A guide to outsourced accounting: All you need to know

Additional information on the benefits of fractional accounting services over a full-time hire is included in another article linked here. Not every business requires the same level of support when it comes to outsourced accounting. There is no shortage of anecdotal evidence to suggest accountancy outsourcing is on the rise but a recently released study has revealed just how significant that rise is. At some point, you may find it more beneficial to move some or all of your accounting processes in-house.

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To learn more about LBMC’s outsourced accounting services, contact an advisor today. At LBMC, we’re proud to provide outsourced bookkeeping, controller, and CFO services to businesses in Tennessee, Kentucky, Indiana and beyond. Our team has experience across a wide variety of industries, from well-established construction and real estate businesses to new companies in emerging markets including the brewery and hemp industries.

What are the potential drawbacks of outsourcing accounting tasks?

Regardless of industry or rate of growth, companies can find value in hiring an external firm to handle accounting services and improve financial reporting. Of all the outsourced accounting services, an outsourced CFO service is by far the most customizable. Whereas outsourced bookkeeping and outsourced controller work largely follow a predefined framework, an outsourced CFO relationship can be anything you want it to be. Outsourced CFO services are much more advisory in nature than outsourced bookkeeping or controller services. In doing that, your outsourced accounting firm will work closely with you to develop an approach that works for your business. They’ll track KPIs that are important to you, provide regular financial reporting, and be responsive to your needs when you call with questions.

Outsourced Accounting Frequently Asked Questions (FAQs)

1. Our team has experience across a wide variety of industries, from well-established construction and real estate businesses to new companies in emerging markets including the brewery and hemp industries.
2. Ensuring that any adjustments are openly communicated helps maintain alignment with business goals and keeps both parties informed.
3. But after this initial set-up period, the relationship typically reverts to a stable monthly business cycle.
4. This could be anything from a partial refund for a late delivery, to termination of the contract in more extreme cases.

They ensure the timely collection of payments from your customers for products or services sold (AR), and management of the money you owe to vendors (AP). Outsourced accounting firms work with a wide range of clients, many of which may also operate in your industry. Their teams live and breathe accounting every day, and will replicate best accounting practices from across your industry into your business’s workflows, boosting efficiency and productivity. In contrast, hiring an in-house accountant involves fixed costs like salary, benefits, and training. While this option provides direct control, it may lack the same level of expertise and scalability as an outsourced solution. Cherry Bekaert LLP and Cherry Bekaert Advisory LLC practice in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards.

This collaboration enables businesses to focus on growth and development opportunities while maintaining confidence in the accuracy and compliance of their financial records. Additionally, outsourced accounting firms can utilize advanced technologies that may be costly for a business to acquire independently. Cherry Bekaert employs various enterprise resource planning (ERP) platforms that offer enhanced financial reporting, streamlined compliance management and seamless data integration. With access to real-time financial data from virtually anywhere, these technologies make collaboration easier and more efficient. Outsourcing can provide several benefits, including cost and time savings, as you will no longer need to oversee the hiring and training of in-house accounting employees.

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Accurate financial statements are a critical component to managing any business, and QuickBooks makes it easy to generate and send financial statements in just a few clicks. The third-party accounting company acts as an in-house accounting department and may provide extensive support, as well as offer more advanced services such as CFO and controllership advisory services. With 57% of businesses globally relying on outsourcing for some of their core operations1,.. The size of one’s business and volume of work required will determine the size and structure of an outsourced accounting team. In this article, we’ll explain what exactly outsourced accounting is, what it covers, and how it can help your company.

Addressing changes in business needs or financial processes should be transparently discussed during check-in meetings. Ensuring that any adjustments are openly communicated helps maintain alignment with business goals and keeps both parties informed. Regularly updating the outsourced accounting team on evolving requirements ensures they can adapt promptly and what is an organizational chart continue to provide effective support. Setting up a system for continuously monitoring the performance of outsourced accounting services is essential. This includes tracking KPIs and conducting regular reviews to ensure that the services are meeting expectations.

We’ll also give you some key tips and insights into finding a provider and ensuring the process goes smoothly. Permanently increase your firm’s capacity with a dedicated outsourced accounting team in weeks, not months. Firstly, establish whether the outsourced CFO you’re interested in working with has a proven track record in your industry. An outsourced CFO that’s experienced in the nonprofit sector might not grasp the financial challenges that a fast-growing technology company deals with. As your business grows, it’s likely you’ll experience new financial challenges, whether that’s securing funding to fuel an expansion into a new market or building the systems required to manage multiple revenue streams. It’s likely that an outsourced CFO has experienced these challenges before, making them well-qualified to advise your business on its strategic direction.