Outsourced accounting services represent a strategic option for any business searching for effective external financial management.
From talent shortages to market volatility, outsourced accountants present cost-effective and flexible solutions to the growing list of every day challenges businesses face. But, for any organization on the hunt for this type of fiscal outsourcing, one question is always at the top of the list — and that’s how much it will cost.
Let’s explore that topic and learn how outsourced accounting services can help your organization adapt to the financial hurdles of 2024 and beyond.
G-Squared Partners stands out in outsourced accounting services, bringing over a decade of expertise to cater to various sectors, from startups to tech and commercial real estate. Whether it's large-scale financial projects or routine monthly support, we're equipped to strengthen your financial base and grow alongside you. Connect with us at G-Squared Partners for a partnership that evolves with your business.
The financial management of an organization can be a complex undertaking. As a result, you’ll find many different types of outsourced services that cater to varying levels of financial needs.
You should expect that as you demand more in terms of time and resources from an outsourced accounting firm, the price will rise. To help you better understand how these offerings differ, here is a quick breakdown of popular outsourced financial services.
First on our list is outsourced bookkeeping. An outsourced bookkeeper will provide expertise in several fundamental financial tasks:
These bookkeeping tasks cover basic financial functions and are the go-to option for businesses that seek efficient management of routine daily financial activities. Since they cover various essential, yet simple, everyday financial tasks, outsourced accountants tend to provide a cost-effective solution to ensure the accuracy and timeliness of basic financial records.
Moving beyond bookkeeping, outsourced accounting services cover a more expansive and comprehensive list of financial duties:
For businesses on the hunt for a complete accounting solution, outsourced accountants offer a broad list of services that serve these more complex financial needs. They also play a critical role in dealing with financial accuracy and compliance in which they often provide expert financial management without the burden of in-house hiring or additional overhead.
An outsourced CFO provides high-level financial strategy, expert guidance, and leadership — all tailored to a business’s exact financial needs:
Whether it’s sophisticated financial planning or guidance in investment decisions, there are many great reasons to hire an outsourced CFO. They quickly integrate into a business’s operations and become invaluable business partners. As the most advanced offering, though, they do demand higher costs. But you do get what you pay for: this cost reflects the significant value and impact these financial professionals bring to strategic decision-making.
Once a business understands which level of external financial support it needs, the next question revolves around the several pricing options outsourced firms offer. Often, this will depend heavily on the type of service they decide to employ.
For example, an outsourced bookkeeper may only need a block of time each week to manage basic financial tasks. An outsourced CFO, on the other hand, may need to play a more integrated role in an organization's operations, necessitating a more involved part-time/fractional or full-time presence. Often, your business will need these services to scale up or down in scope as the situation demands.
To expand on this idea of different pricing options, we’ll explore common structures many outsourced financial services firms offer.
As the name implies, hourly pricing is billed per hour with the price determined by a particular professional's skill level and expertise.
The big draw of this pricing model is the pay-to-use structure. This offers businesses an ideal solution for specific and time-bound tasks. On the other hand, if financial needs grow during the outsourced professional's tenure, like in times of heightened financial need, these costs can quickly balloon — especially for top-tier professionals like CFOs, who can demand hundreds of dollars per hour.
For organizations searching for a stable and predictable payment structure, a fixed monthly retainer can seem like an obvious option.
While this model can provide a level of budget certainty and is easy to plan for, it lacks the flexibility needed to adapt to evolving and unique business needs. It’s often the case that a fixed monthly fee can lead to a “copy and paste” approach to financial management that fails to tailor financial solutions to the demands of the business.
In this pricing model, the outsourced firm will determine fees based on the volume of transactions or tasks handled. This model is common with many outsourced bookkeeping services.
Businesses that opt for this pricing structure are often drawn in by the transparency of fees as charges align with the scale of service usage. Unfortunately, this approach is not suitable for organizations with complex financial operations or a high volume of transactions, and is not well suited to more strategic outsourced accounting or CFO level engagements.
A hybrid pricing model is a custom-tailored solution that considers the individual requirements of each business. It offers a balance of flexibility and predictability where costs align with specific service needs.
Even so, it demands a higher level and detailed understanding of an organization's needs to effectively structure pricing. This approach is designed to provide value-driven solutions tailored to the unique financial needs of each business, which ensures clients only pay for the services they need without compromising on quality.
When it comes to estimating outsourced accounting costs, there is no simple solution. How much a business will spend will depend on several key factors:
This is, of course, a short list that only scratches the surface of what to consider when pricing out external financial services. The needs of one business won’t fit the needs of another. However, the complexity of your financial needs and the services required will often be the main elements that influence price.
For example, a larger organization may require comprehensive accounting and financial services. In this situation, they may invest tens of thousands of dollars per month.
A smaller business may only demand basic services that cost a couple of thousand dollars a month.
It’s important to note that in both cases, the quality of services provided should be a top priority. The last thing a business would want is to be stuck with an accounting firm that does not match their needs or, worse, fails to follow through with mission-critical financial tasks. This is not an area to cut costs – access to reliable financial data and insights is crucial to the success of your business.
While this might not provide an exact estimate of outsourced accounting costs, it does provide general strategic advice for balancing your budget with quality services. For a more detailed estimate, explore G-Squared Partners’ Outsourced Accounting Services Calculator.
Outsourced accounting services are inherently value-driven. While cost is always an important factor in final decision-making, businesses should instead focus on the quality and accuracy of any given service.
In the end, you do get what you pay for. These services are essential for maintaining compliance and overall financial health. If an organization cuts corners, it can lead to costly inaccuracies that compound in the long run.
At G-Squared Partners, we offer a tailored approach to outsourced accounting to meet the evolving demands of fast-growing and mature companies.
Businesses planning for 2024 and beyond should connect with the G-Squared Partners team to develop a custom approach to outsourced accounting that aligns with their growth trajectory and goals.