Why Outsourced Accounting Is Essential for Asset-Based Companies

Outsourced accounting has become increasingly popular among asset-based companies. These firms have unique financial needs that require specialized accounting expertise and a deep understanding of their industry. 

As such, outsourcing accounting services tailored specifically for asset-based companies can provide numerous benefits and help you stay ahead in this competitive market. 

In this article, we will discuss the advantages of outsourced accounting for asset-based companies, specific finance services needed by these types of businesses, how to choose the right provider, and where to find top talent from around the world.

How Does Outsourced Accounting Work for Asset-based Companies?

Outsourced accounting for asset-based companies involves hiring an external team of professionals to handle accounting tasks and responsibilities. 

This is different from traditional in-house accounting, where a company employs its staff to manage its finance functions. With outsourced asset-based accounting, the service provider works remotely and provides support on an as-needed basis. 

They have specialized knowledge in handling the unique financial needs of asset-based companies, making them a valuable resource. 

Additionally, accounting outsourcing allows asset-based companies to access top-notch talent from around the world without having to worry about recruitment and training costs.

10 Benefits of Outsourced Accounting for Asset-Based Companies

Outsourced accounting services for asset-based companies can offer numerous advantages, including:

1. Expertise in complex valuations 

Asset-based companies often have complex valuations of their assets, such as inventory, equipment, and real estate. 

Outsourced accounting providers with experience in this area can accurately assess the value of these assets and provide valuable insights for decision-making.

2. Accurate financial reporting

Outsourced accounting providers have teams of experienced financial professionals who are well versed in the latest accounting standards and regulations. 

This ensures accurate reporting, which is crucial for asset-based companies to maintain compliance and make informed business decisions.

3. Improved compliance with regulations

Asset-based companies are subject to various regulations, such as the Sarbanes-Oxley Act and International Financial Reporting Standards (IFRS). 

Outsourced accounting providers thoroughly understand these regulations and can ensure that the company remains compliant, avoiding any penalties or legal issues.

4. Enhanced risk management

Outsourcing accounting services can also help asset-based companies manage their risks better. 

These providers have the expertise to identify potential risks and develop strategies to mitigate them, reducing the company’s exposure to financial losses.

5. Access to specialized knowledge

Asset-based companies often require specialized knowledge in inventory management, asset tracking, and tax planning.

Outsourced accounting providers have teams of professionals with expertise in these areas, providing valuable insights to help your company make more informed decisions.

6. Cost savings

Outsourcing accounting services can also result in considerable cost savings for asset-based companies. By partnering with a third-party provider, your company can save on hiring and training costs associated with building an in-house accounting team. 

Additionally, outsourced accountants in regions like Latin America (LatAm) often have lower salary expectations, offering cost savings without sacrificing quality or experience.

7. Increased operational efficiency

By outsourcing financial services, your asset-based company can focus on other operations without the added burden of managing financials. 

This leads to increased operational efficiency and allows you to allocate resources more strategically.

8. Better focus on core business activities

Outsourcing accounting services also frees up valuable time and resources for asset-based companies to focus on their core competencies, such as marketing, sales, and product development.

This can lead to improved productivity and growth opportunities for the company.

9. Scalability of accounting services

Asset-based companies often experience fluctuations in their business activities, resulting in varying accounting needs.

Outsourced providers offer scalable solutions, allowing you to adjust and scale up or down as needed without disrupting your operations.

10. Timely and accurate loan processing

Since asset-based companies often rely on loans and financing, having timely and accurate financial records is crucial.

Outsourced accounting providers can ensure that loan processing is done efficiently, reducing the risk of errors or delays that could impact your company’s financial stability.

Qualities To Look For in an Outsourced Accounting Provider for Asset-Based Companies

When choosing an outsourced accounting provider for your asset-based company, it is important to look for the following qualities:

Industry expertise

Asset-based companies have complex financial structures and require specialized knowledge in their industry. Therefore, it is crucial to choose a provider with experience and expertise in working with asset-based companies.

Strong reputation and references

Look for reliable service providers with a strong reputation and positive references from current or previous clients. This will give you confidence in their services and ensure they are reliable and trustworthy.

Technological proficiency

In the modern world, it is essential to have a provider proficient in the latest accounting software and technology. This will ensure accuracy, efficiency, and timely delivery of financial reports.

Regulatory knowledge

Asset-based companies are subject to various regulations and compliance requirements. It is important to choose a provider that has a deep understanding of these regulations and can ensure that your company remains compliant.

Customization and flexibility

Each asset-based company has unique financial needs and requirements. Look for a provider that can offer personalized services and is flexible enough to accommodate your needs.

Transparent communication

Effective communication is key to a successful outsourcing relationship. Choose a provider that has clear and transparent communication channels so that you can stay informed about your financial performance.

Proven track record

An experienced and reliable provider will have a proven track record of delivering high-quality services to their clients. Look for providers that can provide case studies, reviews, or testimonials from satisfied customers.

Comprehensive service offerings

Asset-based companies have diverse financial needs, from bookkeeping and tax preparation to asset valuation and risk management. Choose a provider that can offer a comprehensive range of services to meet all your accounting requirements.

Security and confidentiality

Outsourcing your financial information requires trust and confidence in the provider’s security measures. Look for providers that have robust data protection protocols in place to ensure the confidentiality of your sensitive financial data.

Proactive advisory services

Choose a provider that can offer more than just standard accounting services. Those that provide proactive advisory services can help your company make better financial decisions and stay ahead in the market.

Top 10 Countries To Outsource Accounting Services for Asset-Based Companies

Providers in several countries around the world offer top-notch accounting services for asset-based businesses. In no particular order, here is a list of the top options, including some emerging leaders in the field from LatAm:

1. The United States

You don’t have to look very far for outsourced accounting services. Onshoring—hiring remote workers from the US—can be an effective strategy. The country is home to some of the largest and most experienced accounting firms in the world, with a deep understanding of asset-based businesses.

However, onshore services may come at a higher cost than in other countries, and many US accountants will be busy during your time of need because of the national financial calendar, specifically during tax season.

2. India

India has emerged as a popular choice for outsourced accounting services due to its large pool of highly skilled, English-speaking professionals. Indian accountants also offer cost-effective solutions, making the country an attractive option for asset-based companies. 

However, cultural differences and time zone variations may pose challenges in communication and collaboration.

3. The Philippines

The Philippines is another popular destination for outsourced accounting services, with a large and well-educated workforce. Finance experts in this nation offer competitive pricing and have a good understanding of Western business practices. 

However, like India, time zone differences may be an issue. It’s also important to choose a provider with experience in working with US asset-based companies.

4. Mexico

Mexico has a strong presence in the outsourcing industry, particularly in accounting services. It has a well-educated and skilled workforce, with many accounting professionals having experience working with US companies. 

Its proximity to the US also allows for easier communication and collaboration. However, it’s critical to choose a provider that has knowledge of the financial needs of asset-based businesses and familiarity with US tax laws.

5. Brazil

Brazil is a growing outsourcing destination, with a large and skilled workforce. They also have a good understanding of US business practices and can offer cost-effective accounting solutions for asset-based companies. 

However, language barriers may be an issue if your business does not have Portuguese-speaking staff or if the provider does not have fluent English speakers.

6. Colombia

Colombia is becoming a popular destination for outsourced accounting services, with a growing number of highly skilled professionals. These experts have a good understanding of US business practices and can offer cost-efficient solutions. 

Additionally, the language barrier is not as significant compared with other LatAm countries, with many professionals having a good command of English.

7. Argentina

Argentina has become a desirable outsourcing location, with many skilled professionals and a good understanding of US business practices. The country’s professionals also offer competitive pricing for their services. 

Additionally, Argentina has a large pool of bilingual professionals with strong English proficiency, making communication and collaboration easier for businesses based in the US.

8. Chile

Chile is a growing destination for outsourced accounting services, with a skilled workforce and a good understanding of Western business practices. Chilean accountants also offer competitive rates compared with US talent. 

Chile has a strong emphasis on education and training, ensuring that its professionals are up to date with the latest developments in the industry.

9. Costa Rica

Costa Rica is another emerging leader in the outsourcing industry, with a growing number of highly skilled professionals, a good understanding of US business practices, and cost-effective pricing. 

The nation is known for its high-quality infrastructure and advanced technology, making it an ideal location for asset-based companies looking to outsource accountants.

10. Uruguay

Uruguay is a top location for outsourced accounting services, boasting a strong economy and highly educated workforce. The country has a favorable business climate and a stable political environment, making it an attractive option for asset-based companies. 

Additionally, Uruguay has a large pool of professionals proficient in English who offer competitive pricing for their services.

Final Thoughts

Outsourced accounting is a valuable solution for asset-based companies aiming to streamline their accounting processes and stay ahead in a competitive market.

By outsourcing tailored services from reliable providers, you can benefit from cost savings, risk management, accuracy, and expertise. 

At Near, we specialize in recruiting top talent from LatAm for various industries, including finance and accounting outsourcing. Our extensive network of thousands of qualified professionals can provide specialized services for asset-based companies at a fraction of the cost of hiring locally. 

Contact us today to learn how we can help your asset-based company thrive through outsourced accounting.