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

Accounting & Finance

October 15 Tax Deadline: What to Double Check Before You File

If your business or personal tax return was extended back in April, October 15 is the final deadline to submit....

Accounting & Finance

Key Financial Deadlines Every SMB Should Know for Q3 and Q4 

For small and mid-sized businesses, the second half of the year often comes with increased operational demands, from budgeting and...

Small Businesses

From Bookkeeping to Strategic Finance: Preparing Your Family Business for Growth

Is Your Family Business Ready for Its Next Chapter? As a family business leader, you've built something remarkable. Through years...

Accounting & Finance

Subscription Revenue in 2025: Fatigue, Churn, and the Imperative to Diversify 

For much of the last decade subscription models symbolized modern growth, predictable revenue, sticky customer relationships, and rising valuations. But...

Accounting & Finance

Closing the Books in Q4: Common Mistakes That Delay Reporting 

Closing the books at year-end is one of the most important financial events for any growing business. It sets the...

Leadership & Growth

Building a Scalable Tech Stack: How to Choose the Right Tools for Growth 

In today’s business landscape, technology is more than a convenience—it’s a strategic asset that can supercharge growth. But as you...

People Management & HR

The Role of HR Analytics in Strategic Decision-Making 

In the era of big data, human resources (HR) analytics has emerged as a powerful tool that can transform how...

Accounting & Finance

Understanding Customer Lifetime Value and Its Impact on Strategy 

In the world of business, not all customers are created equal. Some make one small purchase and disappear, while others...

Accounting & Finance

Tax Strategies for Succession Planning in Family-Owned Businesses 

Succession planning in a family-owned business is a delicate dance that involves not only leadership and emotional considerations, but also...