Outsourcing your accounting operations is a smart business move. It provides you with access to talents without spending as much as hiring an in-house accountant. But when is the best time to outsource accounting?
Before we proceed, let’s have a short review of accounting outsourcing.
Accounting outsourcing is the process of hiring a specialized company to handle your entire or a portion of your accounting operations. While it’s known as a cost-cutting tool, it delivers more benefits than it’s popularly known for. You can use it as a strategy to close the talent gap in your organization. At the same time, it allows you to shift your time and energy from crunching numbers to strategic business decision-making.
The next section enumerates the common signs of when to outsource accounting.
It’s time to outsource your accounting when:
Successful organizations focus on the big picture rather than the minute details of day-to-day operations. Doing so enables them to be “clear, decisive, and disciplined at the macro level,” an article from the Harvard Business Review stated.
And you should, too.
As a leader, it is essential to let go of tasks that slow you down from developing strategic plans. This includes your accounting operations. Instead of spending time and resources crunching your numbers, you will get more long-term benefits if you outsource them to accountants.
Why? Aside from their knowledge, good accountants are also well-organized and detail oriented. They can assure you of reporting accurate financial information so you can make the best investment and business decisions.
Overall, it’s a good tandem — you can focus on the big picture while the accountant takes care of the details.
Even if you have the best intentions in place, your growing responsibilities can weigh you down and prevent you from organizing your records. When your financial records become disorganized and outdated, you may face dire consequences like:
Outsourcing your accounting resolves these concerns. A bookkeeper or accountant keeps your books accurate through regular data entry and reconciliations. When you have organized records, you’ll have an easier time assessing your financial standing, filing tax returns, and applying for loans and grants.
If you're running a professional services firm, your time—and your team's time—should be spent on client work, not buried in administrative tasks. When your staff is tied up with too much back end work, it can inefficiencies which can cause added pressure on your staff.
Hence, if you want to accelerate growth within your organization, you need to be willing to delegate tasks or outsource services to the appropriate people. Running a firm may be a juggling act, but you need to choose what you can only juggle.
Another sign that you should outsource your accounting is when your in-house accountants can’t handle their duties anymore, especially when your firm is experiencing faster growth or you’re going through your peak seasons.
Rather than hiring additional in-house employees and worrying about the overhead costs later, it is better to outsource scalable back-office accounting support instead.
Outsourcing is cost effective and flexible. You can choose how long you need the service — short-term or long-term and part-time or full-time
It is also scalable. This means you can start with a single outsourced staff, then you can build a team as your client base grows. On the other hand, when business is slow, you can work with your outsourcing partner to adjust the number of your employees, including the time they render at work.
The war for talent intensifies due to the massive resignations in the U.S. Employees are leaving their current jobs in search of better work opportunities. Meanwhile, employers are looking for new talents with digital-ready skills, especially in accounting and finance.
However, even with rising demand for specialized roles, the talent shortage continues to grow because there are fewer qualified candidates in the talent pool.
That’s why more companies are starting to look at outsourcing as a way to bridge the gap and keep their operations moving.
If you’re wondering what tasks you can outsource, here are some common accounting tasks that many firms choose to hand over to a trusted team of professionals:
Like any accounting outsourcing company, bookkeeping is something that every firm offers if you need a pair of hands to help your clients consistently organize their day-to-day transactions.
Here are the key responsibilities they usually do:
Another thing to consider is that whenever you outsource your financial reporting, it gives you an edge as you will work with a list of professionals who know how to properly prepare financial statements that comply with local and international standards.
Below are some of the things they can help you with:
This allows you to make calculated decisions as it is backed by reliable data that you to have a better overview on your financial information
During tax season, organizations often scramble to collect documents and organize their books. In most cases, clients only submit their files when the deadline is near. Such instances result in a compressed time to prepare and file tax statements, which can then leave your team working for extended hours.
An outsourced accounting team gives your in-house accountant the support they need during busy seasons. Through it, you can streamline your tax preparation processes and handle more workload than you’re used to. Below are some of the things it can help you with:
With their support and specialized expertise, you can reduce your risk of errors and avoid missing deadlines, making your firm a reliable partner for your clients.
Managing the company finances going in and out of your organization is crucial for maintaining cash flow. Good thing, outsourcing AP and AR tasks allows your organization to be timely and accurate in making payments.
Below are some of the things that can be done by these professionals:
Having the freedom to offload these back-end responsibilities will allow your firm to focus on higher-level client-facing services and help you improve the quality of your service delivery.
To tell you realistically, there’s no “right” partner and not all firms are created equal. However, there is a partner that can meet your business goals, working style, and accounting needs. The key is knowing what to look for and what questions to ask before you commit and sign any legally binding agreement.
Here are some practical ways to narrow down your options:
Sure, affordability is one of the main reasons companies outsource. But if you're only choosing a provider because of their price, you might end up spending more in the long run.
Look for value, not just lower costs. Ask:
Note: A good outsourcing partner doesn’t just do the job — they help you grow every step of the way.
Accounting rules may be universal, but each industry has its own quirks. Whether you're in retail, healthcare, consulting, or tech, find a provider that:
Note: Doing this saves you a lot of time and avoids the learning curve most general providers will go through.
Don’t just rely on the company’s name but rather ask who will actually be working on your books. Don’t hesitate to inquire:
Note: Usually, the strength of their service depends on the people behind it.
4. Observe How They Communicate
Here’s another truth: clear communication can make or break an outsourcing partnership. Before signing a deal, observe how they:
Note: You’re looking for someone who can speak your language and understand what they're saying—without another corporate jargon—especially when explaining your financials.
Make sure your ideal partner is already familiar with cloud accounting platforms like Xero, QuickBooks Online, or NetSuite. You can ask them:
Note: The more tech-savvy they are, the more likely they can help you streamline your processes and improve accuracy. A forward-thinking partner will also guide you through tech transitions and recommend automation tools that can save your team time.
Lastly, you don’t have to go all in. You may begin with a small project — say, bookkeeping or monthly reporting. Once you see how well they work, you can explore bigger engagements, like full-service accounting or FP&A support.
Note: A good partner will be flexible enough to scale their services as your organization grows. They should be open to feedback, responsive to your needs, and proactive in offering solutions that make sense for your changing operation needs.
So, you’ve done your research, weighed your options, and finally decided to outsource your accounting function. Now, let's talk about one often overlooked part of the outsourcing journey, the onboarding process.
Here’s a closer look at what typically happens during the onboarding period of your accounting outsourcing engagement:
The process often kicks off with a welcome message from key leaders, such as a senior executive or a client success representative. This sets the tone for the partnership and outlines what the client can expect in the coming weeks.
A dedicated onboarding coordinator or client experience representative is usually assigned to walk the client through the setup process. This person acts as the main point of contact and helps align expectations, schedules, and deliverables.
Matching the right professional to a client’s needs takes time. General roles are often quicker to fill, as there’s a broader talent pool, and the required skills are more common. On the other hand, niche or specialized roles can take longer to match because they require more specific expertise, experience, or certifications, which are harder to find.
Workflow integration and training are vital steps of the onboarding process. During this stage, the new team member is introduced to the client’s tools, processes, and expectations to set the foundation right from the start of the partnership
If you’re in search of an outsourcing partner that understands the ins and outs of the accounting industry, it’s important to choose one that’s focused and experienced in the field.
D&V Philippines focuses on bringing the best accounting services to our clients. We only offer accounting-related services to strengthen our expertise in the industry.
To facilitate our employees' career growth and development, we offer regular in-house and external training and encourage them to take certifications in accounting software like Xero and QuickBooks.
This way, we can give you the confidence of entrusting your accounting operations to the experts.
If you want to know how you can succeed in outsourcing, you may download our whitepaper, Outsourcing: How to Make it Work. You can also contact us to learn about our services that fit your goals and budget.
This post was first published on 11 February 2022 and edited on 20 June 2025. Edited by: Angelica Garcia