Accounting & Finance

From Cost Savings to Expertise: Top 5 Benefits of Outsourced Accounting

Outsourcing is a game-changing solution to building efficient and effective finance functions.

  • 3 min Read
  • December 28, 2023

Author

Escalon

Table of Contents

Outsourced accounting is a standard business practice in today’s ultra-competitive world. According to Clutch research data, 37% of small businesses in the US outsource finance and accounting.

There’s no doubt that cost-cutting is an essential reason for choosing outsourcing solutions, but that’s not the only factor. 

Schedule a call today

This game-changing strategy offers numerous compelling benefits to small businesses. By outsourcing, you guarantee the accuracy, compliance, and operational efficiency of financial processes. At the same time, it frees up internal resources for mission-critical activities.

Here’s a comprehensive look at the five most significant advantages of financial process outsourcing.

1. Enables cost savings


Partnering with an external accounting agency enables your small business to obtain high-quality work at a significantly reduced cost.

The most significant savings opportunity through outsourcing is labor expenses. Outsourcing eliminates the cost of salaries, benefits, and other added expenses of hiring a full-time employee, thereby reducing overhead costs. Besides, Auxis’ Report on Finance Labor Cost Savings found that outsourcing finance and accounting positions from New York to Costa Rica lowers labor costs by an average of 42% to 51%.

In addition, you get higher productivity and more efficient, centralized finance and accounting operations.

2. Helps focus on value-creating activities


Transactional tasks such as chasing invoices and reconciling accounts consume much time and energy. Outsourcing these repetitive and redundant accounting tasks enables finance teams to focus on higher-value strategic tasks. As a result, they can deliver more robust analytics and insights for informed decision-making.

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

3. Drives efficiencies


Outsourced accounting transforms outdated, clunky finance and accounting operations into modern, agile systems. It provides economies of scale and easy access to best practices and cutting-edge technology solutions that make finance departments more efficient and effective.

4. Better access to specialized talent


Finding and retaining skilled finance professionals is a significant hurdle for organizations. A 2024 Salary Guide by Robert Half reveals that companies are experiencing an accountant shortage, causing financial reporting issues and increased workloads that can lead to employee burnout.

Outsourced accounting solves these problems by providing skilled, reliable resources comprising seasoned accountants, bookkeepers, analysts, and CPA professionals. They work together to drive productivity efficiencies and enhance accuracy. Additionally, outsourced accounting professionals bring fresh ideas and perspectives from diverse experiences.

5. Mitigates business risk


Experienced external accounting professionals are often well-versed in most financial situations your business may or may not face. Besides, they can help you stay abreast of your sector’s ever-changing accounting and reporting requirements. This minimizes the risk of penalties and non-compliance due to improper financial or accounting practices.

The final word


As the business landscape continues to evolve and face new challenges, outsourced accounting can be a crucial pillar in achieving long-term success. Embracing this strategic choice empowers businesses to build a robust and resilient financial foundation, propelling them toward unprecedented growth.

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

Consumer Goods

Insights from a Consumer Goods Expert: Building Brands, Inventory Management, and the Power of Outsourcing

Insights from a Consumer Goods Expert: Building Brands, Inventory Management, and the Power of Outsourcing  In a recent conversation with...

Read More
Private Equity

The Key to Private Equity Success: Strong Financial Oversight and Compliance

Private equity deals are becoming larger and more complex, making financial preparation a critical part of the process. Take Novartis’s...

Read More
Accounting & Finance

Navigating Grant Management and Financial Reporting for Biotech Startups 

Biotech startups operate in a unique financial landscape, where securing grants, venture capital, and government funding is crucial for driving...

Read More
Accounting & Finance

Financial Compliance in the Decentralized Era: What Web3 Startups Need to Know 

As the world leans into the decentralized era, Web3 startups are at the forefront, exploring the possibilities of blockchain, cryptocurrencies,...

Read More
People Management & HR

Payroll Services: Streamlining Processes in High-Turnover Consumer Goods Settings 

  Managing payroll can be complicated in any industry, but it becomes especially challenging in the consumer goods sector, where...

Read More
Accounting & Finance

Navigating Payroll for Nonprofit Organizations: Staying Compliant with Grant Funding Rules 

Nonprofit organizations often rely on grant funding to carry out their missions, whether that involves community development, education, healthcare, or...

Read More
Media & Entertainment

Compliance in the Media World: Navigating Intellectual Property and Contracts 

In today’s hyper-connected media landscape, safeguarding intellectual property (IP) and expertly managing contracts are indispensable for success. Media companies—from traditional...

Read More
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...

Read More
Startups

Sourcing Passive Candidates: Strategies for Expanding Your Talent Pool with Outsourcing 

  One of the most valuable sources of talent for startups is the pool of passive candidates—individuals who aren’t actively...

Read More