Call Center or Customer Experience outsourcing might be considered the most commonly outsourced function in a business. Still, recently outsourced accounting has taken second place as the most outsourced function, following Information Technology outsourcing, preceding outsourced BPO financial services & BPO accounting, BPO customer service or client services, or call center outsourcing. As of 2023, 44% of companies globally resort to outsourced accounting and finance services, making them one of the most sought-after business functions as companies focus on their core functions or find ways to save costs and time.
In this blog, we will walk you through everything you need to know about outsourced accounting and how partnering with a reliable outsourced accounting provider can help your organization cut costs significantly, improve operational tempo, and elevate its talents’ contribution to success.
Table of Contents:
- Accounts Payable Outsourcing
- Accounts receivable Outsourcing
- Payroll Processing Outsourcing
- Bookkeeping Outsourcing
- Financial Analytics Outsourcing
- Tax Preparation Outsourcing
- Audit Outsourcing
- Advanced-Data Analytics
- Blockchain Technology
- Sustainability Reporting
- Talent Management
What is outsourced accounting and finance?
Accounting and finance are crucial functions for the success of any business. Finance and accounting together form the backbone for any business’s key financial decisions. They can be used to develop data-driven decisions that help the business progress toward its goals and achieve value for its owners or shareholders. The more these functions deliver accurate and error-free results within their organizations, the more they provide solid strategies, better decision-making mechanisms, and a more defined direction toward achieving a better return on investments, consequently leading to the company gaining a competitive advantage in their industry.
On a broader scale, accurate financial planning helps predict the risks for the company by understanding the factors that affect cash flow, profits, income, revenue, and debts. This gives the business a clearer standpoint regarding risks and helps them prepare better for all scenarios. Financial data are now becoming more critical than ever, especially with the advancement in data science, analysis, and visualization, which made understanding data easier for better forecasting and decision-making. Furthermore, highly accurate financial data analysis contributes to better communications with financial entities and even facilitates pitching for investment opportunities when needed.
Outsourced accounting and finance are becoming one of the most outsourced services sought after by companies worldwide. BPO Accounting outsourcing includes relying on third-party entities with prominent accounting and finance calibers and capabilities that will take over some, if not all, the accounting functions within the company either on a project basis or according to a specific agreed-upon duration. Amongst the outsourced accounting services, we see auditing as a key service that is usually assigned to a third party, besides financial planning and budgeting, accounts payable and receivable services, taxation, bookkeeping, and payroll processing.
Outsourced accounting and finance services here become a contractual relationship between the business, its stakeholders and the provider of the professional calibers that are undertaking the outsourced functions. This contractual relationship governs the mutual growth and exchanged benefits for both parties. For example, a business should ensure the professionals are within the right cultural and work environment that enables them to perform highly in their tasks and excel at them. It also pays off to check what training those calibers receive within the accounting services providers’ company.
Companies that resort to outsourced accounting and finance services are looking to save costs in the first place, but they also look for partners that will take off their hands the operations for all transactional processes and achieve financial compliance at the same time. Furthermore, companies usually are inclined to hire plug-and-play teams that have the needed professional acumen to lead the financial operations with the least amount of internal training or onboarding, as this takes its toll on the slowed finance processes as well as the company resources that are involved in the onboarding and ramping up process of the new employees. By doing that, businesses can focus more on core business functions related to their products, services, and go-to-market strategies, leaving their services partner to take care of all the finance and accounting needs.
Outsourced accounting and finance functions
Accounting and finance cover many functions crucial to the business’s performance in the market. While accounting focuses on bookkeeping, recording of financial transactions, and reporting on them. Therefore, finance has a wider view on the financial situation of the business, handling its financial planning, budgeting, financial risks, cash flow, and financial analytics and reporting. In the following section, we will go into more detail about the most outsourced functions of accounting and finance:
Accounts Payable Outsourcing:
Accounts payable are the amounts the company owes to the different suppliers and vendors they are dealing with to purchase goods, products, and services for various purposes. This includes dealing with a large volume of day-to-day transactions related to invoicing, payment processing, installments management, as well as vendor relations management and communication. Businesses usually assign these tasks to an outsourcing accounts payable team focused only on ensuring the accuracy of the invoices and the delivery of payments, leading to smooth and steady interactions with the suppliers and vendors.
Accounts Receivable Outsourcing:
Accounts receivable are the opposite of accounts payable as they represent the amounts the company needs to collect from its customers for the products, services, and goods they provide. The accounts receivable department is a crucial accounting function. It regulates the relationship between the customers and the company and ensures that the company has sound records of its invoices, payments, and overall collections processes. The accuracy of these processes leads to improved cash flow and customer relationships. With outsourced accounts receivable, companies gain access to expert professionals in invoice management as well as better reporting on inflows of cash affecting many growth areas and highlighting different improvement areas related to sales revenues, investment income, and sales of assets, among others.
Payroll Processing Outsourcing:
Payroll processing includes many functions related to the financial aspects of the company’s workforce, such as salaries and wages, issuing checks and deposits, handling 401Ks, etc. Assigning payroll processing tasks to an outsourced accounting services provider helps take off the burden of managing all the employees’ financial-related processes from the company, ensuring that the employees’ financials are taken care of as well as other administrative benefits, including health and social insurance, and retirement plans execution, as well as handling all time-sheet related matters, making sure employees are compensated for their over-time.
Bookkeeping is the function that keeps all accounting transaction records up to date and keeps track of the overall accounting performance of the company. This function also includes ensuring the accuracy of all the company’s financial statements as well as providing the decision-makers easy access to them. Moreover, bookkeeping is directly related to all the company’s financial data, which is the most valuable factor in the company’s planning and forecasting. As bookkeeping consumes a large part of the capacity of the accounting unit, it can create a bottleneck that hinders expediting the pace of the team and the speed at which they process transactions.
Hiring an outsourcing bookkeeping team of professionals positively affects the workload management of the unit and improves the workflow significantly. Outsourcing bookkeeping will also allow real-time updates on the overall performance of transactions, harnessing any areas of improvement and enabling more insightful reporting on financial performance and accounting processes.
Financial Analytics Outsourcing:
Financial analysis helps businesses evaluate their financial position by looking into the budgets, outcomes of projects, and overall performance of the organization in terms of cash flow and investment opportunities. There are two main types of financial analysis: fundamental and technical.
While fundamental financial analysis relies on ratios based on the company’s financial data, such as financial statements, economic data, and industry trends, technical financial analysis investigates the status of the company’s securities. In simpler words, an analyst looking to analyze financial data technically aggregates and analyzes historical data on the prices of stocks and bonds, and even checks currency trends to identify any patterns. On the other hand, fundamental financial analysis takes into consideration the organization’s health and macroeconomic conditions surrounding the business, contrary to the technical analysis that disregards any factors that might affect the securities’ value.
As such a critical role, financial analysis plays a part in the success of any organization. Therefore, It has to rely on advanced data processing tools and professionals with the needed knowledge of these tools and unique analytical skills. Outsourcing financial analytics not only provides access to such talent pools but also provides the needed personnel trained on the latest data analytics and visualization tools such as business intelligence tools, data mining and cleaning tools, cloud computing, all the way to talents that can use machine learning, AI and DLT technology (the technology of decentralized/democratized data storage behind the blockchain) to store and sort data in the most efficient, accessible and transparent manner possible.
Tax Preparation Outsourcing:
Tax preparation is the process where the accounting and finance unit takes care of all taxation-related matters, such as collecting and filing tax documents, ensuring compliance with taxation, staying on top of taxation updates and regulations to maintain refreshed credits and deductions, and doing income calculations.
In companies with heavy volumes of transactions, multiple income sources, and diverse asset ownership, a solid and relatively big tax preparation team needs to process all required tax documents and ensure compliance and up-to-date knowledge of regulatory changes. Thus, outsourcing tax preparation seems a convenient option for many companies nowadays, especially when tax preparation becomes costly in terms of hiring in-house full-time teams or with the increased workload of tax preparation that is both effort and time-consuming.
Auditing is the governing function that ties all other accounting and finance efforts together, as auditors ensure all records, statements, results, and financial processes are accurate and verified. Auditing also confirms the compliance of the company’s financial performance with the standards. If there are any gaps in the financial documentation and records that have been presented, then the auditing reports can highlight them and make recommendations for the improvement of the financial situation of the organization.
As the current economic status worldwide is pressuring businesses to become more efficient and flexible to mitigate risks, relying on an outsourcing partner to provide auditing services can be the solution to help companies achieve that. Furthermore, the role of auditing is further expanding now to cover and support a wide array of ever-evolving topics and areas such as talent management, cybersecurity, regulatory compliance, risk management, and fraud detection and prevention. Outsourced accounting providers offer a wealth of talents that are constantly trained and up to date in these areas and topics, which enables businesses to elevate their auditing capabilities in the most cost-effective ways.
Outsourced Accounting: Understanding the current landscape
Considering the state of the current fast-paced economy, companies of all sizes are resorting to severe and radical ways to reduce the effects of economic pressure on their plans, strategies, and resources. Furthermore, the current post-pandemic world has made companies more aware of different approaches to remote workers and work modes that challenge geographical distances. These agile adjustments and new work circumstances impacted almost every business dimension. Still, most importantly, companies became more inclined to trust third parties in carrying out critical organizational functions. Additionally, this has made more organizations revisit their operational methodologies, controls and processes, costs-saving approaches, financial status, and most importantly, talents and calibers management.
Companies now gravitate towards having more accessibility to on-demand plug-and-play talents that are outsourced and managed by external providers that offer flexible contracting options. This definitely puts less pressure on the business’s budget. Moreover, by outsourcing some functions within the organization, companies get to focus more on core competencies which reflects on overall performance, efficiency, and operational cadence.
Accounting and finance have been among the most outsourced services in recent years, with more than 44% of companies nowadays choosing to rely on outsourced accounting and finance services providers. Therefore, the current state of outsourced accounting has been thriving and growing exponentially, with companies trusting outsourced accounting providers to perform more complex functions such as auditing, financial analysis, tax preparation, and budgeting. Companies can even go as far as outsourcing the entire accounting department to hire seasoned teams of professionals at lower costs, managed by a single point of contact (POC). Here’s an overview of the most recent trends that affected the field of outsourced accounting and finance in 2023:
Main trends highlighted in the landscape of outsourced accounting in 2023:
1- Advanced Data Analytics
Data has become one of the most important assets for organizations, and companies that manage to make the most out of their data, usually get the most out of their planning, conduct better forecasting, and even mitigate risks better. Accounting has been one of the fields that adopted data analytics heavily since accounting departments have had exclusive access to the most significant and most valuable organizational data assets.
Around 62% of Chief Financial Officers see there is a growing demand for accounting departments to become more insightful. In comparison, 53% of them have concerns about the internal accounting departments being more reactive than proactive due to the workloads thrown on their shoulders (according to recent research conducted by Accenture). The study elaborates that internal accounting and finance teams are short on time which is mainly involved in managing data only, as this takes up to 85% of their work, leaving them with just 15% of their time doing analysis and turning that data into valuable data-driven insights.
Nowadays, it is increasingly popular for organizations to resort to outsourced accounting providers with calibers that are highly trained in the usage of multiple tech stacks relevant to data analytics. This helps organizations understand their operations better and find new opportunities for continuous improvement of their processes, controls and overall performance as well as identifying and managing risks. Furthermore, outsourced accounting providers save on the cost of in-house acquisition of advanced data analytics tools and infrastructure, giving organizations a cost-effective opportunity to utilize data.
Due to the need for more data analytics tools that are advanced enough to serve multiple purposes, we saw an influx in software and data analytics tools development in recent years. Now, accounting units could use one or more of the following tools to utilize their data fully:
- Business Intelligence Tools (BI Tools): These tools help collect, sort, clean, and analyze the data to produce insightfully and visually better information for decision-making.
- Proprietary Tools: These are tools that are owned exclusively by a single organization internally, and they are usually coupled with the organization’s product, sold along with their service. These tools help with data extraction and analysis based on the interactions with the customers and users of the product or the service the organization is selling.
- Finally, there is an increased interest in adopting programming languages and codes to analyze huge data sets. R and Python have recently been used to produce in-depth and reliable statistical analysis of organizational data. Other programming languages such as Java, MATLAB, and SQL are being used as well, since they provide diverse frameworks for the extraction of data from dense databases, as well as tools for data visualization and statistical modeling.
2- Blockchain Technology
Entrusting outsourced accounting providers with essential financial duties and data analytics has required those providers to resort to more advanced data sharing and storage methods. Distributed Ledger Technology (DLT) has witnessed a spike in interest in recent years. As More accounting professionals, CPAs, and outsourced accounting providers are relying on these decentralized independent data storage units for the synchronization of financial transactions that are distributed as blocks, which increases the transparency of financial reporting, enhances the process of backing data up, and improves data accessibility and sharing with relevant stakeholders.
3- Sustainability Reporting
Sustainability reporting or sustainability accounting reporting takes into account the role the organization plays in social responsibility and abiding by the shared societal values in their different projects, products, or services. Moreover, sustainability reporting is the basis for any organizational communication of their ESGs, or in other words, how companies are delivering on their environmental, social, and governance goals.
As more organizations become increasingly reliant on outsourced accounting providers to provide consulting talents in this extremely niche area of reporting expertise, these providers have contributed massively to the organizations’ brand reputation and achieved a competitive advantage in the market. These contributions’ impact has even extended to powering influential green marketing campaigns in key markets. Overall, sustainability reporting contributes to better management of the organizational exposure and influence on the environmental surroundings. Hence, it helps with providing planning and opportunities to reduce the negative impact on the communities they operate in.
4- Talent Management
Organizations are becoming more attentive to the qualifications of the talent pools they access through outsourced accounting partners. As the role of accounting is constantly growing to cover more areas beyond data entry and data consolidation, the expectations of hiring more well-rounded professionals are getting higher every day. This has thinned the line between the outsourced accounting and finance services and talent-as-a-service model to the extent that outsourced accounting providers are now more into providing niche industry-specific calibers that can take over the entire function of finance and accounting within any given organization of any size and in different domains.
According to recent research conducted in 2022 by Deloitte: “Cybersecurity presents a challenge, and executives are willing to rely on third parties to deliver.” moreover, the report adds that 81% of executives reported they support their cybersecurity function with a third-party delivery model. Cybersecurity has also been at the intersection with accounting and finance. Outsourced accounting teams are expected to be well aware of the best practices of data protection as they mainly deal with critical and sensitive organizational data and are in charge of the analytics and insights shared for decision-making purposes. Cybersecurity and accounting also share the same goal of risk management, especially risks related to data storage and accessibility.
As we witness more progress towards the accounting function’s involvement in such key topics, outsourced accounting providers have been gearing towards leveling up their cybersecurity capabilities. Outsourced accounting providers now ensure that their pool of professionals is highly knowledgeable in areas such as data encryption, accessibility controls, network security, cloud computing, advanced data processing and analytics software. Additionally, outsourced accounting providers are becoming more attentive in providing the right onboarding programs for their professionals to increase their awareness of the different organizational models they will be integrated with in order to prevent data leakage or the breach of any regulations.
Outsourcing Accounting: A Strategic Decision for Business Growth
While the main benefit of finance and accounting outsourcing is the reduction of the costs of hiring full-time internal accounting and finance departments, there are other benefits in partnering with outsourced accounting providers, such as the following:
1. Accessing Specialized Expertise
Organizations of steady growth invest in expanding their teams’ and executives’ capabilities to lead and grow their skills. This requires meticulous planning and an understanding of market needs. Accounting departments grow in complexity as the organization grows, dealing with scaling internal and external processes.
Outsourced accounting providers bridge the gap by offering a results-oriented, people-agnostic model that eliminates the need for close management of in-house teams. This approach allows organizations to outsource their accounting departments and transition to a fully managed services model, streamlining operations and sharpening focus on core business objectives.
2. Easing the burden of people management
Outsourced accounting can help organizations scale their accounting operations flexibly to meet changing demands.
When an organization grows or contracts, its accounting needs may change. Outsourced accounting providers can help organizations adjust their accounting services to meet these changing needs. This can save organizations time and money and help them avoid the risks associated with hiring and managing their own accounting staff.
Outsourced accounting providers have a team of experienced accountants who can handle a wide range of accounting tasks. This includes bookkeeping, accounts payable, accounts receivable, payroll, taxes, and financial reporting. Outsourced accounting providers can also provide specialized services like auditing and tax planning.
Outsourced accounting providers can scale their services to meet the needs of any organization. This means that organizations can start with a small amount of services and then increase or decrease the level of service as needed. This flexibility can be a valuable asset for organizations that are facing changing demands.
If you are considering outsourcing your accounting, be sure to do your research and choose a reputable and experienced provider. You should also make sure that the provider understands your specific needs and can meet your budget.
3. Adapting to Change: Flexibility in Outsourced Accounting Services
Organizational scalability focuses on operations and usually presents a challenge to management in terms of maintaining efficiency, steadying performance, and productive work cadence. This applies to the accounting department on many levels. When an organization scales up to meet growth opportunities or increased demand due to expansion in new markets, this translates into an increased operational capacity and more staff hiring, undoubtedly impacting the scope of the accounting team. Contrary to that, scaling down is usually done to ensure the organization’s viability, and it can happen in various ways, such as lay-offs, cost reduction and/ or the closure of unprofitable departments.
All these organizational adjustments can affect the accounting teams in terms of the workload and even the size of the teams, and adapting to those changes needs a certain level of agility. Outsourced accounting providers offer the opportunity to adjust the levels, capacity and/ or the scope of the services they provide flexibly to cater to seasonality with higher demand than others and to times when organizations are cutting operational costs.
4. Achieving Operational Excellence: The Role of Outsourced Accounting Providers
Finance and accounting outsourcing companies usually have access to thousands of finance and accounting talents that have niche or specialized expertise in different domains and industries. Access to such talents and calibers can help partner organizations streamline their operations and achieve organizational excellence. Furthermore, outsourced accounting providers have access to sophisticated software used for financial data bookkeeping and analysis, which are utilized to achieve optimum usage of the organization’s valuable data that support the decision-making process. Furthermore, outsourced accounting companies have the most updated with playbooks and methods of establishing procedures that organize and constantly optimize the accounting and finance efforts, contributing to improving the overall financial performance.
Recommendations for outsourcing finance and accounting
1- “Partner” with your outsourced accounting provider
Your outsourced accounting provider will be an extension of your organization, and the stronger your partnership is, the better your communication will be optimized. Outsourcing companies do not only take care of the technical training and management of the outsourced talents working with your organization, but they also bridge any gaps between the values of the outsourced accounting team and the organization, which expedites the positive outcome from the outsourced units.
Additionally, accounting departments handle the organization’s most sensitive data, critical functions, and analysis. Establishing close communication with the outsourced accounting provider will ensure their understanding of the internal organizational handbook of regulations to deal with such data, leading to tightened information security and data protection.
2- Analyze your organizational needs
Outsourcing accounting and finance functions might not work for all organizations. The decision to rely on external accounting partners depends on an organization’s operational needs and its aspirations to expand its capacity steadily. Organizations have to evaluate the status of their internal accounting and finance teams to understand their needs and weaknesses. This will lead to better judgment on the amount of cost and effort invested in the unit and establish a better view to compare this situation with the others where the organization decides to hire an outsourced accounting team. Furthermore, pinpointing bottlenecks in the performance will highlight which functions that can be outsourced to a third party and which can be performed internally.
3- Ensure the clarity of SLAs
Establishing an explicit service level agreement and discussing this early on before the kick-off of the services is one of the key elements of the success of the partnership with an outsourced accounting provider. SLAs act as the contract for an organization’s expectations needs’ fulfillment, scope of services, and the mechanism of the delivery of these services as well as the metrics that will determine the performance efficiency.
4- Consider the technology stack
Technologies and tools that are used by the outsourced accounting team should also be evaluated according to the needs of the business and its internal accounting team and what the business is looking to achieve. For example, if there is an issue with organizing data and managing it in the best way for better accessibility and retrieval, then picking an outsourced accounting provider that excels in bookkeeping is crucial. This provider should present the right tools and processes for transactional bookkeeping, or else they won’t fit the organization’s needs. The same applies to other functions, especially financial analytics, which requires looking for teams that utilize the most advanced data analytics and visualization software, such as Business Intelligence tools.
5- Consider Certifications & Accreditation
Organizations partnering with outsourced accounting providers should consider the following:
On the company level:
- If the outsourced accounting provider has obtained internationally acknowledged accreditations in the fields of data security, cybersecurity, and quality for example. This means they will be fit to handle your business’s most critical functions.
- Outsourced service providers also might be ISO certified in quality assurance and information security, which assures that they follow the best procedures and processes in those fields.
- The SOC II is another desirable accreditation for outsourced accounting providers as it guarantees their compliance with the “Trust Service Criteria“ for security, availability, processing integrity, confidentiality, and privacy.
On the team level:
Outsourced accounting providers can provide you with calibers that are holders of a CPA (Certified Public Accountant) certificate for highly adherent to the highest accounting standards professional, CGMA (Chartered Global Management Accountant), and CMA (Certified Management Accountant), which certifies professionals in the field of finance and accounting management.
Finance and accounting outsourcing with Flairstech
To choose the right professional outsourced accounting partner that offers the best outsourced accounting services, many factors would affect your decision beyond just being offered a lower cost of services compared to operating an internal team or hiring an external outsourced accounting department. Among these factors are the following aspects that should be considered for the business to get the best outsourced accounting services:
- The outsourced accounting provider’s access to the right technology stack. This reflects on almost every function and result by your outsourced accounting department as they power the issuance of financial reports and insights into the business’s financial situation and even the overall organizational performance.
- The outsourced accounting provider’s access to a diverse pool of talents and domain experts. This will enable better customization of a holistic outsourced accounting department that will carry out the functions needed for the organization.
- The outsourced accounting department processes and controls vary from one organization to another and according to the industry type. This is related to the scope of the outsourced accounting department’s handling of the organization’s financial data, which includes data entry, invoices processing, and bank reconciliations. Additionally, this aspect has to do with the internal controls the outsourced accounting department has access to authorize them to conduct auditing tasks, financial reporting, and analytics as well as the supervision of all financial procedures to ensure compliance and prevent errors.
- The outsourced accounting department’s solid planning approach to performance gauging and steady improvement strategies to deliver the best outsourced accounting services. This is reflected in the technical training designed for the skills development of the team in alignment with their scope of work, the joint performance review sessions between the outsourced accounting teams and the organization team, and the technology and automation processes streamlining strategies periodical reviews.
We, at Flairstech, developed our own outsourced accounting processes and tools that include different approaches to accounting and finance in a myriad of industries and for various purposes. Our outsourced accounting unit partners with businesses in their journey to put together the best outsourced accounting teams that offer the best accounting services customized for the operational model of each organization we deal with.
Among the key benefits of working with Flairstech’s outsourced accounting unit are:
We work with the business to define the need for outsourced accounting in the first place, the attributes of the outsourced accounting function, the outsourced calibers’ knowledge and skill level, the current tech stack situation, and the internal processes and controls.
We thoroughly study the businesses we partner with to provide them with the right outsourced accounting solutions for their current problems and pain points. We develop standard operating procedures (SOPs) for each client so you can be sure that the process always fits your organization’s operational cadence.
3- Managed Services
We provide a managed services model for our outsourced accounting partners with a highly communicative focal point of contact to ensure the ease of reporting and the relief of the operational burden of managing an external accounting team on the organization’s management.
Our pool of outsourced accounting experts and talents i always ready to integrate within your organization regardless of the industry, thanks to our specialized training programs that ensure all calibers are up to date with market trends and the newest technologies.
5- Wide range of Expertise
Flairstech has access to a wide-ranging network of domain expertise in finance and accounting with different specialties, from bookkeeping specialists, collection specialists, and data entry to financial analysts, financial data scientists, and even CFOs.
6- In-house Technology
Our experts can deal with your existing technology and automation processes, but we can also bring our latest technology solutions to automate more functions and reduce error margins.
7- Quality & Security
To ensure that businesses get the best outsourced accounting services, we ensure the quality and security of all our transactions. Flairstech ISO-certified (ISO 27001) in information security management system (ISMS) ensures all financial data and transactions are secure, complaint and updated with the new data protection and privacy regulations. Furthermore, Flairstech has obtained the ISO 9001:2015 certification for Quality Management System (QMS), which ensures the delivery of quality services that will support the achievement of operational excellence in any organization.
What is outsourced accounting?
Outsourced accounting includes relying on third-party entities with prominent accounting and finance calibers that will take over some, if not all, of the accounting functions within your company either on a project-basis or based on a certain agreed-upon duration.
Amongst the outsourced accounting services, we see auditing as a key service that is usually assigned to third parties besides financial planning and budgeting, accounts payables and receivables, taxation, bookkeeping, and payroll.
Why do you need to outsource accounting?
Companies that resort to outsourced accounting and finance services are looking to save costs in the first place. Still, these companies also look for partners to unburden operations from such transactional processes and achieve financial compliance simultaneously.
Furthermore, companies usually hire plug-and-play teams with the needed professional acumen to lead the financial operations with the least amount of internal training or onboarding.
What are outsourced accounting services?
Accounting and finance cover many functions that are crucial to the business’s performance. Outsourced accounting covers many areas, such as bookkeeping, recording financial transactions, and reporting on them. In contrast, outsourced finance handles financial planning, budgeting, mitigating financial risks, cash flow management, financial analytics, and reporting.
What are the benefits of outsourced accounting?
The benefits of outsourced accounting vary between cost reduction, operations improvement, accessing niche talent pool, and elevating the financial tech stack of the businesses.
Companies usually resort to outsourced accounting teams to relieve the burden of managing accounting transactions internally, focusing on more core operational functions.