DIY bookkeeping can be like juggling flaming torches—it’s exciting at first, but things can quickly get out of hand. Whether you’re a new business owner or a seasoned entrepreneur, keeping track of your numbers can be overwhelming, especially as your business grows.

Wouldn’t it be nice to hand your books over to someone else? Of course, you can hire in-house bookkeepers or an in-house accounting team, but that requires adding headcount, employee benefits, office space, and equipment.

Outsourced accounting can meet your finance and accounting needs without that kind of investment.

So let’s dig into what outsourced accounting is, the signs it might be time to pass your books to a pro, and how to find the right fit for your business.

What is outsourced accounting?

Outsourced accounting is hiring an external professional or firm to handle your bookkeeping tasks, financial statements, tax preparation, and other services. These services can range from basic bookkeeping to strategic CFO-level advisory. Here’s a breakdown of the typical levels of service:

• Basic bookkeeping. Outsourcing bookkeeping involves recording daily transactions, managing accounts payable and accounts receivable, and reconciling bank statements. Some bookkeeping services also include payroll processing.
• Accounting services: Outsourced accounting firms prepare financial statements and handle other financial reporting to ensure compliance and provide insights into cash flow and budgeting.
• CFO advisory services. An outsourced CFO (also known as a fractional CFO) offers expert guidance on strategic planning, forecasting, and tax advisory and helps you make data-driven business decisions to increase profitability.

Outsourcing doesn’t mean losing control of your finances—it’s about partnering with expert accountants and bookkeepers who can streamline your processes, keep your books accurate, and provide valuable insights so you can focus on day-to-day operations and growing your business.

That’s why so many business owners choose it. In fact, according to Accountancy Age, global spending on outsourced accounting has increased by nearly 40% in the past five years. 

Signs it’s time to outsource your accounting

Not sure if it’s time to hand over the reins? Here are some telltale signs:

• Your time is better spent elsewhere. Handing month-end financial reporting and other back-office functions is time-consuming for a growing business. If you’re spending more time crunching numbers than running your business, it’s a red flag. Your focus should be on growing your company, not stressing over spreadsheets.
• You’re struggling to keep up. Late invoices, missed payments, lost tax write-offs, and incomplete records can hurt your business and damage relationships with vendors or clients.
• You need help choosing accounting software. The right accounting and bookkeeping software can help you collect financial data efficiently and support accurate and timely financial reporting. But most small businesses aren’t technology experts. Outsourced client accounting services can help you choose the right technology to support your accounting processes so you can focus on running your business.
• Your business is growing rapidly. Scaling up is great, but growth often means more complex finances. Outsourcing ensures your books keep pace with your expanding operations.
• You’re facing tax or compliance issues. Filing income, payroll, sales, and excise tax returns can be tricky. A professional accountant can help you stay compliant and avoid costly penalties.
• You want better financial insights. Do you know where your money is going—or how to make it work harder for you? Outsourced accounting services can provide clear reports and insights, empowering you to make informed decisions.
• You can’t justify a full-time hire. Hiring an in-house accountant is expensive. Outsourcing gives you access to industry specialization at a fraction of the cost.

How to find the right outsourced accountant or bookkeeper

Choosing the right partner is crucial. Here are some tips to help you find your match without doing extensive research:

1. Understand your needs. Are you looking for basic outsourced bookkeeping services, help with accounts receivable, tax preparation, or a strategic financial partner? Defining your needs will help you narrow your search.
2. Check qualifications and experience. Look for certifications like Certified Public Accountant (CPA) or Certified Bookkeeper (CB), relevant industry experience, and client reviews. You want someone who understands your business’s unique challenges.
3. Assess technology use. A good outsourced accountant should use modern accounting software to streamline processes and provide real-time access to your data and financial statements.
4. Ask about communication. Clear and regular communication is essential when working with outsourced accounting firms. Make sure they’re responsive and can explain financial concepts clearly.
5. Consider scalability. If your business grows, can they handle the increased workload? Choose a provider who can adapt to your changing needs.
6. Look at accessibility. You have a couple of options for accounting outsourcing. You might hire a local bookkeeper or work with a virtual bookkeeping firm. Don’t just consider cost savings. Think about how you want to interact with your accounting services. If you want to meet in person to discuss your accounting needs, an online bookkeeping service might not be the right fit. However, you might have more options if you’re comfortable using technology to communicate with a virtual bookkeeper.

Ready to take the first step toward financial peace of mind?

Outsourcing your accounting isn’t about giving up control—it’s about gaining clarity, confidence, and time to focus on what you do best. If you’re ready to offload the stress of managing your books, reach out. We’re happy to explore how outsourced accounting can streamline your finances, help you stay compliant, and support smarter business decisions.