INSIGHT

How outsourced accounting can improve company valuation 

Mark Leverette, Kemp Moyer • June 4, 2025

Services: Business Valuation, Outsourced Accounting

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When you’re preparing for a fundraising round or planning an exit, the quality of your financial records can alter your company’s value wildly or even make or break your deal.  

Many business owners don’t realize how significantly their accounting practices impact company valuation until they’re sitting across from potential investors or buyers, watching their deal value plummet due to questionable financial data. 

The truth is, professional accounting isn’t just about compliance — it’s a strategic advantage that can substantially increase your company’s market value and attract more serious buyers. 

The hidden cost of poor financial records 

It’s a nightmare scenario: scrambling to pull together financial reports for interested investors, only to realize the numbers don’t quite add up or the data is months out of date. This scenario plays out more often than you might think, and the consequences can be devastating. 

Deal fatigue kills valuations 

One of the most devastating consequences of inadequate financial records is deal fatigue. When you can’t provide timely, accurate financial information to potential investors or buyers, their interest begins to wane. We’ve seen companies lose millions in valuation simply because they couldn’t deliver clean, reliable financial statements when needed. 

The audit bottleneck 

Real estate companies often face unique challenges when raising capital. One property management client struggled for an entire year to complete their audit, effectively freezing their ability to raise funds during that critical period. In fast-moving markets, these delays can cost you competitive positioning and favorable deal terms. 

Why outsourced accounting drives higher valuations 

Access to timely, accurate information 

When you work with an outsourced accounting provider, you gain access to better and more timely financial information. This capability allows you to: 

• Attract more interested parties to your deal 
• Close transactions more efficiently 
• Maintain market value throughout negotiations 
• Provide unquestioned, complete data that gives you a competitive edge 

Professional redundancy and specialization 

Unlike in-house accounting teams that may lack depth or face employee turnover issues, outsourced providers offer multiple specialists with built-in redundancies. You get access to professionals with specific industry knowledge and technical skills—often for the same cost as a single in-house employee. 

This approach also removes the risk from your plate. Instead of managing an accounting department and worrying about key person dependencies, you can focus on growing your business while professionals handle your financial operations. 

6 critical areas that impact valuation 

Not all financial metrics are created equal when it comes to valuation. Whether you’re in SaaS, manufacturing, or professional services, certain numbers carry more weight than others. To maximize your valuation, pay special attention to: 

1. Revenue accuracy and consistency 

Your revenue reporting must be bulletproof. Investors and buyers scrutinize revenue recognition practices, recurring revenue streams, and growth trends. Any inconsistencies or questions about your revenue reporting can significantly impact your valuation multiples. 

2. EBITDA and net income precision 

For many industries, EBITDA serves as the primary valuation metric. Professional accounting practices help you: 

• Accurately calculate and present EBITDA 
• Identify legitimate add-backs and adjustments 
• Maintain consistent reporting standards 
• Document assumptions and methodologies 

3. Balance sheet integrity 

A clean, accurate balance sheet builds confidence with potential investors and buyers. This includes: 

• Realistic accounts receivable and collection assumptions 
• Properly recorded accounts payable and accruals 
• Accurate deferred revenue calculations 
• Clean asset and liability presentations 

4. Cap table accuracy 

Nothing kills a deal faster than cap table errors. Even minor discrepancies in ownership records can immediately stall negotiations or terminate discussions entirely. Professional accounting providers maintain accurate cap tables and ownership documentation from day one. 

5. Nexus regulations and tax compliance 

Non-compliance with nexus regulations can create significant deal risks and reduce valuations. Professional accounting providers stay current with changing tax regulations across jurisdictions, helping you avoid compliance issues that could derail transactions. 

6. Audit readiness 

Being audit-ready at all times positions you to move quickly when opportunities arise. Professional accounting practices mean you can provide audited financials without delays, keeping deal momentum strong. 

Scalability benefits for growing companies 

Perhaps the most overlooked benefit of outsourced accounting is how it positions your company for rapid growth and eventual exit. 

Technology and infrastructure 

Outsourced accounting providers implement appropriate technology stacks that support rapid growth. Whether you’re expanding into new markets, launching products, or scaling operations, professional accounting infrastructure grows with you seamlessly. 

Managing key person risk 

Internal accounting teams create key person dependencies that can concern potential buyers. Outsourced providers eliminate this risk by maintaining continuity regardless of personnel changes, making your business more attractive to acquirers. 

Flexible resource allocation 

As you prepare for due diligence or navigate transaction processes, outsourced providers can quickly scale resources up or down based on your needs. This flexibility keeps costs manageable while maintaining service quality during critical periods. 

The competitive edge of professional financial management 

Companies with professional outsourced accounting consistently command higher valuations because they eliminate uncertainty for buyers and investors. When your financial records are unquestionable and complete, you maintain negotiating power and market positioning throughout deal processes. 

Professional accounting also demonstrates operational maturity to potential partners, suggesting that other business processes are likely well-managed and scalable. 

Making the transition to outsourced accounting 

Moving to outsourced accounting doesn’t have to disrupt your operations. Professional providers manage the transition process, implementing systems and processes that immediately improve your financial reporting quality and deal readiness. 

The investment in professional accounting services typically pays for itself many times over through improved valuations, faster deal processes, and reduced transaction risks. 

Ready to explore how outsourced accounting can improve your company’s valuation? 

Contact BPM today to discuss how our outsourced accounting services can position your business for successful fundraising or exit opportunities. Our team will work with you to develop a customized approach that meets your specific industry needs and growth objectives.