Cherry Bekaert offers outsourced accounting services to businesses that want to reduce costs, improve efficiency and focus on core operations. Our certified accounting professionals produce accurate and timely financial reporting, while ensuring confidentiality and data security.
With our help, your business can streamline accounting processes, increase productivity and make informed decisions based on reliable financial information.
What Is Outsourced Accounting?
Outsourced accounting occurs when a business hires an external, third-party company to handle its finance and accounting functions. These functions can include managing payroll, accounts payable, accounts receivable, monthly bank reconciliations, tax prep support, legal compliance and financial reporting, among other functions.
The third-party accounting company acts as an in-house accounting department and may provide extensive support, as well as offer additional services such as CFO advisory and controllership services.
In-house Accounting vs. Outsourced Accounting
In-house accounting involves hiring and training internal staff to handle financial tasks. Outsourced accounting relies on external experts who are already equipped to manage a businesses’ financial operations.
These two options can also differ in terms of quality control and cost. Outsourced accountants may have more time and resources to dedicate to tracking and reporting than an in-house accounting team, which may be limited in resources or have other responsibilities to fulfill within the company. In-house accounting employees typically require a full-time salary and employee benefits, while outsourced accounting services can be tailored to a company’s specific needs.
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In-house Accounting |
Outsourced Accounting |
|
|
Structure |
Internal team trained to handle the organization’s accounting and financial tasks |
External team hired to handle the organization’s finance and accounting functions |
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Responsibilities |
May cover additional tasks outside of their primary function, limiting available resources |
Dedicated to working on specific accounting and financial tasks, scaling quickly if more resources are needed |
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Cost |
Requires full-time salary and benefits |
Paid based on the specific tasks outsourced to the service provider |
Co-sourced accounting is another option organizations can consider. This allows businesses to keep some accounting functions in-house while outsourcing select tasks to an external provider for added resources, giving you the benefits of both in-house knowledge and additional outsourced support.
How Outsourced Accounting Works
Outsourced accounting providers often utilize cloud technology platforms that provide the highest levels of security available in the industry. Once hired, outsourced accountants perform their duties remotely, using the service platform to access real-time data collection and reporting. Information will be securely shared between your in-house staff and the outsourced team. This helps create a collaborative approach between the organization and service provider while prioritizing data security and the protection of sensitive financial information.
Outsourced specialists can carry out a variety of functions for the business using this platform, such as:
- Bookkeeping: Recording daily financial transactions and maintaining accurate account records.
- Payroll Processing: Managing employee pay, deductions, tax withholdings and related filings.
- Expense Management: Tracking, reviewing and categorizing business expenses for accurate reporting.
- Accounts Payable and Accounts Receivable Management: Managing vendor payments, customer invoices and cash collections.
- Month-end Close: Reconciling accounts and finalizing financial activity for the reporting period.
- Financial Reporting and Analysis: Preparing reports and insights that support informed business decisions.
- Audit and Compliance Support: Organizing records and supporting regulatory, audit and reporting requirements.
- Budgeting and Forecasting: Creating financial plans and projections to guide future business decisions.
- Cash Management: Monitoring cash flow, balances and liquidity to support daily operations.
Pros of Using Outsourcing Accounting Services
Outsourcing accounting can provide several benefits, including cost and time savings, as you will no longer need to oversee the hiring and training of in-house accounting employees. This allows businesses to redirect internal staff and resources to support higher-value, core business operations and boost productivity. Outsourcing can also provide access to a broader skill set with experts who are equipped to help minimize fraud risk, handle compliance regulations and provide accurate financial reporting.
Additionally, outsourced accounting firms can utilize advanced technologies that may be costly for a business to acquire independently. For example, Cherry Bekaert employs various enterprise resource planning (ERP) platforms that offer enhanced financial reporting, streamlined compliance management and seamless data integration. With access to real-time financial data from virtually anywhere, these technologies make collaboration easier and more efficient.
Cons of Using Outsourced Accountants
While outsourced accounting can offer significant benefits, businesses may experience delayed communication if expectations, response times and points of contact are not clearly defined. Companies may also feel they have less direct control over day-to-day accounting processes. Thankfully, choosing a collaborative and reliable provider that prioritizes transparency and consistent communication can help offset the disadvantages of outsourcing.
How To Choose an Outsourced Accounting Service Provider
Finding an outsourced accounting service provider that fits the unique needs of your company doesn’t have to be a daunting task. A preferred ideal third-party solution will:
- Offer extensive industry experience, certified professionals and proven methods for success.
- Use proven methods to achieve accurate financial reports, measure success and identify errors.
- Utilize cloud-based software and the implementation of streamlined processes, ideal outsourced accounting firms will also serve as a good culture fit to your company.
- Prioritize clear communication and strong customer service to ensure your team receives the support necessary to achieve the company’s goals.
Accounting Outsourcing FAQs
Outsourced accounting service costs vary based on the scope of the services needed and the size of the business. Costs may be charged on a flexible, hourly basis or structured within a fixed monthly package. Additional costs or fees may be incurred for additional services throughout the duration of the contract.
Cherry Bekaert employs cloud technology platforms, automation tools, and machine learning to scale and support your company’s growth. With state-of-the-art software and compliance knowledge, we can provide peace of mind for businesses that outsource these services.
Outsourced firms like Cherry Bekaert also closely follow changing compliance and regulatory guidelines to ensure the organizations they support adhere to industry-specific requirements, reducing the risk of financial penalties. These resources may be particularly beneficial for small and mid-sized businesses that may not have robust IT departments or stringent confidentiality measures.
Outsourced accounting can benefit a wide range of businesses, from small startups to mid-size companies. Regardless of industry or rate of growth, companies can find value in hiring an external firm to handle accounting services and improve financial reporting.
For businesses that may need to meet financial compliance, or that are struggling to hire an in-house accountant, outsourcing provides a practical solution.
Yes. If you decide to outsource your accounting functions, you can develop a collaborative relationship with the provider and guide the partnership through setting expectations, defining needs and maintaining open communication. You can be as involved as you prefer, and the right firm will be flexible to specific levels of engagement.
No, outsourced accounting is versatile and applicable across various industries. Cherry Bekaert has experience supporting outsource accounting functions in many industries, including:
In addition to handling ongoing accounting functions, outsourced providers can offer insight into your financial data and help you make informed business decisions. Cherry Bekaert’s accounting and financial management advisors can assist in budgeting, forecasting and providing strategic analysis to support the overall financial health of your organization.
Ongoing support is also offered for changing compliance and regulatory standards to ensure your business is informed and compliant, minimizing the risk of financial discrepancies. Above all, outsourced accounting is intended to provide a holistic approach to managing a company’s financial affairs, so leadership and staff are free to focus on key operations.
Your Guide Forward
At Cherry Bekaert, our Outsourced Accounting Service professionals will include you at every step of the outsourced accounting lifecycle. The process typically involves the following stages:
- Data Collection
- Journal Entries
- General Ledger Accounts
- Trial Balances
- Adjusted Entries
- Crediting Financial Statements
- Closing the Books
- Financial Statements
In addition to the above services, our team will work closely with you to fully support your account. If needed, a highly experienced professional may also provide additional accounting and finance consulting, which is priced according to each company’s specific needs.
Learn more about how our advisors can help support your organization by reaching out today.
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