How to Successfully Outsource Your Accounting Services: A Step-by-Step Guide

Struggling to keep up with the demands of financial management? You’re not alone. Many businesses, whether startups or established companies, struggle to maintain an efficient accounting department as they grow.

So, how does having a team of expert accountants at your fingertips without the hassle of recruitment, training, or employee turnover sound? Good? Then outsourcing might be for you. 

By outsourcing your accounting, you can hand over your accounting tasks and unlock a host of benefits that not only alleviate the strain on your current staff but also propel your business toward greater efficiency and success.

In this step-by-step guide on how to outsource accounting services effectively, we’ll reveal how it can revolutionize your financial operations and explore seven key benefits of outsourcing accounting services.

You’ll learn where to find the best outsourcing partners, including emerging hubs in Latin America (LatAm), and how to build a successful long-term relationship with your provider.

7 Reasons To Outsource Accounting Services

Finance and accounting BPO (business process outsourcing) services offer numerous advantages for businesses of all sizes. Here are seven compelling reasons to consider outsourcing:

1. Save on overhead costs

Outsourcing can significantly reduce your operational costs while ensuring your preparation and analysis of financial statements are managed accurately and efficiently. 

For starters, you’ll save on salaries, employee benefits, and office space required for full-time employees in an in-house accounting department.

Additionally, you can cut down on expenses related to training and professional development, as your outsourcing partner will handle these aspects.

2. Gain expert knowledge

Outsourcing firms employ experienced financial professionals with specialized expertise who stay updated with the latest regulations and standards, ensuring your business remains compliant.

3. Focus on core activities

By outsourcing non-core activities like accounting, your team can focus on strategic initiatives that drive business growth and profitability.

4. Access advanced technology

Outsourced accounting providers use state-of-the-art accounting software and tools, giving you access to top-notch technology without the need for expensive investments.

5. Improve scalability

Outsourced accounting services can easily scale up or down based on your business needs, providing flexibility during peak seasons or periods of growth.

6. Enhance accuracy

With experienced professionals handling your accounts, the likelihood of errors is greatly reduced, leading to more accurate financial reporting.

7. Receive strategic insights

Outsourced accounting partners can provide strategic insights and financial analysis that can inform your business decisions and strategies, including detailed cash flow statements and balance sheets

Where To Outsource Accounting Services

When outsourcing accounting services, selecting the right location is crucial. The following list includes some of the top countries for hiring remote accountants (in no particular order). So if you’re not sure where to start your search, these countries could be a choice.

1. Brazil

As the largest economy in LatAm, Brazil offers a large talent pool of accounting professionals well-versed in US GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards). 

Additionally, Brazil’s time zone aligns well with the Eastern US, facilitating communication. However, language barriers (Portuguese is the primary language) might require translation services for seamless collaboration, although finding accountants with English fluency is not hard. 

2. Columbia

Colombia’s growing tech scene and emphasis on education have produced a skilled workforce with strong English proficiency. The country’s favorable business environment and competitive labor costs make it an attractive option. 

A member state of the International Federation of Accountants (IFAC) since 1977, Colombia’s accounting quality is strictly maintained by the Central Board of Accountancy, ensuring you receive top-notch service.

3. Argentina

Argentina is known for its strong educational system and high English proficiency, ranking first among LatAm countries and 28th in the world. The country offers competitive pricing and excellent technical skills. Argentina’s time zone is closely aligned with the US, which facilitates seamless communication and collaboration. 

4. Philippines

The Philippines is a well-established hub for outsourcing, known for its excellent English language skills and cultural compatibility with Western countries. Lower cost of living creates low salary expectations, and there are skilled professionals available across nearly every industry.

However, the number of certified public accountants (CPAs) in the Philippines is dwindling, with low enrollment rates and a difficult examination process. If the trend continues, it may not continue as a top option for outsourcing accounting services. 

5. India

India remains a top destination for outsourcing accounting services due to its vast talent pool, cost advantages, and expertise in the field. Indian professionals are well-versed in international accounting standards and regulations, including US GAAP, ensuring compliance and accuracy in financial reporting. 

The Big 4 accounting firms—Deloitte, PwC, EY, and KPMG—all use Indian accountants extensively for routine tasks, as the US-based workforce continues to shrink.

6. Ukraine

Ukraine is known for its technical proficiency and cost-effective services, making it a viable option for businesses looking to outsource accounting tasks. While its location best serves European companies, US businesses can still take advantage of the strong analytical skills and attention to detail that Ukraine’s workforce is known for. 

It has also recently voted to cancel daylight savings time, meaning there is a bit more overlap with US businesses during the summer now.

7. Kenya

Kenya is emerging as a promising destination for outsourcing accounting services. The country has a young, educated workforce and offers competitive pricing. Additionally, Kenya’s improving infrastructure makes it an attractive option for businesses seeking reliable and cost-efficient accounting solutions. 

Kenyan professionals are increasingly proficient in English and familiar with international accounting practices, providing quality service to global clients.

How To Outsource Accounting Services for Your Business

Successfully finding the ideal outsourced accounting partner, whether that’s a firm or an independent contractor, involves a clear, step-by-step process. Here’s how to do accounting outsourcing effectively:

1. Conduct discovery meetings

Start by holding discovery meetings with potential providers. Discuss their capabilities, experience, and service offerings to ensure they can meet your business needs.

2. Consider your requirements

Clearly define your accounting needs and expectations. Outline specific tasks you want to outsource, such as bookkeeping, payroll processing, tax preparation, or financial reporting.

3. Select the right vendor

Evaluate potential vendors based on their expertise, reputation, pricing, and references. Choose a partner with a proven track record of delivering high-quality accounting services.

4. Discuss expectations

Establish clear expectations regarding timelines, deliverables, communication protocols, and performance metrics. Ensure both parties are aligned on the scope of work and desired outcomes.

5. Negotiate the contract

Negotiate the terms of the contract, including pricing, payment schedules, confidentiality agreements, and termination clauses. Make sure the contract is comprehensive and protects your business interests.

6. Onboard 

Once the contract is signed, begin the onboarding process. The provider will likely have their own process for this, and they will ask you for the information they need and access to your systems. 

7. Establish communication channels

Set up regular communication channels to ensure seamless collaboration. Schedule periodic meetings to review progress, address any issues, and provide feedback.

8. Monitor performance

Continuously monitor the performance of your outsourced accounting partner. To ensure you are getting the best results, use key performance indicators (KPIs) to assess their effectiveness and make necessary adjustments.

By following these steps, you can successfully outsource accounting services, ensuring a smooth transition and effective partnership.

How To Build a Successful Relationship With Your Outsourced Accounting Partner

A thriving partnership with your outsourced accounting provider is built on trust, communication, and mutual understanding. Here’s how to cultivate a strong and productive relationship:

Establish clear communication channels

Regular and transparent communication is the cornerstone of a successful outsourcing partnership. Here’s how you can do it:

• Set up recurring meetings to discuss progress, address concerns, and review financial reports.
• Use email, phone calls, or video conferencing as needed.
• Ensure both parties have a clear understanding of preferred communication methods and response times.

Transfer information securely and efficiently

Implement secure file-sharing platforms or cloud-based solutions to facilitate the exchange of sensitive financial data. Establish protocols for data encryption, access controls, and backup procedures. Clearly define who is responsible for providing specific information and by when.

Stay strategic and aligned with business goals

Your accounting partner is often like a strategic adviser for your business. Share your business strategies, goals, growth plans, and financial challenges with them. 

Encourage them to provide proactive insights and recommendations on how to optimize financial performance and support your long-term vision.

Continue to monitor performance

Some tips to effectively monitor performance include: 

• Regularly assess the performance of your outsourced accounting team against pre-defined metrics and KPIs.
• Monitor accuracy, timeliness, responsiveness, and overall value provided.
• Address any issues promptly and constructively.
• Conduct periodic reviews to ensure continuous improvement and alignment with your evolving business needs.

Final Thoughts

Whether you’re overwhelmed with bookkeeping tasks or looking to optimize your overall financial management, outsourcing accounting services can significantly enhance your business’s internal operations, offering numerous potential benefits. 

By partnering with the right provider, you’ll gain efficiency, reduce costs, and access expert insights. The key to success lies in carefully selecting the right outsourcing partner. 

Whether you choose an outsourcing hub like India or explore emerging options in LatAm, prioritize a provider who understands your business needs, aligns with your values, and can deliver high-quality services consistently.

Near connects you with top-tier accounting talent from Latin America, saving you 30-70% on salaries compared to working with US-based accountants—without sacrificing quality. Book a free consultation to discover how we can help you outsource your accounting processes.

FAQs

What accounting and bookkeeping services can you outsource?

You can outsource a wide range of accounting and bookkeeping services, from basic bookkeeping tasks to payroll processing, tax preparation, financial reporting, accounts payable and receivable or audit support. These services help you streamline their financial operations and focus on core activities.

Should you outsource accounting to an accounting firm, recruitment company, or freelance accountant?

The choice depends on your business needs, budget, and the complexity of your accounting tasks. Accounting firms offer comprehensive services and expertise, making them ideal for businesses with complex needs. 

Freelance accountants or independent contractors can provide cost-effective solutions for smaller tasks or specific projects. However, they can also replace the role of an in-house accountant. They are a great option when you want them to work more like a part of your team than an external resource. Recruitment companies like Near can help you find skilled professionals quickly. 

Where can you find outsourced accounting providers?

Outsourced accountants or outsourced bookkeepers can be found through recruitment agencies like Near established accounting firms like Moss Adams, or freelancing platforms like Upwork. You could also choose to work with an accounting staffing firm. Check out our guide on finding great remote employees to learn more.