Benefits of Outsourced Financial and Accounting Services

Date Published: August 6, 2020

Amongst all the services that business owners outsource in regards to their business, accounting and financial services are amongst the top of the list. This is because by outsourcing they are able to give themselves the option of having consistent results, increased efficiency and increased profitability. Yet many business owners still find it difficult when it comes to deciding whether or not to outsource their accounting processes. This is due to most companies wanting to seek the most cost effective solution while still ensuring the quality in their accounting. This is when it begins to get challenging for businesses in their decision of whether to outsource the task or if to perform it in house. However many small to medium size businesses do not have the accounting expertise or the time in house to perform the task properly. This is why outsourcing has gain so much popularity in the past couple of years. By outsourcing, business owners and staff members are able to focus more of their attention on the business’s core objectives rather than the accounting process. By focusing their attention on these objectives instead of accounting, businesses are seeing increases in both growth as well as profitability. This is why outsourcing to accounting professionals has become such a popular aspect for business owners to invest in today.



By outsourcing these services, business owners are able to simplify their accounting cycle and make overall better business decisions. The first three services that we will address are payroll, accounts payable and accounts receivable. This is because these three are the most popular of the accounting services to be outsourced by business owners.

1. Payroll

Because payroll involves more than simply writing a check, outsourcing it to an accounting professional provides a business with multiple advantages such as accurate payroll documents, correct processing of payments and correct handling of payroll taxes. But more importantly, from outsourcing you are helping your business in saving its two most important assets; time and money! By outsourcing your accounting you’re allowing your business to save money that in return can be reinvested in further developing your business. Then by saving your business the time of conducting the accounting process you are benefiting in two ways. First, you are allowing your managerial staff more time to focus on correctly running the business and making sound business decisions. Secondly you are avoiding any costly issues that could occur from late payroll.

According to the IRS, “40 % of small businesses pay an average penalty of $845 per year for late or incorrect filings and payments”.

This might not seem like a lot but over the course of a couple of years could really start to add up. So instead of losing close to $1000 dollars a year and missing out on tax deductions, you can hire a professional accountant that will take care of your accounting correctly and allow you to focus your time in developing your business.

2. Accounts Payable

Every company faces the daily challenge of trying to reduce their costs. By paying your company’s accounts payable on time, you are able to avoid late fees which can in return help you reduce your costs.

Researchers have determined that, when outsourcing their accounts payable, businesses are able to reduce both labor and the associated costs by 80%.

This means that due to contrary belief hiring an outsourced accountant not only saves money but also cuts your business overall costs. This is also from only outsourcing one aspect of your businesses accounting process. By only outsourcing your accounts payable you are avoiding the one concern most business owners have in regards to outsourcing, increased costs. But like what we have shown you are doing the exact opposite, you are actually decreasing your businesses overall costs.

3. Accounts Receivable

From outsourcing account receivables bills are no longer unsettled and mistakes are inevitably avoided. Additionally account receivables are a significant influencer of your business’s cash flow. By outsourcing the accounts receivable portion of your business you are increasing the collection of payments in a timely manner. This in return can increase the amount of cash obtained by your business, which is known by all businesses as one of its best assets. By having a positive inflow of cash and reduced costs you are not only creating an efficient business model but a profitable one as well. Some of the services that can be provided by accountants in regards to account receivables include:

• Electronic bills/invoices

• Archive, collection and processing of payments

• Balance sheet management

Businesses have found out that by outsourcing account receivables they are able to reduce their labor costs by at least 20%.

4. Budgeting

With the growing need to focus on the core of their businesses, owners have begun to start outsourcing even more of their accounting related services such as budgeting, forecasting and internal auditing. This is particularly true for businesses that have had their main focus shifted to revolving around expansion and have had an increase in obligations in regards to business growth.



Budgeting is a crucial aspect for companies when it comes to accounting because it allows them to plan their finances in regards to operations and expansion. Budgeting serves as a representation of how companies spend their money while considering the needs for each aspect concerning their business. When it comes to setting a budget a few things are needed. First an assessment of costs is needed to be created in order to establish a valid budget. Then in accordance to this budget a strategy is to be developed that allows a company to limit their spending, plan for expansion and enhance the their overall financial performance. Now these tasks are quite long and ask for a good amount of skill that most business owners most likely do not have. This is why the outsourcing of budgeting has increased over the years. With outsourcing to a professional accountant you are getting an unbiased view of your businesses financial position and are gaining the skills to properly perform these complex tasks. This will then lead you into setting a proper budget that can allow your business to expand in grow over the course of the long run.

5. Forecasting

Forecasting refers to how businesses plan for their future needs. This includes making predictions regarding the impact of future business decisions, how the market might change and the threat of any new competitors. All of these and more need to be evaluated and anticipated by businesses in order to accurately plan for the future of their business. But like the other aspects of accounting there is a lack of in-house knowledge or time to present quality forecasting. This is why by outsourcing businesses are able to gain a knowledgeable professional that can develop a precise forecast model that will increase the growth of the company.

6. Internal Audits

Internal audits aim to enhance and improve a business’ internal operations. Because its purpose is to make companies more efficient, it is important that it stays independent and objective. This helps a business by giving them an unbiased view of the company’s internal controls and financial position. Outsourcing this process of internal auditing provides companies with an accurate analysis of everything pertaining to the business, while also providing recommendations as how to improve the overall effectiveness of the business. Then lastly the experts will help the business in complying with all local and federal laws pertaining to all transaction performed within the company. This provides an assurance of integrity to all parties involved in funding and regulation of the business. So by outsourcing your internal auditing you are not only getting an accurate view of your business, you are receiving recommendations for improvement and assurance to provide to any necessary third party.

Benefit From Outsource Accounting

Bu outsourcing your accounting your company is receiving multiple benefits that are both small and large. These benefits include:

• Cut Costs

• Time Saving

• Reduce Paper Usage

• Better Employment Benefits

• Proper Use of Management Time

• Improved Financial Control

This is why we have seen such an increase in the number of accounting services being outsourced over the years. They are able to save more money, spend more time on the actual business and improve their overall business model. From all that is beneficial from outsourcing a business’s accounting there is no reason not to outsource. This becomes even more apparent when businesses begin to expand and bookkeeping becomes more time consuming and complex. Overall the benefits outweigh the costs in regards to outsourcing or not.

Hire Your Outsource Professional Today

Business owners find it extremely challenging to avoid mistakes when it comes to handling books and the solution to this is outsourcing accounting and financial professionals. Businesses increase their chances of success by hiring experts that allow them to save money and make the right decisions. Douglas Business Solutions has the right professionals your business needs to outsource your accounting and financial services. Contact Douglas Business Solutions today, our experts will be able to guide you and help answer all your questions pertaining to outsourcing of your accounting and financial services.