7 Benefits of Outsourcing Finance and Accounting Services

Benefits of outsourcing finance and accounting services

Outsourced finance and accounting (F&A) is when a business hires a third party to take charge of the F&A functions of the organization. Despite being a crucial aspect of every business, accounting is usually not the main focus of most companies. By outsourcing finance and accounting tasks, you’ll be able to invest your efforts into managing and growing your company. 

Some of the most outsourced F&A services are:

  • Payroll
  • Employee expense process
  • Tax planning, filing, and reporting
  • Budgeting and forecasting
  • Expense reporting
  • Account reconciliation
  • Employee expense processing
  • Debt management
  • Accounts payable
  • Accounts receivable
  • Process oversight

Because of its benefits, 37% of small businesses outsource accounting functions. Some of its benefits are as follows:

Benefits of Outsourcing Finance and Accounting

1. Outsourcing F&A helps you save costs

The primary reason for outsourcing any function is to save costs. 

The average salary for an accountant in the United States is about $64,000 per year. Without reducing quality, the same service can be outsourced for 62% less, with approximately $24,000 per year. Affordable prices are due to the lower labor costs determined by outsourced offshore locations. By hiring outsourced help from the Dominican Republic or the Philippines you are exempt from paying employee benefits, infrastructure and taxes. 

2. Outsourcing F&A provides scalable solutions

You can outsource finance and accounting services at a customized and scalable level. If you own a big company, you may benefit from a team of accountants. But if your company is just getting started, then you can scale back by outsourcing specific operations. This can signify an important cost reduction, as you won’t have to invest in recruiting or training personnel. 

3. Outsourcing F&A can help you save time and improve operational efficiency  

By outsourcing services such as accounting, HR, and IT, you can focus on your business goals, plan and implement strategy, and improve your daily operations. Time is valuable, and it is better spent on innovating ways to become more profitable than working on payroll paperwork or budget planning.

Outsourcing finance and accounting

4. Outsourcing F&A gives you access to up-to-date technology and software

Service providers have access to cloud-based processes, technologies and software advancements such as automation accounting software that will help you increase the efficiency of your F&A operations.  

Automation accounting software has revolutionized the way accountants crunch numbers. It not only saves time, but it also reduces risks since it minimizes human error and lessens the likelihood of internal fraud. Additionally, this software also produces real-time reports that will assist you in detecting possible issues. This can consequently help you resolve them at an early stage. 

5. Outsourcing F&A helps you reduce risks

Aside from minimizing human error through automatized software, outsourcing finance and accounting services helps you avoid being stolen by trusted employees. Small businesses are an easy target for employee theft. A study made by the University of Cincinnati established that  64% of employees steal from small businesses. 

Outsourced experts in accounting audit your money trail and enforce a strong checks and balances system. This protects your company from theft and fraud.  

6. Outsourcing F&A gives you access to key expertise

One important advantage of outsourcing is that you don’t need to train personnel. Instead, you can hire finance and accounting experts that can easily deliver simple tasks and high-end work. By outsourcing, you’re ensuring that your payroll will be paid on time and your books will be up-to-date and accurate. You can even invest your newfound time on improving complex accounting processes.

7. Outsourcing F&A can give you accessibility

Cloud-based softwares used by outsourcing companies allows you to access financial data electronically from any place at any time. This gives you total visibility of your financial data, which in effect, can help you make well-informed financial decisions

In addition, having all financial data on the cloud requires no physical storage space. This is especially beneficial for smaller companies and startups. Storing all financial records online is also eco-friendly since you no longer need to print all financial records. This means that you don’t only save costs on paper and toner, but you also reduce your carbon footprint. However:

Outsourcing is not just about saving money anymore.

Small and medium-sized firms outsource finance and accounting functions as a strategic tool to stay competitive, improve their bottom line, and get access to the newest technology and expertise. 

To learn more about outsourcing, you can read our 8 Questions About Outsourcing You Should Ask article. We invite you to follow us on social media and to visit our website to learn more about our services.

banner-finalAbout Us: Sourcefit is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.

Latest Awards

Sourcefit’s commitment to excellence has been recognized through numerous industry awards and certifications.

We recently received the Fortress Cyber Security Award from the Business Intelligence Group. Sourcefit was also honored with the prestigious recognition of Best Outsourcing Solutions Provider in the Philippines during the 2023 Business Excellence Awards.

Other awards include: FT ranking of 500 high-growth Asia-Pacific, The Marketing Excellence Awards, Inquirer Growth ChampionHR Asia Awards, among others.

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