growth. This provides a level of flexibility that is hard to match with in-house hires. When deliberating whether to outsource, one crucial factor to ponder is your staffing capacity. Do you possess a knowledgeable, skilled team equipped to manage the task effectively?

  • For our Businesses with Employees, we can handle all your payroll processing needs.
  • This is not a complete list of benefits that businesses can expect when partnering with an outsourced accounting firm.
  • While the impacts of business disruption are here to stay, outsourcing has embraced the shift and is quickly becoming a vital growth strategy for many businesses.
  • If that sounds familiar, you might want to consider outsourced bookkeeping.

By keeping these considerations in mind, you’ll be able to avoid any of the drawbacks that can impact businesses that partner with an outsourced CFO that isn’t a great fit for their business. Challenges in working with an outsourced controller typically occur when communication is infrequent. To avoid these issues, prioritize relationships with outsourced controller service providers who call out responsiveness as a key element of their client service philosophy. Outsourcing your bookkeeping tasks can make a significant difference in the day-to-day operations of your business.

Advantages of outsourced accounting

With the time you get back, you can focus on your core business or yourself. At LBMC, we’re proud to provide outsourced bookkeeping, controller, and CFO services to businesses in Tennessee, Kentucky, Indiana and beyond. Our team has experience across a wide variety of industries, from well-established construction and real estate businesses to new companies in emerging markets including the brewery and hemp industries. Controllers are more advanced finance professionals that are usually responsible for managing the day-to-day financial operations of a business. They have a wide range of responsibilities, from managing bookkeeping staff to working on more strategic initiatives. Today, the average salary for a bookkeeper in the U.S. is $45,160, the average controller earns $104,338, and the median CFO salary is $393,377.

the outsourced accountant

For the most part, these services are identical to outsourced accounting services, although it’s important to bear in mind that different providers will offer varying services. One of the common challenges that many businesses face is selecting the best option for their accounting needs. The process of finding the best in-house accountant or an outsourced accounting firm can be daunting. Accounting is quite complex even for a small business and anyone delivering work that is short of “exceptional” could mean catastrophic complications for the company.

Elite accounting professionals

Small business owners who find themselves in this situation are ideal candidates for outsourced accounting. Outsourced accounting refers to when a third party handles the accounting for your small business. This professional service manages your bookkeeping, taxes, payroll, financial reporting, and other accounts payable and accounts receivable functions. In doing that, your outsourced accounting firm will work closely with you to develop an approach that works for your business. They’ll track KPIs that are important to you, provide regular financial reporting, and be responsive to your needs when you call with questions. You might also see outsourced accounting referred to using terms including Client Accounting Services (CAS) or fractional accounting.

With an outsourcing partner, you can benefit from having access to this latest technology at no additional cost. Once you have these reports from the outsourced accounting firm, you’ll never have to wonder about your financial forecasts. Whether investors, partners or even your board of directors want to see today’s numbers and tomorrow’s projections, you’ll be able to access them 24/7. As mentioned, one alternative to outsourcing is hiring a full-time employee or assembling an accounting team to handle accounting functions. But this is often a huge expense for smaller businesses and difficult to scale as businesses grow.


This makes businesses vulnerable if the service provider encounters its own issues like staffing changes or financial instability. Additionally, it’s crucial to consider the learning curve involved when integrating an outsourcing company into your business. The complexity of the business often determines the time required for an outsourcing partner to fully integrate.

The majority of companies that work with an outsourced accounting firm do so on an ongoing basis. At first, there may be a lot of work in building the financial infrastructure and accounting services. But after this initial set-up period, the relationship typically reverts to a stable monthly business cycle. If you need help with CFO-level strategic what to do if an employee misuses a corporate card initiatives but have the resources to handle bookkeeping in-house, a good provider will have no hesitation in working with you. All great outsourced accounting providers offer a suite of services that are customizable to the needs of your business. If you’re curious about what that process looks like, you’ve come to the right place.

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