In recent years, a growing number of companies have realized the benefits of outsourcing their back office functions. This shift has only been escalated by the COVID-19 pandemic and the remote working model it has imposed: Deloitte’s 2020 Global Outsourcing Survey confirmed that the pandemic has eliminated the idea that physical proximity is required for a business to run effectively. Outsourcing helps businesses of all sizes by giving them access to expert-level talent and allowing them to focus on their core business activities.
One of the most commonly outsourced business functions is accounting and bookkeeping. A recent study from Clutch showed that over 37% of small businesses in North America outsource accounting tasks, enabling them to reduce costs and streamline their business processes. From payroll to bookkeeping to financial reporting, outsourcing your accounting functions can help you avoid costly mistakes and free up time that can be spent prioritizing your company’s growth.
If your business’ growth is being held back by messy books and low-quality financial reporting, outsourced bookkeeping services can make your life a whole lot easier. But how do you choose the best outsourced accounting provider for your business? Here are four questions that can guide your search for the perfect outsourced accounting service.
Do They Offer a Wide Variety of Services?
Companies are dynamic and always evolving: while one day you may only be looking for accurate bookkeeping, the next day you may need more robust financial reporting and analysis. An outsourcing firm should offer a wide variety of services that can solve all your financial needs.
Some of the basic, critical capabilities to look for are:
- Accounts Payable and Accounts Receivable
- Payroll Services
- Month-End Close and Reconciliations
- Financial Statement Preparation
- Robust Financial Analysis
Beyond these basic service offerings, you should find a firm that includes more advanced services, such as:
- KPIs and Strategy Planning
- Forecasting and Budgeting
- Executive Insights
- Real-Time Operating Dashboards
Are They Powered By Best-in-Class Technology?
Advances in technology have transformed accountants’ ability to interpret and analyze financial data in real-time. Today, it is critical that your outsourced accounting solution is built on the latest technology. These tools empower accounting professionals to do their jobs more efficiently and accurately.
Your provider should embrace the digital transformation of the industry, and have cloud-based systems that foster powerful security, organization, and real-time updates across your business. Outsourcing gives your company access to these state-of-the-art systems - without the expensive bill.
Artificial Intelligence (AI) integration is also critical to giving your business a competitive edge. A survey from Thomson Reuters found that 78% of finance professionals predict that bookkeeping will become fully automated in the next ten years, and 74% predict the same for data collection. AI is the new reality, so your outsourced provider should be embracing automation to enhance productivity and decision-making.
In addition to utilizing world-class technology, your outsourced solution must seamlessly integrate with your existing tools and systems. Their system should be designed to provide expert insights to anyone in your company, regardless of the accounting knowledge they already possess.
Do They Have a Proven Track Record In Your Industry?
When it comes to accounting and bookkeeping, each industry has its own unique needs and standards. Find an outsourced accounting provider that knows the ins and outs of your industry, and has worked with companies similar to yours.
Even within a given industry, accounting teams take on very different roles for small businesses as opposed to those at the large enterprise level: 87% of small business owners call their accountant a trusted advisor. Look for a service provider that has worked with companies in your industry that are similar in size to your business, so they are prepared to tackle the unique challenges you face. From your bookkeeping to your financial reporting to your dashboards, you should have tailor-made tools that incorporate industry-specific nuances and leverage new innovations.
Are Clients Their Top Priority?
Your outsourced accounting provider needs to be a true business partner on your company’s journey to success. Think about what partnership means to you and your team. At the end of the day, you need to find a firm you can trust: a team that not only provides stellar service, but has a track record of dedicated client commitment.
Check out client success stories to learn about the results that other clients have seen after working with a given firm. Look into their client retention rate to determine the satisfaction of their customers. Make sure the firm has a reputation for exceptional customer service, so you can be confident you’re receiving support you can rely on.
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When it comes to outsourcing your finance and accounting functions, your company has countless options to choose from. However, the key is finding a devoted business partner that will empower your company with best-in-class services built on cutting edge technology. Use these questions to guide your search for a firm that will seamlessly integrate with your business and meet your ever-changing financial needs.
Want to learn more about how finairo can help empower your business through accurate, timely, and insightful financial practices? Request a consultation today!
