Complete Guide to Outsourcing Your Accounting Function
Accounting is an integral part of every company’s team. However, paying for an internal accounting department isn’t always the best use of your resources. Outsourcing is often cheaper and more scalable — but only if you find the right solution.
This guide will help you do just that. Follow these step-by-step instructions to move your company from an internal accounting model to a more beneficial outsourced solution.
Outsourced Accounting and Its Alternative
You may not be sure about whether outsourcing is right for your company. That answer can depend on a few factors.
For example, can you afford to employ an internal accounting team? If not, outsourcing gives you access to the same level of expertise (or better) at a lower price.
Second, are your needs stable or in flux? Outsourced accounting is more flexible because you can add and remove services as your goals change. The more stability you have, the easier it may be to handle your accounting internally.
Finally, what kind of expertise do you need? Outsourcing provides fast access to highly specialized financial professionals. It’s easier to keep your accounting in-house when your needs are basic.
1. Understand Your Accounting Needs
You can start by considering which accounting services you need. For example, are you looking for an accounting manager to come in and oversee internal financial workers? Or do you need help with entry-level tasks? The answer will impact your hiring decisions.
For reference’s sake, an outsourced accounting team can help with:
- Compliance and reporting
- Budgeting and forecasting
- Month-end close tasks
- Accounts payable and receivable
- Support with taxes
- Specialized industry assistance
- General Ledger Reconciliation
- And more
If you aren’t entirely sure about which services you need, contact CFO Hub for a free consultation. We can help you explore your options and find the right fit.
2. Match Your Needs to the Right Experts
Do you need to hire a senior accountant or a bookkeeper? What about a financial controller? The answers depend on the needs you identified in step one.
For example, a senior accountant can help with high-level strategies and processes. A bookkeeper would be a better fit for everyday accounting tasks, like preparing financial reports.
Ultimately, you want to hire outsourced experts who are skilled in the areas where your business needs it most. You can get there by matching your needs to the job descriptions of different types of financial experts, or by contacting an outsourcing provider for support.
3. Begin Researching Outsourced Accounting Providers
At this point, you know what kind of financial support you need and which experts can provide it. Now, it’s time to start looking at providers.
You can evaluate providers on many bases, including:
- Pricing for the services you want
- Flexibility (e.g., can you pay from month to month, or does the provider require an annual contract?)
- Industry expertise
- Online reviews from trusted sources
- Initial communications with your top options
There’s no need to make a decision just yet. You can start by getting an idea of which providers will fit your goals and budget. The decision between these options will likely become obvious as you move deeper into the outsourcing process.
4. Consider Compliance and Internal Controls
Another factor to consider is how outsourcing could impact your company’s compliance obligations. Your industry may have special requirements around customer data or financial reporting. If so, you’d want an outsourcing partner that understands these rules at an expert level.
There’s also the question of how you’re going to work with the outsourced provider. Will you give them full access to your internal systems and files? Does that raise any potential legal issues? How do you even know?
The right outsourced accounting provider will guide you through all of this.
5. Make a Hiring Decision Based on Fit and Finances
Now, you’re ready to make a hiring decision. Choose the provider that offers the right blend of price, expertise, and administrative support.
You may need to schedule consultations with more than one potential partner. This makes direct comparisons easier by giving you access to more personalized information. For example, you can decide based on how each provider would help your business specifically instead of how they support companies generally.
If you need more than one financial expert, try to stick with one provider. You may save money by bundling the services. But if not, it will at least be easier for those experts to work together when necessary.
6. Integrate the Outsourced Experts
Once you’ve hired an outsourced team, you’ll need to get it up to speed with your company’s financial needs. That integration process may involve teaching the outsourced professionals about your internal systems, creating accounts for them, and having in-depth conversations around your goals and processes.
For example, your process may look like this:
- Introduce the experts to the internal workers they’ll communicate with.
- Show the experts how to use your internal systems, creating accounts where necessary.
- Share more about the financial goals you hope to achieve with their support.
- Ask for advice or guidance from the experts in the areas where you need it.
7. Monitor and Adapt
Finally, remember that the first outsourced accounting solution you choose may not be the last one you need. A company’s financial needs can evolve over time. It’s important to be mindful of this.
Continuously evaluate whether your outsourced accounting solution is still the right fit. That process may involve looking at factors like:
- Changes in market demand for your products
- New financial regulations that impact your industry
- Changes in your company’s internal ability to manage key accounting tasks
- Fluctuations in your overall financial projections and modeling
CFO Hub Makes Outsourced Accounting Easy
Finding the right partner may be the most important part of outsourcing your accounting department. We hope you’ll consider starting your search with CFO Hub.
We have a diverse team of financial experts on standby, ready to support your business in whatever ways it needs. From complex financial modeling and strategies for growth to support with everyday accounting tasks, our clients count on us for daily financial guidance.
We’d love to provide the same level of support to your business. Get in touch to set up a free consultation to learn more.