Accounting & Finance

A Beginner’s Guide: How to Choose the Best Outsourced Accounting Service Provider

Keep these points in mind when looking for your ideal financial partner.

  • 4 min Read
  • December 29, 2023

Author

Escalon

Table of Contents

Outsourcing your accounting and financial tasks to an external vendor can bring multiple benefits to your small business, including the following: 

  • Significant cost and time savings
  • Greater precision
  • Higher operational efficiency
  • Accurate reporting

But the big question is: How does one choose the right outsourced accounting agency to get these game-changing benefits? The key is to understand the capabilities of the outsourced partner and how they will be able to support your small business.

Schedule a call today

Here are six things to keep in mind when outsourcing your finance and accounting operations to an external agency:

1. Expertise and experience


Once you have shortlisted a few outsourced accounting firms, begin by carefully understanding the nature of their expertise and the exact skills they bring to the table. The idea is to choose an outsourced partner who understands the intricacies of your sector and can provide valuable insights. 

At the same time, look at their experience in your business niche and their reputation in the industry. An external agency with expertise in your sector may be familiar with the specific accounting regulations, reporting and compliance requirements, and the industry best practices you need.

2. Accreditation and certifications 


When selecting an outsourced accounting provider, it’s crucial to consider accreditation and certifications. Look for providers accredited by professional organizations like the Association of Chartered Certified Accountants (ACCA) or holding certifications such as Certified Public Accountants (CPA), Certified Bookkeeper, etc. These credentials indicate that the provider adheres to established standards of excellence and professionalism.

Talk to us about how Escalon’s essential business services can help you build resilient finance functions.

3. Track record


Check the external agency’s track record. Look for success stories from similar industries and examine testimonials, reviews, and case studies. Their track record will help you evaluate their performance and reliability and compare their services and pricing within the market, enabling you to make an informed decision.

4. Scalability and flexibility


As your small business grows, your accounting and finance needs may change. Therefore, choosing an outsourced service provider that can scale its services to address the evolving requirements of your small business is crucial. Be sure to enquire about their capacity to handle an increased workload or additional assistance when necessary.

Additionally, evaluate whether the external agency you’re considering is flexible and can customize solutions for your unique and complex needs. 

5. Data security


Outsourcing accounting and finance processes involves sharing sensitive financial information with an external vendor, so you must ensure that no breach or theft can occur that would put your data at risk. 

Look for outsourced firms with robust data security measures, including encryption, firewalls, and secure data centers. Additionally, ensure they follow best practices for data management and records disposal.

6. Transparency


Avoid outsourced agencies whose service-level agreements are unclear and charge hidden costs. Additionally, determine if the external firm will adequately utilize your allocated budget.

The final word


Like any business decision, finding the right outsourced accounting service provider is a strategic move that needs careful consideration and a well-thought-out approach. Use the above guidelines to navigate the finance outsourcing solutions and find a reliable partner, adding value to your business, improving efficiency, and contributing to long-term success.

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

Leadership & Growth

Succession Planning: Preparing for Leadership Transitions 

Change is inevitable in business, and one of the most significant changes a company can face is a leadership transition....

Accounting & Finance

Sales Tax Compliance in the Digital Age: Challenges and Solutions 

The rise of e-commerce and digital business models has revolutionized how companies reach customers, but it has also added new...

Leadership & Growth

Implementing Lean Management Principles in SMBs

“Lean management” might conjure images of big manufacturing plants fine-tuning assembly lines, but the principles of lean are highly relevant...

People Management & HR

Developing a Competitive Compensation Strategy for SMBs

For small and medium-sized businesses, a competitive compensation strategy is key to attracting and retaining the talent needed to grow...

Accounting & Finance

The Role of Financial Reporting in Small Business Growth

Financial reporting often appears to be a routine exercise, but for small businesses, it can be the difference between reactive...

Accounting & Finance

The Impact of Accurate Financial Operations on Business Success

Financial operations encompass the systems and processes that govern every monetary aspect of a business—from managing payables and receivables to...

People Management & HR

The Benefits of Outsourcing Payroll for Small Businesses 

For many small business owners, running payroll is a time-intensive chore that requires meticulous calculation, familiarity with tax codes, and...

Accounting

Introducing C3: Your All-in-One Financial Management Platform

Managing your business’s finances can often feel like juggling too many tasks at once, especially when you’re trying to keep...

Accounting & Finance

Tax Planning Strategies to Maximize Small Business Savings

Small business owners often grapple with tax obligations that can swallow a large portion of their profits if not managed...