Outsourcing your accounting might sound like a big step, but for many businesses it’s one of the smartest decisions you can make. Whether you’re trying to reduce overhead, improve accuracy, or get better financial insights without hiring a full team, bringing in an outside accounting partner can offer tremendous value…and actually save your organization money!
From startups to growing companies, accounting services are not a one-size-fits-all solution. There are costs to consider, benefits to take advantage of, and a few challenges to be aware of. We’ll walk you through what outsourcing accounting actually involves, what it typically costs, and how to do it the right way.
What Does Outsourcing Accounting Actually Mean?
Outsourcing accounting means hiring a professional third party like a specialized firm or accounting service to handle some (or all) of your financial responsibilities. Depending on your business needs, these accounting services might include:
- Bookkeeping
- Accounts payable and receivable
- Payroll processing
- Monthly financial reporting
- Budgeting and forecasting support
- Controller or CFO-level strategy and oversight
You can choose to outsource just a few functions or hand off your entire accounting department. It all depends on how much support you need and what you want to keep in-house.
Why Outsourcing Accounting Makes Sense
Save on labor costs by hiring, training, and retaining an in-house accounting team. You’re not just paying salaries, you’re covering benefits, taxes, office space, software, and more. Outsourcing gives you access to trained professionals at a fraction of the cost. You pay only for the services you need, often at a predictable monthly rate.
No need to train or onboard because you’re working with experts from day one. There’s no learning curve, no internal onboarding process, and no lost time getting up to speed.
Get access to an entire team of specialists. When you outsource, you tap into a team of seasoned professionals without needing to hire them individually. This is especially valuable when you need advanced expertise but aren’t quite ready to bring on a full-time accounting / finance manager or CFO.
Scale Up (or Down) Anytime. Outsourcing is flexible. If you hit a busy season or your business suddenly grows, your provider can ramp up support. If things slow down, you can dial it back. That kind of scalability is tough to manage with full-time employees.
Dedicate more time to your business! By letting professionals handle the accounting, you & your internal team can focus on what really matters—serving clients, growing revenue, and running the business.
Avoid having to manage additional technology & tools. Outsourced accounting providers often use high-end tools and platforms. You get the benefit of that technology without needing to purchase or maintain it yourself.
What Does Outsourced Accounting Cost?
Costs can vary, depending on your business size, the complexity of your finances, and the scope of services.
General Overview:
- Hourly Rates: $150–$250 per hour, depending on the provider’s expertise
- Monthly Retainers: Can range from $1500/month for the basics (subject to change based on transaction/account volume) to $5,000+ for more robust service, which can include virtual CFO level support & consulting.
A small to midsize business might spend $1,000–$3,000/month for a full range of bookkeeping and reporting services. While there’s an upfront investment, the long-term value often outweighs the cost, especially when you factor in reduced errors, improved efficiency, timeliness of information and overall saved time.
Challenges to Be Aware Of (and How to Handle Them)
Are you worried about losing control? Though a common concern, a good outsourcing relationship is built on clear communication and transparency. Choose a trusted provider, agree on expectations, and stay involved through regular updates and reporting.
Financial data is sensitive. Ensure your accounting partner has strong cybersecurity, including encryption, secure portals, and GDPR/HIPAA compliance.
Communication and time zones can potentially be a challenge if you’re outsourcing overseas. Consider whether a domestic provider may offer better availability and clearer communication for your team.
Software Compatibility is key! Before signing on, check that your provider uses accounting platforms that integrate well with your systems. Whether it’s QuickBooks Online, Xero, NetSuite, or another solution, software that "talks" to your current tools makes life easier.
One-Size-Fits-All packages won’t provide for your unique needs. Avoid firms that offer rigid plans. Look for partners who can tailor their services based on your industry, size, and goals.
How to Get Started with Outsourcing
1. Identify Your Needs
Start by figuring out which parts of your accounting function need the most help. Do you need help with payroll and monthly reconciliation, or are you looking for strategic financial guidance?
2. Set a Budget
Know what you’re willing to invest and what kind of return or improvement you’re hoping to see.
3. Do Your Homework
Look for providers with experience in your industry, solid references, and a clear understanding of your goals. Don’t be afraid to ask about data security, software, and communication habits. Research several options to find the right fit.
4. Understand Their Tech Stack
Modern accounting is tech-driven. Choose a firm that uses cloud-based software you can easily access.
5. Establish Communication Expectations
Make sure you’re aligned on how often you’ll connect, how reporting will work, and how quickly they’ll respond to requests.
Trust Reynolds + Rowella with Your Outsourced Accounting Needs
At Reynolds + Rowella, we help businesses take the stress out of managing your finances. Whether you need help with day-to-day accounting or want strategic financial support, our Outsourced Accounting Services team can act as your full accounting department or support your existing team when you need an extra hand.
Outsourcing your accounting isn’t just about saving money, although it can definitely do that. It’s about gaining clarity, reducing risk, and freeing up your time to focus on what matters most.
Let’s connect! Reach out to our team today to see how outsourced accounting can work for you.
