Outsourced Accounting: Benefits, Services, and Getting Started

Running a successful business isn’t just about having a great product or securing funds; it also requires a solid strategy. With countless processes to manage, prioritising tasks and delegating responsibilities is essential for growth.

Accounting is one of those important processes, but managing it in-house can be both time-consuming and costly, requiring skilled professionals and expensive tools. This is where outsourced accounting offers a practical solution, and recently, it has also become a popular choice for businesses.

In this guide, we will cover everything about outsourced accounting, from its meaning to its advantages, the key services you can expect, and some tips on how to get started.

What is outsourced accounting?

Outsourced accounting means hiring a third-party provider to manage a company's accounting tasks instead of doing them in-house. This allows you to access a global talent pool and leave the complex maths to experts while you focus on more important, strategic activities.

Outsourcing is especially helpful for small and medium-sized businesses (SMEs), as they often don't have the resources to hire a full-time accounting team. Even larger companies use this method to support their existing accounting staff, particularly during periods of growth or when dealing with difficult financial situations.

Recently, there has also been an increasing shortage of skilled accountants, which is why many businesses are struggling to hire in-house staff. According to a recent survey conducted by Personiv, 90% of CFOs have started outsourcing some of their accounting work to maintain their business efficiency. 

Benefits of outsourced accounting

Businesses can get many strategic and operational benefits through outsourcing. But we’ll be discussing some of the key ones; here’s a closer look:

Cost savings

Keeping an in-house accounting team can be very costly. You have to cover salaries, benefits, office space, and technology, which quickly adds up.

Managing these costs can be tough for smaller businesses or startups with limited budgets. That's why outsourcing your accounting can be a smart choice – you only pay for the services you actually need.

Plus, you won’t have to spend extra or worry about training and software updates, as the external firm will have its own resources and technology in place.

Access to expertise

With outsourced accounting, you don’t have to rely solely on local talent. Instead, you can tap into a pool of top-tier accountants and experts from around the world who have a deep knowledge of accounting principles, tax regulations, and industry best practices. 

These professionals can help you stay compliant, maintain detailed records, and optimise your accounting strategies for better business results. 

Scalability

Every business has its good and bad times, and it’s important to adjust your processes and strategies to keep things running smoothly. As your business changes, your accounting needs might change, too.

If your business is growing, these firms can offer the extra support you need. On the other hand,

if your company is downsizing or experiencing slower periods, you can easily scale back the services without the complications of employee layoffs.

Improved efficiency and accuracy

Accounting processes take up a lot of time and require careful attention to detail when it comes to managing the data and numbers. Even the slightest mistakes, like misplacing a “0”, can lead to costly errors, penalties, or compliance issues. 

Outsourcing firms use advanced software and AI to automate these processes, reducing the risk of human errors. These firms also have strict internal controls and quality assurance measures in place to ensure that your data is handled with the utmost care and accuracy.

Key services provided by outsourced accounting firms

These firms typically offer a wide range of services that can be tailored to meet your specific requirements. Here, we’ll focus on some of the key services they provide:

Bookkeeping

Bookkeeping is a key part of any accounting system. Keeping a clear and accurate record of your finances helps you stay on top of your business’s cash flow.

Outsourcing your bookkeeping can make this easier. It can help you manage daily tasks like recording transactions, handling bills and payments, reconciling bank statements, and keeping your general ledger up to date.

Payroll management

According to a survey conducted by Delloite, around 73% of companies outsource some aspect of their payroll management, as managing payroll in-house can be very complicated, especially when dealing with different tax deductions and employee benefits. 

Outsourcing providers can take care of your payroll from start to finish, including managing deductions, tax withholdings, reporting requirements, and ensuring employees are paid accurately and on time.

With Native Teams’ Global Payroll Services, payroll management becomes much easier. Our platform brings salary calculations, payroll, expenses, taxes, and benefits all into one simple dashboard.

With a presence in over 70 countries, we ensure your payroll is compliant with local tax laws across all markets. So whether your employees are in one location or spread across multiple regions, you can rest assured that they’ll be paid on time, every time—while you focus on growing your business.

Tax preparation and planning

Staying compliant with tax laws and regulations is essential for running a business anywhere in the world. However, with rules constantly changing, it can be hard to keep up—especially if you don’t have the right expertise.

That’s why many businesses outsource their tax preparation and planning. External providers can help you stay compliant while finding deductions, credits, and incentives that may be overlooked.

You can also explore services like Native Teams' Tax Allowance support. Designed for businesses and freelancers, it provides guidance on tax allowances and deductions across different countries. Simply select your desired country on our platform to access detailed information about the tax allowances available to you. We make it easy to stay compliant while maximising your tax benefits.

Financial reporting

In business, making decisions without the right information can lead to mistakes. That’s why detailed financial reporting is so important—it gives you the insights you need to make smarter choices.

Outsourced accounting firms can help you get these reports, which include balance sheets, income statements, and cash flow statements. These reports provide insights into your company’s financial performance, helping you identify areas for improvement and optimising strategies.

How to get started with outsourced accounting

Many firms provide different types of accounting solutions. If you are considering outsourcing your workload to such firms, you should first analyse and consider some important aspects. Below mentioned are some of them: 

Assess your needs

Take a look at how your business currently handles accounting and pinpoint where you might need extra support. This could include tasks like bookkeeping, managing invoices and payments, tax planning, financial reporting, or payroll. Making a list of these needs will make it easier to find the right provider for your business.

Research and select providers

Before choosing a provider, it’s important to do some research to make sure they’re the right fit. Look for firms with experience in your industry and good customer reviews. Schedule demo calls with a few options, compare their pros and cons, and pick the one that works best for your business.

Set clear expectations

Once you’ve chosen an outsourcing provider, it’s important to set clear expectations right from the start. Outline the tasks they’ll handle, the results you’re looking for, deadlines for deliverables, and how you’ll communicate.

It’s also a good idea to schedule regular check-ins to review their performance and discuss any questions or concerns.

Common myths about outsourced accounting

Despite its many benefits, some business owners are still hesitant to outsource their work due to negative myths. Let’s address two of the most prevalent ones:

Myth 1: Outsourcing means losing control

Many business owners worry that outsourcing their accounting means giving up control of their finances to an external entity.

But that's not the case. On the contrary, using this method can actually give business owners access to real-time data and expert insights, helping them make better decisions.

You still have full control over key financial decisions, but you also benefit from the expertise of outsourced professionals.

Myth 2: It’s only for large companies

Another common misconception is that outsourcing is only for large companies. But in reality, businesses of all sizes—whether small, medium, or large—can benefit from it.

Small and medium-sized businesses, in particular, can gain the most. These businesses may not have the resources to hire a full-time in-house accounting team, so outsourcing allows them to access expert help without the high costs.

Conclusion

Like it or not, there’s no denying that times are changing, and so are business practices. Sticking to old, slow methods may no longer be effective, as you could unknowingly be compromising both your efficiency and resources by handling accounting tasks in-house.

Outsourcing your accounting needs can be a good alternative as it offers many benefits and can help you onboard global talent. So whether you're a small business looking to hire experts in a budget or a growing company in need of more end-to-end accounting services, you should definitely consider outsourcing to achieve your business goals.

How can Native Teams help you out

By entrusting your work to a professional provider like Native Teams, you can free up your time and resources to focus on more important tasks. We offer a wide range of services that you can benefit from; here are some of our features:

• Manage payroll, taxes, benefits, and deductions across 70+ countries
• Ensure your team is paid correctly and on time every time
• Stay fully compliant with local tax laws and mandatory contributions
• Process salaries and expenses easily through one simple dashboard

Let Native Teams handle the complexities of payroll so you can concentrate on what matters the most, i.e., growing your business!