The Definitive Guide to Accounting Outsourcing: What You Need to Know

The Rise of Accounting Outsourcing Services

As small to medium-sized accounting practices grow and expand, many are turning to outsourced accounting as a solution to common challenges. But what exactly is outsourced accounting, and why has it become so popular in the accounting and bookkeeping industry today? In this definitive guide, we’ll examine what outsourced accounting is, why it’s becoming more popular, and what it could mean for your business.

What is Outsourced Accounting?

Outsourced accounting involves assigning accounting, bookkeeping, and/or compliance work to accounting professionals in another country. Business owners typically partner with an outsourced accounting services provider who presents them with qualified candidates for screening and onboarding as new team members. This approach allows owners to delegate day-to-day work to their new global team members, freeing up time to focus on the core business and growth.

Key elements of outsourced accounting include:

• Contracting an external service provider to handle bookkeeping, accounts receivable, accounts payable, and tax returns.
• Using cloud-based software to provide real-time access to financial data.
• Communicating via video calls, emails, and other virtual channels.
• Accessing the benefits of an in-house accounting team without the cost and commitment of hiring full-time staff.

Why is Accounting Outsourcing Becoming More Popular?

Firms are turning to outsourced accounting solutions to counter several common pressures, including:

• rice pressure: Advances in cloud accounting technology have led to lower client expectations for compliance and administrative services.
• Talent shortage: Attracting and retaining qualified accountants is challenging, especially as they tend to fall on the higher end of the pay scale. This squeezes margins on more routine work, drying up the recruitment pool.
• Capacity crunch: Owners often need help to complete procedural work and leave time for high-margin strategic work, leading to a need for new solutions to remain competitive.
• Greater competition: With competitors anywhere from across the country to across the globe, growing your capacity also means matching your reach.

Why Outsource Accounting Services?

Outsourcing accounting functions can free up time and resources, allowing you and your staff to focus on core competencies and growth while providing better services to clients. With specialized expertise, technology, and greater flexibility, outsourcing can be a valuable tool for businesses looking to reduce costs and improve efficiency.

At Unison Globus, we offer cloud-based outsourced accounting services that can help you achieve your business goals. Here are some of the ways we can help:

• Bookkeeping: Our team of experienced bookkeepers can help you maintain accurate and up-to-date financial records, giving you real-time insights into your business.
• Accounts payable and receivable: Our outsourced accounting services can help you manage your accounts payable and receivable, ensuring that payments are made and received on time.
• Financial reporting: We can provide you with timely and accurate financial reports, allowing you to make informed decisions about your business.
• Tax compliance: Our team of experts can help you stay compliant with tax laws and regulations, minimizing your risk of penalties and fines.
• Cloud-based accounting: Our cloud-based accounting services can provide you with 24/7 access to your financial data from anywhere, at any time.

Benefits of Outsourcing Accounting Services

Outsourcing accounting services can save your business time and money while improving the quality of work. Additional benefits include:

• Specialized expertise: Access to advanced technology and skills that may not be available in-house.
• Flexibility: Ability to adjust staffing levels based on business needs.
• Increased capacity and efficiency: More time to focus on business development and providing a better client experience.
• Improved work-life balance: Reduced pressure on owners and staff.
• Faster role fulfillment: Ability to fill roles more quickly with qualified staff.
• Cost-effectiveness: Savings on technology and infrastructure.
• Business continuity: Consistent operation during power outages or other disruptions.
• Increased productivity and competitiveness: Enhanced operational efficiency and strategic focus.

Addressing Concerns About Accounting Outsourced Solutions

While accounting outsourced solutions offer many benefits, some business owners may worry about the impact on the local job market. However, outsourcing does not necessarily lead to job replacement. Instead, it offers a solution for firms to grow their capacity and remain competitive while still providing valuable services to the local community.

Factors to Consider Before Outsourcing

Before deciding to outsource accounting or other business functions, consider the following:

• Define your objectives: Clear goals will guide your outsourcing strategy.
• Assess potential service providers: Evaluate their experience, reputation, and technology.
• Communication capability: Ensure you can effectively communicate with a global team and consider appointing a local “champion” to manage the outsourced team.

Avoidable Outsourcing Mistakes

To ensure a seamless outsourcing process, avoid common pitfalls such as:

• Delegating the most challenging work first.
• Failing to create standardized workflows.
• Not getting clients and local staff on board.
• Hiring only one remote team member.
• Not taking the time to understand and integrate the global team’s culture.

Outsourced Accounting for Small Businesses: Benefits and Considerations

Small businesses frequently face resource and budget constraints, making it difficult to maintain an in-house accounting team. Outsourcing accounting services to a reputable provider can offer a cost-effective solution, enabling access to specialized expertise, advanced technology, and scalability without the burdensome overhead costs.

Benefits include:

• Focus on core competencies: Allowing small businesses to concentrate on marketing, product development, and customer service.
• Improved operational efficiency: Reducing errors and fraud, and ensuring accurate and timely financial reporting.
• Access to a range of services: From basic bookkeeping to advanced financial analysis and reporting.

Conclusion: Is Outsourcing Right for Your Firm?

Outsourced accounting services can be a game-changer for accounting firms, freeing up time and resources to focus on core business and provide better client services. It reduces costs, improves efficiency, and provides access to specialized expertise and technology.

Assessing potential service providers and avoiding common outsourcing mistakes is crucial. Unison Globus can provide guidance and support to help you get started. Check out our service page and sign up for a trial today.