How To Choose the Best Outsourced Accounting Service for Your Business

Managing your organization’s finances can be a daunting task. From bookkeeping to preparing for tax season, it requires time, specialized expertise, and resources that may not always be readily available. The solution? Financial accounting outsourcing services. 

By partnering with an outsourced accounting firm, you can save time and money while ensuring accurate financial management.

In this post, we explain how outsourced accounting services work, offer guidance on choosing the right provider, and list the best outsourced accounting services you can rely on for efficient and effective accounting.

How Do Outsourced Accounting Services Work?

Outsourced accounting services involve hiring a third-party firm to handle all or specific aspects of your company’s finance management. These can include bookkeeping, tax preparation, payroll processing, and financial reporting.

The process of outsourcing accounting typically involves the following steps:

1. Initial consultation: The outsourced accounting firm meets with the employer to understand their critical business requirements and determine which financial services are required.
2. Setup: The firm sets up systems and accounting processes to ensure smooth communication and collaboration.
3. Ongoing support: The outsourced team handles day-to-day financial tasks while providing regular updates to the employer.
4. End-of-period reporting: The firm provides detailed financial reports at the end of each accounting period. 

Benefits of Outsourcing Accounting Services

Outsourcing accounting services offers numerous benefits for employers. Let’s take a look at why you should consider partnering with an accounting outsourcing service provider.

Enhanced efficiency 

Outsourced accounting firms have the deep industry expertise and resources to handle a wide range of financial tasks efficiently. This allows you to focus on core business activities, leading to increased productivity.

Cost efficiency 

Hiring an internal team of accountants can be costly for employers, with salaries, benefits, and overhead expenses. Outsourcing accounting services allows businesses to save on these costs while receiving top-quality financial management.

Choosing a nearshore or offshore accounting solution can bring particularly significant cost savings. This is because living costs in certain outsourcing regions, such as Latin America (LatAm), are cheaper than in the US, leading to significantly lower salary expectations among accounting professionals.

Expertise and specialized knowledge

Outsourced accounting firms have teams of experts with specialized knowledge in various areas of financial management. This ensures that all tasks are handled accurately and efficiently without the need for you to invest in training or hiring additional accounting staff.

Access to cutting-edge technology 

By partnering with an outsourced accounting firm, you gain access to the latest financial software and technology without having to directly invest in it. This ensures efficient and accurate management of finances.

Scalability 

Outsourced accounting services can easily adapt to your business’s changing needs. Whether there is an increase or decrease in workload, these firms have the flexibility to adjust their services accordingly.

Reduced risk of errors 

With a dedicated team of external experts handling complex accounting tasks, the risk of errors and discrepancies is significantly reduced. This saves time while preventing potential legal and financial consequences for your business.

Strategic financial planning 

Outsourced accounting firms can provide valuable insights and advice to help you make informed financial decisions. This allows you to strategically plan your finances for long-term success.

Increased security 

Outsourcing accounting services also means entrusting sensitive financial information to a reliable and secure third party. These firms have strict protocols to ensure the confidentiality and protection of their clients’ data, providing them with greater peace of mind.

Factors To Consider When Choosing an Outsourced Accounting Service Provider

While our list of accounting outsourcing companies is a great place to start, you must still choose the best fit for your company. If you’re planning to outsource accounting services, here are some factors you should consider when narrowing down your options.

Range of services offered 

The first thing to consider is the range of services offered by the accounting firm. For instance, some may only specialize in bookkeeping, while others offer a full suite of financial management services, such as tax preparation, payroll processing, and financial analysis.

Pricing structure

Different accounting firms may have different pricing structures. Some may charge an hourly rate, while others offer fixed monthly fees. Consider your budget and the services included in each package to determine which option is most cost effective for your business.

Communication channels 

Effective communication is crucial when working with an outsourced accounting firm. Make sure to choose a company that uses multiple communication channels, such as email, phone, and videoconferencing, to ensure easy and efficient collaboration.

Track record and references 

It is important to research the track record of any potential accounting firm. Look for client testimonials and references to get a deep understanding of its past performance and level of customer satisfaction.

Use of advanced accounting technology 

In today’s digital age, it is important to work with an accounting firm that utilizes advanced technology for its services. This can include cloud-based accounting software, data encryption for security, and automation tools for efficiency.

Security measures 

Given that 96% of security threats are motivated by financial gain, outsourcing sensitive financial information requires a high level of security. Make sure to inquire about the provider’s security measures, such as data encryption and regular backups, to protect your business’s financial data.

5 Best Companies You Can Tap for Outsourced Accounting Services

With so many accounting providers to choose from, it can be challenging to narrow down the best partners. To help make this decision easier, we’ve made a list of the top five companies that we recommend for outsourced accounting services, in no particular order.

1. Near

Yes, it’s us! We put ourselves at the top because we are a leading recruitment firm that specializes in connecting businesses with top talent from LatAm. Our talent pool of over 35,000 professionals includes remote accountants and bookkeepers with experience helping employers manage their finance functions efficiently. 

Our experienced accountants and finance professionals can handle all aspects of financial management. Roles you can hire include everything from staff accountants and bookkeepers to payroll specialists and financial analysts.

When you hire with Near, you can trust that your finances will be in capable hands while you focus on business growth.

2. Booth & Partners

Booth & Partners is a well-known outsourced accounting firm with a global presence. It offers a wide range of services, including in the accounting industry. Its accounting team is equipped with the latest tools and technology to provide accurate and timely financial reports for businesses.

3. PwC

PwC is a multinational professional services firm that offers a wide range of finance services, including finance and accounting business process outsourcing. With its global presence and expertise, PwC can provide comprehensive accounting outsourcing solutions for businesses of all sizes.

4. SC&H

SC&H Group is a full-service accounting and consulting firm that offers outsourced accounting services to businesses of all sizes. Its areas of services include CFO and technology advisory, HR, and payroll.

The firm’s team of accounting experts can handle everything from bookkeeping and payroll to tax preparation and strategic financial planning.

5. BDO

BDO is a global accounting firm that offers a wide range of services, including outsourced accounting. It has offices globally and provides personalized outsourced accounting solutions to meet the unique needs of each client.

BDO’s experienced team can handle everything from bookkeeping and payroll to tax preparation and financial reporting.

Final Thoughts

Outsourcing accounting services can be a game-changer for your firm, allowing you to manage your finances efficiently and effectively. 

By partnering with the right outsourced accounting firm, you can save time, money, and resources while ensuring accuracy and compliance.

The five professional outsourced accounting services employers listed in this article offer a range of services at competitive prices while offering the expertise and experience needed to handle your finances successfully.

Given all the benefits of outsourcing your company’s accounting functions, why wait to take advantage of them? Book a free consultation call today to learn how Near can help you find the right outsourced accounting firm for your business needs.