Accounting outsourcing can leave you with one of these three impressions: either you love it, hate it, or feel unimpressed with the results you’re getting.
If you feel like trying it anyway due to its alluring promise of cost-savings and its ability to resolve your firm’s capacity issues, then you better do it right.
In this article, we documented the common steps that go along the entire accounting outsourcing process based on our actual industry experiences and observations.
You can also find a list of outsourcing fundamentals in the second part of the article that you can use as a guide for assessing different outsourcing vendors.
The process of outsourcing accounting services starts with a decision you make internally. You see a problem, try to solve it with your existing resources, and realize that it’s just not enough. Doing everything yourself might even feel counterproductive.
This is the pattern we observed time and again whenever business executives reached out to us.
At some point in running their firm, they reach their maximum capacity. Bringing in new people can indeed increase their bandwidth, but such a process can be inefficient. Not only will they need to handle the entire process themselves, but they must also deal with the rising costs of recruitment and challenges of finding qualified professionals.
So they tried outsourcing. You can read their stories here.
Many of those business leaders have been our clients for several years. However, this kind of working relationship wasn’t built overnight. Before partnering with us, they first went through careful internal deliberations.
Here’s what normally goes at the start of the outsourcing process.
Take your company under detailed observation to find out what you need to look for in an outsourcing partner. Evaluate your internal and external capabilities and performance. Know what processes you have in place.
Is there something you can work on with outside help? How much support do you need for this particular aspect of the business?
When it comes to accounting outsourcing, it's crucial to identify which accounting processes can be handed over to a service provider and which ones should be retained in-house.
For instance, common accounting tasks that are often outsourced include payroll processing, accounts payable and receivable, tax preparation, and financial reporting.
On the other hand, strategic financial planning and other similar functions might be better retained within your in-house team to maintain control and confidentiality.
After careful scrutiny, you can decide which outsourcing process model gives you an edge in raising your team’s performance.
When you outsource your functions to a third-party service provider, you must be ready to make some financial investment.
Assess if your business can handle the expense of the engagement and the amount you can allocate for this initiative. Doing so can help you filter service providers based on the cost of their services. At the same time, knowing your budget lets you communicate with your shortlisted providers if you prefer to start with a full-time, part-time, or hourly engagement.
Find an offshoring partner that offers maximum value for your money and provides the best experience for your operations. To get value for your money, we recommend finding a service provider that specialises in the function you're planning to outsource.
For example, outsourcing to a BPO company with a core focus and specialisation in finance and accounting (F&A) can be a better idea since it gives you the confidence that you'll be working with professional accountants who are knowledgeable about different accounting concepts, principles, and regulations.
A company’s website can tell you a lot about the services they offer and how they position themselves in the market. However, the information you see there usually comes from the provider’s own perspective.
To get a more balanced view, it helps to read client reviews and testimonials on third-party platforms such as online forums, search engines, or social media channels. These sources often give you a better idea of the provider’s actual service quality.
As an accounting outsourcing provider ourselves, we can personally attest to the effectiveness of referrals. A huge percentage of clientele came from our existing clients who were satisfied with our services. So far, many of these referrals have also become our long-term clients. It's a trend we always feel proud of.
When someone from your network outsources some of their business functions, even if it’s not accounting, it’s best to speak with them about their experience. This will give you helpful information about what you should expect, the outsourcing vendors you can potentially work with, how much it costs them, and how well they work with their outsourced team.
After choosing the right outsourcing partner for your business, see to it to sign a contract. This will be the binding document that holds pertinent information about the partnership.
The contract should contain the following:
This will depend on your requirements. You can either have Full-time Employees (FTE) who have fixed dedicated hours in a week or fixed hourly rates. The more employees you dedicate to your outsourced team, the higher the cost. This factor will tell you how much you’re going to spend on the engagement.
The contract should clarify which responsibility belongs to whom. Make sure all agreed-upon services are distinctly laid down to make sense of priority. This way, you can avoid misunderstandings pertaining to the workload.
An important part of the outsourcing implementation process is the turnover of your documents to your contracted team.
To get things done, your partner should have access to your old files to assess their workload. They can start organising these files and upload it in a shared system where both parties can see real-time updates and convenient access when you need to see these documents.
Manage your team by providing training and webinars. Build a comprehensive training program to make sure that your contracted staff has fully grasped the intricacies of the assigned job. This works best especially if they use a different software or work in a different approach. Some even bring their team members on-site to fast-track this process.
After onboarding, consistent communication is a must. The accounting outsourcing process will sail smoothly if you do regular check-ins with your team.
Aside from assigning a key contact in your in-house and offshore staff, holding meetings once a month can help you track the progress of your project and inform them about what needs to be prioritised. Let them know what you expect so they can better prepare for anything that comes their way. In addition, communicating with them regularly can help make sense of normalcy and camaraderie among the group.
Let your team know how they’re doing. Feedback helps them see whether they’re meeting your expectations or if there are areas that still need improvement.
When people understand how their work is being evaluated, they can adjust their approach and focus on the tasks that matter most. Regular feedback also prevents small issues from being overlooked and allows your team to correct them before they become larger problems.
Some outsourcing engagement lasts for years, while others don’t. It’s perfectly normal. It may be because you no longer need an external team, or because your business has simply outgrown your outsourcing vendor.
Whatever the reason, it’s important to end the engagement on a professional note.
Once you’ve decided to end the engagement, inform your outsourcing partner ahead of time. Most service agreements include a notice period, which gives both parties enough time to prepare for the transition.
Clear communication also helps prevent confusion within the team. Let your outsourced staff know when the engagement will end and what steps need to be completed before the final working day.
Before the engagement officially concludes, make sure all files, reports, and supporting documents are properly transferred back to your company.
This includes financial records, working files, and other materials that were created or maintained during the engagement. Having these documents organised and accessible will help your internal team continue the work without interruptions.
Some companies also schedule a short transition period so that their outsourced team can assist with the handover process.
It’s also good practice to settle any remaining obligations before ending the engagement. This may include final payments, completion of pending deliverables, or confirmation that all agreed tasks have been properly handed over.
Taking care of these details helps both parties close the engagement smoothly.
Once the engagement has concluded, take some time to review how the partnership worked.
What aspects of the outsourcing arrangement helped your operations? Were there areas where the process could have been improved?
Looking back at the experience can provide useful insights, especially if you plan to outsource again in the future.
Even if the engagement has ended, maintaining a good relationship with your former outsourcing partner can still be beneficial. Business needs change over time, and there may be opportunities to work together again down the line.
Before entering an outsourcing engagement, it helps to understand the basic principles that keep the working relationship stable.
From our experience working with clients over the years, we’ve seen that strong outsourcing relationships usually follow a few fundamentals.
Before working with any outsourcing provider, it’s important to know who you’re dealing with.
Many business leaders begin by reviewing the company’s background. They check how long the provider has been operating, the industries they serve, and the kind of services they usually handle. Some also look at client testimonials or request references from existing clients.
This process helps you understand how the company actually operates, not just what is written on their website.
You can also ask questions during your initial discussions. How do they train their accountants? What kind of clients do they usually work with? How do they manage communication with offshore teams?
These conversations can tell you a lot about how the partnership might work in practice.
Outsourcing engagements should always be supported by proper legal documentation.
The main contract usually outlines the services you agreed upon, the payment terms, and the responsibilities of each party. In many cases, companies also prepare non-disclosure agreements and data protection agreements to safeguard confidential information.
These documents may seem routine, but they play an important role in setting expectations for both sides.
If questions or disagreements arise later in the engagement, the contract becomes the reference point that both parties can rely on.
Technical skills are important, but they are not the only factor that affects an outsourcing partnership.
Your offshore team will be working closely with your internal staff. Because of this, it helps when both sides share similar work habits and professional expectations.
For example, some teams prefer frequent check-ins and detailed updates, while others are more comfortable working independently with occasional feedback. Understanding these preferences early can make collaboration easier.
Cultural alignment does not mean everyone must work in exactly the same way. What matters is that both teams can adjust and cooperate when needed.
Communication is one of the most important parts of the outsourcing process.
Since your outsourced team may be located in a different country or time zone, both sides must establish a clear way of exchanging updates and feedback. Many companies rely on regular meetings, shared communication channels, and simple reporting routines to stay aligned.
Some clients schedule weekly check-ins, while others prefer monthly progress meetings depending on the scope of the work.
What matters most is consistency. When communication is steady, both sides can address small concerns before they become larger problems.
As the engagement progresses, it becomes important to keep the partnership organised.
This is where outsourcing governance comes in. In simple terms, it refers to the system used to manage responsibilities, monitor performance, and review the progress of the outsourced work.
Many companies assign a key contact person from both the in-house team and the offshore team. These individuals coordinate tasks, relay updates, and make sure concerns are addressed promptly.
Having this structure in place helps keep the engagement running smoothly, especially when multiple staff members are involved.
Accounting work naturally involves handling sensitive financial information.
Because of this, companies usually want to understand how their outsourcing partner protects client data. This may include secure file-sharing systems, restricted system access, and internal confidentiality policies followed by the staff.
Many outsourcing providers also conduct regular training to make sure their employees follow proper data protection practices.
When both sides take data security seriously, it becomes easier to maintain trust throughout the engagement.
When these fundamentals are in place, outsourcing partnerships tend to run more smoothly and deliver better results for both sides.
Outsourcing can be a practical way to support your firm’s growth, but like any business decision, the outcome depends on how well you handle the process.
When the partnership is built on clear expectations and consistent communication, outsourcing can become a reliable extension of your internal team.
If you’re exploring outsourcing and want to see whether this approach could work for your organisation, feel free to get in touch with our team of experts. We’d be happy to discuss your needs and help you determine if we’re the right fit for your business.
You can also download a free copy of our outsourcing due diligence e-book, Outsource with Caution: An Outsourcing Diligence Handbook, to get additional guidance for evaluating potential outsourcing partners.
This article was first published on 24 March 2021 and has been updated ever since for relevancy and comprehensiveness.
Edited and updated by: Mary Milorrie Campos
Last edited on: 24 March 2026