When you first launched your business, handling the books yourself was a necessity. From paying bills to running payroll, you did what it took to get off the ground. But now, your business is growing, and your responsibilities have multiplied. The time you spend on accounting is time you’re not spending on serving clients, innovating, or leading your team.
You may have brought in a bookkeeper to handle your accounting needs. While that solo bookkeeper may have expertly managed the books in the early days, a growing business demands more than just basic bookkeeping. It requires strategic insight, robust financial controls, and timely reporting to fuel smart decisions. But building an entire in-house accounting department is a major investment.
So, how do you get all of this without the six-figure cost of an in-house finance team? The solution is outsourced accounting. This guide explores the key benefits of Outsourced Accounting (OA) and how it can prepare your business for the next level of growth.
Top 7 Benefits of Outsourced Accounting Services
1. Reduce Costs and Increase ROI
Hiring an in-house accounting and finance team is a major expense. A full-time CFO can cost over $200,000 per year in salary and benefits (not to mention recruiting costs). Also consider you’ll need one or more staff-level accountants to handle day-to-day accounting. You can outsource all of your entire accounting and finance functions for a fraction of the cost of an in-house department, allowing you to invest your capital back into core business operations.
2. Gain a Full Team of Financial Experts
When you outsource, you’re not just hiring a bookkeeper. You gain a multi-layered team with diverse skills. This is where the benefits of Outsourced Accounting are apparent. Because as your business grows, you need more than just accurate books; you need perspective on the numbers. An OA team can come alongside you to offer support in areas such as:
- Bookkeeping: Managing accounts payable, receivable, and recording all business transactions.
- Controller Oversight: Ensuring financial accuracy, managing the month-end close, and implementing internal controls.
- CFO-Level Strategy: Providing high-level financial forecasting, cash flow management, KPI analysis, and strategic advice to fuel growth.
3. Reclaim Your Time to Focus on Growth
The most significant benefit of Outsourced Accounting is reclaiming your time. By delegating financial management, you free yourself from tedious tasks and can concentrate on what you do best: running your business. This focus is essential for innovation, customer satisfaction, and strategic planning.
While some owners fear losing control, our process actually enhances it. Copeland Buhl’s platform offers 24/7 online access to your financials, ensuring you always have full visibility and remain firmly in command.
4. Enhance Security and Reduce Fraud Risk
Internal fraud is a serious risk for any business. Outsourcing naturally creates a segregation of duties, a critical internal control that is difficult to achieve with a small in-house team. Your outsourced provider will use secure, modern software with approval workflows to ensure company funds are protected and transactions are properly authorized.
5. Ensure Timely and Accurate Financial Reporting
What is the use of January financials in March? An OA team can bring clarity to your situation by updating numbers daily, weekly, or monthly. With up-to-date information, you can make proactive decisions about your budget, cash flow, and business strategy.
6. Eliminate Turnover and Instability
Losing a key finance employee can disrupt your entire operation. Outsourcing provides stability and continuity. Hiring a reliable OA team ensures your company has a reliable, consistent, long-term accounting partner and well-documented business processes. With a team of experts, you don’t have to worry about one key individual leaving you high and dry because they “knew it all” but never took the time to tell anybody else.
7. Scale Your Support On Demand
Your business needs are not static. Outsourced Accounting offers the flexibility to scale your services up or down as your company evolves. If you need short-term help with a project, big or small, your OA team will step in where they are needed. This flexibility is especially popular with seasonal businesses that need several people at peak times and a minimal amount during the off-season. Starting an outsourcing relationship now allows the provider to be ready to assist immediately when waiting for help isn’t an option.
Finding the Right Fit
Outsourcing a key part of your business shouldn’t be done without due diligence and consideration. We recommend approaching on-boarding a new outsourced services provider as you would a thorough interview process, with both sides asking questions and making sure the fit is right before agreeing to a long-term relationship. Remember: The goal is to identify areas where the OA provider can bring efficiency and clarity to your company.
Here are three recommended steps to make sure the outsourced relationship is a good fit:
- Step 1: Discovery: The provider should take the time to understand your business, pain points, and goals. They should review your current systems and processes.
- Step 2: Assessment: Based on their discovery, they should identify opportunities for improvement and present a clear, customized plan that outlines the scope of work.
- Step 3: Proposal: You should receive a formal proposal that details all covered services, the fee structure, and the onboarding plan.
Frequently Asked Questions (FAQ)
- What is Outsourced Accounting?
Outsourced Accounting is the practice of hiring a third-party firm to manage all or part of your business’s financial functions, from bookkeeping and payroll to high-level financial strategy provided by an outsourced CFO. - When is the right time to outsource accounting?
The right time is when you find yourself spending too much time on administrative financial tasks, when your business’s finances are becoming too complex to manage alone, or when you need strategic financial insights but cannot afford a full-time CFO. - What is the difference between an outsourced bookkeeper and an outsourced CFO?
An outsourced bookkeeper primarily handles recording financial transactions. An outsourced CFO provides high-level strategic guidance, including financial analysis, forecasting, and helping you make key business decisions to improve profitability and growth. Often, the bookkeeper and CFO work in tandem to ensure the details are accurate while keeping the bigger picture in focus.
Partner with Copeland Buhl for Your Outsourced Accounting
Copeland Buhl’s Outsourced Accounting professionals are passionate about helping our clients reach their business goals and providing value beyond recording the day-to-day transactions. We act as a strategic partner to help you make better business decisions every day. If you’re ready to unlock the benefits of Outsourced Accounting, contact our team for a consultation.
