How To Outsource Accounting Services?

You have finally decided to outsource your accounting services to someone else so you can focus on growing your business. Now the due diligence begins when you need to identify what needs to be outsourced and how to outsource accounting services appropriately and effectively. 

In this guide, KenwoodPC will share some important information for you to consider on how to effectively outsource your accounting services. 

When Should You Outsource Accounting Services?

If you are experiencing any of the following growing pains when running your business, it might be a good time to look into an outsourcing accounting service so you can get some valuable time back to your day:

• Missing tax write-offs because you are too busy with growing your business
• Doing bookkeeping to just stay on top of your day-in and day-out
• Struggling to stay on top of your cash flow 
• Making estimated payments is becoming harder every month
• You are having troubles tracking accounts receivable and payable 

These pain points are often symptoms of the following root causes in your business:

• Lack of in-house expertise
• Lack of time because your business is growing rapidly
• Complicated or time consuming daily accounting and bookkeeping tasks 

Why Should You Outsource Accounting Services? 

In 2019, more than half of small businesses in the United States planned to outsource at least one business function, with accounting being the most common function to outsource. You should outsource your accounting services for several reasons:

Reduced Cost

Outsourcing Accounting Services allows you to only pay for the jobs that need to be done without the burdens of having to manage a full-time in-house employee. This approach makes a great deal of sense for many small businesses who do not want to pay full time for an in-house accountant or are ready to take on another full-time employee, and not to mention the time, energy, and effort involved in recruiting and hiring for a full-time employee. With outsourcing accounting services, small business owners will only pay for the tasks that need to be done, nothing more!

Instant Access to Accounting, Finance, and Tax Expertise

Outsourcing accounting services provides access to specialized expertise, ensuring your financial reporting is precise and compliant with regulations. Professional accountants bring in-depth knowledge and experience, reducing the likelihood of errors and enhancing the overall accuracy of your financial records. This expertise helps in making informed business decisions and maintaining financial health, giving you peace of mind and allowing you to focus on your core business operations.

Flexibility to meet Your Business Growing Needs

Outsourcing accounting services offers significant scalability, allowing your business to adjust the level of accounting support based on growing needs. Whether your company is expanding or experiencing seasonal fluctuations, outsourced accounting services can quickly scale up or down, ensuring you have the right amount of expertise at all times. This flexibility helps manage costs effectively while maintaining efficient and accurate financial operations, adapting seamlessly to your business’s changing requirements.

Access to Advanced Technology to make data driven and informed business decisions

Outsourcing accounting services grants access to advanced technology, enabling data-driven and informed business decisions. These service providers use cutting-edge accounting software and tools, ensuring your financial data is accurate, up-to-date, and easily accessible. This technological advantage not only streamlines accounting processes but also provides valuable insights into your financial health, helping you make strategic decisions that drive business growth and efficiency.​

Types of Outsourced Accounting Services

1. Bookkeeping: Maintain accurate financial records, track transactions, and manage ledgers, ensuring a solid foundation for all accounting processes. 
2. Payroll Processing: Handle employee payments, tax withholdings, and compliance with labor laws, ensuring timely and accurate payroll management.
3. Expense Reporting: Track and categorize business expenses, facilitating budget management and financial analysis.Manage invoices, collections, and payments to optimize cash flow and maintain strong supplier relationships.
4. Accounts Receivable and Accounts Payable Management: Manage invoices, collections, and payments to optimize cash flow and maintain strong supplier relationships.
5. Preparation of Financial Statements & Financial Planning: Generate balance sheets, income statements, and cash flow statements for strategic financial planning.
6. Controller/CFO Services: Provide high-level financial oversight, strategy, and planning, supporting informed business decisions.
7. Tax Preparations and Filing: Ensure compliance with tax regulations, prepare and file accurate tax returns, and optimize tax liabilities.

How To Outsource Accounting Services? 

Follow the below steps to effectively outsource your accounting service:

1. Identify Needs: determine the specific accounting tasks to outsource. Understand some of the daily tasks that are consuming the most of your time away from growing your business. 
2. Research and Compare based on Your Needs: one of the biggest mistakes you can make is hiring someone who does not understand your business. This will create even more inefficiencies and will take up more of your time. Make sure you do your due diligence and bring on someone who has experience in your industry. 
3. Interview and Evaluate: define clear objectives and expectations for the service. During the interview process, clearly outline your expectations with the outsourced accounting 
4. Negotiate Terms: Agree on contract details, including pricing and confidentiality. This is important to ensure that your data and confidential information is handled professionally. 
5. Onboard: Share necessary data and establish communication protocols. Ensure the outsourcing accounting service has everything they need to perform their tasks that you agreed to. In the beginning, make sure you have clearly defined standard operating procedures (SOP), and tasks are clearly defined and documented, this will ensure that you have success with the outsource accounting services. 
6. Monitor Performance: Regularly review the provider’s performance to ensure they meet your standards. This is one of the most important steps. Do not expect things to be perfect in the beginning as they will be new to your processes and how you work, expect to have recurring meetings in the beginning to ensure that the tasks are being completed to your level of expectation. 

Best Outsourced Accounting Services Firm for Small Businesses in Texas

For small businesses in Texas, Sentry Strategy and KenWood & Associates, P.C. offer comprehensive outsourced accounting services along with all of your tax needs. 

Sentry Strategy specializes in meticulous bookkeeping, ensuring your financial records are accurate and up-to-date. KenWood excels in tax preparation and filing, providing expert guidance to navigate tax regulations and optimize your tax liabilities. 

Together, Sentry Strategy and KenWood & Associates, P.C. provide a robust accounting, finance, and tax solutions for the following industries: healthcare, professional services, manufacturing, construction, wholesale, retail, hospitality, insurance, real estate, oil and gas, governmental entities, non-profits, trusts, and many other businesses. 

Our combined expertise and professionalism ensure you have confidence and valuable time back to focus on growing your business. Contact us today to learn how we can support your business's financial needs and help you achieve your goals!