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9 Most Outsourced Finance and Accounting Services [Explainer + Tips]

16-Oct-2023

finance-and-accounting-outsourcing-servicesA business needs to operate in the most thoughtful ways to survive and grow. Hence, many businesses nowadays use outsourced finance and accounting services so that they’re free to dedicate their in-house resources to core activities. The best part is that it also helps them save significant time and money.  

Outsourcing serves as an effective tool to make business operations and workflows more efficient, improving productivity and ROI. Because of these clear benefits, the finance and accounting outsourcing (FAO) phenomenon is evidently surging!  

So, if you too are considering taking this path and want a quick rundown of some popular FAO services, read on …  

The Most Outsourced Finance and Accounting Services Your Business Can Also Leverage

When the priorities are clear and you’re focused on your core business activities, you can work towards stability, success and growth. And you can make room for this by outsourcing non-core activities with external service providers. 

So, here are some FAO services that businesses usually outsource to streamline their operations:  

#1 Bookkeeping 

Proper bookkeeping is very important for good financial management. It involves recording, organizing and updating the data of all your business’s financial transactions, such as sales, purchases, and expenses. 

But these multi-step data entry and data storage tasks are time-consuming and laborious. Especially when the bookkeeper is amateur, or business has a lot of transactions. A skilled bookkeeping outsourcing company can ensure your books are accurate and well-organized at all times.   

#2 Accounting  

A proficient outsourced accounting services can give you accurate and up-to-date financial records. It can be many different records, such as ledgers, cash payments and receipts, accounts payable, accounts receivable, and payroll.  

These books of accounts are needed to create financial statements, such as balance sheet, income statement, and cash flows. Financial statements show you how well your business is doing financially.  

#3 Accounts Receivable  

Accounts receivable (AR) is the process of managing incoming payments from customers. This can include tasks such as collecting payments and following up with customers, preparing and sending account statements, reconciling invoices, and processing credit memos to name a few.  

popular-outsourced-finance-accounting-services

AR processing can be difficult if you’ve a lot of customers or if you need to track a lot of accruals.  

Hiring an expert accounting receivable service partner to manage your AR can help improve your cash flow and reduce the risk of unpaid invoices. 

#4 Accounts Payable  

Accounts payable (AP) is the process of managing outgoing payments to suppliers and vendors. It may include tasks such as managing invoices, processing purchase orders and debit memos, managing AP ledgers, and managing utility bills. 

However, the process can take a lot of time and the chances of errors shore up when you deal with multiple suppliers.  

Lack of efficiency and late payments can strain your supplier and vendor relationships! But you can achieve a seamless process by outsourcing it to a skillful accounts payable service    

#5 Invoice Processing   

Invoices are proof of a sale or a purchase. As a business, you buy and sell things.  Therefore, seamless invoice processing is imperative to keep track of your expenses on purchases and raise payments from customers.  

You can make sure that invoices are accurate and processed on time by outsourcing invoice processing to an expert service. They can help you with tasks like transaction logs, invoice matching, handling check and cash, and so much more.   

 #6 Payroll Processing 

 Payroll processing means calculating and paying employee salaries and wages. It includes tasks such as calculating applicable deductions, taxes, and benefits. The payroll cycle is different for every business, however – it can be on a weekly, bi-weekly, or monthly basis.  

The function can be difficult and time-intensive for several reasons. But it is easy when you outsource with a skilled payroll service provider 

 #7 Tax Preparation  

 Tax preparation and filing can be complex as well as tedious. Any significant unintentional error or lapse can get you into trouble with the law. You may also lose out on certain deductions and tax management opportunities when your businesses taxes aren’t handled by a tax expert.  

It’s prudent and practical, therefore, to delegate business tax processing to a professional tax service. You can enjoy your peace of mind when an expert outsourced tax services provider is at work.    

2028-global-finance-accounting-bpo-market-size     [Data Source: finance.yahoo.com 

#8 Financial Analysis 

You can evaluate your business’s financial performance by analyzing different ratios (profitability, activity, liquidity, etc.,), benchmarks and trends. Financial analysis of data in financial statements helps you to identify areas where you’re strong and where you need to improve.   

Financial analysis outsourcing services can bring in the necessary knowledge and skills for a precise and objective assessment of your business.  So, you can plan the next steps with confidence. Furthermore, the extended services may also include financial reporting and a virtual CFO for improved financial management. 

#9 Accounting Automation 

You can harness the power of automation to improve the effectiveness of your financial processes. Outsourced accounting automation services can help you automate varied processes, namely bookkeeping, payroll, record-to-report, order-to-cash, procure-to-pay, and more. 

Automation can not only speed up processes but also eliminate errors to almost zero. However, it’s important to note that automation is not meant to replace human workers entirely but aid them.  

outsourced-finance-and-accounting-services-benefits

 Important Tips: Things to Keep in Mind Whilst Outsourcing Finance and Accounting

Tip #1 You can outsource your finance and accounting function from start to finish, or just a few processes. Notably, the latter option is especially useful if you’ve budget constraints but want to leverage outsourcing to your advantage.   

 Tip #2 Prior to outsourcing any financial function or process, you should assess its role in your business operations. Obviously, you may not delegate tasks which are closely associated with your core business activities.   

 If you’re a business or an accounting/CPA firm looking for expert Finance and Accounting Outsourcing Services, you can consider Centelli. We’re a UK company mainly serving Europe, India, and the United States. We offer result-bearing, scalable solutions to businesses of all sizes. Contact us for a Free Consultation and Quote now! 

 Tip #3 Make sure you partner with a FAO service provider that is qualified and trustworthy. Look for someone who can meet your specific needs if you’ve any. This will help you maximize your outsourcing benefits.    

 Closing Note

Signing up with outsourced finance and accounting services can be a great way to unbind your internal resources (people, infrastructure, and finances). Consequently, you can use them strategically for your business’s core competencies and stay competitive.  

Start-ups, SMBs, or big corporates, everyone can benefit from outsourcing all or some of their finance and accounting functions. Have you considered it yet?  

 

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