Accounting & Finance

6 Signs That It’s Time to Outsource Your Accounting

Learn when it’s time to outsource your small business accounting.

  • 4 min Read
  • November 17, 2023

Author

Escalon

Table of Contents

Staying ahead of the curve is crucial for the long-term success of any business. One of the most effective strategies for achieving this can be outsourcing accounting needs. Any redistribution of services has proven to be a game-changer for small businesses seeking to reach their full potential.

But how do you know it’s the right time to delegate your accounting and finance tasks to an external company? Considering budgetary concerns or hyper-specific requirements, an external agency will tailor their services to your company’s unique needs.   

Schedule a call today

Here are six key indicators that it may be time to externalize your accounting responsibilities.

1. Lack of resources


Recruiting, training, and retaining skilled accounting staff demand significant financial investment, time, and human resources. If your business needs these resources, outsourcing may be the solution. Entrusting your accounting to an outsourced team provides access to top-tier professionals, saving both money and the responsibility of managing in-house staff. 

2. Process is hampering business operations


Suppose accounting begins to take time away from the functioning of your business. In that case, it’s time to consider hiring an external agency. The more time you spend on handling accounting, the less time you spend on your core business activities. Outsourcing your bookkeeping and accounting function can give you more time, energy, and, importantly, a deep bench of experts when it comes to crunching numbers and maintaining your books.

3. Missing deadlines


Consider outsourcing accounting if you are constantly missing your monthly deadline. It also works when you need to catch up on reports or meet your bank’s or other lenders’ reporting requirements.  

Talk to us about how Escalon’s essential business services can help you optimize your accounting systems and processes.


It gives you access to seasoned professionals well-versed in accounting best practices, regulations, and the latest financial technologies, ensuring accuracy and compliance in your financial records.

4. Skill sets don’t match needs


If your accounting team’s skills need to be updated, it’s time to look outside the organization. Hiring a service that can better return on capital and boost accounting efficiency is the need of the hour. After all, remaining relevant in a dynamic environment is an unmistakable advantage.

5. Makes sense strategically


It doesn’t just have to be a budget constraint or resource shortage; sometimes, outsourcing accounting is strategic. The outsourced accounting firm often has seasoned professionals and internal resources that would take a company years to build up. By tapping into this external expertise, businesses can enhance efficiency and focus on core operations, driving overall success.

6. Business growth


As your business expands, your accounting becomes even more critical, and your finances become more complicated. Outsourced accounting teams ensure your books are accurate and up to date. Besides, they identify revenue-boosting and cost-cutting opportunities; they can help you devise a financial strategy to achieve your business goals.

The final word


Venturing into outsourced accounting can elevate your experience, offering tremendous success and growth opportunities. By recognizing the signs outlined above, you might discover that outsourcing your finance operations could be a new business opportunity that you need to take.

Schedule a call today

Want to know more about startups and what it takes to get started? Since 2006, Escalon has helped thousands of startups get off the ground with our back-office solutions for accounting, bookkeeping, taxes, HR, payroll, insurance, and recruiting — and we can help yours, too. Talk to an expert today. 

This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

uncategorized

How to Reduce Overhead Costs Without Impacting Productivity 

Overhead costs—from utilities and rent to administrative staffing—can quietly swell until they erode profit margins and slow your ability to...

Read More
Accounting & Finance

How to Structure Your Finance Team as Your Business Scales

Growth triggers a tidal wave of financial complexity, multi-entity operations, new product lines, overseas expansion, or investor relations. If your...

Read More
Accounting & Finance

M&A Readiness: How to Prepare Your Financials for a Successful Acquisition or Sale 

Mergers and acquisitions (M&A) can dramatically alter a company’s trajectory—unlocking new markets, technologies, or customer bases. Yet, many deals stumble...

Read More
Accounting & Finance

Optimizing Working Capital: Strategies to Maximize Liquidity Without Raising Funds 

Working capital: The difference between your current assets and your current liabilities. It’s a key barometer of financial health.  While...

Read More
Accounting & Finance

Outsourcing vs. In-House: A Strategic Guide for Growing Companies

Expanding your team and capabilities is critical to sustaining growth—but the question often arises: Should you build an in-house department...

Read More
Accounting & Finance

The CFO’s Role in Driving Operational Efficiency in a Mid-Sized Company 

A Chief Financial Officer (CFO) isn’t just a numbers person anymore. Modern CFOs play a pivotal role in shaping strategy,...

Read More
Technology & Security

What Every $10M+ Business Should Know About Data Privacy Laws 

Once your annual revenue surpasses $10 million, you attract more attention from regulators, partners, and customers, especially regarding data privacy....

Read More
People Management & HR

The Cost of a Bad Hire: How to Improve Your Recruiting Process

Hiring is one of the most pivotal processes in any organization, particularly for a medium-sized business looking to scale. Yet...

Read More
People Management & HR

Key Insights from the 2025 CBIZ Not-for-Profit Pulse Survey 

At Escalon, we are committed to keeping our clients informed about the latest trends, challenges, and opportunities across the industries...

Read More