The Ultimate Guide to Outsourcing Accounting and Bookkeeping for Your Company in 2024

As a business owner, you know the importance of keeping your financial records accurate and up to date. However, managing accounting and bookkeeping tasks can take time and effort, removing valuable resources from your core business operations. 

That’s where accounting bookkeeping outsourcing comes in. 

Outsourcing accounting and bookkeeping services has become increasingly popular among employers, offering numerous advantages, such as cost efficiency, increased efficiency, access to specialized expertise, and more. 

In this comprehensive guide, we will explore the world of outsourcing for accounting and bookkeeping. 

By the end of this article, you will have a clear understanding of the benefits, options, and services available for outsourcing these tasks, helping you make an informed decision for your business.

7 Reasons To Outsource Accounting and Bookkeeping Services

Before we get into the specifics of outsourcing, it’s essential to understand why businesses outsource bookkeeping and accounting services. Here are some of the top reasons:

1. Cost savings

Outsourcing your accounting and bookkeeping tasks can significantly reduce operational costs for your business. By hiring a third-party service provider, you eliminate the need to hire full-time employees, allowing you to save salaries, benefits, and other overhead expenses.

2. Scalability of services

Businesses often experience fluctuations in their accounting and bookkeeping needs, making it challenging to manage these tasks with in-house staff. With outsourcing, you can easily scale your services up or down as needed without the hassle of hiring or letting go of employees.

3. Enhanced data protection and security

Outsourcing to a reputable provider ensures financial data is protected and secure. These providers have strict security measures, such as encrypted data storage and regular backups, keeping sensitive information safe from cyberthreats.

4. Access to expertise

In-house accountants and bookkeepers may not have the same specialized knowledge and expertise as professionals from outsourced accounting and bookkeeping firms. 

Outsourcing gives you access to a larger pool of highly skilled and experienced individuals, making it easier to find those who can handle your specific financial tasks with ease.

5. Improved accuracy

Outsourced bookkeeping and accounting firms have dedicated teams and advanced accounting software that can help reduce errors and ensure accurate financial records. 

6. Time efficiency

It takes time and effort to keep up with accounting and bookkeeping tasks, especially for small businesses that may not have a dedicated finance team. According to CSI Accounting & Payroll, accounting tasks can take up to 25 hours per month.

7. Focus on core business

Accounting and bookkeeping are crucial for any business, but they are not the core focus of most business operations. 

Outsourcing these tasks allows you to concentrate on what you do best while leaving the financial management to experienced professionals (unless you’re looking for outsourced accounting and bookkeeping for accountants).

Signs That Indicate the Need for Outsourcing Accounting and Bookkeeping

Outsourcing accounting and bookkeeping services can be a game-changer for your business. But how do you know if it’s the right time to outsource? Here are some signs that indicate the need for outsourcing:

• You’re spending too much time on bookkeeping tasks: Are you constantly juggling between managing your finances and running your business? If yes, it may be a sign that you need help with bookkeeping.
• Your financial records are not up to date: Falling behind in keeping track of your finances can lead to errors, which could result in costly mistakes. Outsourcing ensures that your records are accurate and up to date.
• You lack the necessary financial expertise: Bookkeeping and accounting require specialized knowledge and skills. If you or your team do not have the necessary accounting and bookkeeping expertise, outsourcing can provide access to professionals with extensive experience in these areas.
• Your business is growing: As your business grows, so does your workload. Outsourcing allows you to focus on growing your business while leaving the bookkeeping tasks to experts.
• You want to save costs: Outsourcing can be a cost-effective solution for small and medium-sized businesses, as it eliminates the need to hire full-time employees and invest in costly software. 

If any of these signs resonate with you, it may be time to consider outsourcing your accounting and bookkeeping tasks.

Factors To Consider When Selecting a Provider

While you could hire an outsourced accountant or remote bookkeeper on your own, we recommend you work with a reputable recruitment or outsourced accounting firm. These companies have talent pools of pre-screened financial experts and can assist you throughout the hiring process. 

Here are some factors to consider when selecting a potential outsourcing partner:

Experience and industry expertise

Look for a provider with experience in the accounting and bookkeeping industry. They should have a track record of providing high-quality services and understand the unique needs of your business.

Security measures and compliance

Outsourcing your financial tasks means sharing sensitive information with a third party. Therefore, it is crucial to ensure that the provider has proper security measures in place to protect your data.

Additionally, they should comply with relevant laws and regulations regarding handling financial information.

Service offerings and scalability

Different providers offer different financial services, so it’s essential to evaluate your needs and find a provider that offers the services you require. 

It is also important to consider scalability. As your business grows, will the provider be able to accommodate your changing needs?

Time zone differences

If your provider is located in a different time zone, it may affect communication and turnaround times. Consider this when selecting a provider, especially if you require real-time access to financial data.

A recruitment firm can often help you find accounting professionals in a similar time zone to your business.

Cultural compatibility with your internal team

It’s essential to ensure that the outsourced professional will integrate well with your internal team. They should be able to understand and adapt to your company culture, communication style, and work processes.

Candidates who have previous experience working with businesses in your industry are often easily accessible at the right recruitment or outsourced accounting firm.

How To Implement Outsourced Accounting and Bookkeeping in Your Business

Outsourced accounting bookkeeping firms make it easy for businesses to implement outsourced accounting and bookkeeping services, but there are a few key actions that you should take to ensure a successful partnership.

Clarify your expectations

Before outsourcing any accounting and bookkeeping tasks, it’s crucial to have a clear understanding of your business needs and expectations. This includes the scope of work, timelines, financial reporting requirements, and any other specific requests you may have. 

Choose the right provider

There are various options available when it comes to outsourcing accounting and bookkeeping services. You can choose from freelancers, virtual assistants, specialized firms, or even nearshore and offshore bookkeeping providers.

Set up software

Communication is key when working with an outsourced provider for accounting and bookkeeping. Ensure that you have the necessary software and tools in place for smooth collaboration and data sharing.

Establish communication channels

It’s important to establish clear communication channels with your outsourced provider. Utilize regular check-ins, email updates, or project management tools that allow for easy tracking of tasks and progress.

Onboarding process

Just like any new employee, it’s essential to provide an onboarding process for your outsourced accounting and bookkeeping team. This will help them understand your business operations, accounting processes, and expectations better.

How To Manage an Outsourced Accounting and Bookkeeping Team

When it comes to outsourcing your accounting and bookkeeping functions, proper management is crucial for ensuring the success of your partnership. Here are some tips for managing an outsourced team effectively:

Maintain ongoing communication

Effective communication is key in any business relationship, especially when working with a remote team. Make sure to make the most of the communication channels you established in the implementation stage, whether you’re using email, videoconferencing, or project management tools.

Measure performance against your expectations and business goals

To ensure your outsourced team understands their responsibilities and continues to work toward achieving the desired outcomes, compare their performance against the expectations and business objectives you set up at the start of your partnership.

It’s best to use specific metrics and key performance indicators (KPIs) to measure their performance objectively.

Regular evaluations and feedback

Just like with an in-house team, it’s essential to provide regular evaluations and feedback to your outsourced team. This will help them improve their performance and make necessary adjustments.

Utilize project management tools

There is a wide range of project management tools available that can help you track the progress of your outsourced team, assign tasks, and communicate effectively. Choose one that integrates well with your pre-established tools and systems.

Stay involved

While outsourcing allows you to focus on your core business operations, it’s crucial to stay involved in managing your accounting and bookkeeping tasks. Regular check-ins with your outsourced accounting team can help ensure that everything is running smoothly.

Top 3 Companies That Provide Accounting and Bookkeeping Services

There are many outsourced bookkeeping and accounting company and recruitment firm options that offer expertise in finding accounting and bookkeeping services for all kinds of businesses. Here are our top picks, in no particular order:

1. Near

Near has extensive experience and expertise in providing comprehensive outsourcing support for accounting and bookkeeping services. 

Our recruitment firm specializes in recruiting skilled professionals based in Latin America (LatAm), providing you with access to a large pool of experienced and qualified talent.

We’ve found accountants and bookkeepers for our clients with great success. We helped a health and beauty e-commerce company find a professional bookkeeper five times faster than usual, saving them $26,000 in annual overhead costs. 

2. Moss Adams

With clients in all 50 US states and a presence throughout the country, Moss Adams is a truly nationwide professional services firm. It has been in business for over 100 years and is a member of the Praxity Global Alliance.

Its outsourced finance and accounting services include developing reporting systems to analyze KPIs, creating roadmaps for business growth, using best-in-class technology, and more.

3. SmartBooks

SmartBooks is a small business-focused outsourced finance service based in Acton, Massachusetts. It has become well versed in popular accounting software and created a proprietary software platform, SmartBooks Genie.

The company’s outsourced bookkeeping and accounting services include monthly financial statements, accounts receivable and payable, employee expense reports, fixed assets accounting, bank reconciliations, payroll posting, expense recognition, and more.

Final Thoughts

Outsourcing accounting and bookkeeping services can be a game-changer for your business. However, finding the right provider is crucial for a successful outsourcing experience. 

With Near’s expertise in recruiting professionals based in LatAm, we can help you find pre-vetted candidates who are not only highly skilled but also culturally compatible with your company. 

Don’t let managing accounting and bookkeeping tasks hold back the growth of your business. Contact Near today and let us help you streamline your financial processes through outsourcing. 

Book a free consultation call to receive a list of pre-vetted candidates in the accounting and bookkeeping fields. Take the first step toward optimizing your business operations and see the difference outsourcing can make for your company in 2024!