Outsourced accounting has become an increasingly popular option for businesses looking to streamline their financial and accounting functions. By outsourcing, businesses can access the expertise of accounting professionals without the costs and responsibilities associated with an in-house team.
In this blog, we will explore the benefits of outsourced accounting, how to find the right outsourced accounting company, and the factors to consider when choosing a partner.
What Is Outsourced Accounting?
Outsourced accounting refers to the practice of hiring a third-party company or service provider to manage a business’s financial and accounting functions. This may include tasks such as bookkeeping, payroll, month end close, and financial reporting. Instead of having an in-house accounting team, businesses can rely on outsourced accounting services to handle these functions. Outsourced accounting can be done remotely or on-site, depending on the specific needs of the business.
Why Are More Businesses Outsourcing Their Accounting?
There are several reasons why more businesses are turning to outsourced accounting services. For one, outsourcing can be a more cost-effective option compared to hiring a full-time accounting team. By outsourcing, businesses can save on the costs of salaries, benefits, and office space. Outsourcing also allows businesses to access the expertise of accounting professionals without having to invest in training and development.
Benefits of Outsourced Accounting
Access to Expertise
Outsourced accounting firms typically have a team of experienced accounting professionals who are trained in various areas of accounting, such as bookkeeping, payroll, month end close, and financial reporting. By outsourcing accounting functions, businesses can access the expertise of these professionals and receive expert advice and guidance on financial management and strategy.
Outsourcing accounting functions can be a cost-effective option for businesses compared to hiring an in-house accounting team. With outsourced accounting, businesses can avoid the costs associated with salaries, benefits, office space, and equipment. Outsourcing also allows businesses to pay only for the accounting services they need, which can help them save money in the long run.
Improved Efficiency and Productivity
By outsourcing routine accounting tasks, businesses can free up time and resources to focus on core operations and strategic initiatives. This can improve efficiency and productivity within the organization and enable businesses to grow and expand more quickly.
Access to Advanced Technology and Software
Outsourced accounting firms typically have access to advanced accounting technology and software that may not be affordable or practical for businesses to invest in on their own. By outsourcing accounting functions, businesses can take advantage of these tools and improve their financial management and reporting.
Outsourced accounting services can be scaled up or down depending on the specific needs and budget of the business. This allows businesses to access the accounting services they need when they need them, without having to worry about managing an in-house team or hiring additional staff.
Internal accounting teams create a variety of potential risks for the business including turn over, lack of expertise, and fraud. Outsourced accounting firms offset this risk with added resources, a pool of expertise that clients can draw upon, and implementing checks and balances.
How to Find an Outsourced Accounting Company
When looking for an outsourced accounting company, it’s important to do your research and consider a few key factors. Here are some steps you can take to find the right outsourced accounting company for your business:
Identify your accounting needs:
Before you start looking for an outsourced accounting company, it’s important to identify what accounting services you need. This will help you narrow down your search and find a company that can provide the services you require.
Make sure the outsourced accounting company you are considering has the necessary credentials, such as certifications or licenses. This can ensure that the company has the expertise and experience to provide high-quality accounting services.
Look for reviews and testimonials from other clients of the outsourced accounting company. This can give you an idea of the company’s reputation and the quality of their services.
Schedule a consultation:
Once you’ve narrowed down your options, schedule a consultation with each outsourced accounting company to discuss your needs and learn more about their services. This can help you determine if the company is a good fit for your business.
Factors to Consider for Your Partner
When evaluating outsourced accounting companies, it’s important to consider a few key factors to ensure you find the right partner for your business. Here are some factors to consider:
Defined Processes and Approach
Look for an outsourced accounting company with defined processes. How will they onboard you, do they implement best practices, will they be a good partner to work with?
Technology and Software
Make sure the outsourced accounting company uses up-to-date technology and software to manage your accounting functions. This can improve efficiency and accuracy and provide you with real-time access to your financial data.
Communication and Responsiveness
Look for a company that has good communication and is responsive to your needs. This can ensure that you receive timely and accurate financial information and that any issues are addressed quickly.
Consider the cost of the outsourced accounting services and make sure they fit within your budget. Look for a company that offers transparent pricing and does not have hidden fees.
Service Level Agreement
Make sure the outsourced accounting company offers a service level agreement (SLA) that outlines the scope of services, expectations, and responsibilities. This can ensure that both parties are on the same page and can help prevent misunderstandings or disputes in the future.
By considering these factors, you can find the right outsourced accounting partner for your business and ensure that your accounting functions are managed effectively and efficiently.
Learn More About Signature Analytics – Discover How We Can Help You
With an outsourced accounting team from Signature Analytics, you get accurate, relevant, and timely reporting and financial insights to help you make smart business decisions.
Signature Analytics outsourced accounting and CFO business advisory services teams get you access to finance and accounting expertise and insights. By putting the right people, processes, and technology in place, we facilitate accurate, relevant, and timely data so you can make smart business decisions.
Learn more about our outsourced accounting services, here.