How to Select the Best Outsourced Accounting Services

Outsourcing finance and accounting services takes repetitive tasks off your hands and opens improvement opportunities for your accounting team. But with tons of outsourcing companies to choose from, how do you choose the best outsourced accounting service provider? 

Related: Outsourcing for CFOs: What You Should Look for in Your Partner Firm  

Why Outsource? 

Outsourcing transforms the way we operate and handle our financial data. Even with less face-to-face interaction, having an offshore team gives you bigger chances of optimizing your productivity without the trouble of hiring more talents onboard and worrying about the overhead costs associated with it.  

How to Choose the Right Accounting Outsourcing Partner?

Looking for an accounting outsourcing company can be challenging, but once you select the right provider, everything else follows. But how do you make that decision? Here are some guidelines to follow: 

Know Your Options 

Outsourced accounting and bookkeeping services provide you with a more flexible working approach. To make sure that you get the most out of your outsourcing engagement, conduct thorough research about the accounting outsourcing companies that you can work with. Get to know their client portfolio, and if they have worked for companies in the same industry as yours.  

Find out if their finance and accounting (F&A) expertise can fit your business needs. Learn their workflow, their everyday operations, or how they keep up with the disruptions and innovations in the industry.  

Read: The Importance of a Reliable Back-Office Accounting Support 

Learn their Integrations 

As technology disrupts the F&A industry, you must find an accounting outsourcing company that uses top-of-the-line accounting software and offers automated solutions for your basic bookkeeping tasks.  

Choose a team that knows how to navigate cloud-based programs such as Xero, QuickBooks, FreshBooks and others. If you have your own accounting software, it would be an advantage if you can train your people to use it to streamline your financial reporting and other accounting tasks. 

Aside from these cloud accounting programs, ask your team about third-party applications they use. Know what third-party applications best complement their accounting tasks and help them achieve optimum productivity.  

Guarantee their Compliance 

Another thing to look for in an accounting partner is their agility in keeping up with the changes that innovation brings to the table. Accounting giants are always on the lookout for technological transformation to maintain their A-game. Being updated with the latest trends sets you higher against your competitors and gives you a credible reputation as an F&A outsourcing partner.  

Keeping your business compliant is also important. Make sure your team knows the basic tax compliance you and your clients use. If regulations and accounting rules ever change, your outsourced accounting partner should be flexible enough to cope and implement the necessary changes in your system accordingly.  

Outsourced accounting solutions efficiently caters to your need for an extended team to handle your finances, improve your cash flow, and contribute to growing your business. It also brings progress aside from giving you a helping hand in your everyday operations. 

Assess their Communication and Support 

Effective communication and reliable support are essential to any successful partnership. Hence, you should do your due diligence and evaluate their customer support structure—are they available when you need them? Do they offer personalized advice, or are they more transactional? 

A good accounting partner will take the time to understand your business and offer insights tailored to your specific needs. Doing this will help you assess if they align and match with your expectations and needs. 

Evaluate Their Cost and Value 

Finally, consider the cost of their services relative to the value they provide. Yes, cost is always a factor, but it shouldn’t be the sole determinant in choosing an accounting partner.  

Instead, focus on the value they bring to your business. A cheaper firm might save you money upfront, but if they lack expertise or fail to provide strategic insights, the long-term costs could outweigh the savings.  

Remember, the cheapest option is not always the best; prioritize value and efficiency over low cost. 

Read Next: How Offshore Accounting Helps You Become Globally Competitive 

In Need of a Reliable Accounting Outsourcing Partner? 

Consider D&V Philippines. With our outsourced finance and accounting services, you can stay on top of your core accounting operations while enjoying the benefits of outsourcing. 

You may talk directly with our expert today and let us lend you a helping hand to your task. You can also visit the D&V Philippines website to learn more about our CFO support services or download our Premium CFO Solutions whitepaper to discover how we can assist you in establishing a strong financial position for your business. 

This post was first published 17 December 2019 and edited 02 September 2024. Edited by: Angelica Garcia