Growing businesses often struggle to handle their accounting and bookkeeping needs in-house, leading to a recent boom in demand for outsourced accounting and bookkeeping. However, not all outsourced partners are created equal, and many businesses fall into the trap of choosing the wrong provider. Let’s walk through the most common mistakes you should avoid in your quest for a vendor.
Picking the Cheapest Option
When it comes to outsourcing, you get what you pay for. Many firms make the mistake of signing on with the cheapest outsourced accounting partner or hiring a single freelancer to handle all of their needs. After all, it seems like the more fiscally responsible way to go. Unfortunately, low price tags often come with low quality service, gaps in reporting, and poor reliability. When it comes to something as important to your business as your finances, you shouldn’t be compromising on quality to save a few bucks. The main goal should always be investing in quality talent and technology that provide you with the insight and analytics you need to grow.
Not Doing Enough Research
It may be tempting to hire the first outsourced accounting partner you come across. After all, accounting seems like a pretty cut-and-dry function. But there are many levels of service out there, from accountants that will simply close your books and send you a month-end report, to partners that are there to provide you with the insights and analytics you need to forecast and plan for growth. Do your research and interview multiple providers to see which one aligns with your needs and objectives.
Picking a Vendor, Not a Partner
The best outsourcing partners act as an extension of your team, providing you with expert guidance and advice, not just reports. If you already have an internal financial expert or team of experts, and you’re just looking for someone to handle the daily ins and outs, you may have all the strategic insight you need in-house. However, most organizations can benefit from a team of outsourced professionals that not only keep the books pristine but act as trusted advisors.
Forgetting About The Tech
It is critical that you choose an outsourcing partner who places a strong emphasis on technology and, more importantly, data visibility. Best-in-class outsourced providers will provide dashboards and other real-time reports that allow you to see the state-of-play anytime you wish, as opposed to having to wait until the end of the month or the end of the quarter. This real-time visibility allows you to make quicker, better business decisions. Furthermore, as accounting tools continue to grow both in volume and effectiveness, it can be overwhelming and expensive for businesses to create their own, world-class accounting tech stack. Your outsourced partner already has all of these tools and they’re baked into the price.
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Outsourcing something as important as your books can be intimidating, but you’re in good hands with finairo. Our team of highly skilled professionals provides clients with the financial expertise, sophistication, and insights that are representative of best-in-class organizations. Request a consultation today to learn how finairo can empower your business.
