How to Outsource Accounting Services: A Step-by-Step Guide

Over the past decade, many companies have decided to outsource these functions how to use trend analysis effectively to professionals because they can have a tremendous long-term impact on their business. Is it time to invest in additional people and new software to boost your business’ efficiency? Outsourcing some or all financial processes can allow your company more time to focus on core parts of your growing business, offering better opportunities in the long run. Ignite Spot Accounting delivers heftier reports than many other cloud accounting providers we checked out for this piece.

LBMC is a Tennessee, Kentucky and Indiana CPA firm dedicated to helping entrepreneurial businesses excel. We provide a wide range of outsourced accounting services to clients in a range of industries. To learn more about outsourcing your accounting needs to LBMC, contact us today. The outsourced finance and accounting industry continues to demonstrate its value to companies of all types and sizes, which is why it has begun to secure their trust.

When Should I Outsource My Bookkeeping?

This is not a complete list of benefits that businesses can expect when partnering with an outsourced accounting firm. If you’ve decided to engage in an outsourced accounting services relationship, consider these tips to maximize your investment. For businesses that may need to meet financial compliance, or that are struggling to hire a capable in-house accountant, outsourcing provides a practical solution. Many business owners hire full-time in-house bookkeepers, but this isn’t the most cost-effective solution. The most obvious red flag telling you that it’s time to outsource is not having the critical numbers you need to make the right business decisions. You won’t have to spend time and money finding and hiring the right employees – just hire an outsourced team and get started immediately.

The complete guide to finance and accounting outsourcing services

However, this might not be cost-effective and, as your company grows, it might not be scalable either. You may also be tempted to manage your own books to keep costs down but, without any accounting experience, it’s easy to make a potentially costly mistake. Outsourcing is a tried and tested resourcing strategy that typically sees businesses identify repetitive and time-consuming tasks and assign them to third-party team members in another location. Whether you’re a startup aiming to minimize overhead costs or a seasoned enterprise seeking to focus on core competencies, outsourcing finance and accounting offers a myriad of benefits. 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.

Don’t worry about financial reporting, payroll taxes, accounting tasks, or offline vs. online bookkeeping. You have made your choice, and now it’s time to enjoy having a dedicated account manager and bookkeeper do the job for you. Yes, virtual and outsourced bookkeeping is just as legitimate as dividend payable dividend payable vs dividend declared in-house bookkeeping and accounting. However, as with any in-person accounting professionals you’d trust with your financial data, you should always verify a bookkeeping firm’s credentials before committing to a monthly plan. Bookkeeper.com’s cheapest virtual bookkeeping service starts with bookkeeping basics, like preparing key financial statements.

What are the benefits of outsourcing finance and accounting?

1. But as your business grows and your financial needs evolve, it’s common to find that your initial approach to bookkeeping is no longer delivering the results you need.
2. There is a massive price difference based on complexity, transaction volume, and many other factors.
3. Partnering with an outsourced controller gives businesses many of the same benefits as partnering with an outsourced bookkeeper, but on a more strategic level.
4. An outsourced CFO should be a trusted strategic partner with whom you work intimately – not just another vendor.

Outsourced CFO services are much more advisory in nature than outsourced bookkeeping or controller services. Today, the average salary for a bookkeeper in the U.S. is $45,160, the average are salaries and wages part of expenses on the income statement controller earns $104,338, and the median CFO salary is $393,377. By comparison, outsourced accounting services typically cost a fraction of these rates and deliver better results. If you need help with CFO-level strategic initiatives but have the resources to handle bookkeeping in-house, a good provider will have no hesitation in working with you.

Outsourced accounting refers to the practice where a business engages a third-party entity external to its organization to manage various accounting and finance functions. The advantages we’ve mentioned above can make a lot of difference in your accounting department and overall financial performance. All it takes is a reputable external provider such as Clark Staff to give you the best out of your outsourcing journey.

Our use of the terms “our Firm” and “we” and “us” and terms of similar import, denote the alternative practice structure of Cherry Bekaert LLP and Cherry Bekaert Advisory LLC. “Cherry Bekaert” is the brand name under which Cherry Bekaert LLP and Cherry Bekaert Advisory LLC provide professional services. You can find independent bookkeepers on freelance websites and similar sources. Freelance bookkeepers can be expensive, and yet the quality can drastically vary from one individual to another.

Advantages of Working With An Outsourced CFO

If you are considering outsourcing your finance and accounting function and whether it’s the right move for your company, there are several key factors to consider. Prices start at $500 a month for the Essential plan, which is geared towards startups that use cash-basis accounting. If you use accrual-basis accounting, you’ll need the Growth plan, which starts at $990 a month. And the Executive plan, which is built for larger companies that need CFO services, has custom pricing. First, analyze your accounting operations and determine which functions you’d like to outsource.

Above all, find an outsourced CFO that you can build a long-term relationship with. An outsourced CFO should be a trusted strategic partner with whom you work intimately – not just another vendor. With 15,000+ articles, and 2,500+ firms, the platform covers all major outsourcing destinations, including the Philippines, India, Colombia, and others. Outsource Accelerator is the leading Business Process Outsourcing (BPO) marketplace globally. We are the trusted, independent resource for businesses of all sizes to explore, initiate, and embed outsourcing into their operations. The entities falling under the Cherry Bekaert brand are independently owned and are not liable for the services provided by any other entity providing services under the Cherry Bekaert brand.