From reporting to invoicing to bookkeeping, effective management of finance and accounting data and transactions is imperative to keeping a business running smoothly.

At the same time, securing the best financial talent is becoming increasingly difficult. The competition is fierce, and the need for skilled finance professionals is growing faster than many other fields — some estimates say the U.S. is short 340,000 accountants.

To solve this challenge, many companies are considering outsourcing accounting and finance processes.

But what exactly does outsourced finance and accounting entail, how can it benefit your team, and when is it time to consider it?

What Services Fall Under Finance and Accounting Outsourcing?

Commonly outsourced finance and accounting tasks include:

• Accounts Payable — Streamlining cash flow operations with vendors and suppliers (paying vendor invoices)
• Invoicing and Accounts Receivable — Streamlining cash flow operations with customers (collecting on customer invoices)
• General Accounting — Preparing financial statements, processing taxes, managing budgets, and monitoring KPIs
• Bookkeeping — Recording transactions, reconciling bank statements, sending invoices, and processing payroll
• Financial Planning and Analysis — Planning, forecasting, and monitoring financial data and performance

What are the Benefits of Outsourcing Finance and Accounting Tasks?

When implemented well, outsourcing gives you access to top-tier talent, allowing your in-house teams to concentrate on core tasks without the hassle of managing invoices, making collection calls, or keeping up with constant compliance changes.

Here are a few key finance and accounting outsourcing benefits to consider:

• Cost Savings —  Outsourcing finance and accounting services can drive cost savings through streamlined operations, increased efficiencies, and the renewed in-house focus on core aspects of the business. However, while cost savings are a common reason for outsourcing, cost should never take priority over quality, especially when it comes to financial departments.
• Specialized Skills — Outsourcing also allows you to access team members with specialized skill sets, overcoming talent shortages and high competition related to specific areas of expertise.
• Scalability — Easily ramp up based on seasonal needs, and seamlessly scale for strategic growth.
• Focus — With the ability to outsource certain tasks, your core team can refocus on mission-critical work, enhancing productivity and growth.
• Talent Access — With financial talent shortages, outsourcing allows you to hire outside your typical candidate pool, meaning you can hire the best team members without location limitations. 
• Process Improvement — The right finance and accounting outsourcing partner can help find efficiencies and improve your processes.
• Compliance — With regulations and standards constantly evolving, maintaining compliance is essential to avoid legal issues and penalties. An outsourcing partner can act as your compliance experts, keeping your company aligned with evolving regulations and standards.

When Is It Time to Consider Outsourcing Your Finance and Accounting Team?

It’s best to take a proactive approach to outsourcing to ensure you have time to ramp up. We recommend setting a benchmark for when you’d like to start considering outsourcing partners, and look for vendors that will grow with you.

However, if you don’t already have a plan in place, there are still telltale signs you can use to guide your outsourcing decisions. If you’re experiencing any of these challenges, it may be time to outsource:

• Team Overwhelm — Does your team struggle to handle daily operations while managing larger issues? 
• Late Payments — Do you frequently make late payments or fail to collect revenue from clients?
• Inaccuracies or Inconsistencies — Do you frequently have to correct financial statements or find inconsistencies in reporting?

Is Finance and Accounting Outsourcing Right for You?

At SupportNinja, we know that finances are the backbone of all businesses, and a strong team behind these processes is imperative to success.

With our commitment to providing value-centric, quality business process outsourcing, our team of skilled finance and accounting professionals can help you and your team confidently manage the financial health of your business. 

Learn more about our finance and accounting outsourcing services.