Your Guide to Outsourced Accounting Services: Types and Benefits

Effective management of your business finances is crucial for success. Yet, it can also be a major drain on your resources. That’s where outsourced accounting services come in as a strategic solution. By delegating your financial operations to experts from an outsourcing provider, you can simplify your business processes and reduce overhead costs.

But what exactly can you outsource? More than you might think. From everyday bookkeeping to complex financial analysis and regulatory compliance, a wide array of accounting functions can be handled by external professionals.

By outsourcing accounting tasks, your team can focus on their core competencies, ensuring your business stays competitive and agile.

This article covers 13 essential types of outsourced accounting. You’ll also learn how to choose the right outsourcing provider, ensuring a perfect fit for your business needs. Plus, we’ll give you a list of 5 providers to start your search off strong. 

Advantages of Outsourcing Accounting Services

Outsourcing accounting services offers numerous advantages that can transform the way you manage your business finances. Here are six key benefits of opting for finance and accounting business process outsourcing (BPO):

Cost savings

Outsourcing eliminates the need to hire, train, and retain a large in-house accounting team, significantly reducing payroll, employee benefits, and other overhead costs (office space, software, and so on). 

Additionally, by working with remote, external accountants from countries with lower living costs, you can save as much as 70% due to lower salary expectations for accounting roles. 

Access to expertise

Working with outsourced accounting service providers means you get access to a team of skilled professionals with diverse experience across various industries and accounting disciplines.

Ability to focus on core competencies

By offloading financial tasks, you and your team can dedicate more time and energy to core business activities that drive growth and profitability.

Accuracy and compliance

Outsourced accounting services come with stringent accuracy checks and compliance measures. These providers stay updated with the latest regulations, ensuring your financial reports and processes meet all legal requirements.

Improved technology and tools

Outsourced providers often leverage advanced accounting software and security measures, protecting your financial and sensitive business data.

13 Types of Outsourced Accounting Services

Outsourcing accounting functions allows you to access a wide range of specialized services tailored to your needs. 

Here are the primary types of outsourced accounting services available: 

1. Bookkeeping

Accurate records are essential for compliance and strategic planning, making bookkeeping a critical function. Recording daily transactions, reconciling bank statements, and maintaining general ledgers are just some of the things an outsourced bookkeeper can take off your plate.

Outsourcing bookkeeping ensures meticulous tracking of income and expenses, freeing up your time for strategic decision-making. 

2. Tax preparation

Outsourced tax professionals handle tax preparation, filing, and compliance with local, state, and federal tax requirements, minimizing errors and potential penalties.

3. Payroll processing

Outsourced payroll services handle salary calculations, tax deductions, benefit contributions, and direct deposits, ensuring your employees are paid on time and your business remains compliant.

4. Financial reporting

With outsourced financial reporting, you get accurate financial statements, including balance sheets, income statements, and cash flow statements. This helps you gain insights into your business’s financial health so you can make informed decisions.

5. Strategic financial planning

Outsourced financial advisers analyze your financial data, identify trends, and create strategic plans to optimize cash flow, manage investments, and achieve your financial goals.

6. Accounts payable and receivable management

Efficient management of accounts payable and receivable is crucial for maintaining healthy cash flow. Outsourcing these functions ensures timely invoice processing, payment collections, and vendor management, improving your company’s financial stability.

7. Cash flow management

Maintaining optimal cash flow is essential for daily operations and future investments. Outsourced cash flow management involves analyzing historical data, forecasting future cash needs, and developing strategies to maintain liquidity and fund growth initiatives.

8. Financial analysis

Analyzing financial data can unveil valuable insights into your company’s performance and profitability. These insights are crucial for making informed business decisions that drive growth and competitiveness. Outsourced financial analysts provide in-depth reports, identifying trends, highlighting areas for improvement, and guiding strategic decision-making.

9. Audit preparation

Preparing for financial audits can be a time-consuming and resource-intensive process. Outsourced accounting providers assist with audit preparation, ensuring your financial records are organized, accurate, and compliant with audit standards.

10. Regulatory compliance

Staying compliant with industry regulations is essential for avoiding penalties. Outsourced compliance services keep businesses updated on regulatory changes, including adherence to GAAP or IFRS standards, ensuring all financial practices meet legal requirements.

11. Internal controls and risk management

Establishing robust internal controls and risk management processes protects businesses from fraud and financial mismanagement. Outsourced services implement and monitor these controls, ensuring financial integrity.

12. Budgeting and forecasting

Creating realistic budgets and accurate forecasts is essential for effective financial planning and resource allocation. Outsourced accounting professionals can help you develop comprehensive budgets, monitor performance against targets, and adjust as needed.

13. Cost management

Controlling costs is a key factor in maximizing profitability. Outsourced cost management services analyze your expenses, identify cost-saving opportunities, and implement strategies to optimize your spending and improve your bottom line.

In addition to these core services, you can find outsourced accounting providers that specialize in areas like:

• Management accounting
• Investment accounting
• Revenue accounting
• Trust accounting

Depending on your industry and requirements, you may need providers specializing in hedge fund accounting, royalty accounting, or even forensic accounting for fraud investigations. If you need it, there’ll be a professional accountant specializing in it. 

What Should You Consider When Choosing an Outsourced Accounting Provider?

Selecting the right outsourced accounting provider is a critical decision that can significantly impact your business’s financial success and operational efficiencies. To make an informed choice, consider the following factors:

Culture fit

Ensure the provider’s values and work ethic align with your company culture. A harmonious partnership fosters better communication and collaboration, leading to smoother operations.

Industry expertise

Choose a provider with proven experience in your specific industry. Their familiarity with industry-specific regulations, best practices, and common challenges will enable them to provide tailored solutions and valuable insights.

Accuracy and compliance assurance

Accuracy in financial reporting and compliance with regulations are critical. Ensure the provider has stringent quality control processes and a solid understanding of relevant laws to maintain high standards of accuracy and compliance in their work.

Communication and reporting capabilities

Effective communication and transparent reporting are vital for maintaining oversight of your financial operations. Select a provider that offers regular updates, clear reports, and accessible communication channels, ensuring you stay informed and involved in the financial decision-making process.

Scalability of services

Your business needs may evolve over time, so it’s important to choose a provider that can scale its services accordingly. Whether you experience growth or seasonal fluctuations, the provider should be able to adjust its support to meet your changing requirements, providing flexibility and continuity.

Top 5 Companies for Outsourcing Accounting Services

To simplify your search for the right outsourcing accounting provider, we’ve compiled a list of reputable companies with a proven track record in the industry. While some specialize exclusively in outsourced accounting, others offer it as part of a broader recruitment service, helping you find individual remote accountants you can work with.  

These firms, presented in no particular order, offer reliable and efficient services tailored to meet diverse business needs.

1. Near

Near tops our list because we excel in connecting businesses with top-tier accounting professionals from Latin America. Our proven hiring process identifies culturally and professionally suitable candidates, ensuring seamless collaboration and strong English proficiency. And, yes, our candidates know US accounting principles; no worries there. Many have even worked for the “Big Four”. 

But don’t just take our word for it. Near helped an e-commerce company hire a bookkeeping assistant, saving them 60% on costs and filling the role five times faster than normal. Frustrated by mismatches in previous hires, they turned to us and secured a perfect fit, showcasing our commitment to quality and client satisfaction.

2. Auxis

Auxis offers comprehensive finance and accounting outsourcing services, leveraging nearshore locations like Colombia and Costa Rica. With expertise in automation, AI, and cutting-edge technology, Auxis transforms finance departments. 

Their services include accounts payable, invoice processing, vendor inquiries, and more, ensuring high-quality, efficient back-office operations while reducing costs and enhancing productivity.

3. H&Co

With over 25 years of experience in international accounting and tax, H&Co offers expertise in portfolio, joint venture, construction, and REIT accounting. 

Their comprehensive services include streamlined tax processes, efficient operating models, effective risk management, and flexible co-sourcing tailored to each client’s specific needs. 

4. TOA Global

TOA Global provides outsourced accounting professionals specifically trained in US accounting standards. Their extensive network includes highly skilled accountants from the Philippines, offering expertise in various areas such as bookkeeping, financial reporting, auditing, and compliance. 

TOA Global’s rigorous training program ensures that their outsourced accountants are proficient in multiple accounting software and possess strong analytical skills. 

5. Bench

Bench provides small business owners with accurate financial records and peace of mind by offering dedicated bookkeeping and income tax experts, alongside easy-to-use financial software. Trusted by over 25,000 American small business owners, Bench provides services like monthly financial statements, real-time insights, and comprehensive tax support.

Final Thoughts

Outsourcing accounting services can significantly enhance your business’s financial efficiency and overall performance. By leveraging the expertise of outsourced professionals, you can enjoy cost savings, improved accuracy, and access to advanced technology while focusing on your core competencies.

Choosing the right outsourcing partner is crucial. Look for a provider that aligns with your company culture, possesses industry-specific expertise, and offers scalable services. The right firm will provide the necessary support and flexibility to adapt to your business’s evolving needs.

At Near, we excel in connecting businesses with top-tier accounting professionals who work within US time zones, ensuring seamless collaboration and cost efficiency. Want to learn how we can help? Fill out this form now.