The backbone of any thriving entity, whether it’s a person or a company, is a solid understanding of its fundamentals. For a business, those fundamentals are deeply rooted in its financial health.
Accounting and bookkeeping are the unglamorous heroes of business. They’re the record keepers, the data trackers, the financial historians that make all the other parts of a business function.
But as a company grows, DIY-ing these critical tasks can turn into an administrative headache. You’re not just logging transactions anymore. You’d also have to deal with interpreting financial data, managing compliance, and planning for the future.
Outsourced accounting and bookkeeping are the solution many organisations turn to now. It allows businesses like yours to focus on core operations without the distraction of day-to-day financial management.
According to Grand View Research, the finance and accounting business process outsourcing (BPO) market worldwide was valued at$60.31 billion in 2023. This means businesses everywhere realise that focusing on core operations and letting financial specialists handle the numbers is a smart, long-term play.
Let’s walk through what outsourced accounting and bookkeeping involve, what you can outsource, and why it’s often the smarter choice for businesses trying to run leaner and grow faster.
- What is Outsourced Accounting/Bookkeeping?
- Accounting vs Bookkeeping
- Accounting and Bookkeeping Services You Can Outsource
- Reasons to Outsource Accounting and Bookkeeping
- When Should I Use Accounting and Bookkeeping Outsourcing Services?
- Streamline and Grow with Outsourced Financial Expertise
- FAQs
What is Outsourced Accounting/Bookkeeping?
Outsourced accounting and bookkeepingis when you partner with an external company or team to take care of your business’s financial records and reports. You team up with experts who do it all remotelyinstead of having people on your payroll specifically for this.
If your business is doing all of it itself so far, think of outsourcing accounting and bookkeeping as handing over the tediousness of your financial admin to pros who specialise in it.
This frees you and your team up to lock in on what you’re actually passionate about in your business.
Accounting vs Bookkeeping
Bookkeeping is mostly about recording all the financial comings and goings. We’re talking about tracking the money coming in, the money going out, what you’re buying, and what you’re selling.
Good bookkeeping gives you a clear, up-to-date snapshot of your business’s financial activity.
Accounting takes a wider view. Accountants look at the data the bookkeepers have recorded, put together financial statements (like balance sheets and income statements), and give you insights to help you make smart business moves.
They also handle the more complex stuff, like figuring out taxes and making sure you’re playing by all the rules.
When you outsource both, it means everything flows together nicely, from recording the initial transactions to getting those helpful financial reports.
Accounting and Bookkeeping Services You Can Outsource
You might be surprised by how many different financial tasks you can outsource. You’re not just hiring someone to type numbers into a computer.
Here are some common financial management services businesses choose to hand over:
- Bookkeeping– Outsourcing bookkeeping can simplify keeping track of who owes you and who you owe. Plus, it helps make sure your bank records are all lined up.
- Financial Reporting– You know those monthly, quarterly, or yearly reports that show you how your business is actually doing? Outsourced accountantscan handle putting those together for you.
- Tax Prep and Filing– This is to make sure you’re following all the tax rules, and they can even sometimes help you find ways to save a little.
- Payroll Services– Dealing with everyone’s paychecks, all the deductions, and the tax bits can be a real pain. When you outsource payroll, you can be more confident that it’s done correctly and on schedule.
- Management Accounting– This is getting the financial insights and breakdowns you need to make smart calls about where your business should go next.
- Forecasting and Budgeting– You can work with outsourced experts to create predictions about your finances and set up budgets to help steer your business in the right direction.
- Accounts Payable and Receivable– This is about smoothly managing your invoices, getting them sent out and paid, and making sure you’re paying bills efficiently to keep your cash flow healthy.
- CFO Services– If you’re not quite big enough to need a full-time Chief Financial Officer, you can outsource those higher-level financial strategy tasks to someone who can help.
Reasons to Outsource Accounting and Bookkeeping
You might be wondering why heaps of businesses are choosing to outsource their accounting and bookkeeping these days. Well, there are some pretty good reasons why it’s catching on:
1. Save Money
Think about it, having a whole accounting team in-house means paying for salaries, health insurance, office space, and software.
Often, outsourcing can be cheaper because you’re really just paying for the specific help you need. You’re also likely only paying for a package or set plan.
2. Work with Experts
Did you know that a report by Robert Half revealed that 93% of financial services employersare having a hard time finding and hiring skilled workers?
When you outsource accounting and bookkeeping, you’re tapping into a wider range of people who really know the financial sector, along with its rules and the best ways to handle things.
3. Focus on Your Strengths
By handing over the accounting and bookkeeping tasks, you and your team can spend more of your time and energy on creating amazing products and services that keep your customers satisfied.
4. Ensure Accuracy and Compliance
Professional accounting and bookkeeping services usually have fewer mistakes. This means your financial records can be more accurate, and you’re more likely to stay on the right side of all the regulations.
5. Updated Tech and Tools
Dedicated outsourcing providers often use the latest accounting software and tech, which makes things run way smoother and more efficiently.
Your business can then benefit from things like automated processes that save time and give you a clearer, real-time view of your finances.
When Should I Use Accounting and Bookkeeping Outsourcing Services?
Knowing whento think about outsourcing is just as important as knowing whatit is. Here are a few scenarios where it might make a lot of sense:
- If You’re Just Starting Out or You’re a Small Business. Often, these businesses are working with limited funds and might not need a full-time finance team just yet. When you outsource, you’re accessing professional skills without having to shell out for a full-time employee’s whole package.
- If You’re Growing Fast. When your company is expanding quickly, your financial needs can become more complicated pretty fast. Outsourcing can give you the support you need to manage that growth effectively.
- If You Don’t Have the In-House Know-How. If no one on your team has a strong background in accounting and bookkeeping, outsourcing makes sure these crucial tasks are handled by people who do.
- If You Want to Focus on the Big Picture. If you find yourself spending too much time on financial admin instead of those strategic things you really want to be doing, delegating can free up your time.
- If You Need an Unbiased Look at Your Finances. An external team can give you a fresh, objective perspective on your financial health.
- If You’re Thinking About Investment or Selling. Accurate and well-kept financial records are super important when you’re looking for investors or planning to sell your business. Handing off accounting and bookkeeping to pros can help make sure your financials are in great shape.
Streamline and Grow with Outsourced Financial Expertise
Dealing with balance sheets and tax codes might not be the most exciting thing on your to-do list. But having a solid handle on your financials? That’s the foundation for building something that lasts.
Outsourced accounting and bookkeeping offer a way to hand over the details to the pros, so you can get back to focusing on what got you excited about your business in the first place.
You’d be gaining clarity, staying in control, and having the confidence to make those big decisions. It’s investing in the financial well-being of your business, making sure that the cool thing you’re building has a strong and healthy financial backbone to support its journey.
FAQs
How much does it cost to outsource accounting and bookkeeping?Outsourcing costs depend on what you need and where the folks you’re working with are based. Generally, businesses that outsource save as much as 70%from their operational and labour budgets.
Is outsourcing right for small businesses?
Absolutely! A lot of small businesses find it a real winner. It lets them get proper financial management sorted without having to fork out for a whole full-on team.
How secure is outsourced accounting/bookkeeping?
Good firms like us at Outsourced Staff take security pretty seriously. We use advanced security protocols and tools like encryption, and do regular checks to keep your financial info safe from anything dodgy. You’d want to make sure whoever you go with has that sorted.