Outsourced Accounting: How to Get Started with An Outsourced Accountant

Outsourced Accounting: How to Get Started with An Outsourced Accountant

What do you do when your business is growing, and you need to hire an accountant? It’s a tough decision, but the best option may be to hire an outsourced accountant.As your company grows, so does the complexity of your accounting needs. Outsourcing can help alleviate of that stress by giving you time to focus on what matters most-running your business. 

The benefits of outsourcing go beyond just saving time; they include reduced risk for things like fraud or errors in calculation and lower costs associated with records management and retention. Here are a few tips that you should know before you get started with outsourcing your accounting services from a team of virtual accountants.

Be Clear about the Accounting Tasks You Want to Outsource

The process of finding the right outsourcing team is complicated if you are not clear about what needs to be done. Instead, look for specialists who can offer assistance in areas where their expertise will benefit your business most. For instance, one remote accountant may only offer help with tax preparation and filing, while another outsourced accounting company might specialize in payroll and financial reports.

For more business owners, outsourced accounting often includes some of the time-consuming tasks that are difficult to manage:

  • Payroll
  • Bookkeeping
  • Accounts Payable/Receivable
  • Tax Preparation and Filing
  • Financial Reports

As you are preparing this list, it is helpful to have information about your company’s financial transactions and needs. The outsourced accounting team will likely ask for details regarding monthly revenue and any unique or proprietary accounts.

Providing these formalities upfront saves time down the line during meetings and can help you see if the outsourcing team can support your business needs.

Find an Outsourcing Team with Experience

It is important to find a team of experienced accountants that have the knowledge and resources you need. This will reduce your risk when it comes time for launching or expanding your business, giving yourself all possible advantages over the competition. Experience will also help you avoid many issues because of the lack of expertise and subpar workflow.

The simplest way would be finding an outsourced accounting service with many years in this industry – they can handle everything from bookkeeping up through tax filings.

One thing to consider when hiring an accounting team is the size of your company and the experience the remote team has with similar types of businesses. For example, if you are a small business owner or start-up organization, then make sure their outsourced accountants helped others in similar companies before. This hands-on approach will help avoid common problems that other business owners face.  

Consider the Costs

One reason small business owners don’t opt for outsourcing their hiring an outsource accounting partner is that they are worried about the associated costs. However, the truth is that outsourcing is usually more affordable than hiring a full-time employee. With a remote accountant, you only have to pay for the time used rather than support an in-house employee’s entire paycheck and benefits.

More important than this is considering the opportunity costs of forgoing these services. If you are currently managing your own tax filing with little to no accounting knowledge, you are likely missing out on important write-offs. It is better to let a team of professionals handle the details so that you have an optimal outcome for your tax filing rather than wasting thousands of dollars in tax expenses over the years.

Schedule an Interview to Learn More

Almost all outsourced accountants offer a complimentary consultation so that you can learn more about the available services. The best approach to use is to narrow down your search to the top two or three firms and then schedule appointments to talk to each team so that you can learn more about these companies.

This conversation will give insight into the customer service that you can expect. It is also an opportunity for you to ask questions to ensure that the services fit your business.

Maintain Regular Communication

Now that you have selected an outsourced accounting firm and have onboarded them to start helping you with your business, it might be tempting to let them handle all the financial details. However, it’s important to stay informed about the financial trends in your company. Regular meetings are important so that you can stay current with cash flow, anticipated sales, profits, and more. Your remote accounting team will handle the mundane busy work and then provide the needed reports so that you are always up-to-date about your company’s health.

It is common for financial questions to come up throughout the year. Your outsourced accounting team can be a valuable resource so that you can get professional advice about your company. Instead of waiting to talk to your accountant when tax season rolls around, consider the benefits of maintaining communication throughout the year.

Conclusion

The decision to outsource your accounting tasks can be a complicated one. It’s important that you know what you want, need, and can afford before trying to find the right remote firm. We recommend starting by setting clear expectations with the team who will be doing your work so they know exactly what is expected of them or if there are any specific processes they should follow.

We at Accountroots have experience in all aspects of accounting, including bookkeeping, payroll management, accounting cleanups, year-end accounts, and more. If this sounds like something that could benefit your company’s bottom line or free up some valuable time for you personally, contact us today! 

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