How Outsourced Accounting Works with Outsourced HR

As the economy wobbles on the edge of a recession or slowdown and inflation and the job market remains stubbornly high, business owners are looking for innovative ways to be flexible in the way they manage their workforces. While in years gone by accounting, HR, compliance, IT, and marketing were all handled in-house, it is increasingly accepted that outsourced solutions can provide next-level flexibility while delivering a higher caliber of service than a company would be able to afford should they hire in-house [check out our outsourced vs in-house analysis here].

In this article, we’ll explore the functions of outsourced HR and outsourced accounting, how outsourcing non-essential functions can benefit companies, and how, as an outsourced accounting provider, we at Signature Analytics, work with outsourced HR companies.

How Do Outsourced Accounting and Outsourced HR Work Together?

The term non-essential is somewhat of a misnomer. Both HR and accounting are essential to any business. For HR, not only is it essential from a regulatory perspective, but also because your people need to get paid, obtain benefits, be trained, and have an outlet to voice concerns. The “resources” part of Human Resources can fall by the wayside when a single HR employee or small HR department is tasked with managing a larger workforce than they can effectively handle.

Outsourcing your HR means you get the right size HR team with the right level of expertise in whatever area your team needs. That’s true of whatever outsourced relationship you engage in.

For us, when we work with a client who chooses to outsource HR, we celebrate! An outsourced HR partner is a great asset in our world because we can coordinate payroll processes with experienced professionals who know the industry and are tech-savvy and efficient. We can collaborate on complex problems and streamline operations to better handle any cross-departmental challenges that come our way.

For the business owners we work with, outsourcing HR means their internal people are less stressed, more proactive, and more motivated to improve the culture of their organization. Productivity increases when culture improves and that’s good for morale and the bottom line.

And for us, improved margins, increased efficiencies, and a happy C-Suite are always good news.

What Services Do Outsourced HR Firms Provide?

Outsourced HR comes in many shapes and sizes. There are outsourced HR companies that focus on recruiting, there are those that handle compliance and handbooks, there are project-based Learning & Development Outsourced HR companies, and Fractional HR teams that work on recurring retainers. There are outsourced HR firms that focus on culture and those that handle complex payroll relating to Davis Bacon and service contracts. Whatever kind of outsourced HR support you’re looking for, you can bet there’s a good fit for you.

What Services Do Outsourced Accounting Firms Provide?

Outsourcing your accounting team is, as you may already have guessed, our area of expertise. For us, we believe that the Signature Analytics model is the best way to access expertise without breaking the bank. While some outsourced accounting companies only provide Outsourced CFOs and others place bookkeepers, at Signature Analytics, we take an integrated, holistic approach to every engagement.

We start off with an assessment phase. During the first 90 days, your Signature Analytics outsourced accounting team is hard at work learning your existing strengths and identifying your areas of concern. We are not passively sitting by observing though, our day-to-day accounting process starts on day one getting into the technologies and processes that exist for your organization and creating a plan for best practices in your business moving forward.

The Assessment results in a plan of action and recommendations for the skillsets and effort we feel will be most beneficial to your company. The great part? We’re flexible so as you grow we can add additional staff with a diverse range of skills to support that growth; if you should need to pull back, we can reduce the effort to match your needs.

Our teams consist of Staff accountants, Accounting managers, Controllers, and CFO-level business advisory specialists. For our clients, our goal is to streamline accounting procedures and develop reporting so that the data that comes out of the month-end close is useful, practical and gives the company leadership the kind of valuable insights they need to make smart business decisions.

Outsourced Accounting and Outsourced HR: A Winning Combination

Choosing to use outsourced accounting and outsourced HR services can be a game-changer for businesses. With a flexible outsourced team at your fingertips, your teams can create a holistic approach to managing financial and human resource functions.

Making Financial and HR Processes Smooth and Accurate

When outsourced accounting and HR services team up, they create a seamless flow of precise financial data. This means that the accounting provider can deliver accurate information to the HR provider, making payroll management, budgeting, and financial planning in HR more efficient. By aligning these processes, businesses can reduce errors, avoid data discrepancies, and ensure consistency in reporting and decision-making. It’s all about streamlining and improving accuracy for better overall operations.

Maximizing Cost Savings and Resource Management

By combining outsourced accounting and HR services, businesses can effectively optimize costs and allocate resources. Outsourcing these functions allows for reduced reliance on internal resources such as dedicated accounting and HR staff, office space, software, and infrastructure. This cost-effective approach opens up valuable resources that can be redirected to core business activities like product development, customer acquisition, and strategic initiatives.

Leveraging Specialized Knowledge and Expertise

When businesses opt for outsourced accounting and HR providers, they tap into a wealth of specialized knowledge and expertise. These providers bring unique skills to the table, which contribute to enhanced efficiency and effectiveness. Accounting professionals possess in-depth financial expertise, ensuring accurate financial reporting, compliance with regulations, and proactive financial analysis. On the other hand, HR providers bring comprehensive knowledge of HR practices, employment laws, and talent management, making it easier for businesses to navigate complex HR challenges.

Securing Compliance with Regulations

To steer clear of penalties, legal troubles, and harm to reputation, businesses must prioritize compliance with financial and HR regulations. Outsourced accounting and HR providers come to the rescue with their expertise in this area. They possess a thorough understanding of regulatory requirements and establish strong processes to ensure compliance. By teaming up with these experts, businesses can stay informed about evolving regulations, minimize risks associated with compliance, and confidently concentrate on core business activities.

Fueling Strategic Growth and Success

Accounting and HR functions both contribute strategically to business growth and success. When businesses integrate outsourced accounting and HR services, they gain access to valuable guidance and support in areas like workforce planning, talent management, organizational development, and succession planning. This collaboration allows businesses to align their financial and HR strategies, ensuring that both functions work together towards shared goals and objectives.

What Industries Most Benefit from Outsourced HR and Accounting?

Many industries can benefit from outsourcing HR and accounting services, particularly industries that need cost-effective solutions, specialized expertise, and streamlined processes. (That’s kind of everyone).

Small and Medium-sized Enterprises (SMEs): SMEs often have limited resources and may find it challenging to maintain in-house accounting and HR departments. Outsourcing provides them with professional services without the need to hire dedicated staff or invest in infrastructure. It enables SMEs to effectively manage their finances and HR functions with expert support.

Professional Services: Businesses in fields like legal, consulting, marketing, and design often require specialized financial expertise and HR support. Outsourcing these functions allows professionals to concentrate on serving their clients while relying on experts to handle accounting tasks such as invoicing, financial analysis, and tax compliance, as well as HR responsibilities like payroll and talent management. Understanding utilization rates can help with workforce planning and having a grasp on profitability by client can inform rates and benefits package adjustments.

Technology Companies: Businesses in the technology sector require agility and flexibility to focus on their core operations. Outsourcing accounting and HR functions allows them to allocate their resources to product development, innovation, and scaling while leaving the financial and HR management to specialized providers that can grow with their erratic and often meteoric growth trajectories.

Construction: Construction companies often have complex financial management needs, including project accounting, cost tracking, and compliance with industry regulations. Outsourcing accounting services can help them streamline these processes, ensure accurate financial reporting, and stay on top of their financial obligations. Additionally, outsourcing HR functions can assist construction companies in handling workforce management, payroll administration, employee benefits, and compliance with labor laws.

Manufacturing and Distribution: The manufacturing and distribution industry involves intricate inventory management, supply chain operations, and financial transactions. Outsourcing accounting services can provide these businesses with expertise in inventory valuation, cost accounting, and financial analysis. It can also help them optimize their supply chain by providing accurate and timely financial information. Outsourcing HR functions can support these companies in managing their diverse workforce, tracking employee time and attendance, and implementing effective labor strategies.

Recovery and Wellness Centers: Recovery and wellness centers, including rehabilitation facilities, mental health clinics, and wellness retreats, have unique HR requirements related to staff scheduling, credentialing, and compliance with healthcare regulations. Outsourcing HR services can assist these centers in managing their staffing needs, ensuring compliance with industry standards, and maintaining accurate employee records. By outsourcing accounting functions, these centers can focus on providing high-quality care while leaving financial management, billing, and insurance claim processing to experts.

Life Sciences and Biotech: The life sciences and biotech industries require precise financial management due to complex research and development processes, regulatory compliance, and intellectual property considerations. Outsourcing accounting services can help these companies in effectively tracking research expenditures, managing grants and contracts, and ensuring compliance with financial regulations. Additionally, outsourcing HR functions can support life sciences and biotech companies in talent acquisition, managing payroll for specialized roles, and implementing employee training and development programs.

Nonprofit Entities: Nonprofit organizations, such as charities, foundations, and social service agencies, can benefit significantly from outsourcing HR and accounting functions.

These are just some of the industries that can benefit from outsourcing accounting and outsourced HR.

Final Notes

Outsourcing accounting services is an effective way for businesses to streamline their financial operations and access expert financial professionals. By combining outsourced accounting services with outsourced HR services, businesses can achieve a comprehensive solution for managing their financial and human resource functions.

Discover the Benefits of Outsourced Accounting with Signature Analytics

At Signature Analytics, we are dedicated to delivering top-quality service to our clients. Our team comprises highly skilled professionals with extensive experience in all aspects of financial and accounting services, including a focus on financial compliance management. We leverage integrated, cutting-edge technology and tools to streamline your accounting processes, maximizing efficiency, saving time and money, and ensuring best practices.

Our comprehensive outsourced accounting services support your day-to-day financial operations, including:

Invoicing
AR management
Bill processing
AP management
Forecasting
Reporting
Monthly close
And more…