As businesses grow and change, their needs for expertise change too. Many companies benefit from outsourced accounting services at different stages. Depending on the company’s needs, outsourced accounting can be a cost-effective way to get expertise without hiring employees.
Often, owners and executives like the idea of outsourcing the entire finance, accounting, or bookkeeping function. Outsourcing allows management to focus on the core business, reduces personnel management and space needs, and lets the company scale to adjust to business cycles.
Other scenarios may involve shorter-term outsourcing, such as:
Start-ups: If successful, virtually all start-ups reach a point where they outgrow their existing accounting resources. They need “real” financial statements for funding or more sophisticated reporting and forecasting than the bookkeeper can provide.
Workforce changes: Maybe a CFO is retiring or a change in leadership has resulted in a personnel shift. These events can trigger a need for finance assistance.
Merger or acquisition: The sale of the company—or purchase of other enterprises—can strain the finance and accounting team. Short-term help can provide relief.
International business: For foreign companies establishing themselves in the U.S., domestic accounting expertise be necessary.
Outsourced accounting can be structured to meet your specific business needs. For example, basic services include general bookkeeping—accounts payable and accounts receivable—plus transaction and payroll processing and month-end reporting.
Intermediate services include basic bookkeeping services, plus inventory and fixed asset accounting and more in-depth reconciliation and balance sheet activity.
Full-service outsourcing includes all of the services mentioned previously, plus revenue recognition, debt and capital lease accounting, cash management, forecasting, and advanced reporting.
Consider outsourced accounting as a flexible way to add expertise as your business grows.