How Outsourced Accounting and Bookkeeping Can Propel Your Startup to Success

As a startup founder or manager, you have a lot on your plate. From developing your product or service to managing day-to-day operations, it can be overwhelming to also handle the financial aspects of your business on your own. 

This is where accounting and bookkeeping outsourcing can be incredibly beneficial. Outsourced accounting and bookkeeping firms provide professional services that help startups manage their finances effectively without the expenses and hassle of hiring in-house staff.

In this article, we will explore the benefits of hiring an outsourced accounting and bookkeeping firm for startups and provide actionable advice on outsourcing your financial functions.

What Is Outsourced Accounting and Bookkeeping? 

Outsourced accounting and bookkeeping involves hiring a third-party firm to handle your financial tasks. These external companies offer a wide array of services, such as: 

• Managing accounts payable and receivable
• Recording financial transactions
• Handling financial statement preparation
• Providing tax support

This is typically done remotely, with the firm using cloud-based software to access your company’s financial data. Sometimes, the provider is based in the same state or country as your company. However, companies often outsource to either a distant country or a nearby region, like Latin America (LatAm).

The Role of an Outsourced Accounting and Bookkeeping Firm in Funding and Growth

External accounting firms can handle a wide range of finance tasks for your startup that can help you receive funding and foster business growth. Here are some of the vital outsourced accounting services for startups provided by these companies.

Assisting with financial projections 

One of the key roles an outsourced firm plays for startups is assisting with financial projections. As a startup, you may not have enough data or experience to accurately predict your future finances. 

An outsourced firm can use its deep expertise and industry knowledge to help you create realistic and achievable financial projections crucial for securing funding from investors.

Providing accurate financial records and statements for potential investors 

Investors want to see accurate and up-to-date financial records when investing in a startup. An outsourced firm can help ensure that your financial statements are organized, accurate, and easy to understand. 

This not only helps you secure funding but also builds trust with potential investors.

Helping startups navigate tax credits and incentives 

Startups often qualify for tax credits and incentives that can help reduce their tax burden. However, navigating the complex world of taxes can be challenging for many business owners. 

An outsourced firm can assist you with identifying and claiming these credits, saving your startup money in the long run.

The Benefits of Outsourcing Accounting and Bookkeeping for Startups

Save time and resources for core business activities 

Outsourcing your accounting and bookkeeping tasks allows you to focus on what matters—growing your business. By delegating these time-consuming tasks, you can free up valuable time and resources that can be better spent on core business activities.

Access specialized expertise 

Outsourced accounting firms employ teams of highly skilled and experienced professionals who specialize in accounting and bookkeeping. This means you have access to a wealth of knowledge and financial advice without having to hire an in-house team.

Cost savings compared with hiring an in-house finance team 

Hiring an in-house finance team can be expensive, especially for startups with limited resources. Outsourcing your accounting and bookkeeping needs can save you money on salaries, benefits, and office space.

You can save on labor costs even further by hiring from regions like LatAm, where professional accountants offer lower rates than in the US.

Enable your internal team to focus on key competencies 

By outsourcing your accounting tasks, you can free up your internal team to focus on their core competencies and areas of expertise. This allows for a more efficient and effective use of resources within the company.

Top 8 Companies for Outsourcing Accounting and Bookkeeping

Ready to make the move to outsourcing? In no particular order, here are some of the best companies that can provide accounting services or help you hire reputable, reliable remote bookkeepers and accountants.

1. Near

We may be biased, but Near is a top company for outsourcing your accounting and bookkeeping needs. Our team of professionals has experience working with startups and understands the unique challenges they face. 

We offer recruitment and staffing services tailored to startup companies looking to hire from LatAm, including highly qualified individuals in the finance and accounting sectors.

By partnering with Near, you can hire an array of finance professionals, including investment analysts, payroll specialists, staff accountants, and bookkeepers.

2. Bench

Bench is a popular choice to outsource bookkeeping for startups. Its team of experts uses advanced bookkeeping software and processes to manage your finances efficiently, allowing you to focus on growing your business.

The company offers one-on-one expert support, powerful financial reporting, and real-time financial insights.

3. BDO USA LLP

BDO USA LLP is one of the largest accounting and consulting firms in the country, with a team of thousands of professionals worldwide. It offers a range of services for startups, including bookkeeping, tax preparation, and financial reporting.

4. Ignite Spot

Ignite Spot is another great option for startups looking to outsource their financial tasks. This company offers a range of services, including bookkeeping, accounting, and tax preparation. Its experienced team works closely with clients to develop customized plans that meet their specific financial goals and budget.

5. 1-800Accountant

1-800Accountant is a professional accounting firm that provides services to small businesses and startups. It offers a variety of packages, including bookkeeping, tax services, and financial planning.

6. Pilot

Pilot is a popular option for startups looking to outsource their accounting needs. The firm offers a full range of services, including bookkeeping, tax support, and financial reporting. Its accounting team consists of experienced professionals who specialize in working with startups.‍

7. Vaco

Vaco is a leading provider of outsourced accounting and bookkeeping services for startups. It provides customized solutions to fit the specific needs of your business, whether you require management of your day-to-day financial transactions or high-level financial analysis.

8. Paro.ai

Paro is a virtual accounting and bookkeeping service that helps all kinds of businesses with their financial management. It has a dedicated team of experienced accountants who can provide various financial services to startups, such as bookkeeping, financial reporting, tax preparation, and more.

Want to see more choices? Check out our list of the 10 best bookkeeping outsourcing services.

When To Outsource Accounting Services for Your Startup 

Outsourcing your startup’s accounting and bookkeeping needs is always a strategic decision for startups, but especially when you find yourself in the following scenarios:

• Limited budget: Hiring an in-house accountant or bookkeeper can be costly for a startup. Outsourcing allows you to access professional services at a fraction of the cost.
• Lack of financial expertise: As a startup founder or manager, you may not have the necessary financial knowledge to handle your company’s finances effectively. Outsourced firms bring extensive experience and expertise to the table and can provide specialized services and expert advice.
• Time constraints: Managing your finances and running your business can take a lot of time. By outsourcing, you can free up valuable time to focus on growing your startup.
• Seasonal fluctuations: If your business experiences seasonal fluctuations, outsourcing can be a more cost-effective option. You can scale the services you need up or down based on your business’s needs. 
• Expansion into new markets: If your startup is expanding into new markets, outsourcing to a firm familiar with those markets can help you navigate any financial differences or regulations.
• Compliance and regulation complexities: As your business grows, so do the financial regulations and compliance requirements. Outsourced firms stay up to date on these changes, ensuring your company remains compliant.
• Need for real-time data: Cloud-based accounting software used by outsourced firms allows for real-time access to financial data, providing you with accurate information to make informed decisions.
• Need for additional services: Apart from traditional accounting and bookkeeping, an outsourced accounting firm for startups can also offer additional services, such as tax planning, financial forecasting, and budgeting.
• Struggling to focus on core business activities: As a startup, your main focus should be growing and developing your business. Outsourcing your financial tasks allows you to do just that.

Regardless of your specific scenario, outsourcing your bookkeeping and accounting functions can benefit your startup in many ways, and it’s usually a good idea.

Final Thoughts

Outsourcing accounting and bookkeeping can be a game-changer for startups, allowing you to focus on growing your business while leaving the financial tasks in the hands of experienced professionals.

Remember, choosing the right outsourced firm is crucial for business growth. Consider factors such as experience, expertise, and cost when making your decision.

At Near, we understand the importance of finding trustworthy and skilled individuals to handle your finances. With our specialized recruitment services for startups in LatAm, we can help you find top-notch talent that will support and guide your business toward success.

Don’t hesitate any longer—outsource your accounting and bookkeeping with Near and take the first step toward financial stability for your startup. Schedule your free consultation call today to learn more about our services and how we can help your business thrive.