Outsource Accounting Services to Save Time and Money
Updated: Oct 23
Many businesses outsource accounting-related tasks, such as payroll, to a third-party vendor. But more and more businesses are looking for a partner to handle the bulk, if not all, of their accounting functions.
Why would a business outsource accounting in its entirety? Cost reduction is the main reason. It’s expensive to hire, train and retain accounting professionals. And when key accounting team members depart, they take all of their institutional knowledge with them. That knowledge loss can be devastating, and there’s a risk of losing continuity in the finance department.
Back Office Outsourcing
At Strategic Solutions NW, we lump accounting into our Back Office Outsourcing Service. While we consider the bigger bucket of accounting a rung above some of the other tasks we handle for our clients, these are all important functions within accounting we take care of:
Data entry and analysis
Real-time transaction processing
Vendor bill management
Budgeting, forecasting, and trend analysis
Having a skilled outsourced person or team handling these functions provides businesses with peace of mind knowing important accounting functions have continuity, organization, and a concentrated focus on security.
Increasing Focus on Revenue-Generating Tasks
With professionals such as SSNW handling the list of administrative tasks tied to accounting, businesses can laser focus on front-office tasks that generate income. Sales and client interactions, after all, are the reasons the back office functions are needed. The skills of salespeople and client reps are not easily modeled and, as such, are not something that is easy to outsource.
By outsourcing back-office tasks, a company can focus on hiring, developing, and retaining talented individuals who lack a better phrase “bring home the bacon.”
In addition to being able to improve focus on revenue-generating activities, see our list of other reasons that businesses may want to think about when considering outsourcing, including what is mentioned above (lowering costs), providing flexibility, accessing better technology (including having data in secure cloud environments), and removing the headaches of more staff to manage.
A New Set of Eyes on Company Financials
Another not-so-obvious benefit of outsourcing accounting services and related functions is having a third-party, unbiased professional or team of experts examine financial statements and processes. That objective viewpoint is invaluable. By not being bogged down by the daily operations of the business, they can impartially review and audit financials and impart their knowledge with an eye on recommending improvements and focusing on profitability.
That proactive approach can identify what is and is not working; identify opportunities to streamline systems and processes, and deliver data and insights in visual reporting that focus on a business's most important KPIs.
Tips for Finding an Outsourcing Partner
If a business is considering outsourcing, we recommend some introspection. Ask these questions:
What challenges is a business facing?
In turn, what opportunities lie out there and are maybe being missed out on because the accounting function is bogged down and not allowing for that focus on front-end tasks?
How effective is a business’ tech stack as it relates to finance?
Does the company need an upgrade in software or an improved focus on cloud services (or maybe the cloud seems unattainable with current systems and processes in place)?
Is the company's financial reporting structure effective and providing the insights needed to move the business forward?
What goals does a business want to achieve from outsourcing back-office functions?
Strategic Solutions NW can help businesses answer these questions to set them up for successful outsourcing with us or another provider. The advantage of working with us is that business owners get our years of experience, and we’ll not just handle the back office functions; we’ll be a teammate and a partner across the business as a whole.
If we see issues in the accounting function that may be prevalent in other areas of the business, that information can be invaluable. While the back office functions may be what we’re initially hired to handle, we take a holistic approach with all of our clients. Our goal is to help.