How outsourced accounting saves time and money for growing businesses

Accounting is one of the most difficult areas to manage in a growing business. The difficulties of financial management, from keeping track of spending to filing taxes, frequently take time, money, and effort away from essential tasks.

Outsourced accounting is gaining popularity among businesses looking for increased efficiency, growth, and peace of mind. According to Capterra, 71% of organizations outsource some of their accounting needs, while 65% require full-time assistance from firms to manage tax compliance and other complex tasks. Businesses can access expertise and flexibility through outsourced accounting, which also helps them save time and money.

The challenges of accounting for growing businesses

Financial management becomes more difficult for small businesses and startups as they grow. Initially, founders or small teams may handle accounting tasks internally. However, with growth comes complexity, including more invoices, payrolls, compliance requirements, and tax obligations.

Here is where the challenges pile up:

• Time-consuming Procedures: Hours are needed for bookkeeping, reconciliations, and compliance reviews.
• Errors and Risk: Inaccurate financial reporting can result in tax penalties, damaged credibility, and inaccurate records.
• Resource Drain: Purchasing software or employing full-time accountants can raise overhead expenses dramatically.

These challenges could impede progress unless a new strategy is implemented. Outsourced accounting offers a streamlined, efficient, and cost-effective way to manage your finances.

Leave financial tasks to the experts

Outsourced accounting saves you and your team time, which is one of the most immediate and tangible benefits. When accounting is handled internally, routine tasks like bookkeeping, payroll processing, and tax filings take up valuable time. Outsourcing these responsibilities enables your internal teams to concentrate on business development rather than administrative tasks.

For example, processing payroll every two weeks could take 5-10 hours per pay period. Outsourcing payroll alone could save you up to 240 hours per year.

Focused time for growth

When a team spends less time calculating numbers, they have more time to make strategic decisions. Founders can concentrate on networking, launching new products, and expanding their market reach while the outsourced accounting team ensures smooth and accurate financial operations.

The key takeaway is that time saved is time invested in the growth of the business.

Reduce hiring costs

Establishing an in-house accounting team can be costly. Full-time accountants and bookkeepers command high salaries, benefits packages, and incur associated office expenses and training costs. Outsourcing eliminates these overheads, saving businesses thousands of dollars per year.

According to Zippia research, 59% of businesses cite cost as their primary reason for outsourcing. And with good reason: it allows you to pay only for the services you actually use.

Scalable pricing models

The majority of outsourced accounting providers provide flexible pricing structures based on your specific requirements. Whether you need payroll services, accounts receivable, or financial forecasting, you can customize your package to fit your budget and avoid unnecessary expenses.

Cost comparison:

• Average in-house accountant salary (U.S.): $60,000–$70,000 per year
• Outsourced accounting service: Starting at $300–$2,000 per month (for small businesses)

Outsourcing provides high-quality service without the high cost

Accounting is more than just math; it requires knowledge of regulations, tax laws, and best practices that vary by industry. Outsourcing your accounting gives you access to a team of experts who can handle a wide range of financial scenarios, ensuring that everything remains compliant and optimized.

For example:

• Tax professionals ensure that you take full advantage of deductions.
• Accountants who specialize in a specific industry, such as retail, manufacturing, or information technology, are familiar with its regulations.

Leading technology at your fingertips

Many outsourced accounting firms use industry-leading software such as QuickBooks Online, Xero, or Sage to deliver consistent results. They also provide advanced analytics and reporting tools, giving you a quick overview of your financial health. This eliminates the need for businesses to invest in expensive accounting software or upgrades.

Pro tip: Advanced tools such as real-time dashboards and AI-powered analytics can reveal financial trends that you might otherwise overlook.

Focus on core business activities

Your team already handles many tasks, including marketing, operations, human resources, and more. Adding complicated accounting tasks to their workload can reduce productivity and morale. Outsourcing allows you to delegate non-core tasks while focusing your energy on sales, customer service, and product innovation.

Boost team efficiency

Removing accounting responsibilities from your team’s plate allows them to focus on what they do best. Instead of becoming exhausted by tax filings or reconciliations, they can apply their knowledge in areas where it is most effective.

By outsourcing bookkeeping, a startup founder gained 15 hours per week, which he reinvested in launching two new product lines, resulting in a 20% revenue increase.

Outsourced accounting services are designed to grow alongside you. Do you need help closing your books every month? Are you looking to expand internationally and need to deal with multi-currency accounts or complex compliance? Your outsourced team can adapt to your changing needs without requiring you to hire additional employees.

Seasonal support when you need it

Many businesses experience fluctuations in accounting workloads during tax season, audits, and peak sales periods. Outsourcing providers provide flexibility by increasing support when you need it most and decreasing support during slower months.

Example: Seasonal businesses, such as e-commerce stores during the holiday season, benefit from additional accounting support to manage increased transactions and inventory.

Why outsourced accounting is a smart choice

For growing businesses, time and money are the most valuable resources. Outsourcing accounting involves:

• Save time to focus on strategic business objectives.
• Reduce costs by eliminating the overhead associated with in-house staffing.
• Utilize expertise and cutting-edge technology to improve accuracy and compliance.
• Increase scalability to meet changing demands.
• Increase productivity by allowing your team to concentrate on activities that directly affect growth.

Outsourced accounting is more than just a financial decision; it is a strategic move that positions businesses for long-term growth. Partner with a reputable outsourced accounting provider today to reduce financial headaches, gain control of your time, and empower your team.

Featured image credit