What is Outsourced Accounting and How Could It Help You? Bench Accounting
This is not a complete list of benefits that businesses can expect when partnering with an outsourced accounting firm. Yes, external accountants can see the “big picture” outside of your focused scope, helping you spot red flags or notify you about an incoming issue you may not have realised. They have industry expertise that can help with organising your business and cash flow and provide advice on future financial moves. No matter the size of the business or service you are offering, there will be some degree of financial responsibility that you need to take care of.
- Outsourcing Is An InvestmentYour business is unique and has its own set of outsourced accounting needs.
- If you’re bringing in an outsourced controller to help manage your existing team, it’s necessary to carefully consider what this relationship will look like.
- An external accountant will provide you with accurate and detailed financial reports, ensuring you stay competitive as your business grows.
- You might also see outsourced accounting referred to using terms including Client Accounting Services (CAS) or fractional accounting.
- Outsourcing accounting services is a powerful strategy for businesses aiming to streamline operations and boost financial management.
Which types of outsourced accounting services are available?
Some companies charge by the number of accounts you need them to manage, while other companies charge based on your company’s monthly expenses. Typically, the lower your expenses (and the fewer your accounting needs), the less you’ll be charged. 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. If that sounds familiar, you might want to consider outsourced bookkeeping.
Many times, businesses have all kinds of hidden opportunities hidden in their internal systems and accounts. It’s the job of the CFO to uncover these inefficiencies and implement strategic changes to remedy them. Much like outsourced bookkeeping, there are few disadvantages inherent in partnering with an outsourced controller. 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.
Determine which accounting functions to outsource
Accounting services are the second most commonly outsourced service, right after IT services. Outsourcing accounting services helps save costs and gives access to specialized knowledge and advanced technology. Additionally, outsourcing aids in gaining a clearer understanding of a business’s financial status.
Data security is a serious concern for any business, as breaches can lead to financial losses, legal issues, and reputational damage. As mentioned, it’s crucial to take relevant precautions when sharing sensitive data with your provider. Once you’ve signed an agreement, your service provider will need access to your data. Set up restricted user accounts, and only provide access to the systems and data that are needed for the provider to perform their tasks. Almost all companies must pay taxes on their income, regardless of where they are headquartered.
Top trends in finance and accounting outsourcing
As well as helping you comply with all relevant laws, this ensures that what is a fiscal year you are fully prepared if your company gets audited.
The same goes for payment terms, since some charge by the hour and others by the month. Therefore, your decision will require some budgeting on your end to see what you can afford—whether it be an accounting partner or an alternative. In an effort to avoid that pitfall, many companies fall into another one. They spend hours doing tutorials, chatting with support representatives, or double-checking their numbers.
Key Steps to Effectively Outsource Your Accounting Needs
As a result, it’s helpful to understand what you might want to outsource, and what you might want to keep in-house. Nothing feels better than that first online sale, but as your business grows, so will your admin. Typically, you’d only get detailed financial statements like this through a CFO — which means Merritt gives you some of the best aspects of having a CFO without the high cost.
