How Outsourced Accounting Services Can Transform Engineering Firms

Outsourcing has become a popular business strategy for many companies, and engineering firms are no exception. 

With the increasing complexity of financial processes and regulations, it can be challenging for business owners in the engineering industry to manage their accounting tasks effectively. As a result, many engineers have decided to outsource accounting services. 

In this article, we will explore the benefits of outsourcing accounting services for engineering firms and share some top providers specializing in recruiting accounting talent or directly providing accounting services. 

By understanding the advantages of outsourced accounting for engineering firms and discovering credible service providers, you’ll gain valuable insights into how this approach can transform your engineering firm’s operations.

10 Benefits of Outsourced Accounting for Engineering Firms

Outsourcing accounting services can offer numerous benefits to engineering firms. Here are a few of the most common:

Streamline financial processes

By outsourcing your accounting functions to a specialized provider, you can streamline your financial processes and ensure they are handled efficiently. This lets you focus on other business activities while leaving complex financial tasks in capable hands.

Focus on core competencies 

Outsourcing accounting services allows you to focus on your firm’s core competencies, such as engineering and project management. This can increase productivity and efficiency within your organization.

Reduce overhead costs

Hiring and maintaining an in-house accounting team can be costly for engineering firms. Outsourcing eliminates the need for additional office space, equipment, and employee benefits, reducing overhead costs significantly.

It also gives you the opportunity to hire from regions where salary expectations are more cost effective, like LatAm, where salaries can be as much as 70% lower for accounting roles.

Access expert financial advice

Outsourced accounting service providers are specialized in their field and have teams of experienced professionals. This gives you access to expert financial advice, helping you make informed decisions for your engineering firm.

Enhance financial reporting accuracy 

Accounting service providers use advanced software and technology to ensure accurate financial reporting for your engineering firm. This can help you make well-informed decisions based on precise data.

Improve cash flow management 

By outsourcing accounting tasks, you can have a better understanding of your firm’s financial health and manage cash flow more effectively. This can help you make strategic decisions to improve profitability.

Ensure regulatory compliance 

Accounting service providers are well versed in financial regulations and compliance standards. By outsourcing, you can ensure that your engineering firm remains compliant with all legal requirements.

Facilitate business scalability 

Outsourcing accounting services allows your engineering firm to scale up or down quickly, depending on your business needs. This flexibility can help you adapt to changing market conditions and grow your firm at a manageable pace.

Increase operational efficiency 

With a specialized accounting service provider handling your financial tasks, you can improve operational efficiency within your engineering firm. This can lead to increased productivity and cost savings.

Gain a competitive advantage

By outsourcing your accounting tasks, you can free up time and resources to focus on innovation and stay ahead of the competition. This can give your engineering firm a competitive edge in the industry.

Types of Outsourced Accounting Services for Engineering Firms

Outsourced accounting for engineers can include a range of tasks, such as:

Project-based bookkeeping

This service is ideal for engineering firms that need help managing their financial books on a project-by-project basis. Project-based bookkeeping can include invoicing, accounts payable and receivable, and expense management.

Payroll for engineering staff

Outsourcing payroll services can save you time and resources, as well as ensure accuracy and compliance with tax laws. Service providers can handle tasks like calculating employee salaries, deductions, and benefits.

Project accounts payable and receivable 

Engineering firms often have multiple projects running at once, making it challenging to manage accounts payable and accounts receivable. Outsourcing these tasks can help streamline processes and ensure timely payments from clients.

Engineering project financial reporting and analysis 

Outsourcing financial reporting and analysis can provide you with valuable insights into your projects’ financial performance. This service can include creating customized financial reports and analyzing data to help make informed business decisions.

Industry-specific tax preparation and filing 

Engineering firms have unique tax requirements and regulations, such as special rules for long-term contracts, that can be complex to navigate. Outsourcing tax preparation and filing can ensure compliance with laws while minimizing the risk of errors.

Budgeting and forecasting for engineering projects 

Outsourcing budgeting and forecasting services can help you plan and manage your project finances effectively. Service providers can use data analysis to create accurate financial projections for future projects.

Compliance with engineering regulations 

Engineering firms must comply with industry-specific regulations, such as those related to safety and environmental impact. Outsourcing compliance tasks can ensure adherence to these regulations while freeing time for other critical business activities.

R&D tax credit management 

Many engineering firms engage in research and development (R&D) activities, making them eligible for tax credits. Outsourcing R&D tax credit management can help you maximize your potential tax savings.

Cost allocation for projects

Outsourcing cost allocation can help you accurately track project costs and allocate expenses to the appropriate projects. This service can also provide insights into areas where you can reduce costs.

Financial advisory for engineering ventures 

Some outsourced accounting service providers also offer financial advisory services for engineering firms. This can include guidance on mergers and acquisitions, business expansion, and investment opportunities.

Top 6 Outsourced Accounting Companies for Engineering Firms

Here are our picks (in no particular order) for the top six companies that specialize in outsourcing accounting services for engineering firms. Some are accounting-only firms, while others are recruitment or staffing agencies that can connect you with remote accountants. 

1. Near

Hey, that’s us! Near specializes in nearshore recruiting from Latin America (as opposed to offshoring). We can fill accounting and finance positions like:

• Bookkeepers
• Financial analyst
• Investment analysts
• Payroll specialists
• Staff accountants

Our team of experts understands the unique needs and challenges of engineering firms, making us well equipped to help you hire experienced, hard-working accountants who can do everything you need. 

2. Kreischer Miller

Philadelphia’s own Kreischer Miller is an accounting, tax, and advisory service serving its region since 1975. It is one of USA Today and The Inquirer’s 2024 Top Workplaces and one of Accounting Today’s 2024 Firms to Watch and Regional Leaders.

The company’s specialized services for architecture and engineering firms include due diligence for buyers, strategic planning, business succession planning, buy-sell agreements, loan assistance, tax planning services, multi-state tax strategies, and more.

3. GrowthForce

GrowthForce boasts a team of financial management experts who provide services based entirely in the US. It has been featured in Entrepreneur, the Inc. 500, and Forbes for over 35 years of accounting services.

Its outsourced accounting and controller services for engineering firms include bookkeeping and accounting services from accounting professionals, but it is not a certified public accountant (CPA) firm.

4. Signature Analytics

Founded in 2008, Signature Analytics has since become a giant in the outsourced accounting field, with employees throughout the US. The company is based in California and was a 2022 winner for the San Diego Business Journal’s Best Places to Work.

Its outsourced accounting services for architectural design and engineering firms include project cost allocation, timely billing cycles, expense management, resource planning, and customized financial reporting.

5. Hunter & Associates P.A.

Hunter & Associates is a CPA and business development advisory firm founded in 1990 that offers services nationwide. It won the Jacksonville Business Journal’s Diversity Award for its work with disadvantaged business enterprises.

The company’s accounting services for engineering and architecture firms include accounting system configuration, activities-based costing, tax planning, cash flow management, monthly formal closing of the firm’s books with reporting, and more.

6. PKF O’Connor Davies

The accountants and advisors firm PKF O’Connor Davies is among the top 25 on Accounting Today’s 2023 list of the Top 100 Firms. It’s also among America’s Best Tax & Accounting Firms in 2023, according to Forbes.

Its architecture and engineering firm accounting and consulting services include outsourced CFO services, agreed-upon procedures, employee benefit plan and ESOP audits, financial statement review and compilation, and overhead rate audits per FAR.

Final Thoughts

Outsourcing accounting services for your engineering firm has numerous benefits that can help streamline your financial processes and improve overall efficiency. By partnering with a reputable provider, you can trust that your accounting tasks are in capable hands while you focus on other aspects of your business. 

At Near, we understand the unique needs of the engineering industry and can tailor our services to meet those specific requirements. We prioritize putting our clients first, ensuring high-quality service delivery at competitive prices. 

Don’t hesitate to contact us for more information on how Near can help transform your engineering firm by helping you hire top professionals who can provide outsourced accounting services. Book a free consultation call today, and let us help take your business to the next level!