The 6 Hidden Advantages of Outsourced Accounting You Can’t Ignore

The year is 2006, and American call center manager Todd has just discovered that his company is outsourcing its operations to India. With hesitation, he packed his bags and moved to Mumbai, where he awkwardly tried to train the new team, fit in, and understand local customs (and eventually, fell in love). “Outsourced” is a fictional story that made its way to the big screen in the early 2000s, and while the movie may be a romantic comedy, it nods to the mixed emotions many employees—like Todd—feel when they hear the word “outsourced.”

Today, the concept of outsourcing might still make people nervous, so we’re here to debunk the myths and highlight the benefits of outsourcing your small business accounting needs to a trusted CFO service. You may not meet your soulmate at Froehling Anderson, but we’re pretty sure you’ll fall in love with our expertise.

Outsourced accounting is nothing to be afraid of, and it doesn’t require you to pack up your bags and move across the world. In fact, it’s easier than ever to outsource your CFO services to a virtual accountant—and here’s why you should take the plunge.

Businesses have outsourced various functions of their operations—from payroll to IT to human resources—for years! However, fewer have considered outsourcing their accounting and finance functions. Doing so can result in a wide range of benefits for your business, including more free time for your team to spend on tasks that add value to your organization. The best candidates for outsourcing accounting tend to be companies whose growth trajectory requires them to think bigger, better define their place in the market, and develop a strategy to move forward. Sound like you?

Often, companies who outsource their accounting functions desire better financial clarity but might not be able to afford a full-time CFO. They need expertise related to their industry and would benefit from knowledgeable consultants who can offer comprehensive solutions to the complex hurdles their business faces. Sounds like us!

Outsourced accounting services are perfect for leaders who find themselves spending too much time stuck in the nitty-gritty details of business processes and not enough time working on long-term, strategic planning. This can lead to a number of problems, including misaligned directives, unchecked risk exposure, a lack of focus and direction, and a limited ability to pursue business growth opportunities.

Outsourcing your accounting and financial functions not only frees up time, it can also lead to stronger planning and execution results, better-informed decision-making, improved direction and tactical outcomes, higher profitability, as well as:

1. Time & Money Saved

Compared to hiring, training, and maintaining an internal department, outsourcing your accounting isn’t only more cost-effective but also solves your business capacity issues. Outsourcing can lower your total costs by eliminating the additional expenses associated with employee benefits, training, and technology or software costs—all while redirecting your valuable time back toward growing your business. Furthermore, the cost predictability that comes with outsourcing allows for better financial planning, as you can allocate resources more efficiently without unexpected payroll fluctuations or training expenses.

2. Anytime, Anywhere Access to Financial Data

Let’s face it. Everyone is doing business online these days, and accounting is no exception. Using leading-edge cloud accounting technology allows you to close your books quicker and get real-time reporting. You’ll gain visibility into your financial health with access to financial data and records anytime, anywhere. Moreover, the accessibility provided by cloud-based solutions facilitates collaboration among team members, ensuring that key stakeholders can review financial information simultaneously, fostering a more streamlined decision-making process.

3. Improved Operational Efficiencies & Processes

Outsourcing day-to-day operations like billing, payroll and month-end closes will free up valuable time so you can focus on business goals and growth. Accounts payable outsourcing means that rather than chasing unpaid invoices or manually cutting checks, you can rely on a trusted partner like us to automate these processes and streamline operations for you. Additionally, the efficiency gained from outsourcing allows for a quicker response to market changes, ensuring your business remains agile and adaptable in today’s dynamic business environment.

4. Access to Expert Financial Resources

We get it. It can be challenging to find and retain knowledgeable staff with the accounting and financial expertise you need. On top of that, you’re also juggling the responsibilities of running a business and managing a staff. Outsourced accounting services ensure your financial records are always accurate and up to date, giving you the confidence you need to make decisions about the future without much oversight on your part. As your partner, we make sure you always have the information you need to make informed decisions—without the organizational headaches of ensuring you’re tracking the right data. This not only guarantees accurate financial reporting but also enhances your strategic planning capabilities.

5. Reduced Risk of Fraud

Risk is real, and so is human error. Every business owner wants to mitigate risks and limit accidents as much as possible, and that means maintaining proper internal controls to protect against fraud, theft and potential error. If you rely on just a few people to fill multiple roles, your business is at a higher risk. By outsourcing these duties, you can clearly separate tasks and offer greater oversight to reduce risks.

Outsourced accounting firms are also well-versed in cybersecurity—a field that is changing rapidly. Are you confident that your internal team is up-to-date on cybersecurity best practices? With outsourcing, you not only mitigate the risk of internal fraud but also benefit from the expertise of professionals who stay abreast of the latest cybersecurity measures.

6. Greater Peace of Mind

With all of the above accounted for (pun intended), you can put your mind at ease. By outsourcing your accounting and financial functions, you can virtually guarantee your operations will be in order, risks of potential threats will be low, and visibility into your company’s financial health will be readily available. So go ahead and focus on big-picture and business strategy instead. We’ll take care of the rest.

Additionally, the peace of mind that comes with outsourcing extends to regulatory compliance, strategic planning, and the assurance that your financial data is not only accurate but also secure, fostering a more resilient and confident business environment.

Offloading your accounting tasks to a third-party service isn’t something to take lightly. Like all relationships, you want to make sure it’s a good fit. You want to make sure whoever you work with is communicative, knowledgeable and trustworthy.

Across industries, business owners should consider industry experience and an accounting firm with a suite of advisory offerings that complements their accounting and finance needs. Your business’s services can be enhanced when you work with someone who knows the ins and outs of your industry.

Fit is crucial because business owners like you, want and deserve to have a strong relationship with your service provider. Trust is critical in order to eliminate your day-to-day oversight, so we work hard to gain and maintain your trust as a partner.

We won’t eliminate your participation in your finances because your input is key to your success. But we’ll make it easier for you to take charge of your accounting functions and prove to you once and for all that there’s no reason to fear outsourced accounting.