Recognizing the Signs: When to Outsource Your Finance & Accounting Services

Often, you find yourself wearing multiple hats – managing cash flow, budgets, compliance, and more. When your team is stretched thin, outsourcing your finance and accounting services can be an effective solution, allowing you to focus on core competencies and achieve long-term growth for your company.  

But how can you identify the right moment to make such an important change? 

We’ve compiled the top five signs that it’s time to outsource your finance and accounting services. If any of these sound familiar, it might be time to give outsourcing a try. 

Your resources are being taken up by financial tasks and you can’t focus on running your business. 

One of the most common signs that outsourcing may be the right choice for your team is consistently overworked employees. If you find that you and your employees are spending an inordinate amount of time on financial tasks – such as bookkeeping, invoicing, and managing payroll – it may be time to outsource your finance and accounting services. This is especially true if you find that these tasks are preventing you from focusing on running and growing your business. 

Outsourcing your finance and accounting services can free up valuable time and resources, allowing you to focus on what you do best. 

You have concerns about your data security. 

You have concerns about your data security, and you are right to be concerned.  

According to Accenture’s Cost of Cybercrime Study, 43% of cyber attacks are aimed at small businesses, but only 14% are prepared to defend themselves. In addition, small to mid-size business report:* 

• Insufficient security measures: 45% say that their processes are ineffective at mitigating attacks.  
• Frequency of attacks: 66% have experienced a cyber attack in the past 12 months. 
• Background of attacks: 69% say that cyber attacks are becoming more targeted. 

When you outsource to a reputable firm, you can be confident that your data is being handled by experts who are familiar with the latest security protocols and leveraging best in class systems and platforms. Outsourcing gives you the opportunity to take advantage of the latest security technologies, which can help protect your data from threats. 

By working with a firm that has a full suite of data security and IT services, you can rest assured that your data is in good hands. 

You’re experiencing delays in payroll, accounting, or closing your books. 

One of the clearest signs that it’s time to outsource your finance and accounting services is if you’re experiencing delays in payroll or closing your monthly books. This can be caused by a number of factors, including an inadequate staff or an overburdened accounting department. If you find yourself consistently behind on payroll or other financial deadlines, it’s time to consider outsourcing. 

A related concern is ensuring that you are keeping up with the latest changes in tax laws and regulations. Tax laws are constantly changing, and an outsource partner will ensure that you are filing correctly, accurately and on time. 

And it’s not just taxes. Poor financial reporting can also lead to a number of problems, including decreased profitability and poor decision-making. If you don’t have access to real-time data so that you can pivot in a timely fashion – you are placing your company at risk.  

Your budget won’t allow you to hire a full in-house finance team. 

Investing in an in-house accounting team can be pricey. The expenses for salaries, benefits, training, software, and hardware can stretch your organization’s budget to its limit – without even factoring in turnover costs.  

But, outsourcing your finance and accounting services can save you money in the long run, even if it seems like a big upfront investment. When you outsource, you only pay for the services you need, when you need them. You don’t have to worry about paying salaries, benefits, or other overhead costs associated with hiring full-time employees. 

In addition, outsourcing firms usually have access to the latest technology and software, which can save you money on expensive upgrades. And, because they work with multiple clients, they can often get discounts on products and services that you might not be able to get on your own. 

So, if your budget won’t allow you to hire a full-time in-house financial team, outsourcing is a smart solution that allows you to control costs, maintain service quality, and to benefit from the expertise of a dedicated finance and accounting team. 

You’re scaling your business with an increase in growth and cash flow. 

Outsourcing offers several benefits for businesses that are growing quickly.  

• Optimizing Expenditures: When it comes to business, cutting costs is always a top priority. Outsourcing is a cost-effective opportunity that allows you to eliminate expenses related to infrastructural and hiring costs. 
• Real-Time Accounting and Reporting: Cloud-based accounting software can equip you with up-to-date financial information whenever and wherever you need it. And having a team of professionals dedicated to delivering monthly, customized financial statements can help close the gap between your goals and your current financial position. With real-time accounting, you can make informed decisions about your business finances as soon as new information becomes available – you won’t have to wait for month-end or quarter-end reports to get an accurate picture of your cash flow or financial situation. 
• Fraud & Error Prevention: You can avoid costly and time-consuming errors with internal controls through a system of checks and balances. This system reduces the chances of internal fraud and error, saving you both time and money.  
• Access to Expert Resources: Much like doctors who specialize in certain fields, financial professionals have areas of expertise. Your in-house team, while talented, may not possess the specialized skills needed to address issues specific to your industry or the complexities of your financial tasks. When you outsource your finance and accounting services, you gain access to a wealth of expert resources. These financial teams come with years of real-world experience to optimize your back-office. 

• Focus on Business Growth: Outsourcing your finance and accounting services allows you to focus on scaling your business and making crucial decisions. You will have full control of your financials, and the insights to make crucial and time critical decisions. Having full control of your financials will increase a buyer’s overall confidence in your company. 

The decision to outsource your finance and accounting services does not come lightly. By recognizing the signs – you can make a strategic decision to create a more efficient, focused financial team.  

In doing so, you will not only capitalize on the benefits of specialized expertise but also position your organization for long-term growth and success. Remember, timing is crucial, and getting ahead of these signs can spell the difference between continuing to struggle and positioning your business for future financial success. 

Exploring outsourced options for your company? Talk with an expert today.