What to Expect When Hiring an Outsourced Accounting Firm

Hiring an outsourced accounting firm can be done quite easily with the right steps. Finding the right partner can improve your financial wellbeing and business performance, creating a solid foundation for future growth and profitability. But what can you expect while making this critical choice? So, let’s break down the essential benefits, the things you should look for, tips to make the switch, challenges and how to get the most out of your partnership.

Understanding the Benefits of Outsourced Accounting

Outsourced accounting can boost your bottom line in a number of ways—including helping you save money. That's because outsourcing prevents you from spending money to hire, train and retain internal accounting staff. Instead, you'll enjoy the benefits of a whole team at just a fraction of the cost. Plus, with an outsourced team, you have access to a a variety of experts, including staff accountants, senior accountants, controllers, and even CFOs.

It also gives you more time to concentrate on your core activities. When you let professional accountants handle the financial tasks, your internal team can concentrate on expanding your business and delighting your customers. Outsourced accounting firms bring a wealth of experience from working with diverse businesses, which helps them refine their processes by tackling various challenges. It's tough to match this kind of expertise with just an in-house employee.

Finally, outsourcing offers you the flexibility you need. An external company can easily adjust its services to match your changing needs, giving you the kind of adaptability that an internal staff can't.

Key Qualities to Look for in an Outsourced Accounting Firm

Once you've made the decision to hire an outsourced accounting firm, it's equally important to select the right firm for your business. Here are a few key qualities to keep in mind:

Culture & Operations Fit:

This sounds simple, but it's important to choose a firm that you want to work with. You'll develop a very close working relationship, so narrow your options down to the people you'll enjoy working with.

If you're leaning towards a remote or technology-focused approach, go for a firm that excels in that area. Prefer face-to-face interactions? Make sure they can accommodate that too—just remember, local companies might not have experience in your specific industry, which brings us to:

Industry Expertise:

You want a company that has the experience to back up their expertise. After all, every industry will have its own unique hurdles. Be sure that you're outsourcing to an organization that has a track record of success when it comes to your specific problems.

Don’t forget about their technological capabilities either. Ask how their tech stack will mesh with yours, and if they're proficient in industry-specific software (like Studio Designer).

Communication and Responsiveness:

Poor communication is often why companies switch firms. Choose a company that's proactive, transparent, and quick to respond. Lastly, make sure they offer a full range of services to support your business as it grows—from bookkeeping to financial strategy.

How to Transition Smoothly to an Outsourced Accounting Service

Switching to an outsourced accounting firm might feel a bit overwhelming, but with some thoughtful planning, it can be a breeze. Start by picking a company that offers a detailed transition plan. This plan should include a clear onboarding process with milestones that outline everything from onboarding to software conversions and data transfers. Regular check-in meetings during this time are great for addressing any concerns and ensuring everyone stays on the same page.

Work closely with the firm to make sure your data transfer is secure, too. It's important to handle sensitive financial information accurately and securely to avoid any hiccups. At the same time, set clear expectations with your current accounting team to avoid missing any deadlines—especially for important tasks like payroll or sales tax filings.

Remember, being patient and flexible during this transition is key. While it might take some time and effort, you'll enjoy long-term benefits.

Common Challenges and How to Overcome Them

Outsourced bookkeeping comes with its own set of unique challenges, but don't worry—most of them can be tackled with the right approach:

Miscommunication can pop up now and then, but having regular check-ins and clearly outlining everyone's roles and responsibilities can help keep things running smoothly. Plus, using collaborative tools can really cut down on any misunderstandings.

Data security is another important area to focus on. Since financial information is sensitive, it's important to carefully choose the organization you work with. Be sure to ask about their security measures and certifications to make sure your data stays safe and sound.

Lastly, give yourself and your new partners some time to adjust. Both your team and the outsourced team will need a little time to get used to new workflows. During this period, keeping the lines of communication open and being patient will help build a successful partnership.

Maximizing the Value of Your Outsourced Accounting Firm

To get the most out of your partnership, think of your outsourced accounting firm as an ally. Involve them in your financial planning and decision-making, and tap into their expertise whenever you can.

Their know-how can help streamline processes and enhance best practices, but it's just as important for you to stay engaged. Don't give them the keys and walk away. While outsourcing can lighten your load, staying informed about your financial status helps you make quick, smart decisions.

At Accounting Frontier, we'll change the way you handle your finances. We combine forward-thinking professionals, cutting-edge technology, and a focus on you, our client, to craft the perfect solution for your business. Think of us as your partners—not just a team managing your finances, but strategic allies, offering insights to help you reach your goals.

We'll make your transition smooth, ensure your data is secure, and offer the flexibility to grow with your business. Most importantly, you'll have a friend dedicated to your success every step of the way. Let us show you how outsourcing your accounting can unlock your business's full potential.