In recent years, many businesses have faced challenges in attracting and retaining qualified finance professionals. Whether it’s experienced CFOs, controllers, or even bookkeepers, recruiting, training, and nurturing talented employees at every level of the organization has proved difficult for many.
One solution that’s helping many organizations fill these gaps is outsourced accounting services. These fractional accounting and finance solutions offer a cost-effective, systematic approach to accounting that frees your business up to focus on what it does best. By working with outsourced accounting services, businesses benefit from stability, scalability, and reliable access to high-quality financial information.
As outsourced accounting services have become more popular, businesses are faced with an increasing number of options to choose from. With so many choices, it’s crucial that you choose the best outsourced accounting service for the unique needs of your business. Today, we’re going to walk you through how you can do exactly that.
We’ll outline the key factors that you should consider to ensure you find the best outsourced accounting service for your business, helping you make the best decision possible when it comes to finding a strategic accounting and finance partner.
Outsourced accounting services are exactly what they sound like: an outsourced service that handles your business’s accounting. Many outsourced accounting providers offer a variety of services that are organized across three tiers:
At G-Squared Partners, we’ve been providing outsourced accounting services for well over a decade. In that time, we’ve worked with hundreds of companies, so it’s safe to say we understand what separates a high-quality outsourced accounting firm from a low-end solution.
If you’re in the market for an outsourced accounting service, you’ll have realized by now that you’re not short on options. From established players that use a systematized, tech-first approach to smaller, less well-resourced teams, there are plenty of solutions to choose from.
For many businesses, the best outsourced accounting services land somewhere in the middle: a mid-sized firm that has the sophistication to handle growth and complexity but retains the personal touch and entrepreneurial spirit of a smaller team.
To make sure you pick the best outsourced accounting service for your needs, we recommend you evaluate potential partners on the following five dimensions.
Your first task is to determine whether the outsourced accounting vendors you’re considering have proven experience advising companies in your industry. Every industry has unique accounting quirks and best practices, from SaaS accounting to real estate accounting, and any potential partners should understand these intricacies.
Beyond the skills and knowledge required to run your accounting in line with industry best practices, there are also additional benefits to working with a partner with experience in your industry. Leaders at these organizations may have a well-developed network that they’re willing to share with you. At G-Squared Partners, for example, we regularly introduce clients in the tech industry to investors, bankers, attorneys, and other professionals.
Related: How G-Squared Partners Prepared a Software Company for a $300MM Exit
The scope of the services provided by outsourced accounting firms can vary dramatically. Many firms offer clearly defined, pre-packaged services that promise certain outsourced accounting deliverables each month. These offer predictability but fail to account for the unique needs of your business.
It might be the case that you need support with certain accounting tasks but are well-equipped to handle others in-house. Or perhaps you anticipate growing fast and needing more support as your business scales.
Regardless, it’s important to find a provider that takes a bespoke approach to building an outsourced accounting package tailored to the needs of your business. This flexibility ensures that you get everything you need and nothing you don’t.
If you have ambitions of growing your business into a major player in your industry, you should focus on choosing an outsourced accounting provider that has the capacity to scale up their services as your needs require. Smaller solutions might be fine when you’re just starting out and only need basic bookkeeping, but as you start to grow, you need more sophisticated professionals to help you build your financial foundation.
Equally, there might be periods when your business faces a lull in activity. During those months, it’s important that you’re able to scale down your outsourced accounting support and efficiently manage your business’s overhead costs. By finding a partner that’s able to scale their services up or down as necessary, you’ll ensure you always have the resources you need.
The cost of outsourced accounting services can vary dramatically, from less expensive offshore providers to top-tier accounting firms with billable rates to match their reputation.
In most instances, the sweet spot is somewhere in the middle. Opting for the cheapest provider is rarely a recipe for success since the quality of work will likely be poor, creating problems for your business. At the same time, there’s no need to pay top dollar for these services. Many outsourced accounting services are relatively straightforward for experienced professionals. Unless your business is extremely complex, it’s unlikely you need the best of the best to manage your daily accounting operations.
Some of the best outsourced accounting services offer complementary solutions outside the realm of outsourced accounting. Whether it’s business exit planning services or audit preparation solutions, the right partner can provide guidance across the full spectrum of your business’s financial needs.
This one-stop approach leads to significant operational efficiencies and cost savings, also allowing entrepreneurs to form a strategic partnership with an experienced financial advisory firm that can help them build cohesive strategies.
Your choice of outsourced accounting service is an important one. Ideally, these firms will support your business for years to come, managing your financial information and providing you with the insights and confidence you need to grow. The wrong choice can set your business back while picking the perfect partner can significantly accelerate growth.
At G-Squared Partners, our outsourced accounting services embody all of the qualities of the best outsourced accounting services outlined above. Our skilled team brings years of experience working with clients across a wide range of industries, with significant expertise in tech, real estate, manufacturing, and more.
To learn more about how G-Squared Partners’ outsourced accounting services can support your business, contact us today.