The Pros of Outsourced Bookkeeping Services
Outsourced bookkeeping services have become a more common solution for small businesses today. Why? The
advantages, which once were only enjoyed by mid-market and enterprise companies, are becoming understood by
With a outside accounting team, CEOs and business owners have access to knowledgeable, trained staff working
to help their business run better, grow faster, and make more money. Often at a significant cost savings vs.
building an internal accounting department.
Why Do Companies Outsource?
Cost savings, focusing on core business functions, and solving capacity issues are primary drivers to
outsource. Leading organizations use outsourcing to drive transformational change and improve business
- According to
Deloitte’s 2016 Global Outsourcing Survey
So should you consider outsourcing your accounting?
Pro #1: More Cost Effective
Hiring an outsourced accounting service is often cheaper and more cost effective than hiring in-house staff
handle the finance function. By outsourcing, you don’t have any attributed overhead costs that hiring an
employee would generate, such as PTO, health insurance, retirement, vacation, Workers’ Comp, and sick days.
Also, the value of having an entire team’s expertise, rather than just one internal person (or more),
reducing the risk of non-compliance and unreliable financials – especially for smaller businesses
Pro #2: A Proactive Approach
As a CEO, you didn’t go into business to be a trained financial professional overseeing the books. You want
run your business, and focus on the overall growth and vision of the company itself. This is why having an
outsourced accounting team has the advantage of proactivity, where they can spot red flags ahead of time and
notify you about expenditures and cash flow, for example. Having trained eyes on your finances at all times
bring considerable peace of mind, as well as the confidence needed to make intelligent financial decisions.
For business owners, handing over the control of the books can sometimes feel uncomfortable. Starting out
an in-depth onboarding process that defines roles, policies and procedures sets expectations and ensures
communication is timely.
Tips for a Successful Outsourced Accounting Relationship
Pro #3: Reduced Fraud
Fraud is an unfortunate result in many small to medium-sized businesses with one person at the helm of
accounting. That’s because it’s easy to manipulate the books, or have a fake expense go unnoticed for
even years. There are multiple warning signs that can indicate fraud, and are oftentimes because of
hardship an employee’s going through, where they feel financial pressure and don’t know what else to do.
just blindly trust your employee without any controls or accountability – it’s a surefire sign to leave you
open for fraud. How to Establish Internal Controls with QuickBooks®
With outsourced accounting services, you have multiple pairs of eyes on your transaction processing and
reports, which provides increased internal controls. While fraud can never be ruled out 100%, a dedicated
with specific expertise in accounting best practices will be far more likely to spot an anomaly than one
who’s probably overburdened and overloaded with work.
A Dedicated Team, & a Virtual Accounting Machine
From advanced bookkeeping and accounting to customized management reporting and controller services, your
outsourced accounting service is designed to augment your staff and transform your finance function. It’s
just about maintaining your accounting, but also providing a platform to drive profits, improve cash flow,
grow your business.
Here at Nugent & Associates, we’ve helped businesses and nonprofits of all sizes, gain the peace of
and actionable financial intelligence they need to succeed.